Keppel DC REIT reports 2Q net property income rose more than 21 percent

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Keppel DC REIT, a pure-play data center REIT, reported on Tuesday that net property income for the second quarter rose 21.4 percent on-year to S$38.08 million.

Gross revenue for the quarter rose 21.5 percent on-year to S$41.93 million, while the distribution per unit (DPU) was up 4.6 percent on-year at 1.82 Singapore cents, it said in a filing to SGX after the market close on Tuesday.

For the first half, net property income rose 19.9 percent on-year to S$72.16 million, while the DPU was down 0.3 percent at 3.62 Singapore cents, it said.

The adjusted DPU for the first half was 3.62 Singapore cents, up 4.0 percent from the adjusted DPU of 3.48 Singapore cents in the year earlier period, which had included a one-off capital distribution of S$1.7 million from the Keppel DC Singapore 3 acquisition, it said.

Distributable income for the first half rose 4.9 percent on-year to S$43.95 million.

“This is mainly due to higher contribution from maincubes Data Centre and the assets in Singapore and Dublin, partially offset by lower rental income from Basis Bay Data Centre as well as higher finance costs and Manager’s fees,” the filing said.

It noted that in mid-June, the REIT manager completed the acquisition of Keppel DC Singapore 5, formerly known as Kingsland Data Centre, marking the REIT’s fourth asset in Singapore and its 15th data center globally.

In its outlook statement, the manager said Keppel DC REIT was well-positioned to benefit from the data-center market’s growth, which was supported by enterprises’ and consumers’ move to digitization and cloud adoption.

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