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

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

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

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(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.)