Half Year 2026 Keppel DC REIT Earnings Call Transcript
Key Points
- Keppel DC REIT (KPDCF) reported a strong financial performance for the first half of 2026, with distributable income and distribution per unit (DPU) increasing by 19% and 11% year-on-year, respectively.
- The REIT disclosed that 95% of its power capacity is contracted and revenue-generating, providing a more meaningful measure of utilization than traditional occupancy metrics.
- The portfolio's weighted average lease expiry was extended to 6.7 years, supported by contract renewals and new contracts in Singapore and Australia.
- Keppel DC REIT (KPDCF) maintains a competitive cost of debt at 2.6% and has a healthy balance sheet with over $670 million in debt headroom.
- 87% of borrowings are on fixed rates, limiting interest-rate volatility, and the REIT has a natural hedge for about two-thirds of its overseas portfolio, mitigating foreign-currency risk.
- Finance costs increased year-on-year due to acquisition-related borrowings drawn in the fourth quarter of 2025.
- The divestment of the Kelsterbach data center in 2025 led to a partial offset in income growth.
- Portfolio occupancy decreased to 92.5% due to contract expiry at the Cardiff Data Center, although excluding this asset, occupancy would be 95.3%.
- Interest rates are expected to remain elevated, which could impact financing conditions and investment spreads.
- The near-term macroeconomic environment remains uncertain, posing potential challenges for future growth and investment opportunities.
Good morning, everyone. Thank you for joining Keppel DC REIT's one-half 2026 results call.
I'm Renee from the Investor Relations team. Let me first introduce the management team on the call:
We have CEO, Mr. Loh Hwee Loong; and CFO, Mr. Adam Lee; as well as Head of Portfolio Management, Charmaine Cai.
We will start with an overview of Keppel DC REIT's financial and operational performance, followed by the Q&A session.
I will now hand the time to Hwee Long.
Thank you, Renee. Good morning, everyone. Thank you for joining us this morning.
We delivered a strong set of results in one-half 2026, reflecting organic growth, contributions from acquisitions, and continued discipline in capital management.
For one-half 2026, distributable income and DPU increased by about 19% and 11%, respectively, year on year.
We are also disclosing contracted power capacity for the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
