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’s first and only data centre REIT, Keppel DC REIT, announced on 18 July that it has recorded a distribution per unit (DPU) of 1.67 Singapore cents for its 2Q 2016, an increase of 3.1% from the 1.62 cents paid for 2Q 2015.

Gross revenue for the period fell by 4.5% to SGD24.8 million while net property income improved marginally by 0.8% to SGD22.1 million.

Distributable income for the period was SGD14.7 million, up by 3.3% compared to the SGD14.2 million achieved for the corresponding period in the last financial year.

“Distributable income exceeded IPO forecast mainly due to contribution from Intellicentre 2, higher finance income, lower finance costs, property-related and other expenses”, said the REIT in its statement on the results.

“These were partially offset by a drop in variable income at the Singapore properties due to lower power revenue charged and higher property-related costs, as well as a client downsizing its requirements in Keppel DC Dublin 1 in 1Q 2016”, it added.

As at 30 June 2016, Keppel DC REIT’s portfolio occupancy rate was at 92.3% with a weighted average lease expiry (WALE) of 8.7 years. Aggregate leverage for the quarter was 29.1% with an average annualised cost of debt of approximately 2.4% per annum.

On its outlook, Keppel DC REIT has indicated that it remains optimistic in the face of sluggish growth and weak global trade.

“Despite the soft macroeconomic prospects, the data centre industry is expected to see sustained growth with developing technologies forming the next wave of digital revolution and data creation”, said the REIT.

Book closure date for Keppel DC REIT is 26 July 2016 and distributions will be paid out on 31 August 2016.

Units of Keppel DC finished the trading day about 0.8% higher from its previous close on the Singapore Exchange to end at SGD1.17.

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.