Data Centers Play in S-REIT Space

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With wider adoption of e-commerce, Artificial Intelligence and Cloud Computing, this technology disruption will change the way how we work, how we spend and how business do business in future. The adoption of 5G will accelerate the rise of digital economy and the consumption of data. Thus, we are going to see the huge growth in Data Centers in the REIT space moving forward.

The REITs who have the data centers in the current / future portfolio:

(1) Keppel DC REIT (AJBU.SI) – 100% (AUM$2.9B) . 18 Assets across 8 countries.

(2) Mapletree Industrial Trust (ME8U.SI) – 38.7%. 28 Assets (mainly in US)

(3) Ascendas REIT (A17U.SI) = 5.2%.

(4) Capitaland Retail China Trust (AU8U.SI) – Expanded Mandates to include Data Centers in China.

(5) Cromwell European REIT (CNNU.SI) – Have announced an acquisition of Data Centers in Europe in 2021.


The following table is extracted from

As we can see from the above comparison table, there is a high correlation between the Price/NAV valuation vs Percentage of Data Centers in the portfolio. This is a strong evidence that Data Centers are trading at a premium to other property classes. Below regression analysis (unfortunately there are only 3 data points) proves a very strong correlation with R-Square of 0.9983!

My Reasons of doing this analysis

(1) To Spot Investing Opportunities in S-REIT (which REIT to buy and the entry level)

(2) To Identify the Valuation Gap (Price/NAV) of REITs with and without Data Centers

(3) To Identify the upside potential (capital gain) if any REITs to acquire Data Centers

(4) To model the “Should Price/NAV” with the % Data Center in the portfolio (Price/NAV = 1.0676 * %DC + 1.2639)

Let’s see whether my modelling works after Capitaland Retail China Trust and Cromwell European REIT acquire the data centers into the portfolio.


Kenny Loh is a Senior Consultant and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Sympsosium and Invest Fair. 

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Keppel Data Centre REIT IPO Prospectus

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Keppel DC REIT launches IPO – Channel News Asia.

Keppel DC First Date Centre Asia

Keppel DC REIT is the first data centre real estate investment trust to be listed in Asia and on the SGX-ST. Keppel DC REIT is established with the investment strategy of principally investing, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate-related assets, with an initial focus on Asia-Pacific and Europe. The IPO Portfolio comprises eight high-quality data centre properties strategically located
in key data centre hubs across seven cities in Asia-Pacific and Europe.

Keppel DC REIT Portfolio

Keppel DC REIT StructureKeppel DC REIT Portfolio Breakdown

Keppel DC REIT Customers



Keppel DC REIT IPO Dates


See other Singapore REIT Comparison Table here.

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