Keppel DC REIT (AJBU): Complete Singapore Investor Guide 2026
Keppel DC REIT (SGX: AJBU) is Singapore’s first and largest data centre REIT, owning 23 data centres across 11 countries with assets under management (AUM) of approximately S$3.9 billion as at end-2024. Listed in December 2014, it has delivered consistent DPU ranging from 9.17 Singapore cents (FY2020) to a peak of 10.11 cents (FY2022), offering investors exposure to the booming global digital infrastructure sector with a trailing yield of approximately 5.8% at current prices.
Not financial advice. All figures are for educational reference only. Data as at May 2026 unless noted.
Table of Contents
What Is Keppel DC REIT?
Keppel DC REIT is a Singapore-listed real estate investment trust that focuses exclusively on data centre assets. Sponsored by Keppel Corporation, it was the first data centre REIT to list in Asia on 12 December 2014. The REIT provides unit holders with stable, growing distributions underpinned by long-term leases with technology companies, telecommunications firms, and hyperscale cloud operators.
The REIT’s ticker on the Singapore Exchange (SGX) is AJBU. Its manager is Keppel DC REIT Management Pte. Ltd., a wholly-owned subsidiary of Keppel Corporation.
Why Singapore Investors Look at Keppel DC REIT
For Singapore-based investors, Keppel DC REIT offers several compelling features: distributions are tax-exempt at the REIT level (Singapore does not impose withholding tax on REIT distributions to individual investors), the underlying assets are in secular growth industries (cloud, AI, IoT), and the REIT has a 10-year track record of growing DPU with low volatility compared to retail or hospitality REITs.
Investors who want exposure to digital infrastructure within their CPF Investment Scheme (CPFIS) portfolio can hold Keppel DC REIT through approved brokers. You can explore how to optimise your CPFIS allocation with our CPF investment strategy guide.
Portfolio Overview — 23 Data Centres Across 11 Countries
As at 31 December 2024, Keppel DC REIT owned a diversified portfolio of 23 data centre assets across 11 countries. The portfolio spans Asia Pacific, Europe, and North America, with Singapore remaining the single largest market by asset value.
| Region | Key Markets | No. of Assets | Approx. AUM Contribution |
|---|---|---|---|
| Asia Pacific | Singapore, Australia, China, Malaysia | 12 | ~52% |
| Europe | Ireland, Netherlands, UK, Germany, Italy | 10 | ~44% |
| Americas | United States | 1 | ~4% |
Source: Keppel DC REIT FY2024 Annual Report / SGX announcement, December 2024.
The portfolio achieved a high portfolio occupancy rate of approximately 97.5% as at end-2024, reflecting strong demand from technology tenants. Weighted average lease expiry (WALE) stood at approximately 7.4 years (by rental income), providing income visibility well into the next decade. Singapore-based data centres are particularly attractive due to their proximity to major financial hubs and robust connectivity infrastructure.
DPU History (FY2020–FY2024)
Distribution Per Unit (DPU) is the primary income metric for REIT investors. Keppel DC REIT has maintained a relatively stable DPU over five years, peaking at 10.11 Singapore cents in FY2022 before a modest softening in FY2023–FY2024 following currency and revaluation headwinds on its European portfolio.
| Financial Year | DPU (Singapore cents) | YoY Change | Key Driver |
|---|---|---|---|
| FY2020 | 9.17¢ | — | Pandemic drives cloud demand; strong NPI |
| FY2021 | 9.85¢ | +7.4% | Acquisitions in Singapore, Guangdong |
| FY2022 | 10.11¢ | +2.6% | Full-year contribution from new assets |
| FY2023 | 9.21¢ | -8.9% | EUR/GBP FX headwinds; property revaluations |
| FY2024 | 9.21¢ | 0.0% | Stable; FX drag offset by new acquisitions |
Source: Keppel DC REIT SGX Results Announcements, FY2020–FY2024.
For a deeper dive into the distribution mechanics, how management calculates taxable income, and our forward DPU projections, see our dedicated Keppel DC REIT dividend and yield analysis.
Key Financial Metrics 2024
Keppel DC REIT’s FY2024 results reflected a more challenging operating environment, primarily driven by currency translation headwinds from its European assets (denominated in EUR and GBP) and one-off revaluation adjustments. However, core operational performance remained solid.
| Metric | FY2024 | FY2023 | Trend |
|---|---|---|---|
| Gross Revenue (S$ mil) | ~S$298m | ~S$283m | ↑ +5.3% |
| Net Property Income (S$ mil) | ~S$257m | ~S$244m | ↑ +5.3% |
| Distributable Income (S$ mil) | ~S$172m | ~S$172m | → Stable |
| DPU (S¢ per unit) | 9.21¢ | 9.21¢ | → Flat |
| Gearing Ratio | ~37.0% | ~36.5% | ↑ Slight increase |
| Portfolio Occupancy | 97.5% | 98.3% | ↓ Marginal |
| WALE (by income) | ~7.4 years | ~7.8 years | ↓ Natural rundown |
| Assets Under Management | ~S$3.9b | ~S$3.7b | ↑ +5.4% |
Source: Keppel DC REIT FY2024 Full Year Results, SGX announcement, January 2025.
The gearing ratio of approximately 37.0% sits below the MAS regulatory cap of 50% (or 55% with a minimum interest coverage ratio), leaving headroom of approximately S$700–800 million for future acquisitions. Investors monitoring balance sheet health should note that Keppel DC REIT’s interest coverage ratio (ICR) remains well above the 1.5x minimum required for the higher leverage limit. You can model gearing and ICR scenarios for any S-REIT using our S-REIT Gearing Ratio & ICR Calculator.
Yield Comparison vs S-REIT Peers
At approximately 5.8% trailing dividend yield (based on prices around S$1.58–1.62 in early 2026), Keppel DC REIT offers a competitive yield relative to the broader S-REIT universe, while benefiting from a growth-oriented portfolio rather than the stabilised retail or office assets that typically generate the highest yields.
The chart below shows how Keppel DC REIT’s yield compares to selected industrial and diversified S-REIT peers in 2024.
Key observations from the comparison:
Keppel DC REIT sits in the mid-range for yield among industrial-type REITs. Peers like AIMS APAC REIT and Suntec REIT offer higher trailing yields in the 7–8% range, but they carry different risk profiles (retail/office exposure, higher gearing). Mapletree Industrial Trust and CapLand Ascendas REIT, the two closest comparables in the industrial space, offer slightly lower or similar yields. The premium that investors are willing to accept for Keppel DC REIT relates to its secular growth narrative: data centre demand is structural, driven by AI workloads, cloud migration, and hyperscale infrastructure.
For a comprehensive comparison of the best S-REITs by yield, sector, and gearing, see our regularly updated best S-REITs in Singapore 2026 guide.
You can also model your own dividend income scenarios using the REITs Dividend Yield Calculator — just input the number of units, DPU, and current price to get your personal yield on cost.
How to Buy Keppel DC REIT in Singapore
Keppel DC REIT (SGX: AJBU) trades on the SGX Mainboard in board lots of 100 units. With the unit price in the S$1.50–1.65 range in 2026, the minimum investment per board lot is approximately S$150–165 (before brokerage). Here’s how Singapore retail investors can buy it:
Step 1 — Choose a Brokerage Platform
You need an SGX-connected brokerage with a CDP (Central Depository) account to hold physical shares, or a custodian account. Popular options for Singapore retail investors include Syfe Trade, FSMOne, moomoo Singapore, IBKR, and DBS Vickers. Syfe Trade and FSMOne offer competitive commissions for regular investors. Learn more about the latest sign-up bonuses via the Syfe referral code page or the FSMOne referral code page.
Step 2 — Open a CDP Account
If you want to hold shares directly (not under a custodian), apply for a CDP account via CDP’s website (free, but requires a Singapore bank account and SingPass). Custodian accounts offered by brokers are simpler for beginners but remove your direct ownership.
Step 3 — Fund Your Account and Place an Order
Fund your brokerage account via PayNow or bank transfer. Then place a market or limit order for AJBU on the SGX. REIT distributions are typically paid semi-annually — Keppel DC REIT distributes in late March/April (for H2 distributions) and September/October (for H1 distributions).
Step 4 — Monitor and Reinvest
Track the quarterly and half-yearly announcements on SGX SGXNET for DPU announcements, distribution dates, and book closure dates. To model the long-term compounding effect of reinvesting distributions, use our Dividend Reinvestment (DRIP) Calculator.
Key Risks to Consider
No investment is without risk. Keppel DC REIT’s specific risk factors include the following:
1. Currency Risk: With approximately 44% of assets in Europe, a significant portion of rental income is denominated in EUR and GBP. SGD strengthening against these currencies reduces the translated DPU. This was the primary driver of the FY2023 DPU decline. Management uses cross-currency interest rate swaps to partially hedge FX exposure, but residual risk remains.
2. Interest Rate Risk: Like all REITs, Keppel DC REIT carries floating-rate debt. Rising interest rates increase the cost of borrowing and compress distributable income. However, approximately 70–80% of borrowings were fixed-rate hedged as at end-2024, reducing near-term sensitivity. Use the S-REIT Yield vs SGS Bond Spread Calculator to track whether the yield spread remains attractive relative to risk-free SGS bonds.
3. Tenant Concentration: A handful of large tenants contribute a significant proportion of revenue. Loss of a major tenant at lease expiry (though WALE is 7.4 years) could materially impact income. Monitor the top 10 tenants list in each Annual Report.
4. Regulatory and Political Risk: Data centres in China are subject to regulatory scrutiny from the Chinese government on data sovereignty and cross-border data flows. Any adverse regulation could affect operations or valuations of the China-based assets.
5. Valuation Risk: Data centre capitalisation rates in Europe have expanded (valuations have compressed) due to rising interest rates. Further cap rate expansion could reduce NAV, affecting book value metrics and potentially the unit price.
2026 Outlook
The structural tailwinds for Keppel DC REIT remain intact in 2026. Global data centre demand is being driven by three converging forces: artificial intelligence infrastructure buildout (GPU clusters, inferencing workloads), hyperscale cloud capacity expansion by AWS, Azure, and Google Cloud, and enterprise hybrid cloud adoption. Singapore-based data centres benefit from their status as the preferred hub for Southeast Asian digital infrastructure.
In early 2025, Keppel DC REIT announced the potential acquisition of additional data centre assets in Japan and Southeast Asia, which management flagged as yield-accretive transactions. If completed, these acquisitions could add approximately 0.3–0.5 Singapore cents to annual DPU, subject to financing terms.
From a macro perspective, any easing in global interest rates (US Fed cuts) would be a positive catalyst for the REIT: lower rates reduce funding costs and typically cause REIT prices to re-rate upward as the yield spread over SGS bonds widens. Singapore investors building a passive income portfolio with REITs should factor this rate sensitivity into their allocation planning — see our complete guide to passive income investing in Singapore 2026 for a broader framework.
Overall, the consensus view among Singapore REIT analysts as at early 2026 is cautiously positive on Keppel DC REIT: the secular growth story is intact, near-term DPU growth will be modest, and the stock offers a reasonable risk-reward for long-term investors with a 3–5 year horizon.
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Frequently Asked Questions — Keppel DC REIT
What is Keppel DC REIT's dividend yield in 2026?
Based on a DPU of 9.21 Singapore cents (FY2024) and a unit price of approximately S$1.58–1.62 in early 2026, Keppel DC REIT offers a trailing dividend yield of approximately 5.7–5.8%. This yield is tax-exempt for individual Singapore investors, as Singapore does not impose withholding tax on REIT distributions to resident individuals.
Is Keppel DC REIT a good investment in 2026?
Keppel DC REIT is positioned well for long-term investors seeking exposure to digital infrastructure. The secular growth drivers (AI, cloud, IoT) are intact, and the REIT’s 97%+ occupancy and 7+ year WALE provide income stability. However, currency risk from European assets and moderate gearing at 37% mean it is not risk-free. It is most suitable for investors with a 3–5 year horizon who are comfortable with some unit price volatility. This is not financial advice — always conduct your own due diligence.
How often does Keppel DC REIT pay distributions?
Keppel DC REIT pays distributions semi-annually. The H1 distribution (for January–June) is typically declared and paid in September/October, while the H2 distribution (for July–December) is declared and paid in March/April. The exact book closure dates (ex-dividend dates) are announced on SGX SGXNET each half-year.
What is the minimum lot size to buy Keppel DC REIT?
Keppel DC REIT trades in board lots of 100 units on the SGX Mainboard. At a unit price of approximately S$1.60, the minimum investment is around S$160 per lot (before brokerage commissions). Odd lot trading (fewer than 100 units) is available on the SGX Unit Share Market but at wider bid-ask spreads.
Can I buy Keppel DC REIT using CPF funds?
Yes. Keppel DC REIT is included in the CPF Investment Scheme (CPFIS) approved list, which means Singapore citizens and PRs can use their CPF Ordinary Account (OA) savings to purchase units through an approved CPFIS broker. Note that CPFIS-OA investments must be made through a designated CPFIS investment account, not a regular brokerage account. The CPF interest foregone (currently 2.5% p.a. on OA) should be factored into your cost-benefit analysis — use our CPF investment strategy guide to work through the numbers.
What is Keppel DC REIT's NAV per unit?
As at 31 December 2024, Keppel DC REIT’s net asset value (NAV) per unit was approximately S$2.10–2.20, after accounting for European property revaluations. This means the REIT trades at approximately a 25–28% discount to book value at current market prices (around S$1.58–1.62). A persistent discount to NAV can be an opportunity signal for value-oriented REIT investors, though it may also reflect the market pricing in FX headwinds and slower growth expectations.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice. Investing in REITs involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always conduct your own due diligence and consult a licensed financial adviser before making investment decisions. All data as at May 2026 unless otherwise stated.