Keppel DC REIT Announces Significant Fundraising and Distribution Plan

Keppel DC REIT has unveiled a series of strategic financial moves that could significantly impact its market valuation. The company has announced an Equity Fund Raising initiative to generate approximately S\$1 billion in gross proceeds. This initiative includes a Preferential Offering and an Advanced Distribution, which are critical for shareholders to understand.

Key Highlights

• Equity Fund Raising: The fund-raising initiative aims to raise S\$1 billion, marking a pivotal moment for Keppel DC REIT as it seeks to expand its financial flexibility and investment capacity.
• Advanced Distribution: The distribution, exclusively for existing unitholders, is set between 4.063 cents and 4.103 cents per unit. It comprises taxable, tax-exempt, and capital distributions, ensuring fairness for existing unitholders.
• Distribution Dates: The Advanced Distribution is expected to be paid on or around February 10, 2025, following the issuance of the Private Placement New Units on November 28, 2024.
• Tax Implications: Detailed tax treatment guidance is provided for various categories of unitholders, including individuals, REIT ETFs, CPF/SRS account holders, and foreign investors.

Shareholder Considerations

These announcements could influence Keppel DC REIT’s share price due to the potential dilution of existing shares and the infusion of new capital. Shareholders should be aware of the preferential offering details and the tax implications associated with the Advanced Distribution.

Important Dates

• November 25, 2024: Last date that the units are quoted on a “cum-distribution” basis.
• November 27, 2024: Preferential Offering Record Date for determining provisional allotments and distribution entitlements.
• December 16, 2024: Deadline for returning tax declaration forms to receive the appropriate tax treatment on distributions.

The structured approach to distributions and the detailed tax guidance underscores Keppel DC REIT’s commitment to transparency and fairness for its unitholders. This move is poised to bolster investor confidence and potentially enhance market performance.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making investment decisions. The information is based on the current plans of Keppel DC REIT as of November 19, 2024, and is subject to change.