The increase was contributed by income from the acquisitions announced last year, as well as a one-off capital distribution of $1.7 million in 1Q 2017 in relation to the acquisition of Keppel DC Singapore 3 (KDC SGP 3).
This was partially offset by lower variable income from Keppel DC Singapore 1 and Keppel DC Singapore 2 due to lower recurring and power revenue.
Gross revenue grew 38.8% in 2Q to $34.5 million, from $24.9 million a year ago, on the back of a 37.6% increase in gross rental income to $33.8 million.
This was mainly attributable to the acquisitions of Milan DC, Cardiff DC, and the 90.0% interest in KDC SGP 3.
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Consequently, net property income rose 41.9% to $31.4 million, from $22.1 million a year ago.
As at June 30, Keppel DC REIT’s portfolio occupancy was 93.1% with portfolio weighted average lease expiry (WALE) of 9.4 years.
Cash and cash equivalents stood at $108.2 million as at June 30, 2017.
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The distribution is expected to be paid to unitholders on Aug 31, 2017.
Looking ahead, Keppel DC REIT says the data centre industry continues to be driven by global trends such as cloud adoption among consumers and corporations.
Despite these potential macroeconomic headwinds ahead, it says the industry trends bode well for the REIT.
Units of Keppel DC REIT closed flat at $1.32 on Monday.
