Keppel DC REIT reports stable 1HFY2023 DPU of 5.051 cents

For the 1HFY2023, distributable income rose by 0.2% y-o-y to $91.3 million. This was due mainly to contributions from the accretive acquisitions of Guangdong Data Centre 2 and building shell of Guangdong Data Centre 3. Guangdong Data Centre 2 was acquired in June 2022 while the acquisition of the building shell for Guangdong Data Centre 3 was completed in August 2022.

Reversions from contract renewals and escalations, as well as tax savings from approvals obtained for the NetCo Bonds to be qualified as qualifying project debt securities also contributed to the higher distributable income.

These were partly offset by higher finance costs from the refinanced loans and floating interest rates loans. Net lower contributions from some of the Singapore colocation assets due to higher facilities expenses, a lower government incentive sum for the REIT’s investments in Guangdong, and less favourable forex hedges also led to the lower growth in distributable income.

Gross revenue for the 1HFY2023 rose by 3.6% y-o-y to $140.5 million while property expenses increased by 6.6% y-o-y to $13.1 million.

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Accordingly, net property income (NPI) rose by 3.3% y-o-y to $127.4 million.

As at June 30, the REIT’s portfolio occupancy stood at 98.5% while its weighted average lease expiry (WALE) stood at 8.0 years by lettable area.

The total value of the REIT’s investment properties rose by 0.44% to $3.66 billion as at June 30, compared to Dec 31, 2022. Its aggregate leverage stood at 36.3% with 73% of its borrowings fixed through interest rate swaps as at June 30.

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Cash and cash equivalents stood at $139.7 million as at June 30.

Unitholders will receive their distributions on Sept 14.

Units in Keppel DC REIT closed 2 cents lower or 0.87% down at $2.27 on July 24.