Keppel DC REIT - OCBC Investment 2023-10-17: Still Awaiting Acquisitions As Higher Finance Costs Bite

• Keppel DC REIT (SGX:AJBU)’s 3Q23 gross revenue and net property income (NPI) increased 0.5% and 0.8% y-o-y to S$70.7m and S$64.6m, respectively. However, given the spike in finance costs from S$8.2m in 3Q22 to S$12.8m in 3Q23, DPU slipped 3.6% y-o-y to S$0.02492.
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Portfolio occupancy inched down to 98.3% due to higher vacancies at Singapore assets

• Keppel DC REIT’s portfolio occupancy inched down 0.2 ppt q-o-q to 98.3% after three consecutive quarters of being stable at 98.5%. This was attributed to higher vacancies at three of its Singapore assets, but management said that it was confident in backfilling the vacant spaces.

Overall rental reversions came in positive

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• Colocation leases are deliberately renewed with shorter tenors of two to three years given the still robust rental outlook.

Awaiting acquisitions with debt headroom of S$182m before reaching aggregate leverage of 40%

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Above is an excerpt from a report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.

Read also OCBC's most recent report:
2026-02-02 Keppel DC REIT - Much To Look Forward To In FY26.

Previous report by OCBC:
2025-10-27 Keppel DC REIT - Growth Continues Despite Dilution.

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