Keppel DC REIT’s \$1 Billion Equity Fund Raising: What Investors Need to Know

Keppel DC REIT has announced a significant equity fund raising effort to generate approximately S\$1 billion. This development comes amidst a series of important notifications for Unitholders, including advanced distribution details, tax implications, and timeline for the Preferential Offering.

Key Announcements:

• The Transfer Books and Register of Unitholders will close on November 27, 2024, to establish entitlements for the Preferential Offering and distributable income for the period from July 1 to November 27, 2024.
• The Advanced Distribution is estimated to range between 4.063 cents and 4.103 cents per Unit, setting the distribution for taxable income, tax-exempt income, and capital distribution.
• Private Placement New Units will be listed on November 28, 2024, but holders will not be eligible for the Advanced Distribution or Preferential Offering.

Tax Implications and Requirements:

Unitholders must be aware of the tax implications associated with the distributions:

• No tax will be deducted from distributions to Qualifying Unitholders, which include individuals, Singapore-incorporated companies, and certain registered entities.
• REIT ETFs must complete a specific form to enjoy tax transparency treatment, or face a 17% tax deduction.
• Foreign (non-individual) Unitholders and foreign funds will receive distributions net of 10% tax, contingent upon proper form submission.

Important Dates:

• November 25, 2024: Last date for Units quoted on a “cum-distribution” basis.
• December 16, 2024: Deadline for submission of tax declaration forms to receive applicable tax benefits.
• February 10, 2025: Expected date for Advanced Distribution payment.

This announcement is crucial for investors as it involves substantial financial movements and tax considerations which could impact share value. The advanced distribution and the preferential offering are key elements that shareholders need to track closely.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult with their financial advisors and consider their investment objectives and risk tolerance before making any investment decisions.