Equity Snap: Keppel DC REIT (KDCREIT SP): Buy: 1H26 DPU ahead, rental reversion to normalize

Research evidence excerpt

Equity Snap: Keppel DC REIT (KDCREIT SP): Buy: 1H26 DPU ahead, rental reversion to normalize

23 July 2026

Equity Snap: Keppel DC REIT Equities REITs

(KDCREIT SP)

Buy: 1H26 DPU ahead, rental reversion to normalize Singapore

◆ 1H26 slightly ahead on higher rental income, lower opex and Joy Wang*

higher fees in units. A few movements to affect 2H DPU HeadThe Hongkongof ASEANandEquityShanghaiResearchBankingandCorporationASEAN Property

Limited, Singapore Branch

joy.wang@hsbc.com.sg

Keppel DC REIT (KDCREIT SP, SGD2.34, Buy, TP SGD2.65) +65 6658 0606

(Priced as of 22 Jul 2026) Danelle Teo*

Associate, ASEAN Equity Research

1H26 results beat HSBC and consensus expectations. DPU is up 11.3% yoy to The Hongkong and Shanghai Banking Corporation

SGD5.714cents (HSBCe: SGD11.27cents and BBG consensus: SGD10.9cents) on Limited, Singapore Branch danelle.t.y.teo@hsbc.com.sg

stronger revenue from previous strong rental reversions, lower-than-expected +65 66585497

operating expenses and higher management fees paid out in units. Rental reversion

for 1H26 stood at 10% (2Q at 5%) with management guiding for low teen for the full * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

year. NPI margin stands at 87% and gearing sits at 34%, a 110bps improvement qoq

post repayment of consumption tax loan for the acquisition of Tokyo DC3. Cost of

borrowing edged up 10bps QoQ as a result of full quarter impact from hedges done

in Q1 and management guided FY26 cost of borrowing to stay around 2.6-2.7% (vs

2.6% for 1H). Stock will trade ex-distribution on 30 Jul 2026.

Stacking up moving blocks for 2H DPU. Portfolio occupancy decreased to 92.5%

(95.3% excluding Cardiff DC) from 95.6% in 1Q26 due predominantly to 1) tenant