Broker: CGS International
Date of Report: April 16, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Keppel DC REIT (KDCREIT SP)
- Action: Add (Buy)
- Target Price: S\$2.64 (raised from S\$2.63)
- Current Price: S\$2.33 (as at report date)
- Key Idea: Keppel DC REIT delivered a strong 1Q26, with DPU of 2.833 Scts, slightly ahead of estimates. The REIT achieved 18.4% y/y revenue growth, high portfolio occupancy of 95.6%, and robust rental reversions (51%). Gearing is healthy at 35.1%, providing headroom for acquisitions. Cost of debt is low at 2.6-2.7%.
- Actionable Insight: The broker reiterates an Add (Buy) rating due to the REIT’s resilient fundamentals, exposure to Singapore’s data centre market, and potential for further growth via acquisitions and positive rental reversions. Upside catalysts include tax transparency for certain assets, arrears collection, and higher-than-expected rental reversions.
- Risks: Downside risks are lower portfolio occupancy and rental reversions.
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/
