Keppel DC Reit’s 9-month distributable income rises 55.5%
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The Reit manager attributed its higher NPI for the nine months ended Sept 30 to the acquisitions of Keppel DC Singapore 7 and 8.
PHOTO: KEPPEL
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SINGAPORE - Keppel DC Reit reported distributable income of $195.3 million for the nine months ended Sept 30, up 55.5 per cent from $125.6 million a year earlier.
Its distribution per unit (DPU) over the same period rose 8.8 per cent to 7.67 cents from 7.05 cents. The DPU takes into account the expanded unit base due to the additional 180.6 million new pro-rata preferential offering units listed on Oct 22.
The higher distributions came from contributions from its acquisitions as well as strong portfolio performance, said the real estate investment trust’s (Reit) manager in its third-quarter business update on Oct 24.
Revenue for the period climbed to $322.4 million, up 37.7 per cent from $234.1 million.
Similarly, net property income (NPI) rose 42.2 per cent to $280.2 million from $197.1 million.
The manager said that the higher NPI was due mainly to acquisitions of Keppel DC Singapore 7 and 8 and Tokyo Data Centre. Higher contributions from contract renewals and escalations also boosted the Reit’s NPI.
However, the contributions were partially offset by divestments of its Intellicentre Campus in Australia and Kelsterbach Data Centre in Germany, as well as the absence of its one-off dispute settlement sum at Keppel DC Singapore 1 received in 2024.
Its finance costs for the period dropped by 6.4 per cent. The manager attributed the fall to lower interest rates and interest savings from loan repayments, although the savings were partially offset by new acquisition loans in 2024.
For the third quarter, its cost of debt stood at 2.9 per cent, down from 3.3 per cent a year earlier. Meanwhile, aggregate leverage for the Reit stood at 29.8 per cent for the third quarter.
Portfolio occupancy stood at 95.8 per cent, while the Reit posted a 10 per cent portfolio reversion with no major contract renewals in the third quarter.
Units of Keppel DC Reit were trading 0.4 per cent or one cent lower at $2.39 as at 10.10am on Oct 24, after the release of the update. THE BUSINESS TIMES
