Keppel DC Reit posts 13.2% higher Q1 DPU of S$0.02833 on strong portfolio performance

[SINGAPORE] Keppel DC Real Estate Investment Trust (Reit) on Thursday (Apr 16) posted a distribution per unit (DPU) of S$0.02833 for its first quarter, up 13.2 per cent from S$0.02503 in the previous corresponding period.

Distributable income for the period stood at S$74.6 million, a 20.7 per cent rise year on year from S$61.8 million.

This came on the back of strong portfolio performance, said the manager of the Reit, and contributions from its acquisition of Tokyo Data Centre 3 and remaining interests in Keppel DC Singapore 3 and 4.

Net property income rose 19.4 per cent to S$105.2 million for Q1, from S$88.1 million in the year-ago period.

The manager said this increase was due to higher contributions from contract renewals and escalations, as well as the Tokyo Data Centre 3 acquisition, though partially offset by the divestment of Kelsterbach Data Centre in Frankfurt, Germany.

Revenue for the period was up 18.4 per cent on the year at S$121 million, from S$102.2 million.

Portfolio occupancy stood at 95.6 per cent, with a reversion of about 51 per cent. Its portfolio weighted average lease expiry was 6.5 years.

As at Mar 31, gearing stood at 35.1 per cent, with the average cost of debt at 2.6 per cent. The interest coverage ratio fell to 7.2 times, due to higher finance costs associated with increased loans drawn in the fourth quarter of FY2025.

Finance costs for the quarter were recorded at S$15.1 million, up 20.8 per cent year on year from S$12.5 million.

SEE ALSO

Keppel divests remaining interests in two Singapore data centres for S$50.5 million to Keppel DC Reit

The manager of Keppel DC Reit said data centre demand remains supported by structural drivers, even as the Middle East conflict drives higher energy prices and inflation risks.

“Operators are using asset recycling, including sale and leasebacks and minority-stake sales, to unlock capital for expansion,” it said. “These shifts underscore the increasing institutionalisation of the data centre asset class and the need for flexible capital to meet artificial intelligence-driven demand.”

Units of Keppel DC Reit ended 0.4 per cent or S$0.01 lower at S$2.33 on Wednesday.