Keppel DC Reit

$Keppel DC Reit(AJBU.SG)

Context: Valuations across tech and AI ETFs have pulled back, data center REITs have also softened and provided a healthier entry point into the physical infrastructure supporting global AI workloads.

My trade: I am monitoring and evaluating to add to my long-term core position. While short-term tech prices fluctuate, hyperscaler computing needs remain in demand, making Keppel DC Reit an excellent long-term holding for both income and growth.

Takeaway: Moving forward, I will accumulate in DCA tranches during sector pullback to lower my cost basis.

$Keppel DC Reit(AJBU.SG)

Iggy's Journal: The Number Everyone's Watching Isn't The Fed, It's The 10-Year

15 September 2026, Late Night

Quick one before I turn in, still adjusting to UK time. The US 10-year Treasury yield ended last week at 4.97%, just below 5%. It briefly traded above 5% on Monday, but hasn't recorded a daily close above that level since 2007. JPMorgan strategists now see a quarter point hike as likely at the Fed meeting concluding Wednesday.

What I'm Doing About It

Higher global yields can affect financing conditions here, but that's not the same as saying it moves SORA directly, SORA responds to Singapore dollar money market conditions and MAS policy settings. What I'm actually doing is watching Lendlease and Keppel DC's coverage ratios more closely this week, not because either has a new problem, but because that's the channel worth tracking if borrowing costs drift higher.

The Numbers

August core CPI rose 0.3% month on month, 0.1 point above forecast, annual core rate held at 2.4%, in line with expectations. That pushed futures to price roughly a 90% probability of a hike this week. One portfolio manager called the Fed "behind the curve," expecting yields higher regardless of Wednesday. JPMorgan's desk sees a hike as likely but stays bearish on long end Treasuries given possible reactions to the statement and Chair Warsh's press conference.

My Personal Take

The 5% level itself doesn't mean much mechanically, nothing structurally different happens crossing a round number. But markets treat round numbers as decision points anyway, and that alone can move things. I'd rather watch how Wednesday's decision gets received than react to a yield print from before it.

Cheers, Iggy 🦖

Iggy's Journal: A S$1.39 Billion Deal That Fixes Almost Nothing

13 September 2026, PM

Video Release

New video's up on Keppel DC REIT, and this one's worth reading past the headline. A S$1.39 billion Tokyo data centre acquisition is being framed as portfolio strengthening, and on paper it should be. Pro forma occupancy only moves from 92.5% to 92.9%, a tiny fix for that much capital deployed. Gearing jumps from a clean 34.0% into the 38-39% band, well outside the range I look for. And the Cardiff vacancy that pulled occupancy below the 95% floor I track is still sitting there, unaddressed by this deal.

That's the trade I want people to actually see. A 0.4 percentage point occupancy improvement bought with a meaningful jump in leverage. One of the thresholds I track was already not met before this acquisition. Now there are two.

My Personal Take

Genuinely, my first read on a S$1.39 billion deal was to assume it was solving something real, that's usually the point of a deal this size. Then I looked at what the occupancy number actually moved by and had to sit with the gap between the framing and the math. This isn't me saying the underlying business is broken, data centre demand in Japan is a real structural story and I'm not dismissing it. But if you're holding this for CPF or SRS income, the question isn't whether the growth story is real, it's whether the balance sheet can absorb it while a known vacancy problem still hasn't been fixed. Worth the watch before you read this acquisition as good news without checking what it cost to get there.

📺 YouTube: https://youtu.be/JuyGF4UYVnE

📩 Substack: https://investingiguana.com/p/japans-grid-constraints-are-reshaping

Full breakdown, the complete Red Zone watchlist, and the cheatsheets live with Iggy's Elite Investors, S$12/month.

Not financial advice. Iggy's Forensic Compliance Standards apply.

Cheers, Iggy 🦖

$Keppel DC Reit(AJBU.SG)

Keppel Data Centre announced a rights issue today, with the size accounting for over 10% of total share capital. The stock price has dropped significantly amid panic.

I'm not particularly worried and haven't reduced my position; instead, I'm considering adding to it, though still weighing in on the price.

The main reason is that I believe this is an equity-dilutive offering, likely for acquiring the Tokyo data center. My only concern is whether this week's CPI data will add to the pressure on rate hike expectations.

$Keppel DC Reit(AJBU.SG)

Context: With AI and cloud computing driving strong demand for data center infrastructure, Keppel DC REIT continues to benefit from this and is able to deliver steady distribution growth and strong operational performance. This Reit is a compelling candidate for me, for my income-focused dividend portfolio.

My trade: Opened a long position to secure a reliable dividend payout stream. I chose Keppel DC REIT for its portfolio, strong occupancy rate, and high-quality data center assets that generate dependable, recurring distributions over the long term.

Takeaway: Going forward, I will monitor for market volatility and will add more near key technical support levels to secure a higher yield-on-cost.

$Keppel DC Reit(AJBU.SG)

Context:

I bought Keppel DC REIT mainly for the data centre growth story and the potential for stable recurring income. But after the recent move up, I felt it was a good time to reassess my position.

My trade:

I decided to sell and lock in my gains. I still like the long-term data centre theme, but at the current price, I felt the upside was less attractive compared with the risk. I’d rather take some profit now and look for another entry if the price comes back down.

Takeaway:

Selling doesn’t mean I’ve changed my view on data centres. Sometimes it’s just about taking profit when the risk-reward no longer looks as attractive. I’ll definitely keep Keppel DC REIT on my watchlist. 📈

$Keppel DC Reit(AJBU.SG)

Context:

I’ve been looking at the data centre sector and I like the long-term demand for digital infrastructure. With AI, cloud computing and data usage continuing to grow, I think data centres should remain an important part of the digital economy.

My trade:

I decided to buy Keppel DC REIT because I wanted exposure to the data centre space while also getting the potential income from a REIT. I’m taking a longer-term view rather than looking for a quick gain.

Takeaway:

For me, it’s a combination of the data centre growth story and recurring rental income. There may be short-term volatility, but I’m comfortable holding and seeing how the sector develops.

$Sasseur Reit(CRPU.SG)

🦎 IGGY TRADE JOURNAL, 3 SEP 2026

Not a brief today, Iguanas. A journal entry. I put fresh capital to work this week and want to walk through it the way I walk through everything else.

WHY I MOVED

Cash had been sitting since my last REIT exit. Before deploying it I ran the same checklist I run on every income name: yield against my minimum hurdle, gearing, interest coverage, occupancy. Two names cleared the bar well enough to act on.

👁 CRPU Sasseur REIT

My read on this name has shifted. Yield clears my minimum hurdle with real room to spare. Gearing is among the lowest I track on the whole exchange. Interest coverage is comfortably above the floor I look for.

Occupancy is holding well above my threshold. The watch item has not gone away though, this is a single market bet, all four malls sit in mainland China, and the income comes back to me in renminbi before conversion. Cost of debt was just refinanced down to a record low, and lease renewal talks with the landlord group are already underway, so the near term renewal risk is being actively managed rather than sitting unresolved. Sized this smaller than a full position given the new country exposure.

👁 AJBU Keppel DC REIT

My read here has shifted too. Gearing now sits within the range I look for. Interest coverage is comfortably above my floor, the strongest of anything I checked this round. The one metric outside my range is occupancy, one facility came off contract and dragged the portfolio figure down. Strip that one facility out and occupancy is back above my threshold. Management says it is being actively re-leased, no confirmed timeline yet. Sized this smaller than Sasseur given that open item.

IGGY'S TAKE

Two different risk profiles, same discipline underneath. I do not buy a yield number on its own. I check what is holding it up before I commit capital, and I write down what would change my mind before I am three

weeks in and rationalising.

Not financial advice.