Keppel DC REIT: First Take: 2Q26 DPU up 9.5% YoY, ahead of Street

Research evidence excerpt

Keppel DC REIT: First Take: 2Q26 DPU up 9.5% YoY, ahead of Street

J P M O R G A N Asia Pacific Equity Research

23 July 2026

Keppel DC REIT Overweight

KEPE.SI, KDCREIT SP

First Take: 2Q26 DPU up 9.5% YoY, ahead of Street Price (22 Jul 26):S$2.34

Price Target (Jun-27):S$2.60

Our First Take: KDCREIT’s 2Q26 DPU rose 1.7% QoQ (9.5% YoY) to 2.88Scts

with 1H26 DPU of 5.71Scts (+11.3% YoY) ahead of Bloomberg consensus/in line

with our estimates at 52.4/51.1% of FY26e. Key positive developments include the

successful re-leasing of Gore Hill DC at strong rates and continued balance sheet

improvement with gearing declining to 34.0%. This is tempered by: (1) Cardiff DC

vacancy from Jun 2026; and (2) ongoing SGP 1 occupancy deterioration at 46.5%,

where an AEI plan is being assessed. We believe key upcoming catalysts include Singapore/ASEAN Property and

potential redevelopment of SGP 1 (link), especially with impending PUE caps (link), REITs

and acquisitions overseas. Terence M Khi AC

(65) 6882-1518

Key Positives terence.ml.khi@jpmorgan.com

Gearing fell 110 bps QoQ to 34.0% aided by the repayment of a consumption tax loan Mervin Song, CFA

for the Tokyo DC 3 acquisition and FX translation effects (JPY/EUR depreciation). (65) 6882-7829

This translates to ~S$673m of debt headroom to the 40% internal threshold. COD rose mervin.song@jpmorgan.com

10 bps QoQ to 2.7% due to hedging of SGD loans with 87% of debt fixed (1Q26: J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

84.8%). New and renewal contracts were secured at Gore Hill (WALE extended Morgan Broking (Hong Kong) Limited

sharply to 9.7 years from 0.5 years in 1Q26) at strong rates, contributing from 2H26

onwards. Management fees in units rose to 41% in 1H26 from 27% in 2H25.