SINGAPORE - Keppel DC Reit reported better-than-expected earnings for its second quarter, giving a slight fillip to its return to unit holders.
For the three months to June 30, Keppel DC Reit saw a 0.8 per cent year-on-year increase in net property income to S$22.11 million, helped by a 32.7 per cent drop in property expenses to S$2.76 million.
As a result, distributable income for the period rose 3.3 per cent to S$14.75 million, and distribution per unit was up 3.1 per cent to 1.67 cents. These figures were better than the forecasts made during Keppel DC Reit's public offering in late 2014, which put the second quarter DPU at 1.66 cents.
"Distributable income exceeded IPO forecast mainly due to contribution from Intellicentre 2, higher finance income, lower finance costs, property-related and other expenses," Keppel DC Reit said in its after market results announcement on Monday (July 18).
Keppel DC Reit, which has a portfolio of data centres across Asia Pacific and Europe, acquired Intellicentre 2 in Sydney in May last year. Overall portfolio occupancy rate was 92.3 per cent as at June 30, and the reit's outlook will remain resilient against slower economic growth and higher supply of data centre space in Singapore.
"International Data Corporation forecasts that the global internet of things market will grow at compounded annual growth rate of 16.9 per cent from US$655.8 billion in 2014 to US$1.7 trillion in 2020," it said.
Keppel DC Reit added one cent or 0.86 per cent to S$1.17, ahead of the results announcement.