Keppel DC REIT reported a 18.5% year-on-year rise in distributable income to S$150.7 million for the six months ended Jun 30 2026, lifted by positive rental reversions, built-in escalations and recent asset purchases.
Gross revenue grew 14.5% YoY to S$242.0 million, while net property income expanded 15.1% to S$210.4 million. The real-estate investment trust declared a distribution per unit of 5.714 Singapore cents, up 11.3% from a year earlier, payable on 18 Sept 2026. Based on the closing price of S$2.24 on Jun 30, the annualised distribution yield is 5.10%.
Revenue gains were supported by contributions from Tokyo Data Centre 3, acquired during the period, and the additional stakes bought in Keppel DC Singapore 3 and 4. These, together with mid-teens positive rental reversions of about 10% and higher contracted power capacity, more than offset the absence of income from the divested Kelsterbach Data Centre. Portfolio occupancy stood at 92.5%, or 95.3% excluding Cardiff Data Centre, while about 95% of installed power capacity is committed. The weighted average lease expiry lengthened to 6.7 years following renewals in Singapore and Australia.
Higher finance costs, which rose 25.2% YoY to S$30.7 million, partially tempered bottom-line growth. Even so, the trust maintained a healthy balance sheet, ending the half with a 34.0% aggregate leverage ratio and S$673 million of headroom to the 40% threshold. Some 87% of its S$2.3 billion of borrowings are fixed-rate, capping interest-rate exposure, while the average cost of debt eased to 2.6%. Interest-coverage remained robust at 6.9 times.
During the period, Keppel DC REIT secured new and renewal leases at its Singapore and Australian assets, including Gore Hill Data Centre where fresh agreements are set to contribute from 2H 2026. Management is also evaluating power-intensification and redevelopment options, alongside potential acquisitions of hyperscale facilities in key data-centre hubs.
Chief executive Loh Hwee Long said the earnings uplift reflected both organic performance and recent M&A, noting that the trust’s sizable Singapore footprint and colocation exposure provide further embedded growth. He indicated that the manager will keep a disciplined stance on capital recycling and new investments aimed at strengthening portfolio quality and supporting long-term returns.
Looking ahead, the REIT sees continued tailwinds from accelerating cloud adoption and artificial-intelligence workloads, even as macroeconomic uncertainties persist amid elevated global interest rates and geopolitical tensions. Management aims to preserve financial flexibility and maintain prudent leverage while pursuing accretive acquisitions to tap rising data-centre demand, particularly in Asia-Pacific, which industry forecasts suggest will account for roughly one-third of global capacity by 2030.