Keppel DC REIT posted a profit after tax attributable to unitholders of S$427.8 million for the year ended 31 Dec 2025, up 42.3% year-on-year, driven by a larger asset base and stronger variable rents following recent acquisitions and lease escalations.
Earnings per unit increased to 18.71 cents from 17.09 cents a year earlier. The manager declared a half-year distribution of 5.248 cents per unit, comprising 2.915 cents of taxable income, 1.130 cents of tax-exempt income and 1.203 cents of capital distribution. The payout will be made on 19 Mar 2026 to unitholders on record as at 9 Feb 2026. Full-year distribution per unit (DPU) rose 9.8% YoY to 10.381 cents.
Gross revenue climbed 42.2% to S$441.4 million, supported by first-time contributions from Tokyo Data Centre 3 as well as a full-year uplift from Keppel DC Singapore 7 and 8 and Tokyo DC 1. Net property income expanded 47.2% to S$383.3 million. By asset class, fully-fitted colocation facilities generated S$328.1 million in revenue and S$297.9 million in net property income. On a pre-tax basis, the colocation segment earned S$490.4 million, while fully-fitted single-tenant assets posted a pre-tax loss of S$10.9 million. Shell-and-core assets contributed S$16.3 million of pre-tax profit.
The positive results were partially offset by the absence of income from Intellicentre Campus and Kelsterbach Data Centre, both divested during the period, and by higher manager fees. Finance costs eased 5.0% to S$48.9 million, reflecting lower average interest rates and partial debt repayments.
During the year the REIT completed the S$707.0 million acquisition of a 98.47% stake in Tokyo DC 3, finalised a 10-year land-lease extension for Keppel DC Singapore 7 and 8 for S$350 million, and agreed to buy the remaining stakes in Keppel DC Singapore 3 and 4. It also divested its freehold Kelsterbach Data Centre in Germany for €50 million and sold bond investments in M1 Network. Funding initiatives included a S$404.5 million preferential offering and additional debt facilities, lifting total assets to S$6.9 billion and pushing aggregate leverage to 35.3%.
Looking ahead, the manager expects the global data-centre market to tighten amid a projected 19.4% compound annual growth in demand between 2025 and 2029, outpacing planned supply. It plans to pursue further accretive acquisitions in established hubs, deepen asset-enhancement initiatives and maintain a disciplined capital structure. The manager cited ongoing cloud adoption and accelerating artificial-intelligence workloads as key demand drivers, while noting potential headwinds from interest-rate volatility, competition and climate-related regulations.