Data centre acquisitions increase Keppel DC Reit's DPU

A raft of new data centre acquisitions helped to lift Keppel DC Reit's distributable income last year.

Distributable income for the full year stood at $82.32 million - up 34.8 per cent on 2016 - as net property income rose 37.6 per cent to $125.1 million.

Gross revenue was 40.3 per cent higher at $139.1 million for the 12 months to Dec 31 for the trust, which holds a pure-play portfolio of 13 data centres.

A distribution of 3.49 cents per unit, for the half-year, will be paid on Feb 28. This brings the year's DPU to 7.12 cents.

The fourth quarter reflected the buoyant year with distribution per unit (DPU) of 1.75 cents, up from 1.31 cents in the same period a year earlier.

The higher DPU came on the back of a 37.1 per cent rise in distributable income to $20.25 million for the three months to Dec 31.

Net property income rose by 30.9 per cent, to $32.65 million, on a 37.2 per cent jump in gross revenue to $36.83 million.

  • AT A GLANCE

  • GROSS REVENUE:

    $139.1 million (+40.3%)

  • NET PROPERTY INCOME:

    $125.1 million (+37.6%)

  • DISTRIBUTION PER UNIT:

    7.12 cents (+16%)

The quarter recorded a rise in gross rental income, thanks mostly to the acquisitions of data centres in Dublin, Milan and Cardiff, as well as a 90 per cent stake in one in Tampines.

On top of that, said the manager, overseas contributions were boosted by the stronger Australian dollar, British pound and euro.

These gains were partially offset by lower variable income at a data centre in Singapore, as well as a rental income drop at Gore Hill in Australia, and lower rental income from the drop in occupancy at Basis Bay Data Centre in Malaysia.

The manager noted that "data centre demand drivers remain positive in many key data centre hubs, including cities such as Singapore, Sydney and Amsterdam", where the Reit has investments.

But it flagged risks such as foreign currency exposure in Australia, Europe and Malaysia.

Keppel DC Reit units closed down by one cent to $1.47, before results were announced.

A version of this article appeared in the print edition of The Straits Times on January 23, 2018, with the headline 'Data centre acquisitions increase Keppel DC Reit's DPU'. Print Edition | Subscribe