This article first appeared on GuruFocus .
Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Keppel DC REIT ( KPDCF ) achieved a record distribution per unit of $10.3, up 9.8% year-on-year, marking the highest since its listing in 2014.
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Distributable income rose by 55.2% year-on-year to $268.1 million, driven by accretive acquisitions and strong portfolio performance.
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Assets under management increased to approximately $6.3 billion SGD, supported by acquisitions and higher valuations.
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The cost of debt improved to 3% as of December 31, 2025, with an interest coverage ratio of 7.5 times.
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Keppel DC REIT ( KPDCF ) was included in the Straits Times Index and received awards in Singapore and Ireland, reinforcing its strong growth momentum.
Negative Points
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The absence of income from the divestment of certain data centers and a one-off dispute settlement sum received in 2024 partially offset financial performance.
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Portfolio reversion for the fourth quarter of 2025 was only around 2%, indicating smaller scale and shorter tenure renewal contracts.
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The lease for GV7 data center is not being renewed, requiring efforts to re-lease the space and potentially reposition or enhance the asset.
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A 16% valuation decline was noted in China, attributed to changes in valuation assumptions and market conditions.
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The divestment of Netco bonds and preference shares is expected to result in a significant drop in income.
Q & A Highlights
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Q: How is the backfilling and lease renewal progressing for Gore Hill and SGP1? A: CEO Mr. Low Hui Long explained that active discussions are ongoing for both Gore Hill and SGP1. The market in Australia tends to slow down during the year-end, but conversations are expected to pick up. Updates will be shared once there is more certainty.
Q: What are the plans for GV 7 and Cardiff, considering their smaller size? A: CEO Mr. Low Hui Long mentioned that GV 7 is in a prime location, and they are optimistic about securing a good outcome. They are considering portfolio rebalancing and power intensification studies to align with their hyperscale strategy.
Q: Can you provide an update on the tax transparency for SGT 788? A: CFO Mr. Adam Lee stated that they are in the process of LLP conversion, and tax transparency is expected to be achieved in the first quarter of this year.
Q: What is the situation with the valuation decline in China, and when can we expect positive contributions? A: CEO Mr. Low Hui Long noted a valuation decline due to a change in valuers and market conditions. They are optimistic about recovery driven by AI focus in China and are actively engaging with potential clients. However, specific guidance on positive contributions cannot be provided at this time.
Q: How does the recent power bank acquisition in Melbourne affect your strategy in Australia? A: CEO Mr. Low Hui Long stated that the acquisition aligns with their hyperscale strategy, and there is no shift in their strategic focus.
Q: What are the expectations for capex and downtime for GV 7 and Cardiff? A: CEO Mr. Low Hui Long mentioned that it is too early to determine capex requirements as it depends on leasing discussions. They aim to minimize downtime and expect a 6 to 12-month period for Cardiff.
Q: What is the status of the Netco bonds redemption? A: CEO Mr. Low Hui Long indicated that the redemption process is ongoing, with regulatory approvals expected to conclude in the first half of the year.
Q: Can you provide guidance on cost of debt for 2026 and potential currency impacts? A: CFO Mr. Adam Lee expects the cost of debt to trend downwards to 2.7% in 2026, with potential movements in currencies like the Singapore dollar and Euro due to floating positions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
