Keppel DC (AJBU) Q1 2026 TU earnings summary

Executive summary

• Distributable income for 1Q 2026 rose 20.7% year-over-year to $74.6 million, with distribution per unit up 13.2% to 2.833 cents.

• Gross revenue increased 18.4% year-over-year, driven by acquisitions and contract renewals, partially offset by a divestment.

• Portfolio occupancy remained high at 95.6% as of 31 March 2026, with a weighted average lease expiry (WALE) of 6.5 years.

• Portfolio consists of 25 data centres across 10 countries, with assets under management of approximately $6.3 billion.

Financial highlights

• Gross revenue for 1Q 2026 was $120.96 million, up from $102.18 million in 1Q 2025.

• Net property income rose 19.4% year-over-year to $105.17 million.

• Finance costs increased 20.8% due to new acquisition loans.

• Distributable income and DPU both saw double-digit growth year-over-year.

Outlook and guidance

• Data centre demand remains robust, supported by structural drivers such as AI workload growth.

• Limited first-order impact expected from Middle East conflict, with power procurement contracts in place through end-2026.

• Operators are increasingly using asset recycling and platform-level capital solutions to fund expansion.