Keppel DC Reit's DPU rises 4.2% for quarter

Keppel DC Reit posted a 4.2 per cent increase in distribution per unit (DPU) to 1.74 cents for the second quarter, it reported yesterday.

Distributable income to unit holders, which included the capital expenditure sum set aside for Keppel DC Singapore 3, rose 36.5 per cent to $20.1 million.

The higher DPU came on the back of a 38.8 per cent jump in gross revenue to $34.5 million - mainly contributed by the acquisitions of Milan DC, Cardiff DC and the 90 per cent interest in Keppel DC Singapore 3, said the Reit manager in its earnings report.

Net property income rose 41.9 per cent to $31.4 million.

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As a result, gross revenue for the half year ended June 30 was up 34.5 per cent to $66.7 million, while net property income grew 39.1 per cent to $60.2 million.

Distributable income rose 42 per cent to $41.9 million, thanks to income from the acquisitions announced last year and a one-off capital distribution of $1.7 million in the first quarter in relation to the Keppel DC Singapore 3 acquisition, said the Reit manager.

Earnings per unit for the quarter came in at 1.64 cents, down from the 2.08 cents in the same period a year earlier. Net asset value per unit was 96.8 cents as at June 30, slightly higher than the 95.4 cents as at Dec 31 last year.

  • AT A GLANCE


    NET PROPERTY INCOME: $31.4 million (+41.9%)

    REVENUE: $34.5 million (+38.8%)

    DISTRIBUTION PER UNIT: 1.74 cents (+4.2%)

The Reit's portfolio occupancy stood at 93.1 per cent as at June 30, with a weighted average lease expiry of 9.4 years.

Its aggregate leverage was 27.7 per cent. All of the Reit's borrowings were unsecured with an average annualised cost of debt of 2.2 per cent a year, while weighted average debt maturity was extended to 3.3 years due to early refinancing of euro and sterling-denominated loans that were due in 2018.

The manager noted that substantial risks from potential trade curbs and persistent policy uncertainty could dampen the global economic outlook, but the data centre industry continues to be driven by trends such as cloud adoption among consumers and corporations, which bode well for the Reit.

Keppel DC Reit units closed flat at $1.32 yesterday, before the results were announced.

A version of this article appeared in the print edition of The Straits Times on July 18, 2017, with the headline 'Keppel DC Reit's DPU rises 4.2% for quarter'. Print Edition | Subscribe