Keppel DC REIT (AJBU) AI Stock Analysis

• Market Cap: $5.34B
• Dividend Yield: 4.55%
• Average Volume (3M): 7.14M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.57
• Revenue Growth: 23.81%
• EPS Growth: 89.10%
• Country: SG
• Employees: 16
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.06
• Shares Outstanding: 2,438,297,400
• 10 Day Avg. Volume: 7,991,570
• 30 Day Avg. Volume: 7,140,685
• PEG Ratio: 0.09
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 12.10
• P/FCF Ratio: 19.94
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 18.18
• Enterprise Value/Gross Profit: 23.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.56
• Price Target Upside: 16.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: S$2.50 ▲(14.16% Upside)

Keppel DC REIT's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. Positive technical indicators further support the stock's outlook, while a reasonable valuation adds to its attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.

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

Keppel DC REIT (AJBU) is a real estate investment trust (REIT) that focuses on investing in income-producing real estate assets, specifically data centers, across the Asia-Pacific region and Europe. The REIT aims to provide stable and sustainable distributions to its unitholders by acquiring, owning, and managing a diversified portfolio of data center properties that cater to the growing demand for data storage and management services driven by digital transformation and cloud computing.

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

Keppel DC REIT exhibits strong revenue growth and profitability, supported by a stable balance sheet with moderate leverage. While cash flow generation shows some weaknesses, the overall financial health remains robust, positioning the company well for future growth and stability in the REIT - Office sector.

Income Statement

Keppel DC REIT demonstrates strong revenue growth with a 38.41% increase in the latest year. The company maintains a high gross profit margin of 74.75% and an impressive net profit margin of 96.90%, indicating efficient cost management and profitability. However, the EBIT and EBITDA margins are unusually high, suggesting potential accounting or reporting anomalies that should be investigated further.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.51, indicating prudent leverage management. Return on equity is reasonable at 8.92%, showing effective use of equity capital. The equity ratio of 60.82% suggests a solid equity base relative to total assets, enhancing financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 17.20%, which could impact future liquidity. The operating cash flow to net income ratio is 0.58, indicating moderate cash generation relative to net income. The free cash flow to net income ratio of 0.84 suggests that a significant portion of net income is converted into free cash flow, supporting dividend payments and reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	364.42M	310.29M	272.92M	286.58M	271.06M	265.57M
Gross Profit	278.30M	231.94M	209.32M	225.68M	223.90M	222.07M
EBITDA	0.00	392.32M	239.68M	235.83M	216.56M	211.02M
Net Income	326.15M	300.67M	118.53M	230.91M	313.66M	168.15M
Balance Sheet
Total Assets	5.44B	5.54B	4.01B	4.11B	3.78B	3.35B
Cash, Cash Equivalents and Short-Term Investments	250.80M	316.69M	149.73M	190.40M	195.94M	244.39M
Total Debt	1.59B	1.72B	1.48B	1.48B	1.30B	1.19B
Total Liabilities	1.81B	2.12B	1.65B	1.65B	1.44B	1.37B
Stockholders Equity	3.58B	3.37B	2.31B	2.41B	2.29B	1.94B
Cash Flow
Free Cash Flow	227.69M	188.33M	137.34M	178.87M	113.93M	175.43M
Operating Cash Flow	227.69M	223.74M	163.77M	218.29M	191.50M	234.98M
Investing Cash Flow	-1.15B	-1.07B	-15.44M	-298.71M	-374.38M	-208.81M
Financing Cash Flow	1.01B	1.00B	-236.16M	83.67M	134.97M	66.85M

Keppel DC REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AJBU, the sentiment is Negative. The current price of 2.19 is below the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.32, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 28.59 is Positive, neither overbought nor oversold. The STOCH value of 13.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	$5.34B	13.44	10.81%	4.55%	23.81%	89.10%
DCRU	71 Outperform	$645.48M	3.29	20.33%	7.22%	36.48%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ME8U	64 Neutral	S$5.79B	17.45	6.70%	6.51%	-1.96%	175.59%
M44U	59 Neutral	S$6.58B	31.25	3.18%	5.83%	-1.81%	-18.43%
CMOU	51 Neutral	$240.22M	-16.11	-2.12%	―	-1.55%	78.22%
BTOU	46 Neutral	$126.14M	-0.53	-48.17%	―	-27.66%	-106.71%

Keppel DC REIT Corporate Events

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.

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.

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.

Keppel DC REIT Allocates S$45.9 Million from Preferential Offering

Keppel DC REIT has announced the utilization of approximately S$45.9 million from its recent preferential offering, which raised gross proceeds of about S$404.5 million. The funds have been allocated towards extending a land lease, debt repayment, and covering offering-related expenses, with the majority still pending use for acquisitions and asset enhancements. This strategic financial move is expected to bolster the company’s asset base and enhance its market position in the data centre industry.

Keppel DC REIT Expands Capital with New Unit Issuance

Keppel DC REIT has announced the issuance and listing of 180,562,518 new units on the Singapore Exchange as part of a preferential offering, raising approximately S$404.5 million. This strategic move is expected to enhance the trust’s capital base, potentially improving its market position and providing additional resources for future investments in the data center sector.

Keppel DC REIT’s Preferential Offering Oversubscribed, Raising S$404.5 Million

Keppel DC REIT announced the results of its preferential offering, which was approximately 168.2% subscribed, raising gross proceeds of approximately S$404.5 million. This successful offering indicates strong investor confidence and is expected to enhance the company’s financial flexibility and support its growth strategy in the data center industry.

Keppel DC REIT Launches S$404.5 Million Preferential Offering

Keppel DC REIT has announced a preferential offering to raise approximately S$404.5 million through the issuance of new units. This offering is aimed at funding the acquisition of a data center in Inzai City, Japan, and is expected to enhance the company’s portfolio and strengthen its position in the data center industry.

Keppel DC REIT Launches S$404.5 Million Preferential Offering

Keppel DC REIT has announced a fully underwritten non-renounceable preferential offering to raise approximately S$404.5 million. The offering is priced at S$2.24 per new unit, representing a 5.2% discount to the volume-weighted average price. This move is aimed at strengthening the company’s financial position and supporting its strategic growth initiatives in the data center industry.

Keppel DC REIT Announces S$404.5 Million Preferential Offering

Keppel DC REIT has announced a preferential offering to raise approximately S$404.5 million, with the new units expected to be listed on the SGX-ST by October 22, 2025. This move is aimed at strengthening the company’s capital base, with the new units offering entitlements to distributable income from July 2025 onwards, potentially enhancing shareholder value and reinforcing its position in the data center market.