Keppel DC REIT’s (KDC REIT) 20.5% surge in DPU in FY2020 must be the highest DPU growth by an S-REIT. Even then, the 9.17 cents historic DPU, or the 9.59 cents annualised DPU translates into yields of just 3.3%. That has led to some analysts suggesting that KDC REIT’s growth is already baked into its unit price.

“Covid-19 has fueled further demand for and underpinned the importance of data centres, but we believe this has been priced in. We have factored in $300 million acquisition in FY2021 ended December,” says a CGSCIMB report following KDC REIT’s results announcement on Jan 26.

This year, KDC REIT’s AEI, augmented by acquisitions, should continue to support growth in distributable income (DI). On the AEI front, the fit-out of a new data hall at Keppel DC Singapore 5 has been completed and handed over to the client in 4Q2020, increasing the asset occupancy from 84.2% as at Sept 30, 2020, to 100% as at Dec 31, 2020.

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