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Keppel DC REIT’s gross revenue surged by 30.1% year-on-year to SGD32.22 million in Q1 2017, revealed an SGX filing on Monday (17 April).
At the same time, net property income (NPI) soared by 36.1% to SGD28.84 million, while distributable income jumped 47.6% to SGD21.77 million. Consequently, distribution per unit rose 13.2% to 1.89 cents from 1.67 cents previously during the first quarter of 2016.
The sharp increase in distributable income is due to the SGD1.7 million one-off capital distribution in relation to the acquisition of Keppel DC Singapore 3, income from the acquisitions announced last year, as well as lower expenses including property-related costs, which fell 5.7% year-on-year to SGD3.38 million.
However, the rental income at its data centre, Keppel DC Dublin 1, declined on an annual basis after a client downsized its requirements. Similarly, Keppel DC Singapore 1 and Keppel DC Singapore 2 recorded lower variable income because of softer recurring and power revenue.
In addition, the trust added a third asset in Singapore and strengthened its presence in the key data centre hub, after it completed the acquisition of a 90% stake in Keppel DC Singapore 3 on 20 January 2017.
As of 31 March 2017, Keppel DC REIT’s weighted average lease expiry (WALE) remained long at 9.2 years, while its portfolio occupancy rate improved to 95.1% compared to 94.4% in the previous quarter.
Moreover, its balance sheet remains healthy. Given its low aggregate leverage of 27.%, there is still room to pursue growth opportunities. All of the trust’s borrowings are unsecured with an average annualised cost of debt at 2.2% per annum, a weighted average debt maturity of 2.9 years, and interest coverage ratio of 11.6 times.
Singapore-listed Keppel DC REIT manages 12 data centres with a combined value of SGD1.40 billion as of 31 March. With a total lettable area of approximately 892,040 sq ft., these assets are strategically located in key data centre hubs in nine cities across seven countries in Asia Pacific and Europe.
Senior Content Specialist Christopher Chitty edited this story
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