Keppel DC Reit posts 11.3% rise in H1 DPU to S$0.05714

[SINGAPORE] The distribution per unit (DPU) of Keppel DC Reit rose 11.3 per cent to S$0.05714 for its first half ended Jun 30, 2026, from S$0.05133 the year before, the manager announced on Thursday (Jul 23).

Revenue was up 14.5 per cent at S$242 million for H1, from S$211.3 million in the year-ago period.

“Growth was driven by contributions from the positive reversions and escalations secured in prior periods, as well as acquisitions of Tokyo Data Centre 3 and remaining interests in Keppel DC Singapore 3 & 4,” the manager said in a statement.

Net property income for H1 grew 15.1 per cent on the year to S$210.4 million from S$182.8 million.

Distributable income rose 18.5 per cent year on year to S$150.7 million from S$127.1 million.

The distribution will be paid out on Sep 18, 2026.

Loh Hwee Long, CEO of the manager, said: “Keppel DC Reit delivered higher earnings in H1 2026, underpinned by organic drivers and acquisitions.”

As at Jun 30, 2026, portfolio occupancy stood at 92.5 per cent, reflecting a contract expiry at Cardiff Data Centre.

About 95 per cent of the portfolio’s power capacity was contracted; contract renewals in Singapore and Australia extended the portfolio’s weighted average lease expiry to 6.7 years.

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Portfolio reversion for H1 2026 was about 10 per cent, reflecting renewals that commenced during the period.

On the capital management front, the real estate investment trust’s (Reit) aggregate leverage was 34 per cent as at Jun 30, with a debt headroom of about S$673 million to a 40 per cent threshold.

The average cost of debt was 2.6 per cent for H1, while its interest coverage ratio remained “healthy at 6.9 times”.

Units of the Reit closed S$0.02 or 0.9 per cent higher at S$2.34 on Wednesday.