Keppel DC REIT’s 2Q19 net property income rose 14 percent

Singapore two-dollar billsSingapore two-dollar bills

Keppel DC REIT reported second quarter net property income rose 13.6 percent on-year to S$43.26 million, getting a boost from the acquisitions of maincubes Data Centre in Offenbach am Main, Germany, and Keppel DC Singapore 5 in 2018.

However, the depreciation of the Australian dollar, the euro and the British pound against the Singapore dollar weighed on overseas contributions, the REIT said.

Gross revenue for the quarter ended 30 June was up 13.2 percent on-year at S$47.46 million, the REIT said in a filing to SGX Tuesday.

The distribution per unit (DPU) was 1.93 Singapore cents for the quarter, up 6 percent from 1.82 Singapore cents in the year-ago quarter, the filing said.

The portfolio’s occupancy rate was at 93.2 percent at end-June, with less than 5 percent of the REIT’s leases due for expiry in 2019 and 2020, the REIT said.

For the first half, Keppel DC REIT posted net property income rose 19.9 percent on-year to S$86.49 million on gross revenue of S$95.49 million, up 19.5 percent on-year. DPU for the first half was 3.85 Singapore cents, up 6.4 percent from 3.62 Singapore cents in the year-ago half year, the filing said.

In its outlook, the REIT pointed to strong demand for data centers despite concerns over geopolitical risks.

“Looking ahead, the development and adoption of new technologies such as 5G mobile networks, autonomous vehicles, virtual reality, [and] the Internet of Things, will continue to contribute to the digitalisation wave and correspondingly, demand for data centers globally,” the REIT said.

Keppel DC REIT is the first Asia-listed pure-play data-center REIT, and its portfolio currently holds 15 data centers in eight countries across Asia Pacific and Europe, the filing said.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.