Keppel Divests Remaining Interests in Two Singapore Data Centres to Keppel DC REIT for \$50.5 Million

Key Highlights for Investors

• Keppel Ltd. has agreed to divest its remaining stakes in two Singapore data centres to Keppel DC REIT for a total cash consideration of \$50.5 million.
• Keppel DC REIT will acquire the remaining 10% interest in Keppel DC Singapore 3 (KDC SGP 3) and 1% interest in Keppel DC Singapore 4 (KDC SGP 4), resulting in 100% ownership of both assets.
• The transaction is expected to close by Q1 2026 and forms part of Keppel’s ongoing asset monetisation programme, which has now surpassed \$2.4 billion in announced deals year-to-date.
• The acquisition is immediately DPU-accretive and expected to increase FY2024 DPU by 0.8% on a pro forma basis.
• Post-transaction, Keppel DC REIT’s aggregate leverage is expected to improve from 29.8% to 29.5%, with significant debt headroom of approximately \$944 million.
• The REIT’s assets under management (AUM) will rise by 3.5% to \$5.9 billion, while the proportion of Singapore assets and hyperscale client contributions will also increase.
• The two data centres are strategically located in Tampines, a key Singapore data centre hub, and are fully contracted to clients with strong credit profiles.
• The transaction is not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel Ltd. for the current financial year.

Detailed Report

Keppel Ltd.’s Connectivity Division has entered into a definitive agreement to divest its remaining 10% interest in Keppel DC Singapore 3 (KDC SGP 3) and 1% interest in Keppel DC Singapore 4 (KDC SGP 4) to Keppel DC REIT for a total consideration of \$50.5 million. This deal is scheduled to complete by the first quarter of 2026, upon which Keppel DC REIT will have full ownership of these two prime data centre assets.

The divestment is a strategic move under Keppel’s asset monetisation programme. With this transaction, Keppel’s announced asset monetisations for the year have exceeded \$2.4 billion. According to Mr. Lee Kok Chew, Head of the Accelerating Monetisation Task Force at Keppel, this divestment underscores the company’s disciplined approach to capital recycling. It enables Keppel to unlock value from their portfolio and redeploy capital to other opportunities within its integrated ecosystem, while also reinforcing Keppel DC REIT’s position in the highly sought-after data centre market.

Immediate Impact on Keppel DC REIT

For Keppel DC REIT, the acquisition is expected to be immediately DPU-accretive, enhancing returns to unitholders. On a pro forma basis, the FY2024 distribution per unit (DPU) is projected to rise by 0.8%, from 9.451 cents to 9.525 cents. The transaction will be funded through proceeds from the REIT’s recent preferential offering and through the issuance of units as an acquisition fee to Keppel DC REIT Management Pte. Ltd.

Post-acquisition, Keppel DC REIT’s aggregate leverage is anticipated to improve from 29.8% to 29.5%, maintaining robust financial flexibility with a debt headroom of about \$944 million. However, after including the Preferential Offering and the acquisition of Tokyo Data Centre 3 (completed 19 November 2025), aggregate leverage as of 30 September 2025 is expected to increase to 33.5%.

Portfolio and Market Position Enhancement

The acquisition will increase Keppel DC REIT’s assets under management (AUM) by approximately 3.5%, from \$5.7 billion to \$5.9 billion. The proportion of Singapore assets in its portfolio will also grow from 57.8% to 58.8% of AUM. Moreover, the contribution from hyperscale clients, which are typically large, creditworthy tenants vital to stable rental income, will increase by 20 basis points—from 69.3% to 69.5% of rental income.

KDC SGP 3 and KDC SGP 4 are both carrier-neutral, purpose-built data centres with a combined lettable area of 139,469 square feet. Located in Tampines, Singapore’s primary data centre hub, these assets offer strong connectivity and infrastructure, making them highly attractive to hyperscale clients. Both data centres are fully contracted to tenants with strong credit ratings, ensuring income stability for the REIT.

Implications for Shareholders and Unit Holders

• This transaction is price-sensitive as it directly impacts the DPU, leverage metrics, and long-term growth potential of Keppel DC REIT.
• Investors should note that the acquisitions signal continued commitment by Keppel DC REIT to expand its presence in Singapore’s data centre market, a sector experiencing robust demand and strong rental profiles.
• The transaction supports Keppel’s ongoing capital recycling strategy, potentially freeing up resources for new investments and growth initiatives.
• Though the transaction has no material impact on Keppel Ltd.’s net tangible asset per share or earnings per share for the current financial year, the cumulative effect of its asset monetisation programme may be significant for long-term value creation.

About Keppel and Keppel DC REIT

Keppel Ltd. (SGX: BN4) is a global asset manager and operator with a strong focus on sustainability-related solutions across infrastructure, real estate, and connectivity. With a presence in more than 20 countries, Keppel manages a diverse portfolio spanning renewables, clean energy, decarbonisation, sustainable urban renewal, and digital connectivity, backed by both private funds and listed real estate and business trusts.

Keppel DC REIT, listed on the Singapore Exchange since December 2014, is Asia’s first pure-play data centre REIT. Its investment strategy is to build a diversified portfolio of income-producing real estate assets dedicated primarily to data centre uses, with investments in colocation, fully-fitted, shell and core assets, and debt securities. This strategy reinforces the REIT’s portfolio diversity and resilience amid the fast-growing digital economy.

Contact Information

• Media Relations: Ms Yolanda Guo, Senior Manager, Corporate Communications, Keppel Ltd. (Tel: (65) 6413 6497, Email: [email protected])
• Investor Relations (Keppel Ltd.): Ms Amira Sadiran, Manager, Investor Relations, (Tel: (65) 6413 6435, Email: [email protected])
• Investor Relations (Keppel DC REIT): Ms Renee Goh, Senior Manager, Investor Relations, (Tel: (65) 6803 1679, Email: [email protected])

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult their financial advisors before making any investment decisions. All forward-looking statements are based on current information and may be subject to change without notice.

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