Keppel DC REIT - DBS Research 2023-07-25: Where Will The Next Accretive Acquisition Come From?

• Keppel DC REIT (SGX:AJBU)'s 1H23 revenues and NPI increased 3.6% and 3.3%, respectively, mainly due to contributions from Guangdong DC 2 and 3 acquired on 12 August 2022, and organic growth from renewals and income escalations, and partially offset by lower contributions from Singapore colocation assets due to higher operating costs (higher electricity costs).
• - Read this at SGinvestors.io -
• All-in interest rates in 2Q23 increased by 50bps, mainly due to the refinancing of the ~S$74m EUR loan due this year.
• - Read this at SGinvestors.io -

1H23 DPU of 5.051 cents, in line with our projections

• Keppel DC REIT's 1H23 DPU of 5.051 cents remained fairly flat y-o-y and h-o-h, and makes up ~51% of our FY23 estimates. See Keppel DC REIT's dividend date.
• Rental growth and higher portfolio occupancy rates to drive sustained organic growth; offset higher financing costs. We believe that Keppel DC REIT will be able to maintain 2H23 DPU at these levels.

Financing costs increased 50bps in 2Q23

• 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:
2025-07-28 Keppel DC REIT - Focused On Intensification and Expansion.

Previous report by DBS:
2025-01-27 Keppel DC REIT - Transformational Acquisition Driving Robust Earnings Growth.

Price targets by 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