logo
Keppel DC Reit to join STI from June 23; units rise 0.9%

Keppel DC Reit to join STI from June 23; units rise 0.9%

Straits Timesa day ago

Loh Hwee Long, CEO of Keppel DC Reit Management, says the Reit saw overall valuation gains in 2024, especially from its Singapore colocation assets. PHOTO: THE BUSINESS TIMES
SINGAPORE - Following the Straits Times Index's (STI) June quarterly review, Keppel DC Reit will be entering the index, replacing Jardine Cycle & Carriage, effective from June 23.
This increases the total number of S-Reits in the index to eight.
The eight S-Reits in the STI will be: CapitaLand Ascendas Reit, CapitaLand Integrated Commercial Trust, Frasers Centrepoint Trust, Frasers Logistics & Commercial Trust, Mapletree Industrial Trust, Mapletree Logistics Trust and Mapletree Pan Asia Commercial Trust.
Keppel DC Reit units rose 0.9 per cent, or two cents, to $2.26 as at 9.08am on June 9, after the announcement.
With a market cap of $4.9 billion, it re-enters the STI after exiting in June 2023, and is expected to increase S-Reits' combined weight in the index to over 10 per cent.
The Reit, Asia's first pure-play data centre Reit, listed in 2014 with eight data centres and $1 billion in assets under management (AUM). Today, it owns 24 data centres across 10 countries, with an AUM of $4.9 billion. Of this, 81.6 per cent is in Asia-Pacific (66.3 per cent in Singapore) and 18.4 per cent in Europe.
Keppel DC Reit's Q1 2025 results showed a 59.4 per cent year-on-year increase in distributable income, with gross revenue and net property income (NPI) growing by 22.6 per cent and 24.1 per cent, respectively. Its distribution per unit rose by 14.2 per cent to 2.503 for the quarter.
This was driven by acquisitions of Keppel DC Singapore 7 & 8, Tokyo Data Centre 1, and higher contributions from contract renewals and escalations in 2024. Portfolio rental reversion was 7 per cent, with no major renewals in the first quarter of 2025, and portfolio occupancy remained at 96.5 per cent as at March 31.
Loh Hwee Long, chief executive officer of Keppel DC Reit Management, noted at Reit's annual general meeting that it saw overall valuation gains in 2024, especially from its Singapore colocation assets. Most European assets also recorded local currency gains despite some softness in smaller data centres, reinforcing the strength of its diversified, value-focused portfolio.
The Reit has been actively acquiring assets. In 2024, it entered Japan as a new market with the acquisition of Tokyo Data Centre 1, and also completed the acquisition of two AI-ready hyperscale data centres in Singapore from its sponsor, Keppel, which marked its largest deal exceeding $1 billion since listing.
According to its annual report, the Reit's sponsor, Keppel, plans to expand its data centre portfolio to a total of 1.2 gigawatt in the near term, which could provide a pipeline of assets for Keppel DC Reit to potentially acquire.
For its financial year 2024, the Reit recorded 15.5 per cent year-on-year decrease in total greenhouse gas emissions and has achieved the GRESB Green Star for a third consecutive year, with six of its assets in Singapore and Dublin maintaining green certifications.
In trading this year, Keppel DC Reit has ranked among the top 20 stocks by trading turnover and among the top five most actively traded S-Reits.
The STI reserve list, which consists of the five highest ranking non-constituents of the STI, will be (in alphabetical order): CapitaLand Ascott Trust, ComfortDelGro, Keppel Reit, NetLink NBN Trust and Suntec Reit. THE BUSINESS TIMES
Join ST's Telegram channel and get the latest breaking news delivered to you.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Chinese tourists ramp up European summer trips, as Americans cut back
Chinese tourists ramp up European summer trips, as Americans cut back

Straits Times

time25 minutes ago

  • Straits Times

Chinese tourists ramp up European summer trips, as Americans cut back

Overall, Chinese tourists are being tighter with their budgets than most of their global counterparts. PHOTO: REUTERS Newly cost-sensitive Americans may be hitting the breaks on their big European vacations this summer, but another group is taking up the slack: Chinese travellers. According to a survey about long-haul trips the European Travel Commission (ETC) is publishing on June 10, which was previewed exclusively with Bloomberg, 72 per cent of Chinese respondents say they plan to travel to Europe this summer – up 10 per cent from 2024. The figures reflect the highest demand from Chinese travellers since the pandemic. That should elicit a sigh of relief for hoteliers, restaurateurs and other business owners across the continent who depend on big-spending foreign tourists. Before Chinese outbound tourism ground to a halt in 2020, it represented a particularly lucrative sector in Europe, with Chinese travellers coming in second to Americans in spending. Chinese tourists spent US$251 billion (S$323 billion) abroad in 2024, according to UN tourism, surpassing pre-2020 levels. That makes China the largest market in terms of overall tourism spending, even if until recently most of this revenue was spent on trips within Asia. But there's a significant catch in ETC's findings: Chinese tourists do not plan to spend like they used to. That is notable, given the group's previous propensity for luxury shopping. In fact, just 29 per cent of respondents say they plan to spend more than €200 ($290) per day, a 44 per cent drop compared to last summer, and a majority of Chinese travelers – 54 per cent – plan to limit their budgets between €100 to €200 a day. Even still, at least 53 per cent of Chinese respondents in ETC's report indicate shopping will play at least some role on their trips, and budgets are more generous among business travellers, 36 per cent of whom expect to spend more than €200 a day. Overall, Chinese tourists are being tighter with their budgets than most of their global counterparts. The ETC's survey queried 7,100 long-haul travellers from Australia, Brazil, Canada, China, Japan, South Korea and the US about their summer travel intentions – and results show that a total of 11 per cent of travellers to Europe will be lowering their spending this summer. The overall ratio of travellers spending only €100 to €200 per day – 40 per cent – was lower than the Chinese traveller percentages. The reality is that in a climate of economic uncertainty, few travellers are splurging – regardless of their origins. That is echoed in data from the World Travel & Tourism Council showing that tourism growth is expected to slow sharply in 2025. Only a third of the ETC's American respondents are planning trips to Europe this summer, which is 7 per cent fewer than in 2024. And yet another three markets surveyed in the ETC report – Brazil, Canada and Japan – are on the decline, to a lesser degree. High travel costs and plans to vacation locally are the primary deterrents. Mr Eduardo Santander, chief executive officer of the ETC, sees reasons for optimism. 'While recovery from China has been more gradual than other long-haul markets, momentum is clearly building,' he said. Building back business with these travelers, he added, 'remains a top priority for many European destinations.' In other words, it's a relief that Chinese travellers are coming at all. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.

French budget minister warns of IMF, EU oversight risk
French budget minister warns of IMF, EU oversight risk

Straits Times

timean hour ago

  • Straits Times

French budget minister warns of IMF, EU oversight risk

FILE PHOTO: French Minister for Public Accounts Amelie de Montchalin arrives to attend a meeting with main economic actors over Trump tariffs, at the Bercy Economy and Finance Ministry in Paris in Paris, France, April 9, 2025. REUTERS/Abdul Saboor/File Photo PARIS - France must put its finances into order or face the risk of being placed under the supervision of the International Monetary Fund (IMF) or of European institutions, Budget Minister Amelie de Montchalin said on Tuesday. "Today, we need to seize the budgetary weapon again, get our house in order, and put it back in order, because if we don't, others will decide for us," Montchalin told RTL radio. "There is a risk of supervision by international institutions, European institutions, our creditors," she added when asked if France faced a risk of supervision by the IMF. French Prime Minister Francois Bayrou plans to unveil proposals in July to get public finances under control, hoping to push through a 40-billion-euro ($45.62 billion) budget squeeze in 2026. France has a long history of flouting EU overspending rules and is currently running the biggest public sector deficit in the euro zone, at an estimated 5.4% of economic output this year. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.

Imola axed from 2026 F1 calendar, two races in Spain
Imola axed from 2026 F1 calendar, two races in Spain

Straits Times

time2 hours ago

  • Straits Times

Imola axed from 2026 F1 calendar, two races in Spain

The 2026 Formula One season will start on March 8 in Australia and end on Dec 6 in Abu Dhabi. PHOTO: REUTERS PARIS – Formula One will have two races in Spain next season with Madrid making its debut in September and Italy's Imola dropping off the 24-round calendar, the governing FIA announced on June 10. Melbourne's Australian Grand Prix will again be the season-opener on March 8 with China's Shanghai circuit hosting round two a week later, as the sport enters a new engine era with Cadillac also arriving as an 11th team. Monaco will be the first European round on June 7 with Barcelona's Circuit de Catalunya scheduled the following week. Madrid's new street circuit will debut as the last race in Europe on Sept 13, the weekend after the Italian Grand Prix at Monza. Imola was out of contract after this season's race and drops off the list. The season will end in Abu Dhabi on Dec 6. 'We are excited to welcome Madrid to the calendar, and to see huge automotive brands like Audi, Cadillac and Ford join the Formula One grid,' said Formula One chief executive Stefano Domenicali. 'It promises to be an unforgettable season, where once again we will come together at 24 amazing global venues to watch the best drivers in the world push themselves to the limit and produce incredible wheel to wheel racing for our millions of fans watching around the globe.' Mohammed Ben Sulayem, president of the FIA, added: 'Next year's FIA Formula One World Championship marks a significant new chapter for our sport. A new race, new teams, and the arrival of new manufacturers, all ushering in a fresh era of innovation and competition. 'With 24 Grands Prix across five continents, the season truly reflects the global nature of our community, while the improved geographical flow of the calendar shows our joint commitment to making the championship more efficient and sustainable.' Swiss-based Sauber will become the Audi works team in 2026 while Ford are partnering with Red Bull. Calendar: March 8 - Australia, Melbourne March 15 - China, Shanghai March 29 - Japan, Suzuka April 12 - Bahrain, Sakhir April 19 - Saudi Arabia, Jeddah May 3 - United States, Miami May 24 - Canada, Montreal June 7 - Monaco June 14 - Spain, Barcelona June 28 - Austria, Spielberg July 5 - Britain, Silverstone July 19 - Belgium, Spa-Francorchamps July 26 - Hungary, Budapest August 23 - Netherlands, Zandvoort September 6 - Italy, Monza September 13 - Spain, Madrid September 27 - Azerbaijan, Baku October 11 - Singapore October 25 - United States, Austin November 1 - Mexico, Mexico City November 8 - Brazil, Sao Paulo November 21 - United States, Las Vegas November 29 - Qatar December 6 - Abu Dhabi REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store