Keppel DC REIT is still a ‘buy’

SINGAPORE (July 19): OCBC Investment Research is keeping Keppel DC REIT (KDCREIT) on “buy” with a higher fair value estimate of $1.27 from $1.24 previously, following the release of its 2Q results on Monday.

KDCREIT posted a 3.1% rise in distribution per unit (DPU) of 1.67 cents for the 2Q16 ended June compared to 1.62 cents in the same period of last year.

Gross revenue for 2Q16 fell 4.5% to $24.9 million due to lower rental income arising from a client downsizing its requirements at Keppel DC Dublin 1 in 1Q16 and a decline in variable income at its Singapore properties.

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