Company Reports

Keppel DC REIT is a real estate investment trust that principally invests in income-producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a co-location, fully fitted, or shell-and-core data center. Among these three, co-location leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry profile of less than three years compared with the fully fitted and shell-and-core data centers that enjoy long WALE profiles of around nine and seven years, respectively, as of June 30, 2026.

Keppel DC REIT is raising SGD 600 million to acquire an 88.62% effective interest in Tokyo Data Centre 4 and 5 for SGD 1.37 billion. Keppel Limited will acquire a 1.38% effective interest, while the seller, which also operates the assets, will retain the remaining 10%.

Keppel DC REIT's first-half 2026 distribution per unit, or DPU, rose 11% year on year to SGD 0.0571. This was driven by a full-period contribution from Tokyo Date Centre 3 and rent reversions, partly offset by the divestment of the Kelsterbach asset.

Keppel DC REIT is a real estate investment trust that principally invests in income-producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a co-location, fully fitted, or shell-and-core data center. Among these three, co-location leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around nine and seven years, respectively, as of June 30, 2026.

Keppel DC REIT is a real estate investment trust that principally invests in income-producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a colocation, fully fitted, or shell and core data center. Among these three, colocation leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry, or WALE, profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around nine and six years, respectively, as of March 31, 2026.

Keppel DC REIT delivered a strong start to 2026, with distributable income and distribution per unit, or DPU, growing 20.7% and 13.2% year on year, respectively. Performance was supported by the Tokyo Data Centre 3 acquisition and organic growth from contract renewals.

Keppel DC REIT is a real estate investment trust that principally invests in income-producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a colocation, fully fitted, or shell and core data center. Among these three, colocation leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry, or WALE, profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around 10 and six years, respectively, as of Dec. 31, 2025.

Keppel DC REIT's second-half 2025 distribution per unit grew 7.1% year on year, driven by resilient portfolio performance and contributions from newly acquired Keppel DC Singapore 7 and 8, as well as Tokyo Data Centre 1 and 3.

Despite the divestments of the Intellicentre Campus and Kelsterbach Data Centre, Keppel DC REIT's year-to-September distribution per unit, or DPU, rose 8.8% year on year to SGD 0.0767, driven by contract renewals, acquisitions of Keppel DC Singapore 7 and 8, as well as Tokyo Data Centre 1.

Keppel DC REIT is acquiring a 98.47% effective interest in a data center in Inzai City, Japan, for SGD 696 million, to be funded by a SGD 405 million preferential offering to cover the deal, repay debt, support an asset enhancement initiative, and extend Keppel DC Singapore 1's land lease tenure.

Keppel DC REIT, or KDC REIT, is a real estate investment trust that principally invests in income producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a colocation, fully fitted or shell and core data center. Among these three, colocation leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry, or WALE, profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around ten and seven years, respectively, as of March 31, 2025.

Keppel DC REIT, or KDC REIT, is a real estate investment trust that principally invests in income producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a colocation, fully fitted or shell and core data center. Among these three, colocation leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry, or WALE, profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around ten and seven years, respectively, as of March 31, 2025.

Keppel DC REIT's, or KDC REIT's, first-half 2025 distribution per unit, or DPU, grew 12.8% year on year, driven by strong portfolio performance and contributions from recent acquisitions. Notably, the trust achieved a substantial 51% positive rental reversion during the period.

Keppel DC REIT, or KDC REIT, is a real estate investment trust that principally invests in income producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a colocation, fully fitted or shell and core data center. Among these three, colocation leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry, or WALE, profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around ten and seven years, respectively, as of March 31, 2025.

Keppel DC REIT’s first-quarter 2025 performance was in line with our expectations. Net property income grew 13.9% year on year to SGD 88.1 million, driven by higher contributions from lease renewals and acquisitions of Keppel DC Singapore 7 and 8, as well as Tokyo Data Centre 1. The trust maintained a healthy portfolio occupancy rate of 96.5% as of the end of March 2025, alongside a positive rental reversion of 7%. With no surprises, we retain our fair value estimate of SGD 2.34 per unit. We think the recent selloff of its units due to the ongoing trade war presents a buying opportunity for this undervalued REIT. While Trump’s tariffs could negatively affect data centers and cloud operators in the US, we consider KDC REIT to be less affected, given that its data center portfolio is concentrated in the Asia-Pacific and Europe, with no assets in the US. We believe the demand and supply dynamics for its Singapore data centers remain healthy, supporting a resilient performance for the trust. The trust also has three data centers in China, to which we do not ascribe any value, given the ongoing tenant issue.

Keppel DC REIT, or KDC REIT, is a real estate investment trust that principally invests in income producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a colocation, fully fitted or shell and core data center. Among these three, colocation leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry, or WALE, profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around 11 and five years, respectively, as of June 30, 2024.

Keppel DC REIT ended 2024 on a strong note, with second-half 2024 distribution per unit growing 13.2% year on year. This was underpinned by strong rental reversions, with the group recording a positive 39% for the full year. Management remains optimistic about the data center outlook, particularly in Singapore, and we expect robust reversions to persist, albeit at a moderated pace. The group’s balance sheet has also improved following the equity fundraising exercise back in November 2024, resulting in the aggregate leverage dropping to 31.5% as at end-2024 from 39.7% a quarter earlier. Management has guided this to drop further to 30.5%-31.0% after the completion of the sponsor subscription of the rights issue in the first quarter of 2025. As the results were in line with our expectations, we retain our fair value estimate of SGD 2.34 per unit. While we continue to like the trust for its data center portfolio that benefits from strong structural tailwinds such as artificial intelligence, we think the trust is fairly valued currently and encourage investors to wait for a better entry price.

Keppel DC REIT, or KDC REIT, is a real estate investment trust that principally invests in income producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a colocation, fully fitted or shell and core data center. Among these three, colocation leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry, or WALE, profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around 11 and five years, respectively, as of June 30, 2024.

We increase our fair value estimate for Keppel DC REIT to SGD 2.34 per unit from SGD 2.10 following its plan to raise at least SGD 985 million to acquire two Singapore colocation data center buildings, Keppel DC Singapore 7 and Keppel DC Singapore 8. We like that these are artificial intelligence-ready hyperscale data centers, which continue to ride on strong secular demand driven by increasing digitalization, higher cloud adoption, and artificial intelligence. Singapore, where the data centers are located, remains power-constrained and management said the colocation vacancy rate was around 1% as of end-June 2024. The trust estimates that the acquisition would have brought distribution-per-unit accretion of 8.1% to the pro forma first-half 2024 performance (if this deal had been completed on Jan. 1) as well as a further SGD 350 million expense for the extension of the land lease tenure and tax transparency for these data centers. We lift our DPU estimates for fiscal 2025-26 by 5.4%-7.1% after factoring in this acquisition and updating our assumptions. We think the units are fairly valued currently.

Keppel DC REIT, or KDC REIT, is a real estate investment trust that principally invests in income producing real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As a wholesale data center provider, KDC REIT leases out its properties as either a colocation, fully fitted or shell and core data center. Among these three, colocation leases make up the majority of KDC REIT’s rental income but have the shortest weighted average lease expiry, or WALE, profile of less than three years compared with the fully fitted and shell and core data centers that enjoy long WALE profiles of around 11 and five years, respectively, as of June 30, 2024.