SG Earnings Season: Keppel DC DPU +12%! A Good Start for S-REITs?

Tiger_SG
07-25
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$Keppel DC Reit(AJBU.SI)$ released its financial results for the first half of 2025 today, with its unit price closing up 2.65% and hitting a 52-week high of S$2.38 during intraday trading — not far from its all-time high of S$2.59.

The latest earnings report showed strong growth in both gross revenue and net property income, mainly driven by recent acquisitions and higher variable rents from contract renewals:

  • Gross revenue rose 34.4% year-on-year to S$211.3 million;

  • Net property income increased 37.8% to S$182.8 million;

  • Distributable income to unitholders surged 57.2% to S$127.1 million;

  • Distribution per unit (DPU) climbed 12.8% to 5.133 cents.

Despite a reduction in financing costs due to lower interest rates, profit before tax grew 16.2% to S$150.6 million. Additionally, the divestment of the Kelsterbach Data Centre contributed a gain of S$10.5 million.

DPU for the first half of FY2025 (ending June 30) rose from 4.549 cents a year earlier to 5.133 cents, reflecting a 12.8% increase. This growth was largely attributed to the earnings contributions from newly acquired data centers — Keppel DC Singapore 7, Keppel DC Singapore 8, and Tokyo Data Centre 1 — as well as income from contract renewals and rent escalations.

The upcoming distribution will be paid on September 15, with the record date set for August 4.

What do you think?

  • Do you see Keppel DC REIT continuing its upward momentum in the second half of the year?

  • How does it compare to other data center REITs in your portfolio or watchlist?

  • With its DPU growth and high occupancy rate, is now a good time to buy or add more units?

  • With so many S-REITs companies’ earnings coming, which one are you bullish?

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CapLand 52-W Highs: Are SREIT ETFs Smart Play?
Singapore’s REIT market has been shining in 2025. For Singapore investors, REITs have long been synonymous with steady cash flow and high dividends. With Singapore’s tax advantages, REIT ETFs could become an even more important tool for long-term portfolio allocation. Do you think it’s safer to buy individual REITs or go with ETFs? If you could only pick one REIT ETF, which would you choose—and why? With S-REITs hitting new highs, would you still chase now, or wait for a pullback? How do you think a Fed rate cut would impact REITs?
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Comments

  • MHh
    07-27
    MHh
    I definitely see Keppel dc reit continuing its upward moment. The demand for AI and technology remains strong and this will drive the demand for data centres in Singapore. This demand will not be met with increased supply as the Singapore government has stated not for additional data centres. This will definitely help drive Keppel dc Reit up.


    I have previously evaluated other data centre reits available on the Singapore stock exchange like Mapletree industrial and Ascendas and I like all 3 though their focus and data centre properties differ.


    I think now is a good time to buy even though it has hit its 52week high. Analyst put the target price at $3.40 but I think there will be more room to climb especially when rate cuts lend more momentum and I expect its DPU to continue to rise. Of the upcoming ones on 31/7, I am not bullish on them. I am bullish for Ascendas and mapletree industrial as they ride the same wave as kepple dc reit.
    @Universe宇宙 @DiAngel @SR050321 come join
  • Star in the Sky
    07-26
    Star in the Sky
    Keppel DC REIT is a good stock to keep.
    Keppel DC REIT recent announced it's distributable income of $127.1 million for 1H2025, representing a 57.2% increase y-o-y.
    Growth was mainly driven by contributions from the acquisition of Keppel DC Singapore 7 & 8 and Tokyo Data Centre 1 as well as contributions from contract renewals and escalations.
    We have yet to hear healthy contributions from the troubled China investment- the Guangdong Data Centre 1, 2 and 3  facilities. Keppel DC REIT have been badly hurt by its China investment in the last few quarters. There are lots of rooms to improve for GDC investment. Once the  occupancy troubles are resolved, I predict  Keppel DC share price will hit another high around 2.7-2.8.
  • Shyon
    07-30
    Shyon
    Keppel DC REIT’s $Keppel DC Reit(AJBU.SI)$ strong H1 results really stood out to me. With revenue up 34.4% and DPU climbing 12.8%, it’s clear their data center strategy is delivering. The growth wasn’t just from acquisitions but also higher variable rents and renewals, which shows good operational strength.

    I believe Keppel DC REIT can sustain this momentum into H2, especially with solid occupancy and new assets like the Tokyo Data Centre contributing. The recent divestment gain adds flexibility, and compared to other data center REITs, its performance and scale make it a strong contender on my watchlist.

    Given the rising DPU and demand for digital infrastructure, I’m open to adding more units, especially on a pullback. Alongside Keppel DC, I’m also bullish on ESR REIT and Keppel Infra Trust for their stable yields and solid growth drivers this season.

    @Tiger_SG @Tiger_comments @TigerStars

  • Tiger_SG
    07-29
    Tiger_SG
    Thank you all for participating in the discussion and hot topics! The Tiger Coins have been distributed to your account through posts or tiger coin center — please check notification or "Community Operation Distribution" in your history.[Shy]

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  • koolgal
    07-27
    koolgal
    🌟🌟🌟Keppel DC Reit has delivered a stellar H1 2025 with distributable income surging 57.2% and DPU rising 12.8% to 5.133 cents.  I believe that this momentum is expected to continue into H2 driven by strong rental reversions, up 7% in Q1 with expectations of 30% to 40% in Q2 from Singapore leases.

    Keppel DC also has high occupancy rate of 96% across its portfolio with WALE of 6.3 years.

    Is now a good time to buy more?  I believe that is a YES especially with interest rates easing and AI  demand accelerating.

    @Tiger_SG @TigerStars @Tiger_comments @CaptainTiger

  • 北极篂
    07-26
    北极篂
    吉宝数据中心REIT（Keppel DC REIT）今年的表现让我有点意外——在整体S-REITs板块偏弱的背景下，它还能稳中有升，确实显示出数据中心资产的抗周期特性。下半年如果宏观经济没有太大变动，我觉得它的表现还是有机会延续强势，尤其是在AI和云计算对数据需求持续攀升的推动下。


    我自己的观察名单里，也有Mapletree Industrial Trust和Digital Core REIT这两家偏数据中心型的REIT。对比之下，Keppel DC的DPU（每单位分派收益）成长性更稳，且资产组合地理分布较好，有欧洲、新加坡等地，不会过度依赖单一市场，这点我很看重。


    目前它的入住率高企，现金流稳定，如果我们相信AI长期趋势不变，那现在趁估值还没过热，加码其实是合情合理的。尤其是最近很多REIT财报即将公布，如果市场情绪因为利率预期缓和而改善，我相信像Keppel DC这种“基本面健康+赛道优质”的标的，很容易成为资金回流的首选。


    如果要我选一只最看好的S-REIT，我会继续押注Keppel DC，毕竟数据是新油，而它手里已经握有不少优质“油田”。
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