Home Capital Results

Keppel DC REIT’s debt costs remain low, ICR high, but utility bills could rise

Goola Warden
Goola Warden4/19/2022 08:06 PM GMT+08  • 2 min read
Keppel DC REIT’s debt costs remain low, ICR high, but utility bills could rise
Keppel DC REIT's Eindhoven Campus
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Unitholders can’t fault Keppel DC REIT for its capital management which to date has been prudent. In 1QFY2022, aggregate leverage was 36.1%; cost of debt was just 1.8%; interest coverage ratio for the quarter stood at 10x; weighted average debt tenor is 3.8 years, and only 11.4% of debt is up for renewal this year.

Some 76% of loans are hedged through floating-to-fixed interest rate swaps, with the remaining unhedged borrowings in Euro. The portfolio's weighted average hedge tenor is 3.4 years. With the 76% hedge in place, a 100bps rise in the interest rates would only affect the remaining 24% unhedged borrowings. A 100 bps change would have an approximately 1% impact on 1Q2022’s DPU on a pro forma basis. Moreover, all foreign-sourced distributions have been substantially hedged till 2H2023.

Although revenue and net property income fell marginally, distributable income rose 5.9% to $44.5 million, and DPU was up marginally to 2.466 cents for 1Q2022.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now