He notes positives from KDC REIT’s results, including the improvement of the quantification of rental reversions of more than 40%, achieved through a major contract renewal in Singapore, and the split of lease expiries by contract type in terms of net lettable area (NLA) and rental income, with colocation contributing to bulk of near-term expiries.
Analysts remain positive on Keppel DC REIT (KDC REIT) following the announcement of its 1HFY2024 results ended June 30. Both Citi Research and DBS Group Research have kept their “buy” calls, with target prices of $1.91 and $2.20 respectively.
Citi’s analyst Brandon Lee says that the REIT’s 1HFY2024 distribution per unit (DPU) of 4.55 cents, which fell by 9.9% y-o-y but rose 5% h-o-h, comprised 50% of his total DPU estimate for the FY2024. The REIT’s 1HFY2024 DPU comprised 51% of the consensus’ full-year estimate.
