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Keppel DC Reit to join STI on Monday
KEPPEL DC Reit (real estate investment trust) will become a component stock of the Straits Times Index (STI) on Oct 19, as another Reit CapitaLand Commercial Trust (CCT) leaves the STI in preparation for its merger with CapitaLand Mall Trust (CMT).
Singapore Exchange (SGX) said in market updates issued on Thursday that Keppel DC Reit with market capitalisation S$4,817 million was the largest stock on the STI reserve list as at Oct 14. The stock has generated a 330 per cent total return since listing in 2014, said SGX.
Following the changes in the STI make-up, the total indicative weighting of Reits in the STI will be 14 per cent, making the asset class the third largest sector in the index, behind financial services and industrials. Keppel DC Reit will have an indicative index weight of 1.2 per cent, based on June 30 data.
Keppel DC Reit was listed in 2014 as the first pure data centre Reit in Asia, and has remained as the only pure data centre S-Reit on SGX. It invests in a diversified portfolio of real estate assets, which are used primarily for data centre purposes. Its portfolio grew from eight assets valued at S$1 billion at its initial public offering to 18 assets across the Asia-Pacific and Europe valued at S$2.8 billion as at June 30.
The merger of CCT and CMT will form a new combined entity called CapitaLand Integrated Commercial Trust, which is expected to be one of the largest Reits in Singapore and in Asia Pacific. CCT will last trade on Oct 16.
According to STI ground rules, the replacement stock for STI will be selected by the highest ranking security by full market value in the reserve list as at the close of the index calculation two days prior to the deletion.
Fraser Logistics & Commercial Trust will become the largest stock in the STI reserve list, after Keppel DC Reit graduates to the benchmark index.
Keppel DC Reit closed up four Singapore cents to S$2.99 on Thursday.