SINGAPORE (Jan 22): Keppel DC REIT Management, the manager of Keppel DC REIT, has declared 4Q17 DPU of 1.75 cents, 33.6% higher compared to 1.31 cents in 4Q16.
4Q17 gross revenue came in at $36.8 million, 37.2% higher than from $26.8 million a year ago.
This was supported by a 34.1% y-o-y increase in its gross rental income to $34.9 million from $26.1 million last year, mainly contributed by the acquisitions of KDC DUB 2, Milan DC, Cardiff DC, and the 90.0% interest in KDC SGP 3, as well as higher variable income from KDC SGP 1 due to higher recurring revenue.
Furthermore, overseas contributions increased due to the impact from the appreciation of AUD, GBP and EUR against SGD.
These were however partially offset by lower variable income from KDC SGP 2, due to lower recurring and power revenue, lower rental income from Basis Bay DC, as well as lower rental income and a one-off non-cash downward adjustment for straight lining of rental income at Gore Hill DC.
Meanwhile, other income more than doubled to $1.91 million from $789,000 a year ago, mainly from the rental top up income as well as ad hoc service revenue charged to clients.
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The REIT’s property operating expenses increased more than doubled to $4.18 million from $1.90 million a year ago.
This was mainly due to higher property-related expenses from the acquisitions of KDC DUB 2 and KDC SGP 3, and the absence of a one-off property tax refund recorded in 4Q16, as well as higher property-related expenses incurred at KDC DUB 1, Almere DC and iseek DC.
Hence, net property income for the 4Q17 ended December stood at $32.6 million, 30.9% higher than $24.9 million recorded in the same period last year.
Looking forward, the manager says the REIT remains well-positioned to benefit from the growth of the data centre industry, with its global client base and the manager’s established track record.
The manager will also continue to seek opportunities to capture value and strengthen its presence across key data centre hubs.
Units in Keppel DC REIT closed at $1.47 on Monday.
