Keppel DC REIT’s Strategic Equity Fund Raising: What Investors Must Know

Keppel DC REIT has announced key dates for its upcoming equity fund raising, aiming to raise approximately S\$1 billion. This move is part of a broader strategy to enhance its capital structure and expand its portfolio.

Advanced Distribution and Preferential Offering

Keppel DC REIT will close its Transfer Books and Register of Unitholders on 27 November 2024 to determine entitlements under the Preferential Offering and Advanced Distribution. The distribution of income accrued from 1 July 2024 to 27 November 2024 will be advanced, ensuring fairness to existing unitholders.

Estimated Distribution Range

The Advanced Distribution is estimated between 4.063 cents and 4.103 cents per unit. It includes taxable income, tax-exempt income, and capital distribution. This is crucial for unitholders to note, as it directly impacts their returns.

Status of New Units

Upon issuance, Private Placement New Units will rank equally with existing units but will not be eligible for the Advanced Distribution or Preferential Offering. The same applies to Preferential Offering New Units regarding the Advanced Distribution.

Tax Implications

Unitholders should be aware of their tax liabilities. Qualifying Unitholders will receive distributions without tax deductions, while others may face a 17% tax rate if forms are not properly filled. Foreign funds and non-individual investors have specific tax rates and conditions to meet.

Important Dates

• 27 November 2024: Close of Transfer Books for Advanced Distribution
• 16 December 2024: Deadline for submission of tax forms
• 10 February 2025: Expected payment date for Advanced Distribution

Investors should carefully consider these elements as they could influence the market perception of Keppel DC REIT and potentially affect share values.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should consult their financial advisor before making any investment decisions. The information herein is based on the latest available data and may be subject to change.