Keppel DC REIT's data centre property in Cardiff, Wales. (Photo: Keppel DC REIT)Keppel DC REIT's data centre property in Cardiff, Wales. (Photo: Keppel DC REIT)

Keppel DC REIT has achieved a distribution per unit (DPU) of 1.92 Singapore cents for its 1Q 2019, 6.7% higher than the 1.80 cents delivered in 1Q 2018.

The REIT’s gross revenue and net property income (NPI) for the quarter increased by 26.4% and 26.8% to SGD48 million (USD35 million) and SGD43.2 million respectively.

Correspondingly, distributable income of SGD27.1 million for 1Q 2019 came in 29.9% higher year-on-year.

Keppel REIT has attributed the higher distributable income mainly to its enlarged asset base following the acquisitions of maincubes Data Centre in Offenbach am Main, Germany, and Keppel DC Singapore 5 in 2018.

As at 31 March 2019, the REIT’ portfolio occupancy was at 93.2%, while portfolio weighted average lease expiry (WALE) was at 8.0 years.

At Keppel DC Singapore 3, the REIT’s manager has undertaken retrofitting works to make way for expansion within a client’s premises, and when completed in mid-2019, expected to increase the returns on the property.

The REIT is also upgrading Keppel DC Dublin 2 to make way for client expansion, which is on track for completion in 2H 2019.

The REIT’s average cost of debt was at 1.7% per annum, with gearing at 32.5%.

Based on the market closing price of SGD1.50 on the last trading day of 1Q 2019, distribution yield for Keppel DC REIT was at 5.12%.

Keppel REIT was last done on the SGX at SGD1.49.

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.