Keppel DC REIT - UOB Kay Hian 2024-07-29: Singapore Provided Strong Positive Rental Reversion In 1H24

• Keppel DC REIT (SGX:AJBU) reported DPU of 4.549 cents for 1H24 (-9.9% y-o-y), which is above our expectations.

Favourable outcome for dispute with DXC.

• Gross revenue increased 11.9% y-o-y, boost by the settlement sum relating to the dispute with DXC. The settlement sum of S$11.2m was received in Apr 24 (after deducting related expenses and GST) and would be distributed in two equal tranches in 1H24 and 2H24.
• - Read this at SGinvestors.io -

Positive rental reversion across the portfolio.

• Keppel DC REIT achieved positive reversion of more than 40% for a major renewal contract in Singapore in 2Q24, a reflection of strong demand and tight vacancy locally. Master leases for its fully fitted and shell & core data centres provide built-in rental escalations of 2-4% per year.
• - Read this at SGinvestors.io -
• Keppel DC REIT provides stable cash flows due to its long portfolio WALE weighted by lettable area of 6.4 years.

Preparing for the worst in China.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-04-21 Keppel DC REIT 1Q25 - Contributions From SGP7 & SGP8 Kick In.

Previous report by UOB:
2025-03-20 Keppel DC REIT - Sustainable Growth In Singapore; Green Shoots In China..

Price targets by 2 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