Keppel DC REIT vs Keppel REIT Which Should You Buy?

Keppel DC REIT and Keppel REIT are two distinct real estate investment trusts under the Keppel Corporation umbrella, each with its own unique focus and investment strategy. Keppel DC REIT primarily invests in data center properties, a rapidly growing sector driven by the increasing digitalization of businesses. On the other hand, Keppel REIT focuses on commercial office properties, offering stable income streams from leasing to reputable tenants. Both REITs provide investors with opportunities for steady income and long-term growth potential in the real estate sector.

Keppel DC REIT or Keppel REIT?

When comparing Keppel DC REIT and Keppel REIT, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Keppel DC REIT and Keppel REIT.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Keppel DC REIT has a dividend yield of 5.84%, while Keppel REIT has a dividend yield of 4.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Keppel DC REIT reports a 5-year dividend growth of 7.91% year and a payout ratio of 120.68%. On the other hand, Keppel REIT reports a 5-year dividend growth of 1.30% year and a payout ratio of 174.87%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Keppel DC REIT P/E ratio at 22.42 and Keppel REIT's P/E ratio at 33.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Keppel DC REIT P/B ratio is 1.61 while Keppel REIT's P/B ratio is 0.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Keppel DC REIT has seen a 5-year revenue growth of 0.16%, while Keppel REIT's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Keppel DC REIT's ROE at 7.26% and Keppel REIT's ROE at 2.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$2.18 for Keppel DC REIT and $0.64 for Keppel REIT. Over the past year, Keppel DC REIT's prices ranged from S$1.60 to S$2.36, with a yearly change of 47.64%. Keppel REIT's prices fluctuated between $0.58 and $0.77, with a yearly change of 32.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.