KEPPEL DC Reit posted a 9.9 per cent year-on-year decrease in distribution per unit (DPU) to S$0.04549 for the first half of the financial year ended Jun 30, from S$0.05051.
The manager attributed the lower DPU to loss allowance for the real estate investment trust’s (Reit) data centres in Guangdong, China, higher finance costs and the depreciation of foreign currencies against the Singapore dollar.
However, this was partially offset by a S$13.3 million settlement sum received in relation to a dispute with DXC technology services, and “positive reversions and escalations” which contributed to an increase in rents.
Revenue was up 11.9 per cent to S$157.2 million for the half year, from S$140.5 million in H1 FY2023, said the Reit’s manager in a bourse filing on Friday (Jul 26).
Meanwhile, net property income rose 4.2 per cent to S$132.6 million from S$127.4 million.
Distributable income fell 11.4 per cent to S$80.9 million from S$91.3 million. The distribution will be paid on Sep 23, after the record date on Aug 5.
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As at Jun 30, 2024, the Reit’s aggregate leverage was 35.8 per cent, 180 basis points lower than at Mar 31, 2024. Interest coverage ratio for the trailing 12 months stood at 5.1 times.
The Reit recorded a portfolio occupancy of 97.5 per cent, with portfolio weighted average lease (Wale) by lettable area at 6.4 years.
On the other hand, Wale by rental income was 4.1 years, as a higher proportion of rental income hailed from co-location assets, which typically have shorter contractual periods, the manager noted.
Units of the Reit closed 1 per cent or S$0.02 lower at S$1.91 on Thursday.
