Keppel DC Reit posts 9.9% drop in first-half distribution per unit
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Keppel DC Reit's distribution will be paid on Sept 23.
ST PHOTO: KUA CHEE SIONG
Hykel Quek
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SINGAPORE – Keppel DC real estate investment trust (Reit) posted a 9.9 per cent drop in distribution per unit (DPU) to 4.549 cents for the first half of the financial year ended June 30, from 5.051 cents a year ago.
The manager attributed the lower DPU to loss allowance for the Reit’s data centres in Guangdong in China, higher finance costs and depreciation of foreign currencies against the Singapore dollar.
However, this was partially offset by a $13.3 million settlement sum received in relation to a dispute with DXC Technology Services Singapore, and “positive reversions and escalations” which contributed to an increase in rents.
Revenue was up 11.9 per cent to $157.2 million for the half year, from $140.5 million in the first half of financial year 2023, said the Reit’s manager in a bourse filing on July 26.
Net property income rose 4.2 per cent to $132.6 million from $127.4 million. Distributable income fell 11.4 per cent to $80.9 million from $91.3 million. The distribution will be paid on Sept 23, after the record date on Aug 5.
As at June 30, the Reit’s aggregate leverage was 35.8 per cent, 180 basis points lower than at March 31. Interest coverage ratio for the trailing 12 months stood at 5.1 times.
The Reit recorded a portfolio occupancy of 97.5 per cent, with portfolio weighted average lease (Wale) by lettable area at 6.4 years.
On the other hand, Wale by rental income was 4.1 years, as a higher proportion of rental income hailed from co-location assets, which typically have shorter contractual periods.
Units of the Reit closed 0.5 per cent or one cent lower at $1.90 on July 26. THE BUSINESS TIMES
