Keppel DC REIT (SGX: AJBU) Maintained Double-Digit Growth In DPU

Keppel DC REIT (SGX: AJBU) has recently announced its 3Q2020 financial results. It is currently trading at 2.2% yield based on the last traded share price of $3.00 on 20 Oct.

Key Highlights:

  • Distribution per unit (DPU) and Dividend Yield (2.2%)

  • Price to book ratio (2.58)

  • Gearing (35.2%)

  • Interest coverage ratio (12.7x)

  • Portfolio occupancy rate (96.7%)

  • Growth catalyst

Background of Keppel DC REIT

Keppel DC REIT is the first and the only REIT with a 100% portfolio focused on data centres. It has been listed on the Singapore Stock Exchange since December 2014.

Its portfolio comprises of 17 data centres located Europe, Singapore, Malaysia and Australia.

1. Distribution per unit and dividend yield

In its 3Q 2020 financial results, Keppel DC REIT continues to deliver very strong results. Its net property income and DPU increased to $62.4m (up 47.6%) and 2.357 cents (up 22.1%)respectively. The increase in income was mainly driven by the new acquisitions and strong leasing momentum in both Singapore and Dublin's facilities.

Despite the strong results, the REIT is currently trading at an unattractive yield of 2.2%. Historically, the REIT has been paying very consistent DPU, with steady growth over the years. However, its current yield of 2.2% is one of the lowest yield as compared to other REITs listed on Singapore Stock Exchange.

2. Price to book ratio