Keppel DC REIT (AJBU) AI Stock Analysis

• Market Cap: $5.16B
• Dividend Yield: 1.41%
• Average Volume (3M): 8.32M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.78
• Revenue Growth: 11.48%
• EPS Growth: 144.93%
• Country: SG
• Employees: 16
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Office
• EPS (TTM): 0.10
• Shares Outstanding: 2,215,635,500
• 10 Day Avg. Volume: 11,969,099
• 30 Day Avg. Volume: 8,323,464
• PEG Ratio: 0.81
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.44
• Price Target Upside: 4.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: ―

Keppel DC REIT's financial strength is highlighted by strong revenue growth and profitability, supported by a stable balance sheet and efficient cash flow management. Positive technical indicators suggest upward momentum, though high stochastic values recommend cautious monitoring. The valuation metrics reveal a fairly valued stock with an appealing dividend yield, making it an attractive option for income seekers.

Positive Factors

Earnings Growth

Keppel DC REIT reported a solid DPU growth of 14.2%, driven by contributions from newly-acquired data centers in Singapore and Japan.

Rental Reversion

The upsurge in positive rental reversion for colocation leases in Singapore is expected to continue.

Negative Factors

Rental Arrears

Rentals arrears continue to accumulate at the Guangdong DCs, with Bluesea owing over S$35mn in overdue rent and no clear timeline for payment.

Keppel DC REIT Business Overview & Revenue Model

Company Description

Keppel DC REIT (AJBU) is a real estate investment trust focused on investing in data center properties. The trust is part of the Keppel Group, a leading global asset manager, and it primarily operates in the data center sector, providing a specialized portfolio of income-producing properties that cater to the growing demand for reliable and efficient data hosting facilities. Keppel DC REIT's core services include leasing data center space to a diverse range of customers, including cloud service providers, internet enterprises, and telecommunications companies.

How the Company Makes Money

Keppel DC REIT generates revenue primarily through leasing data center space to tenants under long-term contracts, which provides a stable and predictable income stream. The company's revenue model is centered around acquiring, managing, and optimizing a diversified portfolio of data centers located in strategic locations globally. These facilities are leased to a variety of clients, including large-scale cloud providers and IT service companies, who require robust and scalable data infrastructure. The REIT benefits from the increasing demand for data storage and processing capabilities, driven by the growth in digitalization and cloud computing. Keppel DC REIT also enhances its earnings through strategic partnerships and joint ventures that enable it to expand its asset base and improve operational efficiencies. Additionally, the trust capitalizes on favorable market trends and technological advancements to increase the value of its properties and maximize returns for its investors.

Keppel DC REIT Financial Statement Overview

Summary

Keppel DC REIT shows strong financial health with significant revenue growth and high profitability margins. The balance sheet is stable with manageable leverage, and cash flow management is efficient. However, there is room for improvement in EBIT transparency and optimizing cash flow alignment with net income.

Income Statement

Keppel DC REIT has demonstrated strong revenue growth, with a 13.7% increase from the previous year. The gross profit margin is solid at 74.7%, and the net profit margin has significantly improved to 96.9%. EBITDA margin is impressive at 126.4%, indicating robust operational efficiency. However, the absence of EBIT data limits a full profitability assessment.

Balance Sheet

The company shows a healthy equity position with an equity ratio of 60.8%. The debt-to-equity ratio is moderate at 0.51, indicating manageable leverage levels. Return on equity is strong at 8.9%, showcasing effective use of equity capital. The balance sheet reflects stability, although there is room for improvement in reducing debt levels.

Cash Flow

Keppel DC REIT's free cash flow grew by 37.2%, highlighting robust cash generation capabilities. The operating cash flow to net income ratio is 0.74, and the free cash flow to net income ratio is 0.63, suggesting efficient cash flow management. While positive, improvements are possible in aligning operating cash flow more closely with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.56M	310.29M	272.92M	277.32M	271.06M	265.57M
Gross Profit	151.63M	231.94M	209.32M	225.68M	223.90M	222.07M
EBITDA	180.91M	392.32M	239.68M	235.83M	369.85M	217.75M
Net Income	147.13M	300.67M	118.53M	230.91M	313.66M	168.15M
Balance Sheet
Total Assets	1.58B	5.54B	4.01B	4.11B	3.78B	3.35B
Cash, Cash Equivalents and Short-Term Investments	297.96M	316.69M	149.73M	190.40M	195.94M	244.39M
Total Debt	470.69M	1.72B	1.48B	1.48B	1.30B	1.19B
Total Liabilities	509.13M	2.12B	1.65B	1.65B	1.44B	1.37B
Stockholders Equity	1.07B	3.37B	2.31B	2.41B	2.29B	1.94B
Cash Flow
Free Cash Flow	79.54M	188.33M	137.34M	178.87M	113.93M	175.43M
Operating Cash Flow	121.09M	223.74M	163.77M	218.29M	191.50M	234.98M
Investing Cash Flow	-337.81M	-1.07B	-15.44M	-298.71M	-374.38M	-208.81M
Financing Cash Flow	246.35M	1.00B	-188.60M	83.67M	134.97M	66.85M

Keppel DC REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AJBU, the sentiment is Positive. The current price of 2.33 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.18, and above the 200-day MA of 2.16, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 68.49 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:AJBU.

Keppel DC REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AJBU	77 Outperform	$5.16B	13.63	10.67%	1.41%	11.48%	144.93%
ME8U	76 Outperform	$5.79B	17.17	6.85%	6.62%	1.34%	195.50%
DCRU	73 Outperform	$694.72M	3.44	22.39%	6.85%	6.20%	―
M44U	62 Neutral	$5.94B	32.05	2.74%	1.65%	-0.97%	-40.20%
CMOU	62 Neutral	$235.00M	―	-0.96%	24.56%	-2.52%	89.81%
Sector *	53 Neutral	$1.19B	3.25	-0.13%	7.83%	-1.86%	-126.37%
BTOU	47 Neutral	$117.25M	―	-34.26%	―	-19.44%	53.13%

Keppel DC REIT Corporate Events

Keppel DC REIT Updates Trustee’s Registered Address

Keppel DC REIT has announced a change in the registered address of its trustee, Perpetual (Asia) Limited, to a new location at 38 Beach Road, South Beach Tower, Singapore. This administrative update does not affect the office address of the trustee, which remains at 16 Collyer Quay, Singapore. The change is part of routine updates and does not have a direct impact on the operations or market positioning of Keppel DC REIT.

The most recent analyst rating on (SG:AJBU) stock is a Buy with a S$2.50 price target. To see the full list of analyst forecasts on Keppel DC REIT stock, see the SG:AJBU Stock Forecast page.

Keppel DC REIT Joins Straits Times Index, Boosting Investor Visibility

Keppel DC REIT will be included in the Straits Times Index (STI) from 23 June 2025, a move expected to enhance its visibility among investors. This inclusion reflects the REIT’s strong financial and operational performance, driven by the rising demand for data centers due to increased cloud adoption and digitalization. The REIT has delivered substantial returns to unitholders since its IPO, and its inclusion in the STI is likely to further solidify its position in the market.

The most recent analyst rating on (SG:AJBU) stock is a Buy with a S$2.50 price target. To see the full list of analyst forecasts on Keppel DC REIT stock, see the SG:AJBU Stock Forecast page.

Keppel DC REIT Reviews FY2024 Performance at AGM

Keppel DC REIT held its Annual General Meeting at the Suntec Singapore Convention and Exhibition Centre, where the CEO presented the portfolio performance for FY2024. The meeting included a review of financial statements and resolutions were voted on electronically, reflecting the company’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on (SG:AJBU) stock is a Buy with a S$2.50 price target. To see the full list of analyst forecasts on Keppel DC REIT stock, see the SG:AJBU Stock Forecast page.

Keppel DC REIT Issues Units for Management Fees

Keppel DC REIT has issued 764,903 units at S$2.1774 per unit as payment for its management fees for the first quarter of 2025. This issuance covers fees for its interests in multiple data centers, reflecting the trust’s strategy to manage costs and align management incentives with shareholder interests.

Keppel DC REIT Secures S$100 Million Green Loan Facility

Keppel DC REIT has announced that its subsidiary, Keppel DC REIT Fin. Company Pte. Ltd., has secured a S$100 million Green Loan Facility. This facility is guaranteed by Perpetual (Asia) Limited and includes conditions that could trigger a mandatory prepayment if there is a change in the management structure. The announcement highlights potential financial implications for the company, as a mandatory prepayment event could affect approximately S$2,647.8 million in facilities, though this event has not yet occurred.