UPDATE: Keppel DC REIT reports 4Q18 net property income rose 30 percent on new acquisitions, beating forecasts

Singapore five-dollar note Photo by Leslie Shaffer

Keppel DC REIT reported on Tuesday that its fourth quarter net property income rose 30.1 percent on-year to S$42.47 million, mainly on the acquisitions of KDC SGP 5 and maincubes DC. Full-year earnings beat forecasts from DBS and JPMorgan.

That was partly offset by lower rental income from KDC SGP 1 and lower overseas contributions from depreciation of the British pound, the Australian dollar and the euro against the Singapore dollar, it said in a filing to SGX after the market close on Tueday.

Gross revenue rose 30.5 percent on-year in the quarter ended 31 December to S$48.04 million, the REIT said.

The distribution per unit for the quarter was 1.85 Singapore cents, up 5.7 percent on-year from 1.75 Singapore cents in the year-ago quarter, the filing said.

For the full year, net property income rose 26.0 percent on-year to S$157.67 million and gross revenue increased 26.2 percent on-year to S$175.54 million, the REIT reported. Full-year DPU was 7.32 Singapore cents, up 2.8 percent on-year from 7.12 Singapore cents in the previous year, it said.

In an early January note, DBS had forecast full-year net property income of S$139 million, gross revenue of S$161 million and DPU of 7.42 Singapore cents. JPMorgan had forecast full-year net property income of S$145 million, gross revenue of S$169 million and DPU of 7.5 Singapore cents.

Keppel DC REIT is a pure-play on data centers, with 15 properties in its portfolio across 10 cities in eight countries in Asia Pacific and Europe.

In its outlook, the REIT pointed to BroadGroup forecasts that the factors fueling rapid data-center growth in 2018, including data creation and storage needs and increasing digitization and cloud adoption, would continue into this year.

This article was originally published on Tuesday, 22 January 2019 at 17:57 SGT; it has since been updated.


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