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 acquisitions in Singapore and Tokyo and strong rental reversions lifted earnings despite asset divestments and the absence of a one-off gain booked in 2024.
Gross revenue climbed 42.2 % YoY to S$441.4 million, while distribution per unit (DPU) grew 9.8 % to 10.381 Singapore cents. The final-period payout of 5.248 cents will be distributed on Mar 19 2026 to unitholders on record as of Feb 26 2026, implying a full-year distribution yield of 4.61 % based on the Dec 31 2025 closing price of S$2.25.
Portfolio revenue was driven by the first-time contributions from Keppel DC Singapore 7 and 8 and Tokyo Data Centre 3, alongside a portfolio rental reversion of about 45 %. Net property income surged 47.2 % YoY to S$383.3 million. Hyperscale tenants accounted for 69.3 % of rent at end-2025, up from 61.1 % a year earlier, while portfolio occupancy stayed high at 95.8 % with a weighted average lease expiry of 6.7 years by lettable area.
Performance was partially offset by the exits of Intellicentre Campus and Kelsterbach Data Centre, as well as the lapse of a dispute settlement gain recognised in 2024.
During the year the trust completed S$1.1 billion of acquisitions, including full control of four Singapore assets and an additional Tokyo facility, and negotiated a 10-year land-tenure extension for Keppel DC Singapore 7 and 8. It also announced divestments in Germany and Malaysia and a proposed sale of NetCo Bonds and Preference Shares, moves expected to release around S$163.4 million for redeployment into higher-yielding assets.
Chief executive Loh Hwee Long said the results reflected the benefits of targeted acquisitions and proactive portfolio management, noting that the REIT’s focus on hyperscale and AI-ready facilities positions it for the next growth phase. He added that aggregate leverage of 35.3 % provides S$531 million of debt headroom, while the October 2025 preferential offering—168.2 % subscribed—raised S$404.5 million to fund expansion.
Looking ahead, management intends to tap its global mandate to pursue accretive assets in established data-centre hubs, supported by a healthy interest-coverage ratio of 7.5 times and an average debt cost of 3.0 % for FY 2025. The manager also reaffirmed its climate roadmap, targeting a 50 % cut in Scope 1 and 2 emissions by 2035 and extending renewable-energy procurement to all Dublin facilities through a fourth virtual power-purchase agreement.
Industry forecasters such as DC Byte expect global data-centre demand to expand at a 19.4 % CAGR between 2025 and 2029, outstripping supply growth. The manager said sustained cloud adoption and accelerating AI workloads should underpin occupancy and rental growth, although it is monitoring macroeconomic uncertainties and interest-rate movements that could influence capital costs and transaction activity.