Keppel DC REIT has reported a distribution per unit (DPU) for FY2024 ended Dec 31 of 9.451 cents, a 0.7% y-o-y increase. DPU for the 2HFY2024 increased by 13.2% y-o-y to 4.902 cents as a result.
Excluding the impact of the pro-rata preferential offering in December 2024, the adjusted DPU for FY2024 would have been higher at 9.504 cents, a 1.3% increase from FY2023’s DPU of 9.383 cents.
The REIT’s distributable income for FY2024 grew by 3% y-o-y to $172.7 million, from $167.7 million in the same period a year ago. The 2HFY2024 distributable income came in at $91.9 million, up 20.2% y-o-y from $76.4 million in the same period a year before.
This growth was mainly due to contributions from the acquisition of Tokyo Data Centre 1, strong reversions and escalations as well as the favourable outcome from the resolution of the dispute between Keppel DC Singapore 1 and DXC Technology Services Singapore, says the REIT.
Keppel DC REIT says that this increase was partially offset by higher finance costs in 1HFY2024 and less favourable foreign exchange hedges entered for foreign-sourced income in 2024.
Gross revenue for the FY2024 grew 10.3% y-o-y to $310.29 million, and gross revenue for the 2HFY2024 grew 8.8% y-o-y to $153.11 million.
See also: ESR REIT’s 2025 DPU set to rebound on full year impact of acquisitions, AEIs and lower debt costs
The REIT notes that Guangdong DCs 4QFY2024 income netted off via loss allowances, and this impacted 2HFY2024 DPU of 0.254 cents.
Finance costs decreased marginally mainly due to lower interest costs and interest savings from loan repayments in 2024; partially offset by acquisitions in 2024, according to the REIT.
As at Dec 31, 2024, the REIT has a portfolio occupancy of 97.2%, and a portfolio weighted average lease expiry (WALE) of 6.3 years.
See also: AIMS APAC REIT’s 9MFY2025 DPU up by 1.1% to 7.07 cents with higher revenue and NPI
The REIT has an average cost of debt of 3.1% and aggregate leverage of 31.5% as at Dec 31, 2024. The REIT says that its aggregate leverage improved 820 basis points compared to Sept 30, 2024, mainly due to the acquisition of KDC SGP 7 & 8 which was funded mainly by equity fund raising (EFR).
The EFR conducted in 4Q2024 included an upsized private placement of $700 million and a
preferential offering of $301 million. The private placement was upsized by $100 million and was 3.4 times covered, with the majority of the book allocated to real estate specialists and long-only investors.
The sponsor subscription of $85 million, as part of this EFR, is expected to be complete in 1Q2025.
The REIT notes that vacancy rates for data centres continue to decline across most global markets due to strong demand from cloud adoption by both governments and businesses. It aims to continue growing its portfolio of data centres and strengthen its presence across key international data centre hubs.
As at 7.51am, units in Keppel DC REIT are trading 1 cent higher or 0.452% up at $2.22.
