Broker: CGS International
Date of Report: April 16, 2026

Excerpt from CGS International report.

Report Summary

• Stock: Keppel DC REIT (KDCREIT SP)
• Action/Call: Add (Buy)
• Target Price: S\$2.64 (up from S\$2.63)
• Key Highlights:
  • 1Q26 distribution per unit (DPU) of 2.833 Scts was ahead of estimates, representing 26.4% of FY26F forecast.
  • KDCREIT delivered 18.4%/19.4% year-on-year growth in revenue/net property income on acquisitions and stronger renewals.
  • Rental reversion was a strong 51% in 1Q26, with portfolio occupancy at 95.6% and a long WALE of 6.5 years.
  • Gearing at 35.1% provides balance sheet strength for future acquisitions; cost of debt is low at 2.6%.
  • Potential upside from tax transparency for SGP DC7 and DC8, collection of arrears, and further inorganic growth.
  • Dividend yield forecasted at 4.7%-4.9% for FY26F-28F, with a DPU growth outlook supported by stable portfolio fundamentals.
  • Risks include lower-than-expected occupancy or rental reversions if the macro environment weakens.

Ticker: KDCREIT SP

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