Keppel DC Reit posts Q4 DPU of 1.83 S cents

KEPPEL DC Reit on Tuesday posted a distribution per unit (DPU) of 1.83 Singapore cents for the fourth quarter ended Dec 31, 2019, down from 1.85 cents a year ago.

Excluding the impact of the pro-rata preferential offering in October 2019 of about 0.10 Singapore cent per unit, the adjusted DPU for Q4 would be 1.93 Singapore cents.

Distributable income rose to S$31.4 million, 20.4 per cent higher than a year ago.

Net property income came in 14.3 per cent higher at S$48.5 million.

Gross revenue climbed 10.3 per cent to S$53 million on the back of higher gross rental income, which resulted from the acquisitions of Keppel DC Singapore 4 and a data centre on Riverside Road in Singapore. The increase was partially offset by lower overseas contribution due to the depreciation of the Australian dollar and euro against the Singapore dollar.

Property operating expenses fell 20.1 per cent to S$4.5 million mainly due to lower property-related expenses for Gore Hill DC.

Portfolio occupancy was 94.9 per cent as at Dec 31, 2019. The Reit's portfolio weighted average lease expiry was 8.6 years by leased area.

Aggregate leverage was 30.7 per cent as at Dec 31, 2019, while interest coverage was 13.3 times.

Net asset value per unit stood at S$1.14 as at Dec 31, 2019, up from S$1.07 a year ago.

Keppel DC Reit declares distributions on a half-yearly basis. It has declared a distribution of 1.95 Singapore cents per unit for the period from Sept 25 to Dec 31, 2019. Semi-annual distributions will resume thereafter.

Books close on Jan 30, 2020, and the payout date is March 3.

Keppel DC Reit units closed flat at S$2.25 on Tuesday before the results were released.