Keppel DC REIT - DBS Research 2025-01-27: Transformational Acquisition Driving Robust Earnings Growth

• Maintain BUY recommendation on Keppel DC REIT with higher target price of S$2.50 reflecting stronger growth expectations.

FY24 revenues & NPI were driven by strong organic growth & acquisitions.

• - Read this at SGinvestors.io -
• Additionally, Keppel DC REIT received a settlement sum of ~S$11mil from the DXC dispute, which also bolstered revenues for the year.

FY24 DPU of 9.451 cents was ~0.7% higher y-o-y, beating our estimates.

• - Read this at SGinvestors.io -
• Keppel DC REIT sustained momentum through FY24, reporting consecutive quarters of exceptional rental reversions of over +40% in both 2Q24 and 3Q24, followed by solid performance in 4Q24, with more than +30% rental reversion.
• Portfolio occupancy remained healthy at 97.2% in 4Q24, with only a slight decline due to lower occupancies at KDC SGP 1 and Gore Hill in Sydney.

Gearing remains at a healthy 31.5%; financing costs have started to decline.

• 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/.

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