Do Institutions Own Keppel DC REIT (SGX:AJBU) Shares?

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If you want to know who really controls Keppel DC REIT (SGX:AJBU), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

Keppel DC REIT has a market capitalization of S$2.4b, so we would expect some institutional investors to have noticed the stock. In the chart below below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about AJBU.

View our latest analysis for Keppel DC REIT

SGX:AJBU Ownership Summary, August 29th 2019
SGX:AJBU Ownership Summary, August 29th 2019

What Does The Institutional Ownership Tell Us About Keppel DC REIT?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Keppel DC REIT does have institutional investors; and they hold 22% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Keppel DC REIT's historic earnings and revenue, below, but keep in mind there's always more to the story.

SGX:AJBU Income Statement, August 29th 2019
SGX:AJBU Income Statement, August 29th 2019

Hedge funds don't have many shares in Keppel DC REIT. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Keppel DC REIT

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that Keppel DC REIT insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own S$2.2m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.