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

Singapore-listed data centre REIT, Keppel DC REIT, (SGX: AJBU), announced on 14 January that it has achieved a total distribution per unit (DPU) of 6.84 cents for the period spanning 12 December 2014 to 31 December 2015.

The DPU comprises of 3.28 cents that has been declared for the period from 1 July 2015 to 31 December 2015 added with the distribution of 3.56 cents paid on 28 August 2015 for the period from listing date to 30 June 2015, beating IPO forecast by 1.9%.

The REIT has also achieved a net property income (NPI) of SGD91.3 million for the period, surpassing its IPO forecast of SGD89.7 million by 1.7%.

“The higher NPI and distributable income were mainly due to higher variable rental income from the Singapore properties and other income from Gore Hill Data Centre and Citadel 100 Data Centre, as well as rental contribution from Intellicentre 2 which was acquired during the period”, said the REIT in a statement on the results.

The REIT’s portfolio occupancy is at 94.8% while weighted average lease expiry (WALE) was 8.7 years as at 31 December 2015. Aggregate leverage was at 29.2% with an interest coverage ratio of 9.4 times. All of the REIT’s borrowings are unsecured with an average annualised cost of debt of approximately 2.5% per annum and weighted average debt maturity of 3.3 years, said Keppel DC REIT in its statement.

“Amidst the volatile macro-economic terrain, Keppel DC REIT will remain vigilant and prudent as it seeks to expand its portfolio of quality data centre assets across Asia Pacific and Europe”, it said.

“Industry fundamentals remain intact, anchored by global trends such as the proliferation of smart devices, internet penetration as well as increased compliance and regulatory requirements. The shift towards cloud computing and e-commerce is expected to further propel data centre demand as well”, it added.

“Global cloud traffic is projected to more than quadruple from 2014 to 2019, growing at a compounded annual growth rate (CAGR) of 33%1, while the global e-commerce market is expected to grow at a CAGR of 17% from 2014 to 2018. It is expected that growth in global cloud traffic and the global e-commerce market will translate to increase in data centre requirements”.

“Leveraging the Sponsor’s established track record and technical expertise in the data centre industry, Keppel DC REIT is in a strategic position to tap opportunities that arise in the co-location business as corporates seek to outsource their data centre requirements increasingly”, the REIT added.

Units of Keppel DC REIT last changed hands on the Singapore Exchange at SGD1.01

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.