The higher distributable income and DPU were also mainly due to contributions from strong portfolio performance, acquisitions of Tokyo Data Centre 3 and remaining interests in Keppel DC Singapore 3 and 4. Finance costs were higher mainly due to new acquisition loans drawn in 4Q2025 but average cost of debt in 1Q2026 was a low 2.6%, down 20 bps q-o-q.
Rental reversions in 1Q2026 were a startling +50.3%. The portfolio was underpinned by renewal of major contracts done in 2024 and 2025. In 2026 and 2027, 6% of rental income is up for renewal a year. Stable portfolio occupancy is likely to be anchored by largely contracted data centre spaces that counter-balance movements in non-data centre areas.
The REIT manager says there is likely to be a limited first-order impact from ongoing Middle East conflict since net electricity costs account for less than 3% of operating expenses with power procurement contracts in place through end-2026. Second-order risks are being monitored, the manager says.
