Keppel DC Reit Q3 DPU higher than forecast

HEDGING gains helped to keep data centre owner Keppel DC Reit's distributable income for the third quarter above projections after unforeseen foreign currency depreciations ate into net property income, the trust said on Thursday.

It declared a Q3 distribution per unit (DPU) of 1.64 Singapore cents, 2.5 per cent higher than the 1.6 Singapore cents that were forecast.

Net property income came in at S$21.37 million for the three months to Sept 30, 0.3 per cent below the initial public offering (IPO) projection of S$21.44 million.

Distributable income was 2.2 per cent higher, at S$14.48 million.

The trust suffered foreign exchange losses from the weakening of the Australian dollar and the euro against the Singapore dollar but realised gains from the settlement of foreign currency forward contracts, and paid lower interest expenses due to interest rate swaps, it said in a statement.

It has hedged 100 per cent of its forecasted foreign-sourced distribution up to 1H 2017 with foreign currency forward contracts, it added.

Keppel DC Reit units closed flat at S$1.045 on Thursday.