Keppel DC REIT’s distribution per unit (DPU) rose 9.8% y-o-y to 10.381 cents in FY2025 for the 12 months to Dec 31, 2025. Distributable income rose by 55.2% y-o-y to $268.1 million for FY2025. The increase was mainly driven by contributions from the acquisitions of Keppel DC Singapore 7 and 8 and Tokyo Data Centre 1 and 3 as well as higher contributions from contract renewals and escalations. The increase was partially offset by the divestments of Intellicentre Campus and Kelsterbach Data Centre, as well as the absence of a one-off dispute settlement sum received in 2024.
Distributable Income includes Capex Reserves and upfront land premium (ULP) reserves relating to Keppel DC Singapore 7 and 8 set aside. The 2H2025 and FY 2025 DPU took into account an expanded unitholding base due to the additional 180.6 million new pro-rata preferential offering units listed on 22 October 2025 that will be entitled to DI from July 1, 2025.
As at Dec 31, 2025, portfolio occupancy stood at 95.8% with a weighted average lease expiry (WALE) of 6.7 years. Rental income from hyperscalers increased to 69.3% as at Dec 31 2025 from 61.1% a year ago, underscoring Keppel DC REIT’s focus on hyperscale assets and strong demand from underlying clients.
During the year, Keppel DC REIT acquired Tokyo Data Centre 3 and took full ownership of four Singapore assets – Keppel DC Singapore 3, 4, 7 and 8 complemented by a 10-year land tenure lease extension for Keppel DC Singapore 7 and 8.
Rental reversions for the year were 45%. Operational efficiency improvements, including AI-driven optimisation, unlocked additional saleable power at Keppel DC Singapore 8, with the completion of fit outs for one new data hall targeted for 3Q2027.
Aligned with its hyperscale-focused strategy, the manager divested Kelsterbach Data Centre in Germany in March 2025. It is also on track to complete the divestment of Basis Bay Data Centre in Malaysia and proposed sale of NetCo Bonds and Preference Shares in 2026. These portfolio rebalancing initiatives will unlock approximately $163.4 million that could be redeployed into high-yielding investments.
See also: MPACT's 3QFY2026 DPU up 2.5% to 2.05 cents
Portfolio asset valuation increased 25.6% y-o-y, with assets under management at $6.3 billion. This growth was mainly due to the acquisition of Tokyo Data Centre 3 and stronger valuations in Singapore.
As at end-December 2025, aggregate leverage was 35.3%, providing $531 million of debt headroom to the 40% internal cap. The preferential offering in October 2025 was 168.2% subscribed and raised $404.5 million to fund the acquisition of Tokyo Data Centre 3 and other value creation initiatives. Average cost of debt decreased to 2.8% for 4Q2025 and 3.0% for FY2025, benefitting from lower floating rates compared to a year ago. Total borrowings stood at $2.4 billion, with 71.2% hedged through interest rate swaps as at Dec 31. Interest coverage ratio remains healthy at 7.5 times.
Loh Hwee Long, CEO of Keppel DC REIT’s manager said, “Keppel DC REIT’s robust performance in FY2025 reflects our strategic acquisitions, proactive portfolio management and portfolio rebalancing. With a clear focus on hyperscale and AI-ready assets, we strengthened our portfolio and reinforced our positioning for the next phase of growth. We remain committed to sustainable growth and delivering long-term value for our Unitholders.”
