Keppel DC Reit nine-month DPU rises 11.7% to S$0.08571
Distributable income reached S$228 million as operating gains and acquisitions supported growth, while higher financing costs partly offset the increase.
Keppel DC Reit reported an 11.7 per cent increase in distribution per unit to S$0.08571 for the nine-month period to September 30, 2026. The year-earlier payout was S$0.0767, its manager said in an October 23 operational update.
Distributable income increased to S$228 million from S$195.3 million, a gain of 16.7 per cent. Revenue reached S$365.3 million, rising 13.3 per cent from S$322.4 million, while net property income advanced 13.1 per cent to S$316.8 million from S$280.2 million.
The manager attributed the improvement to operating gains, positive rental reversions, rental escalations and acquisitions. Contributions included Tokyo Data Centre 3 and higher effective interests in Keppel DC Singapore 3 and 4.
These gains were partly offset by increased financing costs on acquisition loans drawn during the fourth quarter of 2025, lease-extension considerations involving Keppel DC Singapore 7 and 8, and a larger unit base after the September 2026 private placement.
Portfolio rental reversion was about 14 per cent over the period, supported by Singapore and Australia contract renewals and new agreements. Occupancy reached 93 per cent at September 30, compared with 92.5 per cent at June 30. Weighted average lease expiry, measured by lettable area, was 6.5 years.
Aggregate leverage increased by 220 basis points over three months to 36.2 per cent at end-September, following a partial drawdown of yen loans for the purchase of Tokyo Data Centre 4 and 5. Average debt cost was 2.6 per cent, and interest coverage was 6.5 times.
