Keppel DC (AJBU) Q4 2025 earnings summary

Executive summary

• Distributable income rose 55.2% year-over-year to SGD 268.1 million for FY2025, with record DPU of 10.381 cents, up 9.8%, the highest since listing in 2014, driven by accretive acquisitions and strong portfolio performance.

• Assets under management increased to SGD 6.3 billion, supported by acquisitions in Japan and Singapore and higher valuations.

• Portfolio optimization included SGD 1.1 billion in acquisitions and SGD 0.2 billion in divestments, with a focus on hyperscale data centres.

• Included in the Straits Times Index from June 2025 and received multiple awards for governance, investor relations, and sustainability in Singapore and Ireland.

Financial highlights

• Gross revenue grew 42.2% year-over-year to SGD 441.4 million, and net property income increased 47.2% to SGD 383.3 million.

• Portfolio valuation increased 25.6% year-over-year to SGD 6.1 billion, with Singapore assets showing strong gains.

• Portfolio occupancy remained high at 95.8%, with a weighted average lease expiry of 6.7 years.

• Portfolio reversion for FY2025 was about 45%, indicating strong rental renewals.

• Finance costs declined 5% year-over-year, with average cost of debt at 3.0% for FY2025 and 2.8% in 4Q25.

Outlook and guidance

• Global data centre demand is projected to grow at a 19.4% CAGR from 2025 to 2029, outpacing supply, driven by cloud and AI adoption.

• Cost of debt expected to trend down to 2.7% in 2026, with further room for reduction in SGD and EUR borrowings.

• Supply constraints, such as limited land and power grid capacity, are expected to support rental growth.

• 6.4% of contracts by rental income due for renewal in 2026, with positive rent reversions expected.

• Continued focus on high-quality, accretive acquisitions in established data centre hubs and proactive portfolio management.