Keppel DC Reit Q2 DPU up 3.1% year on year

KEPPEL DC Reit posted a 3.1 per cent rise in distribution per unit (DPU) for the second quarter ended June 30 to 1.67 Singapore cents.

The real estate investment trust (Reit) declared a total DPU of 3.34 Singapore cents for the first half ended June 30, which marks a 3.4 per cent increase from a year ago, to be paid out on Aug 31. This translates to an annualised yield of 7.22 per cent, above the forecast yield of 7.16 per cent.

Distributable income for first half was S$29.5 million, 3.6 per cent higher than a year ago-period, and one per cent above its forecast.

This was mainly due to contribution from Intellicentre 2, higher finance income, lower finance costs, property-related and other expenses.

These were partially offset by a drop in variable income at its Singapore properties due to lower power revenue charged and higher property-related costs, as well as a client downsizing its requirements in Keppel DC Dublin 1 (Citadel 100 Data Centre) in Q1 2016.

Gross revenue for the second quarter, however, came in at S$24.87 million - 4.5 per cent lower than a year ago and 2.4 per cent below forecast.

As at June 30, Keppel DC Reit has a portfolio size of about S$1.07 billion, comprising nine data centres in Singapore, Australia, Ireland, Malaysia, the Netherlands and the UK.

Portfolio occupancy rate as at June 30 moved up to 92.3 per cent while the weighted average lease expiry remained healthy at 8.7 years.

The Reit manager said that it will continue to focus efforts on improving the occupancy in Keppel DC Dublin 1 (Citadel 100 Data Centre) as well as negotiations for the contracts due for renewal across the portfolio in 2016 and 2017.