Keppel DC REIT - DBS Research 2022-10-27: Prudence In The Past Will Pay Off

• Keppel DC REIT (SGX:AJBU)'s 3Q22 revenues and NPI increased 1.3% and 1.6%, respectively, mainly due to higher contribution from Guangdong DC 2 and 3. Rental escalations have helped to partially offset some of the inflation in operating costs. See Keppel DC REIT's announcement dated 26 Oct 2022.
• - Read this at SGinvestors.io -

9M22 DPU forms ~77% of our estimates.

• Keppel DC REIT's 3Q22 DPU of S$0.02585 is slightly higher q-o-q, 9M22 DPU makes up ~77% of our full-year estimates.
• - Read this at SGinvestors.io -

Strong portfolio occupancy

• Riding on the continued strong demand for data centres in all the markets Keppel DC REIT operates, portfolio occupancy improved further to 98.6%. This is mainly due to the inclusion of the master-leased Guangdong DC 2 and 3, as well as higher occupancy at Keppel DC Dublin 1.
• Only 2.6% of portfolio leases remain to be renewed in 4Q22, and a further 13.3% of leases are due in FY23.

All-in financing costs increased to 2.0% on the back of rising interest rates

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-01-27 Keppel DC REIT - Transformational Acquisition Driving Robust Earnings Growth.

Previous report by DBS:
2024-07-29 Keppel DC REIT - Positive Rental Reversions Flowing Into Earnings.

Price targets by 3 other brokers at Keppel DC REIT Target Prices.

Listing of research reports at Keppel DC REIT Analyst Reports.

Relevant links:
Keppel DC REIT Share Price History,
Keppel DC REIT Announcements,
Keppel DC REIT Dividend Payout Dates & Corporate Actions,
Keppel DC REIT News