Keppel DC REIT - UOB Kay Hian 2026-02-02: Generating Sustainable Growth In 2026

• Keppel DC REIT (SGX:AJBU) reported DPU of 5.248 cents for 2H25 (+7.1% y-o-y), which is above our expectation.
• NPI grew 57% y-o-y in 2H25 due to:
  1. full contributions from newly-acquired SGP7 and SGP8 (completion: 27 Dec 24), which accounted for about a quarter of its total NPI,
  2. - Read this at SGinvestors.io -
  3. contract renewals and rental escalation.
• This was partially offset by the divestment Kelsterbach Data Centre in Germany (completion: 24 Mar 25) and the absence of one-off dispute settlement sum of S$5.6m from SGP1 recorded in 2H24.

Strong rental reversion on full-year basis.

• Positive rental reversion was only 2% in 4Q25 as there were no major contract renewals. On a full-year basis, positive rental reversion was 45% for 2025. Portfolio occupancy was stable at 95.8% as of Dec 25.
• - Read this at SGinvestors.io -

Margin expansion from pivot to hyperscale data centres.

• NPI margin expanded 3.8ppt y-o-y to 87.1% in 2H25 due to newly-acquired hyperscale data centres SGP7 and SGP8.

NAV per unit increased 12% to S$1.71.

• 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/.

Previous report by UOB:
2025-10-27 Keppel DC REIT 9M25 - Margin Expansion From Pivot To Hyperscale Data Centres.

Price targets by 3 other brokers at Keppel DC REIT Target Prices.

Listing of research reports at Keppel DC REIT Analyst Reports.

Relevant links:
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Keppel DC REIT Dividend Payout Dates & Corporate Actions,
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