- Maintain BUY for Keppel DC REIT’s strong data centre (DC) theme and sponsor support.
- 9MFY25 Keppel DC REIT's DPU rose 8.8% y-o-y to S$7.67c due to acquisitions, strong portfolio performance and lower financing expense.
- - Read this at SGinvestors.io -
- Keppel DC REIT’s focus is on asset enhancement initiatives (AEI) for the recently acquired KDC 8 and acquiring hyperscale assets.
Growing inorganically
- 9MFY25 revenue and NPI were S$322.4m and S$280.2m, +37.7% and +42.2% y-o-y. Growth was led by acquisitions (SGP DC 7 & 8, Tokyo DC1) and positive reversions, partly offset by divestments and absence of one-off income.
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- 3QFY25 NPI and DPU rose 51.1% and 1.4% y-o-y, respectively. Occupancy was stable at 95.8%. With no major contract renewals, reversion was +10%. Power studies and lease discussions are on-going for upcoming expiries (6.7% of rental income for FY26).
Prudent capital management
- Read more at SGinvestors.io.
