Keppel DC REIT: Business Update in Line With expectations; Refinancing for 2023 Completed

Narrow-moat Keppel DC REIT’s, or KDC REIT’s, first-quarter 2023 net property income grew 6.3% year on year on the back of a 6.5% year-on-year increase in revenue, in line with our expectations. The growth was largely driven by the acquisitions of Guangdong Data Centre 2 and 3, while partly offset by higher facility expenses such as maintenance, staff costs, and electricity. The trust also managed to obtain approval from the Monetary Authority of Singapore for their NetCo bonds to be Qualifying Project Debt Securities, and exempt from corporate income tax of 17%. As a result, there is an additional tax savings of SGD 1 million from 2022 which will be distributed to unitholders over the first half of 2023.