The manager of Keppel DC REIT has reported a lower distribution per unit (DPU) of 2.492 cents for the 3QFY2023 ended Sept 30, a 3.6% decrease from the same period a year ago.
This brings its DPU for the 9MFY2023 to 7.543 cents, 1.2% lower than the 9MFY2022 DPU of 7.634 cents.
For the three-month period, distributable income dropped by 6.5% y-o-y to $43.9 million. The REIT says that this is mainly due to higher finance costs and less favorable forex hedges, which were partially offset by higher finance income and tax savings. Its 9MFY2023 distributable income stands at $135 million, 2.1% lower y-o-y.
Gross revenue for the 3QFY2023 rose by a slight 0.5% y-o-y, to $70.7 million while gross revenue for the 9MFY2023 rose by 2.6% y-o-y to $211.1 million.
Net property income (NPI) rose slightly by 0.8% y-o-y to $64.6 million for the 3QFY2023, and rose by 2.5% y-o-y for the 9MFY2023 to $191.9 million.
The REIT says its increase in its 3QFY2023 gross revenue and NPI were due to contributions from acquisitions and overall positive income reversions and income escalations.
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As at Sept 30, the REIT’s portfolio occupancy stood at 98.3% while its weighted average lease expiry (WALE) stood at 7.8 years by lettable area.
The REIT secured new and renewal contracts in Singapore, Australia, Ireland and the Netherlands, with overall positive reversions.
Its aggregate leverage stood at 37.2%, and its available debt headroom stands at $182 million. The REIT has no further refinancing for 2023, with the bulk of debt expiring from 2026 and after.
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It has also obtained a multi-currency $120 million sustainability-linked and Islamic financing facility for six years.
Units in Keppel DC REIT closed 2 cents lower or 0.99% down at $2.01 on Oct 16.
