The manager of Keppel DC REIT has reported distribution per unit (DPU) of 2.462 cents for the 1QFY2021 ended March, 18.1% higher than DPU of 2.085 cents for the 1QFY2020.
The higher DPU was supported by accretive acquisitions and asset enhancement initiatives (AEIs) in 2020, reported the REIT.
The REIT recently completed AEI works at Keppel DC Dublin 2 and DC1 that came up to a total of some $72 million.
Similarly, distributable income for the quarter was up 17.5% y-o-y to $42.0 million.
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Gross revenue for the quarter grew 10.6% y-o-y to $66.7 million, while net property income (NPI) increased 10% y-o-y to $61.0 million.
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Net asset value (NAV) per unit fell slightly – 0.8% y-o-y – at $1.18 for the quarter ended March.
As at March 31, the REIT reported a portfolio occupancy rate of 97.8% with a weighted average lease expiry (WALE) of 6.6 years by leased area.
In terms of rental income breakdown, the REIT’s top 10 customers comprise mainly companies in the internet enterprise sector, followed by telecom.
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In its portfolio update, the REIT says it has been “proactively engaging” its tenants for lease renewals in 2021 and that development of its Intellicentre 3 East Data Centre is “progressing as planned”.
The centre achieved practical completion in 1QFY2021, with the completion of the development expected in 2QFY2021.
Furthermore, the REIT says data centre demand has been “strong and resilient” with hyperscalers’ spending on colocation data centres increasing by 25% in 2020.
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The global colocation market is expected to grow by 16% in 2021, mainly due to growth in Asia Pacific and Europe.
Enterprise spending on cloud infrastructure grew more than 30% in 2020 and it is expected to continue expanding at a compound annual growth rate (CAGR) of over 20% through 2025.
Moving forward, the REIT says it is “well-positioned” for growth with a resilient asset class and long-term growth visibility proxy to the fast-growing technology sector, as well as highly defensive and sustainable income stream.
Units in Keppel DC REIT closed 1 cent lower or 0.4% down at $2.69 on April 20.
