Keppel DC REIT Q1 2026 Deep Dive: DPU vs Interest |🦖EP1551
Keppel DC REIT Q1 2026 Deep Dive: DPU vs Interest |🦖EP1551
Keppel DC REIT's DPU rose 13.2% but finance costs climbed 20.8% in the same quarter — and the market is treating those two numbers as if they exist in separate universes. Aggregate leverage has crossed my strict 35.1% forensic ceiling for pure-play digital infrastructure, the WALE by income has quietly compressed to 4.6 years on short colocation contracts, and one hyperscaler alone accounts for 42.8% of total rental income. That is not a diversified income stream. That is a single-tenant dependency dressed up in data centre language.
With the Singapore T-Bill sitting at 1.47% and my 3.2% forensic floor unchanged, you need a minimum 4.7% hurdle before this counter even earns its place in a CPF or SRS ladder. At S$2.38, the yield spread does not clear that bar with enough margin to justify the gearing breach, the 2026 debt refinancing wall, and the looming Cardiff vacancy. Capital protection is not pessimism — it is arithmetic.
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