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Keppel DC Reit Q1 DPU up 6.7%

KEPPEL DC Reit on Monday posted a distribution per unit (DPU) of 1.92 Singapore cents for the first quarter ended March 31, up 6.7 per cent from 1.80 Singapore cents a year ago.

Distributable income grew 29.9 per cent to S$27.1 million due to the enlarged asset base following the acquisitions of maincubes Data Centre in Offenbach am Main, Germany, and Keppel DC Singapore 5 in 2018.

Gross revenue increased 26.4 per cent to S$48 million. Gross rental income came in at S$45.7 million, an increase of 23.8 per cent, due to the 2018 acquisitions. This was partially offset by lower non-cash adjustment for straight-lining of rental as well as lower overseas contributions arising from the depreciation of the Australian dollar and the euro against Singapore dollar.

Other income of S$2.3 million was S$1.2 million higher due to higher rental top-up income recognised.

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Property operating expenses were S$4.8 million, up 22.5 per cent mainly due to acquisition of Keppel DC Singapore 5, as well as higher property-related expenses recorded at Keppel DC Dublin 1 and Keppel DC Dublin 2.

As a result, net property income rose 26.8 per cent to S$43.2 million.

As at Mar 31 this year, portfolio occupancy rate remained at 93.2 per cent, and portfolio weighted average lease expiry remained at eight years.

At Keppel DC Singapore 3, the manager has undertaken retrofitting works to make way for expansion within a client's premises. When completed in mid-2019, this is expected to increase the returns on this asset, it said.

The power upgrading and fit-out works at Keppel DC Dublin 2 to make way for client expansion are on track for completion in the second half of 2019, and the asset enhancement works to improve energy efficiency at Keppel DC Dublin 1 are expected to be completed by 2020.

The counter closed up one Singapore cent at S$1.49 on Monday before results were announced.