Keppel trusts report mixed results in third quarter

Acquisitions lift Keppel DC Reit's distribution per unit while KIT's DPU stays unchanged

A series of acquisitions helped Keppel DC Reit lift its third-quarter distribution per unit (DPU).

DPU came in at 1.74 cents for the three months to Sept 30, up 16.8 per cent on the same period a year ago. Excluding the impact of the pro rata preferential offering and a one-off net property tax refund last year, the adjusted DPU for the quarter is 4.2 per cent higher from 1.67 cents in the same period a year earlier.

Distributable income to unit holders rose 20.2 per cent to $20.2 million.This was on the back of the acquisitions of the Milan, Cardiff and B10 data centres (DC) and the 90 per cent interest in Keppel DC Singapore 3. There was also higher variable income from Keppel DC Singapore 1 due to higher recurring revenue, said the real estate investment trust's manager yesterday.

Net property income rose 42.1 per cent to $32.3 million. Earnings per unit for the quarter came in at 1.91 cents, down from 2.38 cents previously. Net asset value per unit stood at 96 cents as of Sept 30, marginally down from 95 cents as of Dec 31.

Separately, Keppel Infrastructure Trust (KIT) has announced a DPU of 0.93 cent for the third quarter to Sept 30, unchanged from the same period a year earlier.

Net profit fell 8.6 per cent to $15.5 million, mainly due to insurance income recognised in the third quarter of 2016, though partially offset by higher contributions from City Gas in the third quarter this year, the manager said yesterday. Revenue was flat at $160.3 million.

A Singapore data centre in Keppel DC Reit's portfolio. Distributable income to unitholders rose 20.2 per cent to $20.2 million, on the back of acquisitions of the Milan, Cardiff and B10 data centres (DC) and the 90 per cent interest in Keppel DC Sing
A Singapore data centre in Keppel DC Reit’s portfolio. Distributable income to unitholders rose 20.2 per cent to $20.2 million, on the back of acquisitions of the Milan, Cardiff and B10 data centres (DC) and the 90 per cent interest in Keppel DC Singapore 3. There was also higher variable income from Keppel DC Singapore 1. PHOTO: KEPPEL DC REIT MANAGEMENT

Earnings per unit for the quarter was 0.4 cent, slightly lower than the 0.44 cent previously. Net asset value per unit slipped to 30.4 cents as of Sept 30, compared with 32.5 cents as of Dec 31 last year.

  • AT A GLANCE

  • Keppel DC Reit

    NET PROPERTY INCOME: $32.3 million (+42.1%)

    REVENUE: $35.5 million (+56.6%)

    DISTRIBUTION PER UNIT: 1.74 cents (+16.8%)

  • Keppel Infrastructure Trust

    NET PROFIT: $15.5 million (-8.6%)

    REVENUE: $160.3 million (unchanged)

    DISTRIBUTION PER UNIT: 0.93 cent (unchanged)

In another filing to the Singapore Exchange, the manager responded to an article in The Australian that said the trust's underwater cable linking Tasmania's hydro power-dependent grid to the mainland is up for sale. The cable is owned by KIT's wholly owned unit Basslink.

The manager said it "reviews its business strategies and portfolio regularly to achieve the best risk-adjusted returns for its unit holders" as part of its ordinary course of business. "There is no assurance that any transaction will materialise from such reviews," it said, adding that it will make further announcements if and when there are any material developments.

Keppel DC units closed 0.7 per cent or one cent lower at $1.35 yesterday, while KIT units closed flat at 55 cents. Both sets of results were announced after the markets closed.

A version of this article appeared in the print edition of The Straits Times on October 17, 2017, with the headline 'Keppel trusts report mixed results in third quarter'. Print Edition | Subscribe