Keppel DC REIT (AJBU) AI Stock Analysis

• Market Cap: $4.79B
• Dividend Yield: 3.76%
• Average Volume (3M): 7.87M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.77
• Revenue Growth: 11.48%
• EPS Growth: 144.93%
• Country: SG
• Employees: 16
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Office
• EPS (TTM): 0.17
• Shares Outstanding: 2,215,635,500
• 10 Day Avg. Volume: 6,241,340
• 30 Day Avg. Volume: 7,874,620
• PEG Ratio: 0.09
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $2.48
• Price Target Upside: 13.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

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

Acquisitions

Keppel DC REIT's acquisition of SGP7 and SGP8 will be highly accretive to earnings, driving approximately 5% earnings growth.

Financial Performance

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

Market Position

Keppel DC REIT has a portfolio of quality data centers in major markets, benefiting from structural tailwinds and consistently high occupancy rates.

Negative Factors

Acquisition Rate

The rate of acquisitions has slowed down notably due to stubbornly low cap rates and rising financing costs.

Portfolio Occupancy

Portfolio occupancy eased marginally due to lower occupancy at SGP1 and divestment of Kelsterbach Data Centre in Frankfurt.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
310.29M	272.92M	277.32M	271.06M	265.57M
	Gross Profit
231.94M	209.32M	225.68M	223.90M	222.07M
	EBIT
0.00	208.54M	291.25M	367.13M	212.12M
	EBITDA
392.32M	239.68M	235.83M	369.85M	217.75M
	Net Income Common Stockholders
300.67M	118.53M	230.91M	313.66M	168.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
316.69M	149.73M	190.40M	195.94M	244.39M
	Total Assets
5.54B	4.01B	4.11B	3.78B	3.35B
	Total Debt
1.72B	1.48B	1.48B	1.30B	1.19B
	Net Debt
1.40B	1.33B	1.28B	1.10B	943.53M
	Total Liabilities
2.12B	1.65B	1.65B	1.44B	1.37B
	Stockholders Equity
3.37B	2.31B	2.41B	2.29B	1.94B
Cash Flow		Free Cash Flow
188.33M	137.34M	178.87M	113.93M	175.43M
	Operating Cash Flow
223.74M	163.77M	218.29M	191.50M	234.98M
	Investing Cash Flow
-1.07B	-15.44M	-298.71M	-374.38M	-208.81M
	Financing Cash Flow
1.00B	-188.60M	83.67M	134.97M	66.85M

Keppel DC REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.19
• 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 2.19 is above the 20-day moving average (MA) of 2.08, above the 50-day MA of 2.10, and above the 200-day MA of 2.12, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 64.91 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	$4.79B	12.64	10.67%	3.76%	11.48%	144.93%
A17U	76 Outperform	$11.84B	15.66	7.61%	7.11%	-1.52%	313.98%
M44U	61 Neutral	$5.67B	30.96	2.74%	7.11%	-0.97%	-40.20%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%
BUOU	58 Neutral	$3.40B	22.90	3.21%	6.59%	11.98%	―
9A4U	53 Neutral	S$1.81B	―	-6.38%	16.04%	-4.01%	-66.90%
D5IU	51 Neutral	S$107.76M	―	-10.22%	―	3.46%	58.74%

Keppel DC REIT Corporate Events

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.

Keppel DC REIT Secures S$300 Million Loan Facilities with Strategic Conditions

Keppel DC REIT has announced that its subsidiary, Keppel DC REIT Fin. Company Pte. Ltd., has secured two loan facilities totaling S$300 million, guaranteed by Perpetual (Asia) Limited. These facilities include a revolving credit facility and a revolving green credit facility, with specific conditions related to changes in management or shareholding. The announcement highlights the potential financial implications if certain prepayment events occur, which could affect approximately S$2,578.0 million in utilized and unutilized facilities.

Keppel DC REIT Secures EUR 50 Million Loan Facility

Keppel DC REIT has announced that its wholly-owned subsidiary, Keppel DC REIT Fin. Company Pte. Ltd., has secured a EUR 50 million revolving credit facility. This loan is guaranteed by Perpetual (Asia) Limited as trustee of Keppel DC REIT. A key condition of the loan is that it must be repaid within 10 business days if the manager ceases to be a subsidiary of Keppel Ltd., which could potentially impact the REIT’s financial stability, considering the substantial amount of S$2,348.3 million in facilities that could be affected by such an event.

Keppel DC REIT Secures S$200 Million Loan Facility with Contingent Conditions

Keppel DC REIT has secured a S$200 million multicurrency revolving credit facility through its subsidiary, Keppel DC REIT Fin. Company Pte. Ltd. This facility is guaranteed by Perpetual (Asia) Limited. A key condition of this loan is the requirement for full repayment if the management ceases to be a subsidiary of Keppel Ltd. This could potentially impact approximately S$2,282.4 million in facilities if a cross-default occurs, although such an event has not yet happened.

Keppel DC REIT Introduces Green Financing Framework

Keppel DC REIT has launched its first Green Financing Framework to enhance its sustainability initiatives and align with its ESG targets. This framework will guide the funding of green data centre projects, focusing on areas such as green buildings, renewable energy, and energy efficiency. The framework adheres to international green finance principles, reflecting the company’s commitment to integrating sustainability into its operations and enhancing long-term value for stakeholders.

Keppel DC REIT Issues Units for Management and Acquisition Fees

Keppel DC REIT Management Pte. Ltd. announced the issuance of 5,795,119 units at an average price of S$2.1487 per unit as payment for management and acquisition fees. This issuance covers fees related to its investments in several data centers, reflecting the company’s strategic move to optimize its financial operations and reinforce its presence in the data center industry.