Keppel DC REIT (AJBU.SI) saw its stock price surge 3.39% in Monday's pre-market trading, reflecting growing investor optimism about the data center REIT's robust performance and future prospects. The significant uptick comes on the heels of the REIT's stellar financial results and positive industry outlook.
According to recent reports, Keppel DC REIT delivered an impressive set of earnings for the first half of 2025. The REIT's gross revenue jumped 34.4% year-on-year to S$211.3 million, while net property income shot up 37.8% to S$182.8 million. Distribution per unit (DPU) also saw a substantial increase of 12.8% to S$0.05133, highlighting the REIT's strong cash flow generation and commitment to shareholder returns.
Investors are particularly encouraged by Keppel DC REIT's high portfolio occupancy rate of 95.8% and a remarkable positive portfolio reversion of around 51% for the first half of 2025. These figures underscore the robust demand for data center space. Moreover, the REIT's strategic focus on expanding its presence in key markets like Japan, South Korea, and Europe, with an emphasis on hyperscale data centers, positions it well for future growth. The continued developments in artificial intelligence (AI) are expected to sustain strong demand for data centers, providing a long-term tailwind for Keppel DC REIT's business model and potentially driving further stock appreciation.