Keppel DC REIT scheduled to join STI from 23 June
Following the $Straits Times Index(STI.SI)$ June quarterly review, $Keppel DC Reit(AJBU.SI)$ will be entering the index, replacing Jardine Cycle & Carriage, effective from 23 June. This increases the total number of S-REITs in the index to eight.
The eight S-REITs in the STI will be: $CapLand Ascendas REIT(A17U.SI)$ $CapLand IntCom T(C38U.SI)$ $Frasers Cpt Tr(J69U.SI)$ $Frasers L&C Tr(BUOU.SI)$ $Mapletree Ind Tr(ME8U.SI)$ $Mapletree Log Tr(M44U.SI)$ $Mapletree PanAsia Com Tr(N2IU.SI)$
Keppel DC REIT, with a market cap of S$4.9 billion, re-enters the STI after exiting in June 2023, and is expected to increase S-REITs' combined weight in the index to over 10%.
Keppel DC REIT, Asia's first pure-play data centre REIT, listed in 2014 with 8 data centres and S$1 billion AUM. Today, it owns 24 data centres across 10 countries, with an AUM of S$4.9 billion. Of this, 81.6% is in Asia Pacific (66.3% in Singapore) and 18.4% in Europe.
Keppel DC REIT's 1Q 2025 results showed a 59.4% year-on-year increase in distributable income, with gross revenue and net property income (NPI) growing by 22.6% and 24.1% respectively. Its distribution per unit rose by 14.2% to 2.503 Singapore cents for the quarter. This was driven by acquisitions of Keppel DC Singapore 7 & 8, Tokyo Data Centre 1, and higher contributions from contract renewals and escalations in 2024. Portfolio rental reversion was 7%, with no major renewals in 1Q 2025, and portfolio occupancy remained at 96.5% as of March 31, 2025.
CEO Loh Hwee Long noted at the annual general meeting that Keppel DC REIT saw overall valuation gains in 2024, especially from its Singapore colocation assets, with most European assets also recording local currency gains despite some softness in smaller data centres, reinforcing the strength of its diversified, value-focused portfolio.
The REIT has been actively acquiring assets. In 2024, it entered Japan as a new market with the acquisition of Tokyo Data Centre 1, and also completed the acquisition of 2 AI-ready hyperscale data centres in Singapore from its Sponsor, Keppel, which marked its largest deal exceeding S$1 billion since listing. According to its Annual Report, the REIT's Sponsor, Keppel, plans to expand its data centre portfolio to a total of 1.2 GW in the near term, which could provide a pipeline of assets for Keppel DC REIT to potentially acquire.
For its financial year 2024, Keppel DC REIT recorded 15.5% year-on-year decrease in total greenhouse gas emissions and has achieved the GRESB Green Star for a third consecutive year, with six of its assets in Singapore and Dublin maintaining green certifications.
In trading this year, Keppel DC REIT has ranked among top 20 stocks by trading turnover and among the top five most actively traded S-REITs.
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