Keppel DC Reit Q1 DPU up 3% on contributions from acquisitions, asset management drive
DATA centre-focused Keppel DC Reit ’s distribution per unit (DPU) rose 3 per cent to 2.541 Singapore cents for its first quarter ended Mar 31, 2023, from 2.466 cents the year before.
This was mainly due to an increase in gross revenue from the acquisitions of Guangdong Data Centre 2 and the building shell of Guangdong Data Centre 3; the completion of asset enhancement initiatives (AEIs), renewals and income escalations; as well as tax savings, the Reit’s manager said in a business update on Tuesday (Apr 18).
The gains were partially offset by net lower contributions from some of the Reit’s colocation assets in Singapore due to higher facilities expenses.
The Reit also saw higher finance costs from the refinanced loans and unhedged loans, and a depreciation of foreign currencies against the Singapore dollar, the manager said.
Gross revenue rose 6.5 per cent to S$70.4 million for the quarter, from S$66.1 million a year earlier.
Net property income grew 6.3 per cent on year to S$63.9 million for the quarter, from S$60.1 million the same period a year ago.
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Distributable income rose 4.1 per cent on year to S$46.3 million, from S$44.5 million the year before.
The Reit has portfolio occupancy of 98.5 per cent and a weighted average lease expiry of 8.2 years as at Mar 31, 2023.
Property expenses for the quarter were up 9 per cent to S$6.5 million, largely from assets in Dublin following the completion of AEIs.
Meanwhile, finance income jumped 43.8 per cent to S$3 million, mainly due to coupon income from Guangdong Data Centre 3.
Aggregate leverage was 36.8 per cent as at Mar 31, 2023.
The manager noted that debt is diversified across five currencies, with the bulk of debt expiring from 2026 and beyond. It also expects to complete the refinancing of all its loans due in 2023 by this month.
Units of Keppel DC Reit closed flat at S$2.08 on Tuesday.
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