Keppel DC REIT's distributable income including capex reserves for the nine months to Sept 30 rose by 55.5% y-o-y to $195.3 million while distributions per unit (DPU) rose by 8.8% y-o-y to 7.67 cents in the same period. In 3QFY2025, DPU rose by 1.5% to 2.537 cents y-o-y. Keppel DC REIT pays DPU twice a year.
Net property income (NPI) rose by 42.2% to $280.2 million. The higher NPI was due to the acquisitions of Keppel DC Singapore (KDC SGP) 7&8, Tokyo Data Centre 1 and organic growth from higher contributions from contract renewals and escalations. These positives were partially offset by the divestment ofIntellicentre Campus and Kelsterbach Data Centre, and the absence of one-off dispute settlement sum at Keppel DC Singapore 1 received in 2024.
The gains in distributable income were also supported by acquisitions and organic growth. On the interest rate front, KDC REIT earned higher finance income from Australia Data Centre Note, and benefitted from lower finance costs.
During the 9MFY2025 period, Keppel DC REIT divested its NetCo bonds and preference shares, and completed the acquisition of KDC SGP 7&8. The acquisition of Tokyo DC3 completes this year.
Aggregate leverage during 3Q2025 fell by 20 bps to 29.8% due to repayment of loans, and excludes the payment for the lease extension for KDC SGP 7&8. Interest coverage ratio rose by 0.7 times to 6.6 times and average cost of debt fell by 10 bps to 2.9%.
Keppel DC REIT closed at $2.4 on Oct 23. The annualised DPU yield is 4.2%.
