Keppel DC Reit 9M DPU up 11.7% at S$0.08571 on organic growth, acquisitions
[SINGAPORE] Keppel DC Reit posted a distribution per unit (DPU) of S$0.08571 for the nine months ended Sep 30, 2026, up 11.7 per cent from S$0.0767 a year ago.
Distributable income rose 16.7 per cent year on year to S$228 million from S$195.3 million, the real estate investment trust’s (Reit) manager said in an operational update on Friday (Oct 23).
Revenue grew 13.3 per cent to S$365.3 million from S$322.4 million a year earlier, while net property income rose 13.1 per cent to S$316.8 million from S$280.2 million.
The improved results were driven by stronger operating performance, positive rental reversions and escalations, as well as contributions from acquisitions including Tokyo Data Centre 3 and increased effective interests in Keppel DC Singapore 3 and 4.
However, growth was partially offset by higher finance costs from acquisition loans drawn in the fourth quarter of 2025 and lease extension considerations for Keppel DC Singapore 7 and 8, as well as an enlarged unit base following a private placement in September 2026.
For the nine months, the Reit achieved a portfolio rental reversion of about 14 per cent, supported by renewals and new contracts secured in Singapore and Australia.
Portfolio occupancy stood at 93 per cent as at Sep 30, up from 92.5 per cent as at Jun 30. Weighted average lease expiry by lettable area was 6.5 years.
Keppel DC Reit’s aggregate leverage rose to 36.2 per cent as at end-September, up 220 basis points from three months earlier, due to a partial drawdown of yen loans to fund the acquisition of Tokyo Data Centre 4 and 5.
Average cost of debt stood at 2.6 per cent for the nine-month period, with an interest coverage ratio of 6.5 times.
On its outlook, the manager noted that data centre fundamentals remain resilient, with demand growth continuing to absorb new supply. Artificial intelligence adoption is expected to broaden enterprise demand, with AI workloads projected to account for half of Asia-Pacific data centre demand by 2030.
Units of Keppel DC Reit closed 0.5 per cent or S$0.01 higher at S$2.05 on Thursday.
