Keppel DC REIT's property in Tampines, Singapore, known as Keppel DC Singapore 2 (Photo: REITsWeek)

Singapore’s first data centre real estate investment trust, Keppel DC REIT (SGX:AJBU), announced on 9 April that it has achieved a net property income (NPI) of SGD26.2 million for the period spanning 12 December 2014 to 31 March 2015.

The figure exceeded IPO forecast of SGD25.6 million by 2.0%. Distributable income of SGD17.2 million for the period beat IPO forecast of SGD16.9 million by 1.3%. Accordingly, annualised distribution yield based on the initial offering price of SGD0.93 has risen from the 6.85% forecasted at IPO to 6.92%.

“The higher NPI and distributable income were mainly due to non-recurring service income generated from Citadel 100 Data Centre and Gore Hill Data Centre, as compared to the IPO forecast”, said Keppel DC REIT in a statement announcing the results.

However the REIT also indicated that property expenses for the period were above the IPO forecast due to higher variable facility management and property management costs, as well as property tax. The expense was recorded at SGD4.99 million, 8.5% higher than the SGD4.6 million anticipated.

The quarter reported a slight increase in occupancy rate from 93.5% to 93.6% while weighted average lease expiry (WALE) stands at approximately 7.5 years. Aggregate leverage for the REIT as at 31 March is 26.7%.

Keppel DC REIT has indicated that it expects good prospects ahead in the coming quarters. “The momentum of data creation and data storage requirements is set to continue in Keppel DC REIT’s key investment regions amidst the growth of global enterprises and IT penetration”, the REIT said.

Units of Keppel DC REIT are currently listed on the Singapore Exchange at SGD1.01.

A data centre in Tampines, Singapore under Keppel DC REIT.
A data centre in Tampines, Singapore under Keppel DC REIT.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.