SINGAPORE - Keppel DC Reit’s distribution per unit (DPU) for the half year ended Dec 31, 2023, dropped 16.1 per cent to 4.332 cents.

This came as its second-half distributable income fell 18.5 per cent to $76.4 million on higher finance costs and loss allowances for uncollected rental income from its three Guangdong data centres, said the manager on Jan 26.

Finance costs for the period rose 43.5 per cent to $25.8 million, compared with $18 million a year ago.

Property expenses increased 85.6 per cent to $23.1 million on the year, with $10.5 million included as loss allowance for “doubtful receivables” to account for the uncollected rental income from its China data centre tenant.

Gross revenue for the period slid 0.7 per cent to $140.7 million. Net property income dropped 9.1 per cent to $117.6 million in the second half year on lower net contributions from the Singapore colocation assets, led by higher facilities expenses.

For financial year 2023, the real estate investment trust’s DPU stood at 9.383 cents, 8.1 per cent lower than the 10.214 cents in financial year 2022. Distributable income fell 9.3 per cent to $167.7 million on the year.

Net property income slid 3 per cent to $245 million for the full year, despite a 1.4 per cent rise in gross revenue at $281.2 million. This was attributable to a 46.3 per cent rise in property expenses at $36.3 million.

Units of Keppel DC Reit closed four cents lower at $1.76 on Jan 26. THE BUSINESS TIMES