Keppel DC REIT (KPE.SI): 1H26 above: Strong earnings growth and balance sheet; Buy

Research evidence excerpt

Keppel DC REIT (KPE.SI): 1H26 above: Strong earnings growth and balance sheet; Buy

Equity Research

23 July 2026 | 12:08PM SGT

Keppel DC REIT (KEPE.SI): 1H26 above: Strong earnings growth and

balance sheet; Buy

Keppel DC REIT (KDCREIT)’s 1H26 DPU of 5.71S¢ was +11.3% YoY and +8.9% HoH, Xuan Tan, CFA

+65-6889-2485 | xuan.tan@gs.com

above at 52% of full-year GSe and IBES consensus. While reversion was softer at Goldman Sachs (Singapore) Pte

5%/10% for 2Q/6M26, forward renewal of Gore Hill should bring that up to Hesper He

low-teens in 3Q26. Occupancy declined -310bps QoQ to 92.5% on continued +65-6889-2184Goldman Sachs (Singapore)| hesper.he@gs.comPte

decline at SGP1/2 and lease expiry at Cardiff, as management prepares for

redevelopment at SGP 1 and works on leasing up Cardiff. Overall, management

remains confident on 2026 earnings growth and is working on potential

redevelopment at SGP 1. With strong balance sheet, management remains on the

lookout for acquisitions in key APAC and European cities. Maintain Buy with revised

TP of S$2.93.

Key takeaways

n 6M26 above: 1H26 DPU at 5.71S¢ was +11.3% YoY/+8.9% HoH, above at 52% of

GSe/IBES consensus full-year forecasts. KDCREIT’s 1H26 revenue/net property

income (NPI) of S$242m/210m were +14.5%/+15.1% YoY on strong reversions

and acquisition of Tokyo DC 3 in Nov-25 and partially offset by divestment.

Gearing was -110bps QoQ at 34% from repayment of consumption tax loan for

Tokyo DC 3 acquisition. Cost of debt for 2Q26 was +10bps QoQ at 2.7% on

hedging of SGD loan, within previous guidance. 87% of debt is on fixed rate, with

only 6% of debt to be refinanced in 2026.

n Weaker operating metrics: Rent reversion was at c.5%/10% for 2Q/6M26 with

positive reversions across Singapore and Australia, excluding Gore Hill lease that