- Keppel DC REIT (SGX:AJBU)'s 3Q23/9M23 DPU of S$0.02492/S$0.07543 was 3.6% /1.2% lower y-o-y, but in line at 24.3%/73.7% of our FY23F.
Topline growth eroded by higher interest expense and forex
- - Read this at SGinvestors.io -
Operationally resilient – positive reversions & high occupancy
- During the quarter, Keppel DC REIT secured positive reversions for new and renewed leases in Singapore, Australia, Ireland and the Netherlands. Rental reversions ranged from single-digits to low double-digits.
- - Read this at SGinvestors.io -
- Portfolio occupancy slipped 0.2bp q-o-q to 98.3% in 3Q23 due to lower occupancies at SGP1 and SGP2 as a result of smaller tenants moving their operations to the cloud, according to management.
- Management is currently evaluating several leases for the vacant space and is optimistic about backfilling the space give the limited data centre availability in Singapore.
- FY23F lease expiries have been largely de-risked with 27.7% of leases by rental income expiring in FY24F, likely from Singapore and the Netherlands judging from the shorter weighted average lease expiries for assets in these countries.
Gearing to remain below 40% post milestone payment, in our view
- Read more at SGinvestors.io.
