SINGAPORE (Jan 23): Keppel DC REIT has posted a distribution per unit (DPU) of 1.31 cents for the fourth quarter ended Dec 2016, down 20.1% from 1.64 cents a year ago and 21.6% lower than its initial public offering (IPO) forecast of 1.67 cents.

This also brings the trust’s DPU for the full year to 6.14 cents in FY16, 5.7% lower than its FY15 DPU of 6.51 cents.    

The lower quarterly and annual DPU figures are mainly due to Keppel’s pro-rata preferential offering with the acquisition of Keppel DC Singapore 3 (KDC SGP 3), says Keppel Corporation in its results filing to the SGX on Monday.

Excluding the impact of the pro-rata preferential offering, adjusted DPU for FY16 would have been 6.68 cents.

Additionally, there was a period of 1.5 months for which there was no income contributed by KDC SGP 3 as the acquisition was completed later than expected, adds the manager.

While distributable income exceeded Keppel DC REIT’s IPO forecasts by 4% at $61 million, this was partially offset by lower rental income “arising from a client downsizing its requirements” in Keppel DC Dublin 1 in 1Q16, as well as a drop in variable income at the REIT’s Singapore properties due to lower recurring and power revenue.

A distribution of 2.8 cents per unit has been declared for 2H16, and distributions will be paid out on Feb 28.

In its outlook, the manager of Keppel DC REIT says it remains confident of the data centre market’s long-term potential despite the increase in data centre space in Singapore, which is expected to exert near-term pressure on rental rates.

Units of Keppel DC REIT closed flat at $1.22.