Excerpt from Maybank Research Pte Ltd report
Report Summary
- Stock: Keppel DC REIT (KDCREIT SP)
- Action: BUY
- Target Price: SGD 2.60 (10% upside from current share price SGD 2.36)
- Key Idea: Keppel DC REIT reported steady growth with 1Q DPU up 13.2% YoY, driven by accretive acquisitions (notably Tokyo DC 3), positive rental reversions, and sector tailwinds in the data centre industry.
- Highlights:
- 1Q revenue rose 18.4% YoY and NPI up 19.4% YoY.
- Portfolio occupancy remains high at 95.6%.
- Gearing stable at 35.1% with limited near-term utility cost risk due to pass-through contracts.
- Estimates for FY26/27 DPU raised slightly on higher topline and lower capex reserves.
- Implications: Despite a modest DPU yield of 4.7%, Keppel DC REIT benefits from strong sector demand, visible income growth, and prudent capital management. Risks include lease non-renewals at older assets and potential rising costs, but sector fundamentals remain favourable.
above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website : www.maybank-keresearch.com
