SINGAPORE (April 17): The manager of Keppel DC REIT reported DPU for 1Q17 rose 13.2% to 1.89 cents from 1.67 cents a year ago in 1Q16.
Keppel DC REIT Management said Keppel DC REIT’s distributable income increased 47.6% to $21.8 million in 1Q17 from $14.7 million in 1Q16.
The increase was contributed by the one-off capital distribution in relation to the Keppel DC Singapore 3 acquisition, income from the acquisitions announced last year, as well as lower property-related expenses and other expenses.
Year-on-year, there were lower rental income arising from a client downsizing its requirements in Keppel DC Dublin 1 in 1Q 2016, as well as lower variable income from Keppel DC Singapore 1 and Keppel DC Singapore 2 due to lower recurring and power revenue.
Keppel DC REIT’s portfolio remains resilient with a diversified geographical reach, well-established clientele and a long portfolio WALE.
On Jan 20, Keppel DC REIT completed the acquisition of 90% interest in Keppel DC Singapore 3, adding a third asset in Singapore and strengthening its presence in this key data centre hub.
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Portfolio occupancy rate rose from 94.4% as at Dec 31 2016 to 95.1% as at March 31 2017, while portfolio WALE remained long at 9.2 years.
Keppel DC REIT has a low aggregate leverage of 27.9%. This provides the REIT with a comfortable debt headroom and financial flexibility to pursue growth opportunities.
All of the REIT’s borrowings are unsecured with an average annualised cost of debt of 2.2% per annum and a weighted average debt maturity of 2.9 years. Interest coverage ratio was 11.6 times.
Keppel DC REIT Management remains confident of the data centre market’s growth potential although near-term pressure on rental rates is expected with data centre supply coming online in Singapore.
The addition of Keppel DC Singapore 3 to the REIT’s portfolio earlier this year further strengthened the REIT’s foothold in Singapore.
Keppel DC REIT declares distributions on a half-yearly basis so no distribution has been declared for the quarter under review.
Units of Keppel DC REIT closed at 1.225 cents on Monday.
