Keppel DC

Keppel DC - Deutsche sees minimal impact from Brexit vote
-Keppel DC holds a single asset, GV7 data centre in London - generates c.7.2% of NPI
-the REIT has hedged FX exposure up to 2H17 as at 1Q. this should reduce FX impact on income
-With a triple net lease through 2027, occupancy risk at the GV7 data centre is minimal
-Keppel DC also largely matched its UK and Euro assets with debts in respective currencies, yielding a natural balance sheet hedge
-the house maintains its Buy rating and TP of $1.15
-this is also in line with Maybank KE's defensive strategy post Brexit