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, announced on 13 April that it has achieved a distribution per unit (DPU) of 1.67 Singapore cents for its 1Q 2016, slightly beating the forecast made at IPO of 1.65 cents by 1.2%.

Compared to the corresponding period in 2015, the DPU figure represents a growth of 3.7%.

Distributable income for the period came it at SGD14.7 million, which is 1.0% higher than the IPO forecast. Similarly when compared to the same period last year, the distributable income registered a 3.8% improvement.

However gross revenue for the period at SGD24.7 million missed forecast for the quarter by 2.8% while net property income (NPI) of SGD21.1 million fell short by 2.1%.

According to the REIT, distributable income for the period came in slightly higher than forecast mainly due to realised gains on settlement of foreign exchange forward contracts, higher finance income and lower costs.

“These were partially offset by lower revenue from a client downsizing its requirements in Citadel 100 Data Centre, lower contribution arising from AUD, EUR and MYR depreciating against SGD, as well as lower power revenue and higher property-related costs at the Singapore properties”, said the REIT.

As at 31 March 2016, portfolio occupancy rate was 92.0% with a weighted average lease expiry (WALE) of 8.7 years, given the vacancy in Citadel 100 Data Centre while aggregate leverage was 29.6%.

“The manager remains committed in its ambition to grow the portfolio”, said the REIT in a statement on the results. “Apart from pursuing third- party acquisition opportunities, Keppel DC REIT can tap the visible pipeline of assets under rights of first refusal arrangement with its sponsor” it added.

Units of Keppel DC REIT finished the trading day about 1% higher from its previous close on the Singapore Exchange to end at SGD1.07.

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.