Keppel DC REIT Q1 profits jumped 18.2% to $34.09m

It was due to higher income from its data centres in Dublin and Singapore.

Keppel's net property income (NPI) rose by 18.2% YoY from $28.84m to $34.1m in the first quarter of 2018. This was on the back of higher income from Keppel Data Centres (KDC) Dublin 2 and Singapore 3 and higher variable income from KDC Singapore 1, partially offset by lower rental income from Basis Bay Data Centre and Gore Hill Data Centre as well as higher finance costs and manager’s fees.

According to its financial statement, distributable income dipped by 4.1% from $20.87m to $21.77m due to the absence of the one-off capital distribution recorded last year.  Distribution per unit (DPU) was 3.4% higher than 1Q 2017’s adjusted DPU of 1.74 cents, after excluding the one-off capital distribution that arose from the Keppel DC Singapore 3 acquisition last year.

Keppel DC REIT said it has expanded its footprint to Germany, one of the key data centre hubs in Europe, with the completion of maincubes Data Centre on 30 March 2018. "The commencement of the 15-year triple-net master lease also lengthens the REIT’s portfolio WALE and strengthens the REIT’s income stream," it added.

As of the announcement, the REIT’s portfolio has grown to 14 data centres valued at approximately $1.66b, whilst its geographical profile has been further diversified to ten cities in eight countries across the Asia Pacific and Europe. Portfolio WALE remained long at 9.6 years while occupancy was at 93.7%.

Separately, Keppel DC REIT has also entered into a contract to acquire the remainder of the 999-year leasehold land interest in Keppel DC Dublin 1. "The long leasehold land interest will allow the REIT to be agiler in its investment strategy and provide clients with longer term certainty," the REIT said.