Reward 500 Tiger-coins$Keppel DC Reit(AJBU.SI)$ released its financial results for the first half of 2025 today, with its unit price closing up 2.65% and hitting a 52-week high of S$2.38 during intraday trading — not far from its all-time high of S$2.59.
The latest earnings report showed strong growth in both gross revenue and net property income, mainly driven by recent acquisitions and higher variable rents from contract renewals:
Gross revenue rose 34.4% year-on-year to S$211.3 million;
Net property income increased 37.8% to S$182.8 million;
Distributable income to unitholders surged 57.2% to S$127.1 million;
Distribution per unit (DPU) climbed 12.8% to 5.133 cents.
Despite a reduction in financing costs due to lower interest rates, profit before tax grew 16.2% to S$150.6 million. Additionally, the divestment of the Kelsterbach Data Centre contributed a gain of S$10.5 million.
DPU for the first half of FY2025 (ending June 30) rose from 4.549 cents a year earlier to 5.133 cents, reflecting a 12.8% increase. This growth was largely attributed to the earnings contributions from newly acquired data centers — Keppel DC Singapore 7, Keppel DC Singapore 8, and Tokyo Data Centre 1 — as well as income from contract renewals and rent escalations.
The upcoming distribution will be paid on September 15, with the record date set for August 4.
What do you think?
Do you see Keppel DC REIT continuing its upward momentum in the second half of the year?
How does it compare to other data center REITs in your portfolio or watchlist?
With its DPU growth and high occupancy rate, is now a good time to buy or add more units?
With so many S-REITs companies’ earnings coming, which one are you bullish?
REWARDS
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Comments
I have previously evaluated other data centre reits available on the Singapore stock exchange like Mapletree industrial and Ascendas and I like all 3 though their focus and data centre properties differ.
I think now is a good time to buy even though it has hit its 52week high. Analyst put the target price at $3.40 but I think there will be more room to climb especially when rate cuts lend more momentum and I expect its DPU to continue to rise. Of the upcoming ones on 31/7, I am not bullish on them. I am bullish for Ascendas and mapletree industrial as they ride the same wave as kepple dc reit.
@Universe宇宙 @DiAngel @SR050321 come join
Keppel DC REIT recent announced it's distributable income of $127.1 million for 1H2025, representing a 57.2% increase y-o-y.
Growth was mainly driven by contributions from the acquisition of Keppel DC Singapore 7 & 8 and Tokyo Data Centre 1 as well as contributions from contract renewals and escalations.
We have yet to hear healthy contributions from the troubled China investment- the Guangdong Data Centre 1, 2 and 3 facilities. Keppel DC REIT have been badly hurt by its China investment in the last few quarters. There are lots of rooms to improve for GDC investment. Once the occupancy troubles are resolved, I predict Keppel DC share price will hit another high around 2.7-2.8.
I believe Keppel DC REIT can sustain this momentum into H2, especially with solid occupancy and new assets like the Tokyo Data Centre contributing. The recent divestment gain adds flexibility, and compared to other data center REITs, its performance and scale make it a strong contender on my watchlist.
Given the rising DPU and demand for digital infrastructure, I’m open to adding more units, especially on a pullback. Alongside Keppel DC, I’m also bullish on ESR REIT and Keppel Infra Trust for their stable yields and solid growth drivers this season.
@Tiger_SG @Tiger_comments @TigerStars
Keppel DC also has high occupancy rate of 96% across its portfolio with WALE of 6.3 years.
Is now a good time to buy more? I believe that is a YES especially with interest rates easing and AI demand accelerating.
@Tiger_SG @TigerStars @Tiger_comments @CaptainTiger
我自己的觀察名單裏，也有Mapletree Industrial Trust和Digital Core REIT這兩家偏數據中心型的REIT。對比之下，Keppel DC的DPU（每單位分派收益）成長性更穩，且資產組合地理分佈較好，有歐洲、新加坡等地，不會過度依賴單一市場，這點我很看重。
目前它的入住率高企，現金流穩定，如果我們相信AI長期趨勢不變，那現在趁估值還沒過熱，加碼其實是合情合理的。尤其是最近很多REIT財報即將公佈，如果市場情緒因爲利率預期緩和而改善，我相信像Keppel DC這種“基本面健康+賽道優質”的標的，很容易成爲資金迴流的首選。
如果要我選一隻最看好的S-REIT，我會繼續押注Keppel DC，畢竟數據是新油，而它手裏已經握有不少優質“油田”。