17 Key Numbers Investors Should Know About Keppel DC REIT

Keppel DC REIT  (SGX: AJBU) is one of the many companies and real estate investment trusts in Singapore’s stock market that have released their annual reports over the last few months.

The annual report is a great place to learn more about a company or REIT. In Keppel DC REIT’s case, its latest annual report contained a chockful of interesting numbers. Here are 17 that might be worth noticing for investors:

  1. Keppel DC REIT had its initial public offering (IPO) in late 2014. As of 31 December 2015, the REIT had nine data centres in six countries and assets under management were calculated to be $1.07 billion.
  2. There are a few things to learn about Keppel DC REIT’s debt profile. The aggregate leverage was 29.2% as of the end of 2015, which suggests that the REIT has the room to borrow more to expand its business in the future given that the current regulatory leverage limit is 45%. To this point, Keppel Telecom & Transport Ltd (SGX: K11), as the REIT’s sponsor, has granted rights of first refusal to Keppel DC REIT for its data centre assets.
  3. Meanwhile, Keppel DC REIT’s interest coverage ratio was a strong 9.4 times and its weighted average debt maturity was 3.3 years. Investors should also note that over 83% of its debt will come due between 2018 and 2019.
  4. The annual report also contained information on the REIT’s leases and portfolio. The weighted average lease expiry was 8.7 years, as of the end of 2015. In terms of lettable area, Asia accounts for 32.6%, Australia for 32%, and Europe 35.4%.  In terms of rental type, over two-thirds of the REIT’s rental income come from colocation leases, 26% are from fully fitted data centres, and a little over 6% are from shell and core assets. Keppel DC REIT also noted that its portfolio of data centres have an average age of just 6.5 years.
  5. Keppel DC REIT also shared its customer composition. IT services makes up 39% of its rental income while internet enterprises takes up almost a quarter. Telecommunications weighs in with a 19% share and financial services has a 13.1% share.

To keep up to date on the latest financial and stock market news and for more investing insights, you can sign up now for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.

Also, like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.

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.