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.
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.