For my thoughts on whether I will be subscribing for this latest rights issue and key application milestone from Keppel DC REIT ("KDC"), please refer to my earlier post. Additionally, have decided to take a punt and make use of Keppel DC REIT ("KDC") rights issue exercise to try to earn some spare cash. The current market price is S$2.40 per unit as at Oct 3, 2025 (Friday) which I think is the peak price for this period. and price will start dropping from this point. Generally, by the time the new units get listed on SGX (Oct 22, 2025), the market price will commence tapering off as some investors will not feel happy with subscribed folks who are getting new KDC units at a discounted S$2.24. So the period from Oct 3, 2025 till Oct 22, 2025 will present an opportunity to maximise making the most money for immediate realisation and usage which I will further elaborate below. In fact, the probability of this one off punt making money is higher than striking the SG Toto's Group 7 prize (striking 3 numbers and winning S$10).
1. Key Factors to Consider
(a) No major changes in macro-economic outlook or market events causing sudden surge in market prices within this short period;
(b) Able to have the "lobang"(via your stock broker) to get one's hand on the exact same number of excess rights issue as the number of units that one will be selling off immediately so as to maintain the same number of holdings in KDC;
(c) No of units for immediate sell-off should be of sufficient size to make the transactional trading cost (referring to selling cost here as the rights allotment admin fees is just S$2 irrespective of size of the subscription/purchase) worth it.
(d) As alluded to 1(b), if unfortunately unable to get the full 5,000 units of excess rights, then I will re-invest the proceeds into other higher yield SREITs. I believe that KDC current 4% per unit will be easy to beat.
2. Execution of Plan and Mechanics
On the morning of Oct 6, 2025 (Monday), I have sold off 5,000 units of KDC at S$2.39 per unit for a total of S$11,950 (sold off immediately at S$2.39 bid price as I decided against queueing to sell at S$2.40 per unit).
Subsequently, I have made an excess rights application of 5,000 units of KDC at S$2.24 (totalling S$11,200) on top of my allocated allotment with my stock broker.
3. Mechanics & Targeted Profits
I am targeting for a quick profit realisation of S$750 (S$11,950 less off S$11,200) with the above maneuver by locking in the selling price of S$2.40 per unit as of Oct 6, 2025 morning.
Parting Thoughts
Overall, I have no interest in increasing my stakes in KDC by too much as it is only yielding 4% and the market price per unit is at a huge premium over its NTA per unit. Market seems to be pricing KDC as a growth stock. Hence I am taking a bet that S$2.40 per unit is the peak market price reached for this rights issuance and to sell off immediately to optimise the profit realisation.
