Keppel DC Reit Q1 DPU up by 14.2% at S$0.02503 on acquisitions, strong portfolio performance

[SINGAPORE] Keppel Data Centre Reit (Keppel DC Reit) recorded a higher distribution per unit (DPU) of S$0.02503 for the first quarter, up 14.2 per cent from S$0.02192 in the previous corresponding period, said its manager. 

Distributable income (DI) for the period rose 59.4 per cent to S$61.8 million.  

The rise in DPU and DI was driven by contributions from its acquisitions and a robust portfolio performance, said the manager on Thursday (Apr 17). The manager added that the DI included capital expenditure reserves, which were set aside for computing the DPU based on eligible unitholders’ entitlements.

Revenue for the quarter climbed 22.6 per cent to S$102.2 million from S$83.4 million in the first quarter of FY2024. 

For Q1 of FY2025, net property income grew 24.1 per cent to S$88.1 million. 

Higher net property income was primarily due to acquisitions of Keppel DC Singapore 7, Keppel DC Singapore 8 and Tokyo Data Centre 1, alongside higher contributions from contract renewals and escalations in 2024. 

However, it was partially offset by the divestment of Intellicentre Campus and a one-off dispute settlement sum at Keppel DC Singapore 1, which was received in 2024. 

Finance costs stood at S$12.5 million, down 4.1 per cent from S$13 million previously. This was due to interest rates decreasing and interest savings from loan repayments, but was partly offset by new loans in 2024 for acquisitions, said the manager. 

Aggregate leverage was 30.2 per cent as at Mar 31, 2025, lower by 130 basis points from Dec 31, 2024. Its interest coverage ratio for the trailing 12 months was at 5.8 times.

Portfolio occupancy stood at 96.5 per cent as at end March, with portfolio weighted average lease expiry (Wale) at 7.1 years by lettable area.

Wale by rental income was 4.4 years as a higher proportion of rental income was from colocation assets, which typically have shorter contractual periods, the manager noted.

Outlook

The manager said that the rise of competing artificial intelligence (AI) models such as DeepSeek could reshape expectations around its infrastructure needs.

Evolving AI governance and geopolitical developments such as US President Donald Trump’s sweeping tariffs could “introduce new layers of complexity and regulatory uncertainty for data centre demand”, it said. 

Units of Keppel DC Reit closed 3 per cent or S$0.06 higher at S$2.05 on Wednesday.