Keppel DC (AJBU) Q1 2025 TU earnings summary

Executive summary

• Distributable income for 1Q 2025 rose 59.4% year-over-year to $61.8m, driven by acquisitions and strong portfolio performance.

• Distribution per unit (DPU) increased 14.2% year-over-year to 2.503 cents.

• Portfolio occupancy remained high at 96.5% as of 31 Mar 2025, with a WALE of 7.1 years by lettable area.

• Aggregate leverage stood at 30.2%, with $886m debt headroom and a 3.1% average cost of debt.

Financial highlights

• Gross revenue for 1Q 2025 was $102.2m, up 22.6% year-over-year; net property income rose 24.1% to $88.1m.

• Finance income increased 40.1% to $3.9m, while finance costs decreased 4.1% to $12.5m.

• Higher net property income attributed to acquisitions (Keppel DC Singapore 7 & 8, Tokyo Data Centre 1) and contract renewals.

• One-off dispute settlement sum at Keppel DC Singapore 1 received in 2024 partially offset by divestment of Intellicentre Campus.

Outlook and guidance

• AI-driven trends and generative AI workloads are expected to drive global data centre demand, with a projected CAGR of 39% until 2030.

• APAC data centre demand to accelerate in 2025, with utilisation rates expected to rise to 88.8%.

• European data centre vacancy rates projected to fall below 10% by end-2025, supporting strong demand.