Keppel DC REIT Announces Key Dates for Advanced Distribution and Preferential Offering Amidst Equity Fund Raising
Keppel DC REIT Announces Key Dates for Advanced Distribution and Preferential Offering Amidst Equity Fund Raising
Keppel DC REIT has announced significant details regarding its Advanced Distribution and Preferential Offering as part of its Equity Fund Raising initiative, which aims to raise approximately S\$1 billion. This announcement could be critical for existing and potential shareholders, providing essential information that could influence share values.
Key Dates and Distribution Details
The Transfer Books and Register of Unitholders will be closed on November 27, 2024, at 5:00 p.m. to determine the provisional allotment of new units under the Preferential Offering and to assess entitlements to distributable income for the period from July 1, 2024, to November 27, 2024. The Private Placement New Units are expected to be listed on the SGX-ST on November 28, 2024, with the next distribution following the Advanced Distribution covering income from the issuance date to December 31, 2024. Semi-annual distributions will resume afterwards.
Advanced Distribution Insights
The estimated quantum of Advanced Distribution per Unit for the period leading up to the issuance of new units is between 4.063 cents and 4.103 cents. This comprises taxable income distribution, tax-exempt income distribution, and capital distribution. The Advanced Distribution is intended to fairly allocate distributable income accrued before the issuance of new units exclusively to existing units.
Tax Considerations for Unitholders
For tax purposes, the Advanced Distribution includes taxable income, tax-exempt income, and capital distributions. Qualifying Unitholders, including individuals, Singapore-incorporated companies, and REIT ETFs, might receive the distribution without tax deductions. However, foreign non-individual investors will face a 10% tax, while other unitholders might see a 17% tax deduction if specific forms are not completed and returned promptly.
Important Reminders and Deadlines
Relevant forms will be dispatched around December 3, 2024, and must be completed and returned by December 16, 2024, to ensure favorable tax treatments. The payment of the Advanced Distribution is scheduled for February 10, 2025.
Potential Impact on Share Prices
The details surrounding the Advanced Distribution and Preferential Offering, particularly the tax implications and potential dilution of existing shares, could influence Keppel DC REIT’s share prices. Investors are encouraged to consider these factors carefully as they could impact market perceptions and investment decisions.
Disclaimer: 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 investment decisions.
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