Keppel DC REIT has reported distribution per unit (DPU) of 2.462 cents for the 3QFY2021 ended September, 4.5% higher than DPU of 2.357 cents in the corresponding period the year before.

Distributable income for the same period was up by 6.3% y-o-y to $43.1 million.

Gross revenue in the 3QFY2021 increased by 2.5% y-o-y to $69.3 million, while net property income (NPI) stood 2.3% higher y-o-y at $63.8 million.

According to the REIT, the higher DPU and distributable income were supported by contributions from DPU accretive acquisitions and asset enhancement initiative (AEI) works.

As at Sept 30, the REIT reported a portfolio occupancy of 98.1% and a weighted average lease expiry (WALE) of 7.0 years by leased area. WALE by rental income stood at 4.9 years as a higher proportion of rental income is from colocation assets, which typically have shorter lease periods.

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For the month of September, Keppel DC REIT reported a diversified portfolio with the internet enterprise sector contributing some 46.5% of rental income overall.

Telecoms and IT services were second and third with contributions of 25.5% and 20.8% respectively.

The rest of the REIT’s portfolio were made up of financial services and corporate.

As at Sept 30, the REIT reported an aggregate leverage of 35.1% after it raised $204.3 million via a private placement in August to fund acquisitions and pare down debt.

In its 3QFY2021 business update, the REIT noted that end-user spending on public cloud services is expected to grow by 23.1% to $332.3 billion in 2021, up from $270 billion in 2020.

It adds that there is a healthy demand for data centres in the Asia Pacific region driven by data security and sovereignty regulations.

Data centres in Europe are seeing strong demand as it is, with demand in the 1HFY2021 of 93MW surpassing 1HFY2020’s record high of 91MW.

Finally, the number of 5G subscriptions are forecast to reach 580 million by end-2021 and 3.5 billion globally by 2026.

Units in Keppel DC REIT closed 2 cents higher or 0.84% up at $2.40 on Oct 25.

Photo: Keppel DC REIT