Keppel DC REIT Issues 2.44 Million Units as Payment for Tokyo Data Centre 3 Acquisition Fee

Key Developments

• Acquisition Fee Paid via New Units: Keppel DC REIT Management Pte. Ltd. (the “Manager”) has announced the issuance of 2,435,983 new Units in Keppel DC REIT at a price of S\$2.3834 per Unit. These Units have been issued as payment for the acquisition fee associated with the REIT’s purchase of a 98.47% interest in Tokyo Data Centre 3.
• Calculation of Issue Price: The issue price for these “Acquisition Fee Units” is based on the volume weighted average price (VWAP) for all trades of Keppel DC REIT Units over the ten business days immediately preceding 19 November 2025, which was the completion date of the acquisition.
• Trust Deed Provisions: The Manager is entitled to receive acquisition fees in a mix of Units and cash, as stipulated in the trust deed for Keppel DC REIT. The proportions are at the Manager’s discretion.
• Current Unit Holdings: Following this issuance, the Manager now holds a total of 30,025,557 Units, which represents approximately 1.230% of the total issued Units (2,440,733,452 units).

Important Shareholder Information and Potential Price Sensitivity

• Dilution Effect: The issuance of new Units may result in a slight dilution of existing unitholders’ interests. Although the number issued (2.44 million) is relatively small compared to the total Units outstanding, dilution is always a factor for investors to consider.
• Alignment of Interests: The Manager’s decision to take the acquisition fee in Units, rather than cash, aligns their interests with those of unitholders by increasing their stake in the REIT. This can be seen as a positive sign, potentially supporting the REIT’s share price.
• Strategic Expansion: The acquisition of a near-full stake in Tokyo Data Centre 3 further strengthens Keppel DC REIT’s position in the data centre market, especially in Japan, one of Asia’s most important digital infrastructure hubs. This could be a catalyst for future growth and may impact the REIT’s valuation.
• Market Trading: Investors are reminded that Units can only be traded on the Singapore Exchange (SGX-ST). There is no right for investors to redeem their Units directly from the Manager; liquidity is dependent on the trading market.
• Risk Factors: The announcement cautions that forward-looking statements are subject to a range of risks, including economic conditions, interest rate changes, capital availability, competition, shifts in customer demand, and changes in government policy. Investors should not place undue reliance on past performance or forward-looking statements.
• Potential Price Sensitivity: The combination of the strategic acquisition, issuance of new Units to the Manager, and the Manager’s increased stake could influence investor sentiment and share price. The market may react positively to the demonstrated alignment of interests, but potential dilution remains a consideration.

Detailed Transaction Summary

• Date of Announcement: 23 December 2025
• Acquisition Completion Date: 19 November 2025
• Total Units Issued for Fee: 2,435,983
• Price per Unit: S\$2.3834
• Manager’s Holdings Post-Issuance: 30,025,557 Units (1.230% of total Units)
• Total Units Outstanding: 2,440,733,452
• Asset Acquired: 98.47% interest in Tokyo Data Centre 3 (Japan)
• Manager’s Discretion: Fee payment proportion between Units and cash at Manager’s election

Conclusion for Investors

The issuance of new Units as an acquisition fee for a significant data centre asset in Japan is a noteworthy development for Keppel DC REIT. While the resulting dilution is marginal, the Manager’s increased stake and the strategic expansion into Tokyo may positively influence investor sentiment and potentially support the REIT’s share price. However, as always, investors should remain mindful of the inherent risks and monitor further developments related to the REIT’s growth strategy and performance.

Disclaimer: This article is for informational purposes only and does not constitute an offer, invitation, or recommendation to purchase or subscribe for any securities in Keppel DC REIT. The value of investments may fall as well as rise, and past performance is not indicative of future results. Investors should consult their financial advisers and perform their own due diligence before making any investment decisions. The information herein is based on publicly available documents and is not guaranteed to be complete or error-free.

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