Keppel DC REIT: 10 Key Highlights for Potential Investors

Introduction

Keppel DC REIT ("KDC REIT") is an Asia-focused data center real estate investment trust ("REIT"). It is the largest data center REIT in Asia by market capitalization, with over S$4.0 billion of assets under management. KDC REIT's portfolio comprises 21 data centers across nine countries, including Singapore, Australia, China, India, Indonesia, Malaysia, Thailand, the United Kingdom, and the United States.

Key Investment Highlights

1. Strong and Stable Income Generation: KDC REIT's portfolio is underpinned by long-term leases with a weighted average lease expiry ("WALE") of 6.7 years. This provides a stable stream of income for the REIT.
2. High Occupancy Rates: KDC REIT's data centers have consistently maintained high occupancy rates of over 95%. This reflects the strong demand for data center space in the Asia-Pacific region.
3. Diversified Portfolio: KDC REIT's portfolio is well-diversified across different geographical locations, asset classes, and tenants. This diversification helps to mitigate risks and enhance the stability of the REIT's income.
4. Proven Track Record: KDC REIT has a proven track record of delivering strong financial results. The REIT has consistently grown its distributable income and distribution per unit ("DPU") since its initial public offering ("IPO") in 2010.
5. Experienced Management Team: KDC REIT is managed by an experienced team with a deep understanding of the data center industry. The management team has a strong track record of creating value for unitholders.
6. Attractive Yield: KDC REIT offers an attractive distribution yield of over 5%. This yield is supported by the REIT's stable income stream and strong financial performance.
7. Growth Potential: KDC REIT has a number of growth opportunities. The REIT is looking to expand its portfolio through acquisitions and developments. The REIT is also well-positioned to benefit from the growing demand for data center space in the Asia-Pacific region.
8. Strong Sponsor Support: KDC REIT is sponsored by Keppel Corporation, a leading global conglomerate with a strong track record in the real estate sector. Keppel Corporation provides KDC REIT with access to its extensive network and resources.
9. Sustainability Focus: KDC REIT is committed to sustainability. The REIT's data centers are designed and operated to be energy-efficient and environmentally friendly.
10. ESG Credentials: KDC REIT has been recognized for its strong ESG credentials. The REIT has been awarded the Global Real Estate Sustainability Benchmark ("GRESB") Green Star rating for its sustainability performance.

Financials

KDC REIT has consistently delivered strong financial results. The REIT's revenue and distributable income have grown steadily over the past few years. In the fiscal year 2021, KDC REIT's revenue increased by 10.9% to S$361.0 million. The REIT's distributable income grew by 9.4% to S$236.8 million.

KDC REIT's DPU has also grown steadily over the past few years. In the fiscal year 2021, KDC REIT's DPU increased by 4.2% to 7.47 cents. The REIT's DPU yield is currently over 5%.

Conclusion

KDC REIT is an attractive investment option for investors seeking exposure to the growing data center sector in the Asia-Pacific region. The REIT offers a stable stream of income, a high occupancy rate, a diversified portfolio, a proven track record, and an experienced management team. KDC REIT also offers an attractive yield and has a number of growth opportunities.

Tables

Table 1: KDC REIT's Portfolio

Table 2: KDC REIT's Key Financial Metrics

Table 3: KDC REIT's DPU Growth

Table 4: KDC REIT's ESG Credentials