Keppel DC REIT share price in big trouble
Lifetime Membership As 2023 draws to a close, it is time to review the performance of Keppel DC REIT share price. For many unitholders, 2023 must be a watershed year for Keppel DC REIT as the data centre REIT player swims in unchartered waters, confronting a slew of uncertainties and unfamiliar challenges.
First off the bat. Keppel DC REIT was expelled from the benchmark Straits Times Index (STI) on 19 June 2023, just less than 3 years after being included in the STI. Replacing Keppel DC REIT was Seatrium, which has been loss-making for the past 5 years and showing no sign of turning around till now. On this note, the expulsion of Keppel DC REIT (an S-REIT with a strong track record of profits) from STI should come as a rude shock for many unitholders.
Of course, being listed in STI has its perks as it comes with prestige, boosts the company branding and usually leads to increased trading liquidity for the stock. In fact, shortly after being included in the STI in October 2020, Keppel DC REIT share price smashed a record high of $3.05. So I guess some unitholders may be unhappy that Keppel DC REIT had been replaced by Seatrium in the STI.
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