This was attributable to higher gross rental income and higher other income.
Gross rental income increased 16.7% to $36.9 million from $31.6 million in the previous year, mainly contributed by the full quarter rental income from KDC DUB 2 and KDC SGP 3, higher variable income from KDC SGP 1 and lower non-cash adjustment for straight-lining of rental income at Gore Hill DC. Furthermore, overseas contributions increased from the appreciation of GBP and EUR against SGD. These were partially offset by lower rental income from Basis Bay DC and Gore Hill DC.
Other income was 88.6% higher y-o-y at $1.09 million, mainly due to the higher rental top up recognised as compared to 1Q17 as well as higher ad hoc service revenue and power-related revenue.
Property expenses also increased by 16% to $3.92 million from $3.38 million a year ago.
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Therefore, net property income came in 18.2% higher at $34.1 million from $28.8 million in 1Q17.
Finance costs increased by 15.7% to $3.99 million compared to $3.45 million last year.
During the quarter, the REIT incurred other trust expenses of $0.85 million, compared to income of $1.37 million in 1Q17.
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Distributable income was $20.9 million in 1Q18, 4.1% lower than 1Q17’s $21.8 million due to the absence of the one-off capital distribution recorded in 1Q17 from the Keppel DC Singapore 3 acquisition last year.
On the outlook, the REIT’s manager will build on its established track record and global client base and capitalise on growth opportunities in the data centre industry to expand and strengthen its portfolio of quality assets.
Separately, the REIT also announced that Christina Tan will be appointed as chairman of the board with effect from Apr 18, succeeding Chan Hon Chew. She will also be taking over Chan’s role as chairman of the executive committee.
Tan is the CEO of Keppel Capital Holdings, the asset management arm of Keppel Group.
Units in Keppel DC REIT closed at $1.46 on Monday.
