Keppel DC REIT Announces Key Dates for Advanced Distribution and Preferential Offering

Keppel DC REIT has unveiled critical details regarding its upcoming Advanced Distribution and Preferential Offering, a move that could significantly influence investor sentiment and share value. This announcement follows the recent launch of an Equity Fund Raising effort aimed at generating approximately S\$1 billion in gross proceeds.

Advanced Distribution Details

The Advanced Distribution is scheduled to cover the period from July 1, 2024, to November 27, 2024, with an estimated distribution per unit ranging between 4.063 cents and 4.103 cents. This distribution will be divided into taxable income, tax-exempt income, and capital distribution. Notably, this distribution applies only to existing units, ensuring fairness to current unitholders.

Key Dates for Investors

• November 27, 2024: The Transfer Books and Register of Unitholders will close at 5.00 p.m. to determine entitlements for the Advanced Distribution.
• February 10, 2025: Expected payment date for the Advanced Distribution.
• December 16, 2024: Deadline for returning tax declaration forms to receive a gross distribution or a distribution net of 10% tax.

Tax Implications

The Advanced Distribution will be tax-exempt for individual unitholders and certain qualifying entities. However, foreign (non-individual) unitholders and foreign funds may face a 10% tax, while other unitholders may see distributions reduced by 17% tax if forms are not completed correctly.

Impact on Share Value

The announcement of the Advanced Distribution and Preferential Offering is likely to influence Keppel DC REIT’s share price. The estimated distribution range and the timeline for distributions are key factors for investors, potentially affecting market perceptions and valuation.

Additional Information

The Private Placement New Units, when issued, will not participate in the Advanced Distribution but will be eligible for subsequent distributions. This separation aims to maintain equity among existing and new unitholders.

The Preferential Offering New Units will similarly not be entitled to the Advanced Distribution but will share in future earnings from their issuance date.

Investors are advised to consider these announcements carefully, as they might alter market dynamics and investment decisions.

Disclaimer

This article is intended for informational purposes only and should not be construed as financial advice. Investors are encouraged to perform their own due diligence and consult with financial advisors before making investment decisions. The value of investments can fluctuate, and past performance is not indicative of future results.

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