Keppel DC Reit is on a buying spree this year. The Milan DC, the Cardiff DC and now a Singapore DC (Keppel Datahub 2).
A rights issue for Keppel DC Reit is coming in November. It is a preferential offering of 274 new units for every 1,000 units held for an issue price of $1.155.
Initially there was not much "meat" in the offer as it is just about 5% discount to its current price then. But Keppel DC Reit's price has gone up since the news and now the discount is closer to 10%.
I have collected $300+ dividends from Keppel DC Reit, but I guess I have to return all and more for this rights issue. Well, I am on the accumulation phase, so it is alright for me. You always need to prepare for such event holding a REIT.
Looking back on the rights that I have participated in the past:
1. Starhill Global Reit: 1-for-1 at $0.35 in 2009. During the great Global Financial Crisis. Probably right and VFM considering current price at $0.81.
2. AIMSAMP Cap Indust Reit: 7-for-40 at $1.08 in 2014. Probably right considering current price at $1.37.
3. Keppel Infra Tr: 1-for-13 at $0.515 in 2015. Jinxed by "13". So, wrong for this counter considering current price at $0.50.
4. Mapletree Com Tr: 17-for-100 at $1.42 in 2016. Probably right considering current price at $1.54 and the need to pay for the brand name of Mapletree.
As you can see, it is not always right when buying the rights.
After the Keppel DC Reit rights issue, I am also expecting a Saizen Reit rights as it will need to bring its price up to a respectable level.
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