To The Moon

Data Centre real estate investment trusts in Singapore (DC S-REITs) have demonstrated continued robust operating results in their latest business updates, with flat-to-higher distributions, amid structural demand from cloud and artificial intelligence (AI).

For the period ended 30 June, the three pure-play DC S-REITs reported high occupancy and double-digit rental reversions, with industry analysts also highlighting a broadly positive sector outlook, driven by rapid AI adoption and ongoing digitalisation.

Property consultancy JLL noted in its 2026 Global Data Center Outlook that nearly 100 GW of new data centers will be added between 2026 and 2030, doubling global capacity. The global data centre sector will likely expand at 14% CAGR through 2030. 

Similarly, Cushman & Wakefield’s Asia Pacific Data Centre H1 2026 Update Report noted that the Asia Pacific data centre market held onto strong growth momentum in 1H26, propelled by robust demand for AI workloads, cloud services, and enterprise digital transformation. 

These broader industry tailwinds are reflected in the operating performance of the pure-play DC S-REITs.

1. $Keppel DC Reit(AJBU.SI)$

Keppel DC REIT reported distributions per unit (DPU) rising 11.3% year-on-year in 1H26, with growth driven by stronger operating performance from positive reversions and escalations, and higher effective interests in Keppel DC Singapore 3 and 4. 

Keppel DC REIT also achieved portfolio rental reversion of around 10% for 1H26. Its portfolio occupancy by lettable area stood at 92.5%, following the Cardiff Data Centre lease expiry. Excluding this, occupancy would have been 95.3%, similar to Q1.

With aggregate leverage at 34.0%, the REIT retains meaningful debt headroom for future growth. It is undertaking proactive portfolio optimisation efforts, including evaluating asset repositioning, power intensification and redevelopment initiatives, capital recycling, and strategic acquisitions of high-quality data centres that can meet hyperscaler requirements.

2. $DigiCore Reit USD(DCRU.SI)$

Digital Core REIT reported stable DPU for 1H26 despite lower net property income, as higher distributions from associates largely offset the impact. The REIT also repurchased 8 million units in 1H26 at an average price of US$0.488, generating DPU accretion of around 0.4%. 

The REIT’s in-service portfolio occupancy remained high at 97.3%, with weighted average lease expiry (WALE) at 4.3 years. The REIT secured new and renewal leases representing US$5.0 million of annualised rent and achieved strong cash rental reversions of 25%.

Earlier in January, Digital Core REIT reached an agreement for its Linton Hall asset with an investment-grade global cloud service provider. The lease is expected to commence in December 2026 and is expected to generate around US$13.3 million in annualised net property income at the REIT’s 90% share. 

FSM Global analyst Joel Phua noted that while a temporary income gap at Linton Hall has paused near-term distribution growth, robust 25% rental reversions and strategic unit buybacks underscore the portfolio's underlying resilience. He has a “buy” rating on the REIT with a US$0.70 target price.

3. $NTT DC REIT USD(NTDU.SI)$

Elsewhere, NTT DC REIT recorded positive leasing momentum post-IPO, with occupancy rising to 95.9% following expansions secured across two data centres in the United States and one in Singapore. Including committed leases, occupancy is expected to increase further to 99.2%. Most committed leases are expected to begin contributing from its 3Q FY26/27, providing further earnings visibility. NTT DC REIT is targeting to hold its EGM by 3Q FY26/27 regarding its potential change to the management fee structure to enhance alignment with unitholders.

Net property income for Q1 ended June exceeded IPO projections by 5.0%, supported by lower taxes, lower operating costs and favourable foreign exchange impact. Distributable income, meanwhile, was 10.6% above IPO projection.  The REIT maintained a strong balance sheet, with aggregate leverage of 31.0% and WALE of 4.3 years. 

4. $CapLand India T(CY6U.SI)$

Other S-REITs that maintain exposure to data centres include $Mapletree Ind Tr(ME8U.SI)$ $CapLand Ascendas REIT(A17U.SI)$ $CapLand India T(CY6U.SI)$ $Stoneweg EUTrust SGD(SEB.SI)$ $Stoneweg EUTrust EUR(SET.SI)$. 

CapitaLand India Trust is expanding its data centre footprint, with several projects under development. It has successfully developed and leased its first liquid-cooled data centre to a global hyperscaler tenant in FY2026, with other data centre developments on track for completion by the end of 2026.

In August 2026, Stoneweg announced that its dual-track data centre strategy, comprising both organic and inorganic pipelines, is expected to support the growth of SERT's data centre exposure to 15 to 25% by 2028 from its current exposure of 7.2%.