Keppel DC REIT's property in Tampines, Singapore, known as Keppel DC Singapore 2 (Photo: REITsWeek)

Keppel DC REIT has reported a distribution per unit (DPU) of 1.93 Singapore cents for its 3Q 2019, a rise of 4.3% year-on-year.

However, the REIT’s gross revenue and net property income (NPI) for the quarter slid by 2.5% and 1.8% to SGD46.7 million and SGD42.2 million respectively.

Distributable income of SGD27.4 million for 3Q 2019 is 5.4% higher than 3Q 2018’s SGD26.0 million.

As at 30 September 2019, the REIT’s portfolio weighted average lease expiry (WALE) was 7.7 years, and portfolio occupancy rate was at 93.6%, up slightly from 93.2% in the previous quarter.

Keppel DC REIT’s aggregate leverage has dropped from 31.9% as at 30 June 2019, to 28.9% as at 30 September 2019.

Its preferential offering, which closed on 7 October 2019, was 175.4% subscribed and will further improve the REIT’s aggregate leverage, providing more debt headroom to pursue growth, said its manager.

“Notwithstanding increased competition in the data centre industry, Keppel DC REIT, with its established track record and enlarged portfolio of assets, is well-positioned to benefit from the growth of the data centre market”, it added.

Figures from Keppel DC REIT’s 3Q 2019 results have been updated into the Singapore REITs fundamentals table.

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.