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Keppel DC REIT Reports Robust 9M 2025 Performance Amid Strategic Expansion
Stock Market Newsยท 2025-10-23 23:38
Core Insights - Keppel DC REIT has demonstrated strong financial performance for the first nine months of 2025, with a Distribution Per Unit (DPU) of 7.670 Singapore cents and a distributable income of S$195.3 million [2][9] - The REIT's growth is attributed to recent acquisitions and contract renewals, with a notable 12.8% year-on-year increase in DPU for the first half of 2025 [3][9] - A successful preferential offering raised approximately S$404.5 million, indicating strong investor confidence and positioning the REIT for future growth [4][9] Financial Performance - For the nine months ended September 30, 2025, Keppel DC REIT reported a net property income of S$280.2 million [2][9] - The DPU for the first half of 2025 was 5.133 cents, reflecting a 12.8% increase year-on-year, while distributable income rose by 57.2% to S$127.1 million [3] Strategic Initiatives - The capital raised from the preferential offering will partially fund the acquisition of Tokyo Data Centre 3, enhancing the REIT's presence in Japan's data centre market [5] - Funds will also be allocated to repay existing debt, which is expected to improve the balance sheet and reduce financing costs [5] Financial Position - As of June 30, 2025, Keppel DC REIT maintained an aggregate leverage of 30.0% and an average cost of debt of 3.0% for the first half of 2025 [6] - The REIT's financial management strategies position it well to capitalize on acquisition opportunities in the hyperscale segment amid rising demand for digital infrastructure and AI [6]