Keppel DC Reit expands portfolio; Q3 distributable income up 13.7%

PERPETUAL (Asia), a trustee of Keppel DC Reit, has entered into a conditional share purchase agreement with Keppel Data Centres Holding, a joint venture between Keppel Telecommunications & Transportation and Keppel Land, for the proposed acquisition of a 90 per cent interest in Keppel DC Singapore 3, of approximately S$202.5 million, according to an announcement on Monday by Keppel DC Reit Management.

The proposed transaction will be funded via the net proceeds of approximately S$275.3 million from a fully underwritten preferential offering of 242 million new units on the basis of 274 new units for every 1,000 existing units in Keppel DC Reit held as at 5pm on Oct 25, 2016.

The issue price of S$1.155 per unit under the preferential offering represents a discount of approximately 5 per cent to the volume-weighted average price per unit on Oct 17, 2016, being the last full market day prior to the announcement of the preferential offering.

Keppel DC Reit also announced on Monday that it's actual distributable income for the third quarter ended Sept 30, 2016, was up 13.7 per cent at S$16.78 million from the IPO (initial public offering) forecast figure of S$14.76 million. The actual distribution per unit (DPU) was 1.9 Singapore cents, up 13.8 per cent from the forecast 1.67 Singapore cents.

Actual net property income was up 3.8 per cent at S$22.7 million from the forecast figure of S$21.87 million for the quarter. Actual gross revenue for the quarter was down 12 per cent to S$22.67 million from the forecast figure of S$25.77 million.

For the nine months ended Sept 30, actual distributable income was up 5.3 per cent at S$46.28 million from the IPO forecast figure of S$43.95 million. DPU was 5.24 Singapore cents as against the forecast figure of 4.98 Singapore cents.