Keppel DC REIT Announces Distribution Payment and Taxation Details for Shareholders

Keppel DC REIT has declared a distribution of 0.819 cents per unit for the period from 28 November 2024 to 31 December 2024. This announcement may prove to be price-sensitive as it outlines the payment details, tax implications, and critical deadlines for shareholders.

Key Highlights

• Distribution Amount: 0.819 cents per unit, comprising:
  • Taxable income distribution: 0.764 cents per unit
  • Tax-exempt income distribution: 0.055 cents per unit
• Record Date: Monday, 5 February 2025, at 5:00 PM
• Payment Date: Monday, 17 March 2025

Important Tax Details for Shareholders

Shareholders must be aware of the tax treatment for the declared distribution:

Tax-Exempt Income Distribution

The tax-exempt portion of 0.055 cents per unit is exempt from tax for all unitholders. No tax will be deducted at source for this portion.

Taxable Income Distribution

The taxable portion (0.764 cents per unit) may be subject to tax deductions based on the unitholder’s status:

• Qualifying Unitholders: Individuals or entities such as companies incorporated in Singapore, charities, statutory boards, and REIT ETFs will receive gross distributions without tax deductions but may be required to declare them in their tax filings.
• Foreign (Non-Individual) Unitholders: These investors will receive distributions net of 10% tax, provided they meet specific conditions and submit Form A (Section D).
• Foreign Funds: Eligible foreign funds will also receive distributions net of 10% tax, subject to the submission of Form A (Section E).
• Nominee Unitholders: Nominees holding units for the benefit of foreign investors or funds must submit Form B to avoid a 17% tax deduction.
• All Other Unitholders: Joint holders (other than individuals) and others will receive distributions net of 17% tax without needing to submit forms.

Critical Deadlines

Shareholders must adhere to the following deadlines to ensure they receive the correct distribution amount:

• Form Distribution: Relevant forms (Form A and Form B) will be dispatched on or around Tuesday, 11 February 2025.
• Form Submission Deadline: Completed forms must be returned to Boardroom Corporate & Advisory Services Pte. Ltd. by Monday, 24 February 2025, at 5:00 PM.

Potential Impact on Share Price

The announcement of the distribution payment and detailed taxation policies is likely to attract attention from investors seeking stable income streams. The tax transparency treatment for qualifying unitholders, coupled with the clarity around deadlines, could influence investor sentiment and trading activity on the Singapore Exchange.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or an invitation to purchase or sell any units. Investors are encouraged to consult their financial advisors or tax professionals for guidance specific to their circumstances. Past performance is not indicative of future results, and investments in REITs are subject to market risks.