Keppel DC Reit 9M DPU up 11.7% at $0.08571 on organic growth, acquisitions

Keppel DC Reit reported an 11.7% increase in distributable per unit (DPU) to $0.08571 for the nine months ending September 30, 2025. Operating income climbed 16.7% year-over-year to $228 million, propelled by enhanced performance, rental reversions, and escalations, as well as acquisitions like Tokyo Data Centre 3 and raised effective interests in Keppel DC Singapore 3 and 4.

However, higher financing costs from acquisition loans and lease extensions affected growth. Occupancy reached 93%, up from 92.5%, with a weighted average lease expiry of 6.5 years. Aggregate leverage grew to 36.2% as of year-end, up 220 basis points, due to partial yen loan drawdown for Tokyo Data Centre 4 and 5 acquisitions. Data center fundamentals remained robust, with AI adoption expected to broaden enterprise demand, with AI workloads projected to make up half of Asia-Pacific data center demand by 2030.