SPACE ROCKET
08-03

Keppel DC REIT and other REITs have reported strong financial quarters due to several factors:

Key Drivers of Strong Financial Performance

- Positive Rental Reversions: Keppel DC REIT achieved a 7% positive rental reversion in 1Q2025, contributing to its robust earnings growth.

- Acquisitions and Portfolio Optimization: Strategic acquisitions, such as Keppel DC Singapore 7 & 8 and Tokyo DC1, have driven earnings growth and improved portfolio occupancy.

- Healthy Portfolio Occupancy: Keppel DC REIT's portfolio occupancy rate stands at 96.5%, with a long weighted average lease expiry (WALE) of 7.1 years.

- Low Gearing Ratio: Keppel DC REIT's aggregate leverage is at 30.2%, with an average cost of debt of 3.1%, indicating a stable financial position.

- Strong Sponsor Support: Backed by reputable sponsors like Keppel Ltd, these REITs benefit from lower borrowing costs and access to a pipeline of assets for acquisition.


Financial Highlights

- Revenue Growth: Keppel DC REIT's gross revenue jumped 22.6% year-on-year to S$102.2 million in 1Q2025.

- Net Property Income (NPI) Growth: NPI increased 24.1% year-on-year to S$88.1 million, driven by acquisitions and contract renewals.

- Distribution Per Unit (DPU) Growth: DPU rose 14.2% year-on-year to S$0.02503, showcasing the REIT's ability to deliver stable returns.


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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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