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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