Keppel DC REIT Announces Key Dates and Tax Details for Upcoming Distributions

Keppel DC REIT has issued an announcement detailing critical dates and tax information for its upcoming advanced distribution. This announcement is part of the REIT’s ongoing Equity Fund Raising initiative aimed at raising approximately S\$1 billion in gross proceeds.

Key Dates for Investors

The Transfer Books and Register of Unitholders will be closed on Wednesday, 27 November 2024, at 5.00 p.m. This closure is to determine the provisional allotment of new units to entitled unitholders under the Preferential Offering and to establish entitlements to the distributable income from 1 July 2024 to 27 November 2024, known as the “Advanced Distribution.” The Private Placement New Units are expected to be listed on the SGX-ST on 28 November 2024. The Advanced Distribution is anticipated to be paid on or around Monday, 10 February 2025.

Advanced Distribution Details

The estimated distribution per unit before the issuance of the new units ranges from 4.063 to 4.103 cents. This distribution comprises taxable income, tax-exempt income, and capital distribution. The Advanced Distribution will only be allocated to existing units to ensure fairness among current unitholders.

Tax Implications

The distribution will include three components: Taxable Income Distribution, Tax-Exempt Income Distribution, and Capital Distribution. Notably, tax will not be deducted from distributions made to qualifying unitholders, including individuals and certain entities such as Singapore-incorporated companies and charities. However, foreign non-individual unitholders may have taxes deducted at a rate of 10%, and other non-qualifying unitholders at a rate of 17% unless specific forms are completed and submitted by the stipulated deadlines.

Important Reminders for Unitholders

Unitholders must ensure that all applicable forms are returned by Monday, 16 December 2024, to receive the appropriate tax treatment on their distributions. Failure to comply may result in higher tax deductions.

Potential Impact on Share Prices

Keppel DC REIT’s announcement regarding the advanced distribution and tax implications could influence investor sentiment and potentially affect share prices. Investors are advised to consider these details carefully when making investment decisions.

Disclaimer

The information contained in this article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.