Keppel DC REIT - Strong Demand Underpins Stable Income
- Keppel DC REIT (SGX:AJBU)’s FY21 revenue increased 2.1% y-o-y to S$271.1m, driven by AEI contributions from Dublin and Singapore assets, full-year contribution from Kelsterbach and Amsterdam DC, as well as the acquisitions of Eindhoven and Guangdong DC. FY21 DPU of S$0.09851 (+7.4% y-o-y) came in line with our forecast.
- Keppel DC REIT's portfolio occupancy was 98.3%, the highest since its listing in Dec 2014, while WALE lengthened from 7 years to 7.5 years, enhancing income stability.
- We raise our FY22-23F DPU forecast for Keppel DC REIT by 2-3%, factoring in completed acquisitions. Our DDM-based target price for Keppel DC REIT, however, is reduced to S$2.70 as we raise our cost of equity assumption in view of the increasing interest rate environment.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-01-25 2022-01-25
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