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]

Core Insights - Keppel DC REIT has announced a 12.8% increase in its distribution per unit (DPU) to S$0.05133 for the first half of 2025, showcasing strong rental performance and a significant rise in distributable income [2][3] - The REIT's DPU increase is notable in a challenging environment where many REITs are experiencing declines in DPU, indicating its strong operational and financial management [3][4] DPU Performance - The DPU increase is attributed to strong rental performance, with distributable income surging 57.2% year-on-year to S$127.1 million [2] - At a unit price of S$2.38, the annualized trailing dividend yield stands at 4.2% [2] Operational Highlights - The REIT maintains a high occupancy rate of 95.8% and has no major contracts due for renewal for the remainder of the year [5] - Keppel DC REIT operates in three segments: Singapore (66% of AUM), Asia-Pacific (15%), and Europe (19%), with high occupancy rates across its properties [6] Financial Management - The REIT has a low aggregate leverage of 30% and a cost of debt at 3%, down 0.1 percentage points from the previous year [5] - The interest coverage ratio is strong at 5.9 times, indicating robust financial health [5] Growth Drivers - Keppel DC's performance is bolstered by active lease management, focusing on high-quality tenants, and recent acquisitions, including a second data center in Japan [8] - The REIT benefits from structural growth trends in cloud computing, AI, and digitalization, leading to strong demand for data center properties [10] Future Outlook - With interest rates expected to trend down, Keppel DC REIT is positioned to benefit from lower financing costs and improved asset valuations, potentially leading to further growth in distributions [12] - The REIT's pipeline of developments and potential acquisitions suggests the possibility of higher distributions in the future [13][14]