Keppel DC REIT Share Price 2026: Analysis, DPU History & Outlook (SGX: AJBU)

A deep-dive into Singapore’s leading data centre REIT — share price trends, dividend history, gearing, and what investors need to know in 2026.

This article is for informational purposes only and does not constitute financial advice. All data referenced is as at April 2026. Past performance is not indicative of future results.

Keppel DC REIT (SGX: AJBU) is Singapore’s first pure-play data centre REIT and remains one of the most closely watched S-REITs among local and institutional investors. As digital infrastructure demand accelerates — driven by AI workloads, cloud computing, and enterprise data sovereignty — Keppel DC REIT sits at the intersection of real estate and technology.

This guide covers everything you need to know: share price history, DPU track record, yield analysis, portfolio quality, gearing ratios, and the outlook for the rest of 2026.

Table of Contents

Keppel DC REIT at a Glance

Keppel DC REIT was listed on SGX in December 2014 as Asia’s first data centre REIT. Sponsored by Keppel Corporation, it owns a portfolio of data centres across Singapore, Australia, Germany, Netherlands, Ireland, Italy, Malaysia, and China.

As a pure-play data centre REIT, Keppel DC REIT offers investors exposure to one of the strongest structural tailwinds in real estate — the insatiable demand for digital infrastructure. Unlike retail or office REITs tied to footfall or occupancy trends, data centre REITs benefit from long-term leases, mission-critical tenant relationships, and a constrained supply pipeline.

Share Price History & Key Levels

Keppel DC REIT’s share price journey has been eventful. It listed at S$0.93 in December 2014 and surged to an all-time high of around S$3.00 in 2021 on the back of surging data centre valuations globally. Rising interest rates through 2022–2023 compressed the share price significantly, as they did for most high-growth REITs.

In 2024, the share price found support as rate hike cycles peaked and AI-driven data centre demand renewed investor enthusiasm. By early 2026, with rates stabilising and distribution recovery underway, the share price has been trading in the S$1.90–S$2.20 range.

For current live pricing, check the SGX listing page for AJBU.

DPU History & Dividend Yield

Keppel DC REIT has delivered consistent DPU growth since listing — a rarity among S-REITs. Even through the 2022–2023 rate-hike cycle, distributions remained resilient thanks to long lease terms and inflation-linked rental escalations.

At a share price of S$2.00, the trailing DPU of ~9.72¢ implies a forward yield of approximately 4.9–5.0%. While this is modest compared to some S-REITs, it comes with a substantially stronger growth profile — Keppel DC REIT’s DPU has grown every year since 2015, making it one of only a handful of S-REITs with an unbroken distribution growth record.

Unitholders receive distributions semi-annually, typically in March (H2 of prior year) and September (H1 of current year).

To calculate how this yield fits into your own portfolio, use our Dividend Portfolio Yield Calculator.

Portfolio: Data Centres Across Asia-Pacific & Europe

Keppel DC REIT owns a geographically diversified portfolio of 23 data centres across 9 countries. Singapore remains the anchor market, contributing the largest share of NPI, but the REIT has steadily expanded into Europe and other Asia-Pacific markets.

Portfolio quality highlights:

The portfolio maintains a portfolio occupancy rate of approximately 98%, reflecting the mission-critical nature of data centres — tenants rarely vacate as migration costs are prohibitive. Weighted average lease expiry (WALE) stands at around 7 years, providing strong long-term income visibility. Approximately 75% of leases include built-in annual rental escalations, often tied to CPI or fixed step-ups of 2–3%.

Key tenants include major hyperscalers, telecommunications companies, and enterprise clients — names that would be considered investment-grade counterparties. This makes Keppel DC REIT’s income stream considerably more resilient than retail or hospitality REITs exposed to consumer discretionary spending.

Key Financial Metrics: Gearing, ICR & NAV

Understanding a REIT’s balance sheet is crucial. Here’s a snapshot of Keppel DC REIT’s key financial health indicators as at the most recent reporting period (FY2025):

With gearing at 35.5%, Keppel DC REIT has approximately S$750 million in additional debt headroom before approaching the 45% threshold (where MAS requires management to disclose their plan to reduce leverage). This provides a meaningful acquisition war chest as data centre opportunities arise globally.

The high proportion of fixed-rate debt (~80%) insulates distributions from short-term interest rate volatility. Even if SOFR or SORA moves 50bps higher, the impact on DPU would be modest — estimated at around 0.2–0.3¢ per unit annually.

You can analyse Keppel DC REIT’s gearing vs peers using our S-REIT Gearing Ratio & ICR Calculator.

Yield Comparison: Keppel DC REIT vs S-REIT Peers

One common question is how Keppel DC REIT’s yield stacks up against other S-REITs. The answer depends on what you’re optimising for — pure yield, or yield plus growth.

The takeaway: Keppel DC REIT’s yield is the lowest in this peer group, but it offers arguably the strongest secular growth story. Investors who want the highest current income may prefer Mapletree Logistics Trust or Frasers Centrepoint Trust. Those willing to accept a lower starting yield for a structurally growing distribution may find Keppel DC REIT more compelling over a 5–10 year horizon.

Compare the yield spread between S-REITs and Singapore Government Securities (SGS bonds) using our S-REIT Yield vs SGS Bond Spread Calculator to see if current valuations are attractive.

For a broader ranking of S-REITs by yield, see our Best S-REITs Singapore 2026 comparison guide.

Growth Drivers: AI, Cloud & Data Centre Demand

The structural case for Keppel DC REIT is arguably stronger today than at any point in its history. Three macro trends are converging to drive unprecedented demand for data centre capacity:

1. AI and Machine Learning Infrastructure

The explosion of generative AI workloads — large language models, image generation, recommendation engines — requires enormous amounts of GPU compute, which in turn requires specialised, power-dense data centres. Hyperscalers like Microsoft, Google, and Amazon are committing billions of dollars annually to data centre expansion. Singapore, as a regional hub for APAC operations, is a prime beneficiary of this capex wave.

2. Cloud Migration

Enterprise cloud adoption continues to accelerate across Southeast Asia. As more enterprises shift from on-premise servers to cloud infrastructure, colocation data centres — which house the servers of cloud providers and large enterprises — see sustained demand. Keppel DC REIT’s colocation-heavy portfolio in Singapore, Australia, and Europe is well-positioned to capture this.

3. Data Sovereignty Regulations

Increasingly strict data localisation rules across Asia (including Singapore’s PDPA requirements and Malaysia’s PDPA amendments) mean that companies cannot simply store all data offshore. This drives demand for data centres within each country’s borders — benefiting local data centre landlords like Keppel DC REIT.

Supply Constraints

Unlike office or retail, new data centre supply is heavily constrained by power availability, cooling infrastructure, and regulatory approvals. In Singapore, the government’s moratorium on new data centres (lifted in 2022 with strict sustainability requirements) means that existing facilities command a significant scarcity premium. This structural undersupply underpins strong rental reversion potential at lease renewals.

To understand how data centre REITs fit into a broader S-REIT portfolio, read our Singapore REIT ETF guide.

Key Risks to Watch

No investment is risk-free. Here are the key risks Keppel DC REIT investors should monitor:

1. Interest Rate Sensitivity

Like all REITs, Keppel DC REIT is sensitive to interest rate changes. Rising rates increase borrowing costs and compress yield spreads. However, with ~80% of debt on fixed rates and a sub-3% cost of debt, near-term exposure is manageable. The bigger risk is a prolonged “higher for longer” rate environment that pushes the 10-year SGS yield significantly above current levels.

2. Currency Risk

With properties in Europe, Australia, Malaysia, and China, Keppel DC REIT has significant foreign currency exposure. A strengthening Singapore dollar reduces the SGD value of overseas NPI. Management uses hedging instruments to mitigate this, but currency moves can still impact distributions in any given half-year.

3. China Assets

Keppel DC REIT’s China data centres have faced challenges from slower-than-expected tenant uptake and regulatory uncertainties. While the China exposure is relatively small (~5% of NPI), it has been a drag on growth. Any further deterioration in China’s tech regulatory environment could weigh on sentiment.

4. Tenant Concentration

While the tenant base is high-quality, data centres often have one or two anchor tenants per building. The loss of a major tenant or non-renewal of a large lease could cause a meaningful NPI shortfall. Investors should monitor the top-10 tenant disclosures in each half-year result.

5. Valuation Premium

At ~1.1x P/NAV, Keppel DC REIT trades at a premium to book — justified by its growth profile, but leaving less margin of safety compared to S-REITs trading below NAV. A market de-rating of data centre assets globally (e.g., if AI investment slows) could compress the P/NAV multiple.

2026 Outlook

The near-term outlook for Keppel DC REIT is cautiously optimistic. Several factors support a positive trajectory for the rest of 2026:

The global rate cycle is broadly expected to be in a cutting or stable phase through 2026, which reduces borrowing cost headwinds. With ~80% of debt already on fixed rates, Keppel DC REIT will gradually benefit from refinancing at lower rates as older, higher-cost debt matures. Each 25bps reduction in the floating-rate portion translates to a small but meaningful uplift in distributable income.

Portfolio renewals scheduled for 2026 include several European leases, where rental reversion could be positive given current strong European data centre demand. Singapore leases up for renewal in 2026–2027 are also expected to achieve positive reversions, given the scarcity of available colocation capacity in the city-state.

Keppel DC REIT’s pipeline of potential acquisitions remains active. The Keppel Group has a growing portfolio of data centre development projects globally, some of which may be injected into the REIT as they stabilise. This provides an organic growth pipeline that many S-REITs lack.

Consensus analyst estimates point to DPU of approximately 10.0–10.2¢ for FY2025 and 10.3–10.6¢ for FY2026, implying a forward yield of ~5.0–5.3% at current share prices.

For dividend investors building a passive income portfolio, consider using our Retirement Planning Calculator to model how Keppel DC REIT distributions could contribute to your retirement income goals. You might also consider pairing it with a robo-advisor like Syfe or a low-cost platform like Endowus for your CPF or SRS S-REIT holdings.

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Frequently Asked Questions

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. All data is sourced from Keppel DC REIT’s SGX announcements and public filings. Always conduct your own due diligence before investing. Capital is at risk.