Keppel DC REIT Announces Advanced Distribution Amidst Major Equity Fund Raising

In a strategic move, Keppel DC REIT is set to raise approximately S\$1 Billion through an Equity Fund Raising, impacting the distribution structure and unit allotment. The announcement on November 19, 2024, outlines key developments and dates that shareholders must be aware of.

Key Highlights and Important Dates

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 and entitlements to distributable income. The Private Placement New Units are expected to be listed on the SGX-ST on November 28, 2024. Following this, the next distribution will cover income until December 31, 2024, with semi-annual distributions resuming thereafter.

Advanced Distribution Details

Keppel DC REIT Management Pte. Ltd. estimates the Advanced Distribution per existing unit to be between 4.063 cents and 4.103 cents. This distribution includes taxable income, tax-exempt income, and capital distribution components. Importantly, this distribution is only for existing units, ensuring fairness before the issuance of new units.

Impact on New Units

The Private Placement New Units, upon issuance, will rank equally with existing units, except for entitlements to the Advanced Distribution and participation in the Preferential Offering. Similarly, the Preferential Offering New Units will share these attributes but will be entitled to distributions from the issuance date of the Private Placement New Units onwards.

Tax Implications

The announcement provides detailed tax implications for various unitholders, including individuals, REIT ETFs, foreign investors, and others. Qualifying unitholders will receive distributions without tax deductions, while others may face deductions unless they complete necessary forms.

Conclusion

This significant financial maneuver by Keppel DC REIT could potentially influence share values, given the substantial funds being raised and the restructuring of distributions. Shareholders are advised to note the key dates and tax implications to optimize their benefits.

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.