Keppel DC REIT’s Latest 2015 Annual Report: 15 Numbers Investors Should Know

Keppel DC REIT  (SGX: AJBU) is one of the many companies and real estate investment trusts (REITs) that have released their latest annual reports over the past few weeks

The annual report is a great place to learn more about a stock. Keppel DC REIT’s latest 2015 annual report had a chockful of interesting numbers. Here are 15 that may be worth noting for investors:

  1. Keppel DC REIT is the first pure-play data centre real estate investment trust to be listed in Asia, and by extension, Singapore’s stock market. At the end of 2015, the REIT had a portfolio size of S$1.07 billion. The REIT’s portfolio includes nine data centres spanning seven cities in Asia Pacific and Europe. The portfolio’s lettable area by geography is split by roughly a third between Asia, Australia, and Europe.
  2. Beyond geography, there’s diversity in Keppel DC REIT’s tenant base as well. IT services, Internet Enterprises, and Telecommunications occupy the lion’s share of the REIT’s rental income. The trio contributed over 80% of Keppel DC REIT’s rental income in 2015. Investors might want to keep an eye on the next two years (2016 and 2017), though. Nearly 58% of the REIT’s leases (by rental income) will expire during this time.
  3. But Keppel DC REIT also benefits from long-term lease structures. The REIT ended 2015 with a weighted average lease-to-expiry (WALE) of nearly nine years and a portfolio occupancy rate of 94.8%. Keppel DC REIT had 36 clients at the end of 2015.
  4. The REIT’s aggregate leverage ratio was slightly above 29% as of 31 December 2015, a figure that leaves some headroom for taking on more debt for acquisitions in the future. The REIT’s effective all-in cost of debt stood at 2.5% at the end of last year with an interest coverage ratio of 9.4 times.
  5. Chua Hsien Yang, the chief executive of the REIT’s manager, was in a remuneration band of between $750,000 and $1 million for 2015. Of this amount, 40% comes from a fixed salary while the other 60% is tagged to performance-based targets. Up to 15% of his remuneration is based on pre-determined targets set over a three year period.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.