Keppel DC REIT (AJBU) 2026 Investor Guide: AI Growth, DPU +11.3% & Portfolio Review

Everything Singapore investors need to know about Keppel DC REIT — 1H 2026 results, data centre portfolio, dividend yield, gearing and whether to buy in 2026.

Table of Contents

What is Keppel DC REIT?

Keppel DC REIT (SGX: AJBU) is Singapore’s first and Asia’s leading pure-play data centre REIT. Listed on the Singapore Exchange on 12 December 2014, it invests principally in income-producing real estate used for data centre purposes across Asia and Europe.

The REIT is managed by Keppel DC REIT Management Pte. Ltd. — a wholly-owned subsidiary of Keppel Ltd, a global asset manager and operator. As of mid-2026, Keppel DC REIT holds a SGD 6.3 billion portfolio of 25 data centres across 10 countries, making it one of the largest data centre REITs in Asia.

Here is a quick snapshot of the REIT as at September 2026:

Portfolio Overview — 25 Data Centres, 10 Countries

Keppel DC REIT’s portfolio is diversified across Asia and Europe. Its Singapore assets are the largest contributor, supported by key markets in Australia, the UK, Germany, Ireland, the Netherlands, Italy, China, Japan, and Malaysia.

Key 2026 portfolio developments include the acquisition of Tokyo Data Centre 3 and the remaining interests in Keppel DC Singapore 3 & 4, which boosted distributable income. The REIT also divested Kelsterbach Data Centre in Germany, refocusing on higher-growth markets.

The REIT’s strategy favours colocation, fully-fitted and shell-and-core data centre assets, allowing it to serve hyperscalers, enterprises, and cloud providers across the digital economy.

1H 2026 Financial Results: DPU +11.3% Year-on-Year

Keppel DC REIT delivered strong 1H FY2026 results, with distributable income rising 18.5% year-on-year to SGD 150.67 million and DPU increasing 11.3% to 5.714 cents per unit (payable 18 September 2026, ex-date 8 September 2026).

Growth was driven by positive rental reversions and escalations secured in prior periods, plus the full-year impact of the Tokyo DC3 and KDC Singapore 3 & 4 acquisitions. This was partially offset by higher finance costs and the absence of income from the divested Kelsterbach DC.

The next dividend (SGD 0.026 cents per unit) carries an ex-dividend date of 8 September 2026, payable 18 September 2026. Investors who hold units before the ex-date will receive this distribution.

DPU History & Dividend Track Record

Keppel DC REIT has delivered consistent dividend growth since its 2014 IPO, underpinned by long-term leases, positive reversions, and strategic acquisitions. The table below shows the historical full-year DPU trend:

Note: 2026E based on 1H DPU of 5.714 cents annualised. Historical DPU figures are approximate and rounded. Always verify against official KDC REIT investor relations announcements on SGX.

For the detailed share price analysis and historical price chart, see our companion article: Keppel DC REIT Share Price 2026: Analysis, DPU History & Outlook.

AI & Data Centre Demand Tailwinds in 2026

Keppel DC REIT is uniquely positioned to benefit from the artificial intelligence (AI) infrastructure boom. The global surge in AI model training and inference is driving unprecedented demand for data centre capacity — directly translating into higher rental rates and occupancy for KDC REIT’s assets.

Key AI tailwinds supporting KDC REIT in 2026:

• Hyperscaler demand: Microsoft, Google, Amazon and Meta are aggressively expanding data centre footprints across Asia and Europe, driving new leases and renewals.
• Power capacity as the new occupancy metric: KDC REIT introduced contracted power capacity (95% as at June 2026) as a forward-looking demand indicator, signalling strong future utilisation even as legacy leases expire.
• Positive rental reversions: 1H 2026 portfolio reversion of ~+10% demonstrates pricing power as AI drives up market rents for prime data centre space.
• Tokyo DC3 acquisition: Japan is a beneficiary of AI infrastructure investment, with new hyperscaler commitments supporting demand. KDC’s Tokyo DC3 adds exposure to this high-growth market.
• Singapore land scarcity: MAS and URA maintain strict controls on new data centre development in Singapore, creating a supply constraint that supports the value of existing assets — particularly KDC’s Singapore portfolio (its largest contributor).

With 87% of its debt at fixed rates and a WALE of 6.7 years, KDC REIT is well-insulated from near-term rate volatility while locking in long-term income from the AI supercycle.

Balance Sheet & Gearing

Keppel DC REIT maintains a conservative balance sheet with aggregate leverage of 34.0% as at June 30, 2026 — comfortably below Singapore’s 50% regulatory ceiling (and well within the preferred 40% threshold). This gives the REIT significant debt headroom of approximately SGD 673 million for further acquisitions.

The high proportion of fixed-rate debt (87%) provides excellent income visibility. With global interest rates expected to ease further through 2H 2026 (post-September FOMC), any debt refinancing at lower rates would be accretive to DPU — a positive catalyst for unitholders.

Key Risks to Watch

While the outlook for KDC REIT is positive, investors should be aware of the following risks:

• Cardiff Data Centre lease expiry: The contract expiry at Cardiff DC is the primary reason occupancy dipped to 92.5%. Re-leasing progress will be closely watched in 2H 2026.
• FX risk: With assets in 10 countries (EUR, AUD, GBP, JPY, CNY and others), KDC REIT is exposed to currency fluctuations vs. SGD. The REIT hedges a portion of its foreign income, but residual FX risk remains.
• Higher finance costs: Rising borrowing costs partially offset the income growth in 1H 2026. While 87% of debt is fixed, the remaining floating-rate exposure could drag on DPU if rates stay elevated.
• Acquisition execution risk: Growth relies on acquiring accretive assets at reasonable cap rates. Competition from global data centre funds is intensifying.
• Regulatory risk in China: KDC REIT holds assets in China, where regulatory uncertainty around data sovereignty and foreign ownership of digital infrastructure could create challenges.
• Valuation risk: At SGD 2.19 and an estimated yield of ~5.2%, KDC REIT trades at a modest premium to book. Any macro de-rating of tech/digital assets could compress valuations.

How to Buy Keppel DC REIT in Singapore

Keppel DC REIT (SGX: AJBU) is listed on the Singapore Exchange and can be bought through any Singapore brokerage with access to the SGX. Here are the most popular platforms for Singapore retail investors:

• FSMOne — Low commission S-REIT trading via CDP or custodian account. Regular Savings Plan available. Use referral code P0544985 to get started.
• IBKR (Interactive Brokers) — One of the lowest commissions for SGX stocks. Great for active traders. Use referral code jianxiong368.
• Syfe Trade — Commission-free SGX trades (subject to conditions). Good for beginners building an S-REIT portfolio. Use referral code SRPRFFFCD.
• Endowus (Fund Shelf) — Invest in KDC REIT via diversified S-REIT funds using CPF OA/SA or SRS funds. Use referral code 2V343 for fee rebates.

KDC REIT units are settled via CDP (Central Depository). For SRS investors, confirm with your broker that S-REIT purchases are supported in your SRS account.

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Frequently Asked Questions