Keppel DC (AJBU) H2 2024 earnings summary

Executive summary

• 2H 2024 DPU rose 13.2% year-over-year to 4.902 cents, with full-year DPU up 0.7% to 9.451 cents, driven by strong rental reversions and strategic acquisitions.

• Assets under management increased 35.1% year-over-year to $5.0 billion, with portfolio value up 34.1% to S$4,831.5m, supported by acquisitions in Singapore and Tokyo.

• Major acquisitions included Tokyo DC 1 and Keppel DC Singapore 7 & 8; divestments included Intellicentre Campus and Basis Bay Data Centre.

• Portfolio occupancy at 97.2% and WALE of 6.3 years by lettable area as of December 2024.

• Proportion of rental income from hyperscalers increased post-acquisition.

Financial highlights

• Gross revenue for FY 2024 grew 10.3% year-over-year to $310.3 million; net property income rose 6.3% to $260.3 million.

• Distributable income for FY 2024 was $172.7 million (+3.0% year-over-year); 2H 2024 distributable income up 8.8% to $91.9 million (+20.2% year-over-year).

• Adjusted DPU for FY 2024 was 9.504 cents, up 1.3% from FY 2023.

• Profit after tax for FY 2024 surged to $314.0 million, mainly due to net fair value gains and divestment gains.

• Distribution yield for FY 2024 was 4.34% based on 31 December 2024 closing price.

Outlook and guidance

• Data centre demand in Asia Pacific grew 18.3% year-over-year in 2024, with global demand driven by cloud, AI, and declining vacancy rates.

• Manager aims to grow and strengthen its portfolio in key international data centre hubs, focusing on hyperscale and AI-ready assets and sustainability.

• Risks to the outlook include inflation, commodity price volatility, geopolitical tensions, and protectionist policies.