Broker Name: CGS International
Date of Report: January 30, 2026
Excerpt from CGS International report.
Report Summary
- Keppel DC REIT (KDCREIT) reported strong 2H/FY25 results, with DPU (distribution per unit) of 5.248/10.38 Scts, exceeding expectations due to new acquisitions, positive rental reversions, and improved asset performance.
- KDCREIT achieved a 45% positive rental reversion in FY25, maintained high occupancy (95.8%), and has significant debt headroom (gearing at 35.3%) to pursue further growth through acquisitions, particularly in Singapore, Japan, South Korea, and Europe.
- The broker reiterates an “Add” rating and raises the target price to S\$2.63, citing robust fundamentals, exposure to the high-demand Singapore data centre market, and potential for further upside from tax transparency, rental reversions, and inorganic growth opportunities.
- ESG efforts include a B- LSEG ESG score, a target to halve Scope 1 and 2 emissions by 2030, and a new Green Financing Framework, with ongoing community outreach and environmental initiatives.
- Key risks include lower-than-forecast occupancy rates and rental reversions, while catalysts include arrears collection, higher rental reversions, and better tax transparency on certain assets.
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
