Keppel DC REIT 9M DPU rises ~12% on stronger operations, acquisitions

By Reuters News


Overview

  • Singapore data center REIT reported nine-month gross revenue of SGD 365.3 mln

  • Distribution per Unit (DPU) was 8.571 cents in 9M 2026, versus 7.670 cents in 9M 2025, a 11.7% change.


Outlook

  • Gore Hill Data Centre revenue is set to more than double as new contracts commence from end-2026

  • Keppel DC Singapore 8 asset enhancement initiative remains on track for completion in H2 2027

  • Keppel DC REIT targets a 50% reduction in Scope 1 and 2 emissions by 2035 from a 2025 baseline


Result Drivers

  • ORGANIC GROWTH AND TOKYO 3 – Higher 9M NPI was driven by positive rental reversions and escalations and the Tokyo Data Centre 3 acquisition, partly offset by asset exits and Cardiff vacancy

  • ACQUISITION FINANCING COSTS – Higher finance costs from acquisition loans and Keppel DC Singapore 7 and 8 lease-extension consideration partly offset distributable income and DPU growth for 9M

  • PORTFOLIO REVERSION – Portfolio reversion reached about 14% in 9M, while contracted power capacity rose to about 96%, indicating strong leasing activity


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

9M Gross Revenue

S$365.30 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy"

  • Wall Street's median 12-month price target for Keppel DC REIT is S$2.65, about 29.3% above its October 22 closing price of S$2.05

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 19 - Keppel to sell 51% stake in Singapore office tower vehicle for $477 million

  • Oct 21 - Singapore's Frasers Centrepoint Trust FY26 NPI rises on Northpoint City contribution, higher passing rents

  • Oct 21 - Real estate investment trust UDR raises 2026 outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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