Keppel DC REIT posted distributable income of S$268.1 million for the year ended Dec 31 2025, up 55.2 year-on-year, as recent purchases in Singapore and Tokyo boosted topline contributions and rental reversions remained robust.

Gross revenue rose 42.2 YoY to S$441.4 million, while net property income climbed 47.2 YoY to S$383.3 million. The trust declared a distribution per unit of 10.381 Singapore cents, 9.8 higher than a year earlier; the second-half payout will be made on 19 Mar 2026. Based on the year-end price of S$2.25, the full-year distribution yield works out to 4.61 per cent.

Portfolio contributions were driven mainly by the FY2025 acquisitions of Keppel DC Singapore 7 and 8 and Tokyo Data Centre 1 and 3. These assets, together with positive rental reversions of about 45 per cent, offset revenue lost from the divestments of Intellicentre Campus in Australia and Kelsterbach Data Centre in Germany. Net property income margin improved to 86.8 per cent from 83.9 per cent a year earlier.

By geography, Singapore remained the largest revenue generator, underpinned by full-year income from the newly acquired Singapore facilities, while Japan’s share expanded following the Tokyo purchase. Occupancy across the portfolio stood at 95.8 per cent with a weighted average lease expiry of 6.7 years by lettable area, and rental income from hyperscale customers grew to 69.3 per cent from 61.1 per cent.

Headwinds included the absence of a one-off dispute settlement recorded in FY2024 and the impact of asset sales, though these were more than compensated by new income streams and higher escalations. Finance costs eased 5.0 YoY to S$48.9 million on lower floating rates, helping the interest coverage ratio remain healthy at 7.5 times.

During the year the manager deployed S$1.1 billion for accretive acquisitions, funded partly by a S$404.5 million preferential offering that was 168.2 per cent subscribed. Aggregate leverage closed at 35.3 per cent, leaving about S$531 million of headroom to the trust’s 40 per cent internal limit.

Chief executive officer Loh Hwee Long noted that FY2025 performance reflected “strategic acquisitions and proactive portfolio management”. He said the REIT would continue to recycle capital, having agreed to divest Basis Bay Data Centre in Malaysia and its NetCo Bonds and preference shares, transactions expected to free up roughly S$163.4 million for redeployment.

Looking ahead, management expects a tightening global data-centre market, citing industry forecasts of 19.4 per cent compound annual demand growth versus 17.9 per cent supply growth from 2025 to 2029. The trust plans to pursue AI-ready, hyperscale assets in key hubs while targeting a 50 per cent cut in Scope 1 and 2 emissions by 2035 from a 2025 baseline.