SINGAPORE (July 17): The manager of Keppel DC REIT has declared a DPU of 1.82 cents for 2Q18, up 4.6% from 1.74 cents in 2Q17.
For the half-year ended June, DPU was 3.62 cents, which was 4% higher than 1H17’s adjusted DPU of 3.48 cents if the one-off capital distribution arising from Keppel DC Singapore 3’s acquisition in 1Q17 was excluded.
Gross revenue for 2Q18 grew 21.5% to $41.9 million from $34.5 million a year ago.
Gross rental income grew 21.2% on-year to $41 million from $33.8 million previously, due to contributions after the acquisitions of KDC SGP 5, maincubes DC and KDC DUB 2. Higher variable income was also recorded from from KDC SGP 1-3, along with higher rental income for KDC DUB 1.
In addition, overseas contributions increased from the appreciation of EUR, MYR and GBP against SGD, partially offset by the impact from the depreciation of AUD against SGD.
Meanwhile, other income of $0.9 million rose from $0.7 million a year ago due to higher rental top up income as well as higher ad hoc service and power-related revenues.
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Property operating expenses however grew 22.2% to $3.9 million from $3.2 million in 2Q18, mainly due to property-related expenses arising from the acquisition of KDC DUB 2.
As such, distributable income grew 14.6% to $23.1 million from $20.1 million in 2Q17.
As at end-June, portfolio weighted average lease expiry (WALE) was 8.8 years. Portfolio occupancy rate was 92% and less than 5% of the leases are due for expiry per year until end-2020.
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Going forward, the manager expects the trend of data centre outsourcing to continue as large enterprises seek efficient deployment of quality high-redundancy data centre space. The REIT manager adds that it will continue to seek opportunities to capture value and strengthen its presence across key data centre hubs.
Units in Keppel DC REIT closed 1 cent higher at $1.35 on Tuesday.
