Keppel DC REIT (AJBU) AI Stock Analysis

• Market Cap: S$5.60B
• Dividend Yield: 4.55%
• Average Volume (3M): 7.14M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.47
• Revenue Growth: 23.81%
• EPS Growth: 89.10%
• Country: SG
• Employees: 16
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.05
• Shares Outstanding: 2,444,525,600
• 10 Day Avg. Volume: 7,991,570
• 30 Day Avg. Volume: 7,140,685
• PEG Ratio: 1.02
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 11.27
• P/FCF Ratio: 28.86
• 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: S$2.60
• Price Target Upside: 13.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): S$465.93M

• Rating: 71 Outperform
• Price Target: S$2.50 ▲(9.17% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is primarily driven by improved 2025 revenue growth and a rebound in reported earnings, balanced against weaker recent cash conversion and rising debt. Valuation and income appeal (P/E ~12 and ~4.37% yield) are supportive, while technicals are mildly positive but not strongly trending.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for data center services, enhancing long-term financial stability and market position.

Strategic Capital Expansion

This capital expansion strengthens the company's financial base, providing resources for future investments and enhancing competitive advantage in the data center sector.

Strong Investor Confidence

High subscription levels reflect strong investor confidence, supporting the company's growth strategy and reinforcing its market position.

Negative Factors

Decline in Free Cash Flow

The decline in free cash flow growth could impact future liquidity, potentially limiting the company's ability to fund new projects or distributions.

Potential Reporting Anomalies

Unusually high margins may indicate accounting issues, which could affect investor trust and require further investigation to ensure transparency.

Moderate Cash Generation

Moderate cash generation relative to net income may limit the company's ability to reinvest in growth opportunities or increase distributions.

Keppel DC REIT Business Overview & Revenue Model

Company Description

Listed on 12 December 2014, Keppel DC REIT is the first pure-play data centre REIT listed in Asia and on the Singapore Exchange (SGX-ST). Keppel DC REIT's investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate related assets. As at 31 December 2020, its portfolio comprises 19 data centres strategically located in key data centre hubs. With an aggregate lettable area of approximately 2,089,085 sq ft, the portfolio spans 12 cities in eight countries across Asia Pacific and Europe. Keppel Telecommunications & Transportation Ltd (Keppel T&T), the Sponsor of the REIT, has also granted Rights of First Refusal (ROFR) to the REIT for future acquisition opportunities of its data centre assets. The REIT is managed by Keppel DC REIT Management Pte. Ltd.. Keppel Capital Holdings Pte. Ltd. (Keppel Capital) has a 50% interest in the Manager, with the remaining interest held by Keppel T&T. Keppel Capital is a premier asset manager in Asia with assets under management comprising real estate, infrastructure and data centre properties in key global markets. The Manager's key objectives are to provide the REIT's Unitholders with regular and stable distributions, as well as achieve long-term growth while maintaining an optimal capital structure.

How the Company Makes Money

Keppel DC REIT generates revenue primarily through leasing its data center facilities to various tenants, including technology companies, cloud service providers, and telecommunications firms. The rental income from these leases constitutes a significant portion of the REIT's revenue stream. Additionally, the REIT may earn income from providing ancillary services related to its data center operations. The company also benefits from long-term lease agreements, which provide a predictable income stream and contribute to its overall financial stability. Strategic partnerships with leading technology firms enhance its market position and can lead to potential revenue growth through new leasing agreements and expansions.

Keppel DC REIT Financial Statement Overview

Summary

Income statement momentum improved with 2025 revenue up +25.3% YoY and a sharp rebound in net income, but earnings quality appears volatile. Balance sheet leverage is moderate for a REIT (debt-to-equity ~0.5–0.6) yet debt rose notably in 2025, adding rate/refinancing sensitivity. Cash flow is the main constraint: operating cash flow trailed net income recently (~0.48x in 2025) and free cash flow fell ~21.7% YoY, pointing to weaker cash conversion despite stronger reported earnings.

Income Statement

Revenue accelerated meaningfully in 2025 (+25.3% YoY) after a mostly flat 2021–2024 trajectory, showing improving top-line momentum. Reported profitability looks exceptionally strong across years with very high gross and net margins, and net income rebounded sharply from 2023 to 2024–2025. The key weakness is volatility/optical noise in earnings quality signals (e.g., unusually high margins in several years and a large swing in net income in 2023), which suggests results may be influenced by non-operating or one-time items rather than purely steady operating performance.

Balance Sheet

The balance sheet shows moderate leverage for a REIT, with debt-to-equity generally in the ~0.5–0.6 range, but absolute debt rose notably in 2025 versus 2024. Equity and total assets have expanded over time, supporting scale and balance sheet capacity. Return on equity improved into 2025 (~10.3%) from 2023 levels (~5.1%), but the upward trend is not perfectly consistent and leverage has ticked up alongside growth, which adds refinancing and rate-sensitivity risk.

Cash Flow

Cash generation is positive and free cash flow remains solid, with free cash flow tracking at ~0.82x of net income in 2025 (and broadly similar in prior years), which is supportive. However, operating cash flow has covered less than half of net income in 2025 (~0.48x) and was also below net income in 2024 (~0.58x), pointing to weaker cash conversion in the most recent periods. In addition, 2025 free cash flow declined ~21.7% YoY, indicating some near-term pressure despite stronger reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	364.42M	456.67M	310.29M	272.92M	286.58M	271.06M
Gross Profit	278.30M	360.30M	231.94M	209.32M	225.68M	223.90M
EBITDA	0.00	349.19M	392.32M	239.68M	235.83M	216.56M
Net Income	326.15M	427.82M	300.67M	118.53M	230.91M	313.66M
Balance Sheet
Total Assets	5.44B	6.88B	5.54B	4.01B	4.11B	3.78B
Cash, Cash Equivalents and Short-Term Investments	250.80M	351.87M	316.69M	149.73M	190.40M	195.94M
Total Debt	1.59B	2.39B	1.72B	1.48B	1.48B	1.30B
Total Liabilities	1.81B	2.65B	2.12B	1.65B	1.65B	1.44B
Stockholders Equity	3.58B	4.17B	3.37B	2.31B	2.41B	2.29B
Cash Flow
Free Cash Flow	227.69M	178.29M	188.33M	137.34M	178.87M	113.93M
Operating Cash Flow	227.69M	217.22M	223.74M	163.77M	218.29M	191.50M
Investing Cash Flow	-1.15B	-1.12B	-1.07B	-15.44M	-298.71M	-374.38M
Financing Cash Flow	1.01B	927.41M	1.00B	-236.16M	83.67M	134.97M

Keppel DC REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2.29 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.21, and above the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.61 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 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	71 Outperform	S$5.60B	12.03	10.81%	4.55%	23.81%	89.10%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ME8U	64 Neutral	$5.77B	16.12	6.70%	6.51%	-1.96%	175.59%
DCRU	64 Neutral	$652.00M	13.94	20.33%	7.22%	36.48%	―
M44U	54 Neutral	S$6.34B	41.02	3.18%	5.83%	-1.81%	-18.43%
CMOU	51 Neutral	$214.11M	―	-2.12%	―	-1.55%	78.22%
BTOU	46 Neutral	$110.15M	-1.28	-48.17%	―	-27.66%	-106.71%

Keppel DC REIT Corporate Events

Keppel DC REIT to Pay S$350 Million for 10‑Year Land Lease Extension at Singapore Data Centres

Keppel DC REIT has moved to secure a 10‑year extension of the land tenure for its Keppel DC Singapore 7 and Keppel DC Singapore 8 data centres located at 82 Genting Lane, a key data centre site in Singapore. Following unitholder approval at an extraordinary general meeting on 20 December 2024, the REIT’s sub-trust trustee, Perpetual (Asia) Limited, will pay S$350 million in lease extension consideration to the vendors, including previous shareholders, Keppel Griffin and previous noteholders, after JTC Corporation indicated it is prepared to issue a formal offer for the land tenure lease extension. The move locks in longer-term control over a fully contracted, Tier III‑equivalent, seven-storey data centre asset at KDC SGP 7, which obtained its Certificate of Statutory Completion in January 2025, and strengthens the REIT’s asset visibility and income stability in Singapore’s growing data centre 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 Issues New Units to Pay Acquisition Fee for Tokyo Data Centre 3

Keppel DC REIT has issued 2,435,983 new units at S$2.3834 per unit to satisfy the acquisition fee related to its purchase of a 98.47% interest in Tokyo Data Centre 3, after adjusting for its share of Keppel Japan KK’s acquisition fee. The units were priced based on the volume-weighted average price over the ten trading days before the transaction’s completion on 19 November 2025, in line with the REIT’s trust deed, which allows the manager to receive acquisition fees in a mix of units and cash. Following this issuance, the manager holds 30,025,557 units, or about 1.23% of the REIT’s 2,440,733,452 issued units, slightly increasing alignment between the manager and unitholders as the trust deepens its footprint in the Japanese data centre 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 Secures Loan Facilities and Issues Green Bonds

Keppel DC REIT has announced that its subsidiary, KDCR Tokyo 2 TMK, has secured loan facilities and issued green bonds, collectively termed as Debt Facilities. These financial arrangements are guaranteed by Perpetual (Asia) Limited. The agreements include conditions that could trigger mandatory prepayment if there is a change in the management structure. The potential impact of such an event could affect facilities amounting to approximately S$3,193.2 million. As of now, no such event has occurred.

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 Wins Prestigious Corporate Governance Award

Keppel DC REIT has been recognized as a joint winner of the Singapore Corporate Governance Award in the REITs and Business Trusts category at the SIAS Investors’ Choice Awards 2025. This accolade highlights the company’s commitment to corporate governance and sustainability, reinforcing its strategy to build a future-ready data center portfolio while delivering sustainable returns for stakeholders.

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 Fee Payment

Keppel DC REIT has issued 703,470 units as payment for its management fees, covering interests in several data centers, including those in Amsterdam, Eindhoven, Guangdong, London, Tokyo, and Singapore. This issuance reflects the company’s strategic financial management, allowing it to maintain liquidity while compensating its management team, thus potentially impacting its operational efficiency and stakeholder confidence.

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.