Keppel DC REIT - A Minor Near-Term Hiccup
- Keppel DC REIT (SGX:AJBU)’s 1QFY22 revenue declined 0.9% y-o-y to S$66.1m while NPI dropped 1.4% y-o-y to S$60.1m as a result of provisions made for a client payment under dispute at KDC SGP 1, weaker Euro against S$ and higher electricity costs which offset the effects of recent acquisitions. Distributable income, however, increased 5.9% y-o-y to S$44.5m due to investment in debt securities.
- Keppel DC REIT’s 1QFY22 DPU of S$0.02466 came in below at 23% of our FY22F forecast.
- We reduce our FY22-23F DPU forecast for Keppel DC REIT by 1-5% after factoring in higher electricity cost, litigation provision and updating FY21 numbers.
- Reiterate ADD call on Keppel DC REIT. We expect the higher electricity cost to weigh on its DPU in the near-term, but demand remains strong which underpins its longer-term income stability.
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 2022-04-19 2022-04-19
Previous report by CGS-CIMB:
2022-01-25 Keppel DC REIT - Strong Demand Underpins Stable Income
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