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)

Keppel DC REIT has reported distribution per unit (DPU) of 1.93 cents for its 2Q 2019, an increase of 6% from 2Q 2018.

The REIT has achieved distributable income of SGD27.2 million for 2Q 2019, 18.1% higher than 2Q 2018’s SGD23.1 million.

As such, distributable income for 1H 2019 was higher at SGD54.4 million, increasing by 23.7% from 1H 2018’s SGD43.9 million.

Keppel DC REIT has attributed the improved performance was mainly to the acquisitions of maincubes Data Centre in Offenbach am Main, Germany, and Keppel DC Singapore 5 in 2018.

Accordingly, Keppel DC REIT achieved higher DPU of 1.93 cents for 2Q 2019, bringing 1H 2019 DPU to 3.85 cents, 6.4% higher than 1H 2018’s 3.62 cents.

Keppel DC REIT’s average cost of debt remained at 1.7% per annum, and aggregate leverage fell to 31.9% as at the end of 2Q 2019.

As at 30 June 2019, the REIT’s portfolio weighted average lease expiry (WALE) was 7.8 years, and portfolio occupancy was at 93.2%.

Less than 5% of the REIT’s leases are due for expiry per annum in 2019 and 2020, and the REIT’s manager is in discussions with these tenants to renew their leases.

Based on the closing price of SGD1.71, Keppel DC REIT is currently giving a yield of 4.28% based on the Singapore REITs fundamentals table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.