Keppel DC Reit posts 3.7% rise in Q1 DPU

KEPPEL DC Reit posted a 3.7 per cent year-on-year increase in distribution per unit (DPU) to 1.67 Singapore cents for the first quarter ended March 31, buoyed by net tax and other adjustments.

This surpasses its forecast by 1.2 per cent and translates to an annualised yield of 6.34 per cent based on the market closing price per unit as at March 31.

Gross revenue slipped 4.5 per cent to S$24.77 million and net property income dipped 2.5 per cent to S$21.19 million, dragged down mainly by an absence of the initial recognition gain recorded in Q1 2015 for the straight-lining of rental income for Citadel 100 and a client downsizing its requirements in Citadel 100 in Q1 2016, lower rental income arising from the depreciation of Australian dollar and Malaysian ringgit against the Singapore dollar as well as higher repairs and maintenance and other property-related costs incurred at the Singapore properties.

The Reit declares distributions on a half-yearly basis, so no distribution has been declared for the quarter under review.

Listed on Dec 12, 2014, Keppel DC Reit is the first pure-play data centre Reit listed in Asia and on Singapore Exchange. Its portfolio comprises nine data centres located in six countries across the Asia-Pacific and Europe.

Keppel DC Reit's geographical profile and income streams will be further diversified upon the completion of maincubes Data Centre in 2018, the Reit's first German investment announced in October 2015.