Keppel DC REIT's Japan Data-Center Deal Could Boost 2027-2028 Distributions

Dow Jones
8小時前

0236 GMT - Keppel DC REIT's Japan data-center deal could boost its distribution per unit in 2027-2028, given the assets' strong occupancy and rent escalations built into tenant contracts, says Morningstar's Xavier Lee in a note. The deal is likely to offer DPU accretion of 2.6% to the Singapore real-estate investment trust, management said. The assets are likely to reduce the REIT's tenant concentration, with the trust's largest tenant contribution to fall to 38%, from 44% as of end-June, he adds. He raises his 2027-2028 DPU projections by 2.2%-2.8% but leaves 2026's largely unchanged as the deal is likely to only close in 4Q. Morningstar raises its fair-value estimate by 3% to 2.60 Singapore dollars. Units drop 1.8% to S$2.16.

 

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