Keppel DC REIT vs. Keppel Corporation: Which Keppel Stock Should Be in Your Portfolio?

Core Insights - The article discusses the investment considerations between Keppel DC REIT and Keppel Corporation, highlighting their distinct business models and investment focuses. Group 1: Business Overview - Keppel DC REIT is a data centre REIT with S$6.3 billion in assets under management as of December 31, 2025, and operates 25 data centres across 10 countries [3] - Keppel Corporation is a diversified conglomerate involved in asset management, infrastructure, data centres, and utilities, providing a broader range of services compared to the REIT [5][6] Group 2: Income vs. Growth Potential - Keppel DC REIT offers a consistent distribution yield averaging 4.6% over the past decade, appealing to income-focused investors [7] - Keppel Corporation has a lower dividend yield of 3.1% but presents higher capital growth potential due to its transition to an asset-light business model and involvement in growth sectors like renewable energy [9][12] Group 3: Financial and Valuation Comparison - Keppel DC REIT's share price is S$2.23 with a market cap of S$5.44 billion, and it has a last 12-month yield of 4.7% [11] - Keppel Corporation's share price is S$10.95, with a market cap nearing S$20 billion, and it has shown a steady increase in revenue and profit [12] Group 4: Investment Suitability - For investors seeking consistent income and lower volatility, Keppel DC REIT is recommended [15] - For those looking for business diversity and growth potential, Keppel Corporation is suggested as a better fit [15][16]