Keppel DC Reit Q3 DPU up 6.3%
KEPPEL DC Reit has posted a third-quarter distribution per unit (DPU) of 1.85 Singapore cents, up 6.3 per cent from 1.74 Singapore cents in the same period a year earlier.
Gross rental income was S$44.6 million, up 30.2 per cent from the same period a year earlier, owing to the acquisitions of Keppel DC Singapore 5, maincubes Data Centre in Offenbach am Main, Germany and Keppel DC Dublin 2.
Net property income rose 33.4 per cent to S$43 million.
Portfolio occupancy as at Sept 30 was 93.1 per cent with less than 5 per cent of the leases due for expiry per year until end-2020.
As at Sept 30, portfolio weighted average lease expiry was 8.5 years.
The Reit had an annualised distribution yield of 5.32 per cent based on the third-quarter closing price of S$1.37.
The Reit manager wrote in its outlook statement: "Demand for data centre space in key European and Asian hubs continues to be underpinned by demand from hyperscale cloud players, increasing digitalisation and cloud adoption, data centre outsourcing, and other drivers such as data sovereignty regulations.
"According to BroadGroup Consulting, many hyperscale cloud players are only about a third of the way through their planned data centre build-outs, signalling strong potential requirements for data centre space. Improved connectivity as well as the development and adoption of new technologies will continue to drive the growth of data creation and fuel demand for data storage requirements in key data centre hubs globally."
All the above indicate that Keppel DC REIT should have reasonable visibility on its rental income for the foreseeable future.
Link: https://www.businesstimes.com.sg/companies-markets/keppel-dc-reit-q3-dpu-up-63
Gross rental income was S$44.6 million, up 30.2 per cent from the same period a year earlier, owing to the acquisitions of Keppel DC Singapore 5, maincubes Data Centre in Offenbach am Main, Germany and Keppel DC Dublin 2.
Net property income rose 33.4 per cent to S$43 million.
Portfolio occupancy as at Sept 30 was 93.1 per cent with less than 5 per cent of the leases due for expiry per year until end-2020.
As at Sept 30, portfolio weighted average lease expiry was 8.5 years.
The Reit had an annualised distribution yield of 5.32 per cent based on the third-quarter closing price of S$1.37.
The Reit manager wrote in its outlook statement: "Demand for data centre space in key European and Asian hubs continues to be underpinned by demand from hyperscale cloud players, increasing digitalisation and cloud adoption, data centre outsourcing, and other drivers such as data sovereignty regulations.
"According to BroadGroup Consulting, many hyperscale cloud players are only about a third of the way through their planned data centre build-outs, signalling strong potential requirements for data centre space. Improved connectivity as well as the development and adoption of new technologies will continue to drive the growth of data creation and fuel demand for data storage requirements in key data centre hubs globally."
All the above indicate that Keppel DC REIT should have reasonable visibility on its rental income for the foreseeable future.
Link: https://www.businesstimes.com.sg/companies-markets/keppel-dc-reit-q3-dpu-up-63
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