Keppel REIT vs Keppel DC REIT Which Is More Profitable?

Keppel REIT and Keppel DC REIT are two distinct real estate investment trusts listed on the Singapore Exchange. Keppel REIT focuses on owning and managing a diversified portfolio of commercial properties in Singapore and other key markets in Asia, while Keppel DC REIT specializes in owning and managing data center properties. Investors looking for exposure to the real estate sector can consider diversifying their portfolio by investing in both Keppel REIT and Keppel DC REIT to potentially benefit from their different property sectors and geographical locations.

Keppel REIT or Keppel DC REIT?

When comparing Keppel REIT and Keppel DC 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 REIT and Keppel DC 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 REIT has a dividend yield of 4.92%, while Keppel DC REIT has a dividend yield of 5.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Keppel REIT reports a 5-year dividend growth of 1.30% year and a payout ratio of 174.87%. On the other hand, Keppel DC REIT reports a 5-year dividend growth of 7.91% year and a payout ratio of 120.68%.

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 REIT P/E ratio at 33.05 and Keppel DC REIT's P/E ratio at 22.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Keppel REIT P/B ratio is 0.80 while Keppel DC REIT's P/B ratio is 1.61.

Growth Investors:

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

Retail Investors:

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