This year, KDC REIT’s AEI, augmented by acquisitions, should continue to support growth in distributable income (DI). On the AEI front, the fit-out of a new data hall at Keppel DC Singapore 5 has been completed and handed over to the client in 4Q2020, increasing the asset occupancy from 84.2% as at Sept 30, 2020, to 100% as at Dec 31, 2020.
Keppel DC REIT’s (KDC REIT) 20.5% surge in DPU in FY2020 must be the highest DPU growth by an S-REIT. Even then, the 9.17 cents historic DPU, or the 9.59 cents annualised DPU translates into yields of just 3.3%. That has led to some analysts suggesting that KDC REIT’s growth is already baked into its unit price.
“Covid-19 has fueled further demand for and underpinned the importance of data centres, but we believe this has been priced in. We have factored in $300 million acquisition in FY2021 ended December,” says a CGSCIMB report following KDC REIT’s results announcement on Jan 26.
