Keppel DC REIT’s distribution per unit (DPU) rose 11.7% to 8.571 cents for the nine months ended 30 September 2026, up from 7.670 cents a year earlier, the data centre trust reported in its third-quarter operational update on 23 October.
Distributable income, including capex reserves, climbed 16.7% to S$228.0 million from S$195.3 million. Gross revenue rose 13.3% to S$365.3 million and net property income (NPI) grew 13.1% to S$316.8 million over the same period.
What drove the numbers
The REIT said higher NPI came mainly from positive rental reversions and escalations, as well as the acquisition of Tokyo Data Centre 3. This was partly offset by the divestment of Kelsterbach Data Centre and the absence of income from Cardiff Data Centre.
Distributable income was also lifted by contributions from acquisitions and higher effective interests in Keppel DC Singapore 3 and 4. Offsetting factors included finance costs on acquisition loans drawn in the fourth quarter of 2025, the lease extension consideration for Keppel DC Singapore 7 and 8, and a larger unit base after a private placement in September, ahead of income from Tokyo Data Centre 4 and 5. Finance costs rose 28.1% to S$46.7 million.
Portfolio and capital
Rental reversion was about 14% for the nine months and about 16% for the third quarter. Portfolio occupancy stood at 93.0% as at 30 September, up from 92.5% in the second quarter, or 93.4% including Tokyo Data Centre 4 and 5. Weighted average lease expiry by lettable area was 6.5 years.
Aggregate leverage was 36.2% at end-September, 220 basis points higher than at end-June. On a pro forma basis, including debt drawn on 1 October, leverage was 38.8%. Average cost of debt was 2.7% for the quarter, and the trailing 12-month interest coverage ratio was 6.5 times.
The trust completed its purchase of an 88.62% effective interest in Tokyo Data Centre 4 and 5 for JPY 168.4 billion, or about S$1.37 billion, on 1 October. The deal was partly funded by a S$625 million private placement that was about 3.4 times covered. Keppel DC REIT said assets under management stood at about S$7.6 billion across 27 data centres in 10 countries.
What’s next
An advance distribution of 2.261 cents per unit covers 1 July to 9 September 2026. The next distribution will cover 10 September to 31 December, with payouts made half-yearly from then on. The REIT said revenue at its Gore Hill data centre is expected to more than double once new contracts start from end-2026, and that the Keppel DC Singapore 8 enhancement works remain on track for completion in the second half of 2027.
