Keppel DC REIT’s second-half DPU up 7.1% after 50% jump in revenue
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The Reit's manager said growth was mainly driven by contributions from it acquisitions of Keppel DC Singapore 7 and 8 (pictured) and Tokyo Data Centre 1.
PHOTO: KEPPEL
SINGAPORE – Data centre-focused Keppel DC REIT has posted a 7.1 per cent rise in distribution per unit (DPU) to 5.248 cents for the second half ended Dec 31, from 4.902 cents in the corresponding period a year earlier.
The manager attributed the increase to accretive acquisitions in Tokyo and Singapore, as well as a higher portfolio reversion.
The second-half DPU will be paid on March 19, said the real estate investment trust’s (REIT) manager in a bourse filing on Jan 30.
Revenue for the period surged 50 per cent to $230.1 million from $153.1 million a year ago.
Net property income rose 57 per cent to $200.4 million from $127.6 million.
Distributable income increased 53.4 per cent year on year to $140.9 million from $91.9 million.
The manager said that growth was mainly driven by contributions from its acquisitions of Keppel DC Singapore 7 and 8 and Tokyo Data Centre 1 and 3.
Higher contributions from contract renewals and escalations also contributed to stronger growth.
However, the increase was partially offset by the divestments of Intellicentre Campus in Australia and Kelsterbach Data Centre in Germany, as well as the absence of a one-off dispute settlement sum received in 2024.
For the full 2025 fiscal year, net property income grew 47.2 per cent to $383.3 million from $260.3 million in FY2024.
Revenue was $441.4 million, gaining 42.2 per cent from $310.3 million the year before.
In FY2025, distributable income rose 55.2 per cent to $268.1 million from $172.7 million.
DPU for FY2025 rose to a record high of 10.381 cents, up 9.8 per cent from 9.451 cents a year earlier. This was even after accounting for an enlarged unit-holding base, following an equity fund raising in the third quarter.
Based on Keppel DC Reit’s closing price of $2.25 per unit on Dec 31, distribution yield would be 4.61 per cent for FY2025.
Portfolio reversion stood at around 45 per cent for the full year.
The Reit’s portfolio asset valuation also rose 25.6 per cent year on year to $6.3 billion. This was on the back of its acquisition of Tokyo Data Centre 3 and stronger valuations in Singapore.
Lower floating rates also helped to bring down the Reit’s average cost of debt to 2.8 per cent of the fourth quarter of FY2025, and 3 per cent for FY2025.
As at Dec 31, 2025, the Reit’s total borrowings stood at $2.4 billion, with 71.2 per cent hedged through interest rate swaps. Its aggregate leverage was 35.3 per cent and interest coverage ratio stood at 7.5 times.
Units of Keppel DC REIT closed four cents, or 1.8 per cent, higher at $2.28 on Jan 30. THE BUSINESS TIMES
