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Keppel DC REIT’s Distribution Per Unit Up 13.6% For The First Half Of 2020

Keppel DC REIT’s Distribution Per Unit Up 13.6% For The First Half Of 2020

July 22, 2020 — Keppel DC REIT declared a distribution per unit (DPU) of 4.375 cents for the first half (1H) of 2020, 13.6% higher than 1H 2019’s 3.850 cents. Based on the closing price of $2.540 on 30 June 2020, the REIT’s annualised distribution yield was 3.44%.

The REIT has delivered distributable income of $75.0 million for 1H 2020, 38.0% higher compared to 1H 2019. The acquisitions of Keppel DC Singapore 4 and DC1 in 4Q 2019, as well as the addition of Kelsterbach Data Centre in May 2020, contributed to the positive performance for 1H 2020.

In 1H 2020, the Manager completed the acquisitions of the remaining 999‐year leasehold land interest at Keppel DC Dublin 1, and Kelsterbach Data Centre, increasing the REIT’s assets under management to approximately $2.8 billion as at 30 June 2020.

Following the acquisition of Keppel DC Singapore 4 in 4Q 2019, the REIT has obtained tax transparency treatment for its share of taxable income from the asset and exercised the option to extend its land lease title by 30 years to June 2050.

As at 30 June 2020, the REIT’s portfolio occupancy rate remained healthy at 96.1% with a long weighted average lease expiry (WALE) of 7.4 years. The REIT has 2.6% of total net lettable area (NLA) up for renewal in 2H 2020. The Manager has started engaging clients for early renewals and brought down the total NLA due for expiry in 2021 from 10.7% as at end‐2019 to 6.2% as at 30 June 2020.

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