Keppel DC REIT's Divestment, Bond Redemption May Weigh on Earnings Growth -- Market Talk

Dow Jones
02/02

0707 GMT - Keppel DC REIT's earnings growth this year could be offset by an impending Malaysian divestment and the redemption of some bonds, according to DBS Group Research's Dale Lai. A key swing factor would be how quickly the real-estate investment trust recycles capital from these moves into higher-yielding and accretive opportunities, says the analyst in a note. The trust's earnings visibility is likely to be supported by a high-occupancy portfolio and continued demand for so-called hyperscale data centers, he adds. It also has debt headroom of more than S$530 million before its gearing--ratio of net debt to total assets--reaches 40%, he says. DBS maintains its buy rating and S$2.60 target on Keppel DC REIT's units, which are flat at S$2.28. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

February 02, 2026 02:07 ET (07:07 GMT)

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