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When we learn from tuition, it can be either us paying for it OR someone else pays for the tuition. Unfortunately, KDC REIT has to pay for the tuition (and then others can learn from it).
KDC REIT had always been trading at a premium to NAV. And for a time, the premium was increasing. When there is a premium to your fair valued assets, it means the Market is either pricing in further increases in near term future revaluations OR you have some intangibles like brands, business relationships, platform capabilities that takes some cost to replicate.
On hindsight and unfortunately, the previous increasing premium to NAV for its share price was probably overvaluing all scenarios above.
P.S. The MoM showed that 1 of the Directors (a certain Mr Chua) had 40% against his election (and he was only appointed in Sept2023). I wonder where is this opposition coming from?
MINUTES OF THE ANNUAL GENERAL MEETING
CEO further highlighted that the Guangdong Data Centres were master leased to Bluesea, which meant that the landlord has no contractual right to details of the master lessee’s operations and leasing pipeline. Despite this, the Manager has, as part of the recovery roadmap agreed with Bluesea, been given access to such information . The Manager has also stepped up engagement efforts with Bluesea, including constant site visits. The Manager’s portfolio management and asset management functions have also gathered learning points from this experience and changes will be incorporated for the benefit of the whole portfolio. Next, Chairman thanked CT for her comments and reassured unitholders that the Manager is working diligently to remediate the situation at the Guangdong Data Centres. She further shared that the Board, including the Chairman of the Audit and Risk Committee, has raised pointers and action items for the Manager to incorporate.
https://links.sgx.com/FileOpen/Keppel%20...eID=803425
KDC REIT had always been trading at a premium to NAV. And for a time, the premium was increasing. When there is a premium to your fair valued assets, it means the Market is either pricing in further increases in near term future revaluations OR you have some intangibles like brands, business relationships, platform capabilities that takes some cost to replicate.
On hindsight and unfortunately, the previous increasing premium to NAV for its share price was probably overvaluing all scenarios above.
P.S. The MoM showed that 1 of the Directors (a certain Mr Chua) had 40% against his election (and he was only appointed in Sept2023). I wonder where is this opposition coming from?
MINUTES OF THE ANNUAL GENERAL MEETING
CEO further highlighted that the Guangdong Data Centres were master leased to Bluesea, which meant that the landlord has no contractual right to details of the master lessee’s operations and leasing pipeline. Despite this, the Manager has, as part of the recovery roadmap agreed with Bluesea, been given access to such information . The Manager has also stepped up engagement efforts with Bluesea, including constant site visits. The Manager’s portfolio management and asset management functions have also gathered learning points from this experience and changes will be incorporated for the benefit of the whole portfolio. Next, Chairman thanked CT for her comments and reassured unitholders that the Manager is working diligently to remediate the situation at the Guangdong Data Centres. She further shared that the Board, including the Chairman of the Audit and Risk Committee, has raised pointers and action items for the Manager to incorporate.
https://links.sgx.com/FileOpen/Keppel%20...eID=803425