Keppel DC REIT reports 1Q19 net property income up nearly 27 percent on acquisitions

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Keppel DC REIT reported on Monday its first-quarter net property income rose 26.8 percent on-year to S$43.23 million on the acquisitions of maincubes Data Centre in Offenbach am Main, Germany, and Keppel DC Singapore 5 last year.

Gross revenue increased 26.4 percent on-year to S$48.03 million in the quarter ended 31 March, the REIT said in a filing to SGX on Monday after the market close.

The distribution per unit (DPU) rose 6.7 percent on-year to 1.92 Singapore cents, up from 1.80 Singapore cents in the year-ago period, the REIT said.

Property expenses increased 22.5 percent on-year to S$4.80 million in the quarter, the filing said.

As of the end of the quarter, the portfolio occupancy rate was “healthy” at 93.2 percent, said the REIT, which is a pure play on data center hubs.

In its outlook, the REIT pointed to expectations for global economic growth the slow, but added that data center demand was expected to remain firm.

“Demand in the data center industry continues to be supported by the rapid growth in data creation and storage needs, increasing digitalisation and cloud adoption, data sovereignty regulations, as well as the strong growth in co-location demand from hyperscale cloud players,” the REIT said.

“Improved connectivity as well as the development and adoption of new technologies such as 5G mobile networks, driverless vehicles, virtual reality, the Internet of Things (IOT), will also continue to support demand for data centers globally,” it added.

Keppel DC REIT’s portfolio of 15 assets across eight countries in Asia and Europe.

 

 

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