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Keppel DC REIT (SG:AJBU)
:AJBU

Keppel DC REIT (AJBU) AI Stock Analysis

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SG

Keppel DC REIT

(OTC:AJBU)

Rating:77Outperform
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.
Portfolio Management
Keppel DC REIT's divestment of Kelsterbach Data Centre in Frankfurt at a 28% premium compared to its valuation marks a strategic portfolio rebalancing.
Negative Factors
Occupancy Rates
Portfolio occupancy eased marginally due to lower occupancy at SGP1 and the divestment of Kelsterbach Data Centre in Frankfurt.
Rental Arrears
Rentals arrears continue to accumulate at the Guangdong data centers, with Bluesea owing over S$35 million in overdue rent and no clear timeline for payment.

Keppel DC REIT (AJBU) vs. iShares MSCI Singapore ETF (EWS)

Keppel DC REIT Business Overview & Revenue Model

Company DescriptionKeppel 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 MoneyKeppel 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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
370.73M310.29M272.92M277.32M271.06M265.57M
Gross Profit
288.12M231.94M209.32M225.68M223.90M222.07M
EBIT
274.89M0.00208.54M291.25M367.13M212.12M
EBITDA
107.39M392.32M239.68M235.83M369.85M217.75M
Net Income Common Stockholders
169.82M300.67M118.53M230.91M313.66M168.15M
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.61M316.69M149.73M190.40M195.94M244.39M
Total Assets
1.11B5.54B4.01B4.11B3.78B3.35B
Total Debt
317.76M1.72B1.48B1.48B1.30B1.19B
Net Debt
295.15M1.40B1.33B1.28B1.10B943.53M
Total Liabilities
341.17M2.12B1.65B1.65B1.44B1.37B
Stockholders Equity
768.37M3.37B2.31B2.41B2.29B1.94B
Cash FlowFree Cash Flow
227.03M188.33M137.34M178.87M113.93M175.43M
Operating Cash Flow
253.46M223.74M163.77M218.29M191.50M234.98M
Investing Cash Flow
53.38M-1.07B-15.44M-298.71M-374.38M-208.81M
Financing Cash Flow
-283.87M1.00B-188.60M83.67M134.97M66.85M

Keppel DC REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.17
Price Trends
50DMA
2.12
Positive
100DMA
2.14
Positive
200DMA
2.14
Positive
Market Momentum
MACD
0.02
Positive
RSI
57.99
Neutral
STOCH
48.15
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 2.17 is above the 20-day moving average (MA) of 2.17, above the 50-day MA of 2.12, and above the 200-day MA of 2.14, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 57.99 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
S$4.85B12.8110.67%4.09%11.48%144.93%
69
Neutral
$675.24M3.3522.39%6.00%6.20%
62
Neutral
$5.45B16.336.85%6.90%1.34%195.50%
61
Neutral
$2.82B10.890.42%8438.96%5.74%-20.95%
58
Neutral
S$5.63B30.412.74%6.84%-0.97%-40.20%
55
Neutral
$193.22M-0.96%24.56%-2.52%89.81%
47
Neutral
$110.15M-34.26%-19.44%53.13%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:AJBU
Keppel DC REIT
2.19
0.50
29.97%
SG:ME8U
Mapletree Industrial
1.93
-0.12
-5.81%
SG:M44U
Mapletree Logistics
1.11
-0.13
-10.27%
SG:DCRU
Digital Core REIT
0.52
-0.02
-3.70%
SG:CMOU
Keppel Pacific Oak US REIT
0.19
0.05
35.71%
SG:BTOU
Manulife US REIT
0.06
-0.01
-14.29%

Keppel DC REIT Corporate Events

Keppel DC REIT Reviews FY2024 Performance at AGM
May 15, 2025

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
May 7, 2025

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
Apr 24, 2025

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
Mar 28, 2025

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
Mar 18, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.