- 1Q26 Keppel DC REIT's DPU of 2.833 Singapore cents (+13.2% y-o-y) was in line with our expectations, forming 26% of our FY26e estimates. Growth was driven by the acquisitions of Tokyo Data Centre 3 and the remaining interests in Keppel DC Singapore 3 & 4, as well as stronger contributions from contract renewals and escalations, partially offset by the divestment of Kaltenbach Data Centre.
- - Read this at SGinvestors.io -
- Portfolio occupancy eased slightly, by 0.2 ppt, to 95.6%, due to client downsizing of non–data centre space, while portfolio WALE stayed healthy at 6.5 years.
The Positives
Healthy financial metrics.
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- We expect FY26e cost of debt to remain stable at 2.6%, with 8.5% of debt due for refinancing in FY26.
The Negative
Ongoing weakness at the Guangdong Data Centres.
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