Broker Name: CGS International
Date of Report: January 30, 2026
Excerpt from CGS International report.
Report Summary:
- Keppel DC REIT’s 2H/FY25 distribution per unit (DPU) rose to 5.248 Scts (+7.1% yoy), exceeding expectations due to robust asset performance, positive rental reversions (+45% in FY25), and lower interest costs.
- KDCREIT maintains a strong balance sheet with gearing at 35.3%, allowing S\$530m debt headroom for potential acquisitions, and continues to focus on growth in Singapore, Japan, South Korea, and Europe.
- Portfolio occupancy is healthy at 95.8% with a WALE of 6.7 years; management is optimistic about rental reversions in Singapore and is pursuing asset enhancements and lease renewals for key properties.
- DDM-based target price is raised to S\$2.63 with an “Add” rating; re-rating catalysts include improved tax transparency, arrears collection, higher rental reversions, and new acquisitions.
- ESG efforts are notable, with goals to halve emissions by 2030 and increase green certifications, though no valuation premium is currently ascribed for ESG performance.
- Key risks are lower-than-expected occupancy or rental reversions due to macroeconomic factors.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com/en
