Broker: Maybank Research Pte Ltd
Date of report: July 24, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Stock Focus: Keppel DC REIT (KDCREIT SP)
- Actionable Call: BUY
- Target Price: SGD 2.60 (+13% upside)
- Current Price: SGD 2.30
- Key Ideas:
- Keppel DC REIT continues to benefit from strong data centre sector tailwinds. Growth is supported by accretive acquisitions and positive rental reversions.
- 1H DPU rose 8.9% HoH and 11.3% YoY, running ahead of consensus. Despite a slight drop in occupancy, the REIT’s financial metrics remain robust.
- Portfolio occupancy by net lettable area is 92.5%, while contracted power occupancy is 95%. Rent reversion was +10% in 1H26.
- Healthy balance sheet: Gearing at 34%, cost of debt at 2.7%, and strong interest coverage ratio.
- Estimates for FY26/27 DPU were raised by 1.7%/2.1% reflecting higher organic growth and improved occupancy in Sydney.
- Key risks include lease non-renewals, regional supply pressures, and exposure to China assets.
- ESG initiatives: Outperforms peers with MSCI AA ESG rating, green certifications, and robust governance.
- Implications:
- Sector dynamics remain favourable, supporting the BUY call and target price. Investors should focus on growth from acquisitions, strong capital management, and resilience in distributions.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can access the full research report from the broker’s website.
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