Keppel DC REIT (AJBU) AI Stock Analysis

• Market Cap: $5.85B
• Dividend Yield: 4.14%
• Average Volume (3M): 7.19M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.60
• Revenue Growth: 23.81%
• EPS Growth: 89.10%
• Country: SG
• Employees: 16
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.06
• Shares Outstanding: 2,437,594,000
• 10 Day Avg. Volume: 6,316,920
• 30 Day Avg. Volume: 7,187,821
• PEG Ratio: 0.09
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 12.10
• P/FCF Ratio: 19.94
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 18.18
• Enterprise Value/Gross Profit: 23.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.58
• Price Target Upside: 7.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: S$2.50 ▲(3.73% Upside)

Keppel DC REIT's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. Positive technical indicators further support the stock's outlook, while a reasonable valuation adds to its attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for data center services, enhancing long-term financial stability and market position.

Strategic Capital Expansion

This capital expansion strengthens the company's financial base, providing resources for future investments and enhancing competitive advantage in the data center sector.

Strong Investor Confidence

High subscription levels reflect strong investor confidence, supporting the company's growth strategy and reinforcing its market position.

Negative Factors

Decline in Free Cash Flow

The decline in free cash flow growth could impact future liquidity, potentially limiting the company's ability to fund new projects or distributions.

Potential Reporting Anomalies

Unusually high margins may indicate accounting issues, which could affect investor trust and require further investigation to ensure transparency.

Moderate Cash Generation

Moderate cash generation relative to net income may limit the company's ability to reinvest in growth opportunities or increase distributions.

Keppel DC REIT Business Overview & Revenue Model

Company Description

Listed on 12 December 2014, Keppel DC REIT is the first pure-play data centre REIT listed in Asia and on the Singapore Exchange (SGX-ST). Keppel DC REIT's investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate related assets. As at 31 December 2020, its portfolio comprises 19 data centres strategically located in key data centre hubs. With an aggregate lettable area of approximately 2,089,085 sq ft, the portfolio spans 12 cities in eight countries across Asia Pacific and Europe. Keppel Telecommunications & Transportation Ltd (Keppel T&T), the Sponsor of the REIT, has also granted Rights of First Refusal (ROFR) to the REIT for future acquisition opportunities of its data centre assets. The REIT is managed by Keppel DC REIT Management Pte. Ltd.. Keppel Capital Holdings Pte. Ltd. (Keppel Capital) has a 50% interest in the Manager, with the remaining interest held by Keppel T&T. Keppel Capital is a premier asset manager in Asia with assets under management comprising real estate, infrastructure and data centre properties in key global markets. The Manager's key objectives are to provide the REIT's Unitholders with regular and stable distributions, as well as achieve long-term growth while maintaining an optimal capital structure.

How the Company Makes Money

Keppel DC REIT generates revenue primarily through rental income from its portfolio of data centers. The trust enters into long-term lease agreements with tenants, which typically include a combination of fixed rental payments and variable charges based on the usage of services. Additionally, the REIT benefits from rising demand for data storage, driven by trends such as cloud computing, big data, and the Internet of Things (IoT). Significant partnerships with leading technology firms and service providers enhance its market position and may contribute to stable cash flows. The REIT may also realize capital appreciation through strategic acquisitions and developments in high-growth markets, further bolstering its income generation capabilities.

Keppel DC REIT Financial Statement Overview

Summary

Keppel DC REIT shows strong financial health with significant revenue and profit margin growth, supported by a solid balance sheet. Cash flow management is efficient, though there is room for improving EBIT transparency and aligning operating cash flow with net income.

Income Statement

Keppel DC REIT has demonstrated strong revenue growth, with a 13.7% increase from the previous year. The gross profit margin is solid at 74.7%, and the net profit margin has significantly improved to 96.9%. EBITDA margin is impressive at 126.4%, indicating robust operational efficiency. However, the absence of EBIT data limits a full profitability assessment.

Balance Sheet

The company shows a healthy equity position with an equity ratio of 60.8%. The debt-to-equity ratio is moderate at 0.51, indicating manageable leverage levels. Return on equity is strong at 8.9%, showcasing effective use of equity capital. The balance sheet reflects stability, although there is room for improvement in reducing debt levels.

Cash Flow

Keppel DC REIT's free cash flow grew by 37.2%, highlighting robust cash generation capabilities. The operating cash flow to net income ratio is 0.74, and the free cash flow to net income ratio is 0.63, suggesting efficient cash flow management. While positive, improvements are possible in aligning operating cash flow more closely with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	364.42M	310.29M	272.92M	286.58M	271.06M	265.57M
Gross Profit	278.30M	231.94M	209.32M	225.68M	223.90M	222.07M
EBITDA	0.00	392.32M	239.68M	235.83M	216.56M	211.02M
Net Income	326.15M	300.67M	118.53M	230.91M	313.66M	168.15M
Balance Sheet
Total Assets	5.44B	5.54B	4.01B	4.11B	3.78B	3.35B
Cash, Cash Equivalents and Short-Term Investments	250.80M	316.69M	149.73M	190.40M	195.94M	244.39M
Total Debt	1.59B	1.72B	1.48B	1.48B	1.30B	1.19B
Total Liabilities	1.81B	2.12B	1.65B	1.65B	1.44B	1.37B
Stockholders Equity	3.58B	3.37B	2.31B	2.41B	2.29B	1.94B
Cash Flow
Free Cash Flow	227.69M	188.33M	137.34M	178.87M	113.93M	175.43M
Operating Cash Flow	227.69M	223.74M	163.77M	218.29M	191.50M	234.98M
Investing Cash Flow	-1.15B	-1.07B	-15.44M	-298.71M	-374.38M	-208.81M
Financing Cash Flow	1.01B	1.00B	-236.16M	83.67M	134.97M	66.85M

Keppel DC REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AJBU, the sentiment is Positive. The current price of 2.41 is above the 20-day moving average (MA) of 2.39, above the 50-day MA of 2.36, and above the 200-day MA of 2.19, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:AJBU.

Keppel DC REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AJBU	―	$5.85B	14.72	10.81%	4.14%	23.81%	89.10%
DCRU	―	$619.40M	3.16	20.33%	6.62%	36.48%	―
ME8U	―	$6.22B	18.30	6.88%	6.07%	0.24%	193.35%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
M44U	―	$6.62B	36.31	3.18%	5.86%	-1.81%	-18.43%
CMOU	―	$235.00M	-15.10	-2.12%	―	-1.55%	78.22%
BTOU	―	$126.14M	―	-48.17%	―	-27.66%	-106.71%

Keppel DC REIT Corporate Events

Keppel DC REIT Allocates S$45.9 Million from Preferential Offering

Keppel DC REIT has announced the utilization of approximately S$45.9 million from its recent preferential offering, which raised gross proceeds of about S$404.5 million. The funds have been allocated towards extending a land lease, debt repayment, and covering offering-related expenses, with the majority still pending use for acquisitions and asset enhancements. This strategic financial move is expected to bolster the company’s asset base and enhance its market position in the data centre industry.

Keppel DC REIT Expands Capital with New Unit Issuance

Keppel DC REIT has announced the issuance and listing of 180,562,518 new units on the Singapore Exchange as part of a preferential offering, raising approximately S$404.5 million. This strategic move is expected to enhance the trust’s capital base, potentially improving its market position and providing additional resources for future investments in the data center sector.

Keppel DC REIT’s Preferential Offering Oversubscribed, Raising S$404.5 Million

Keppel DC REIT announced the results of its preferential offering, which was approximately 168.2% subscribed, raising gross proceeds of approximately S$404.5 million. This successful offering indicates strong investor confidence and is expected to enhance the company’s financial flexibility and support its growth strategy in the data center industry.

Keppel DC REIT Launches S$404.5 Million Preferential Offering

Keppel DC REIT has announced a preferential offering to raise approximately S$404.5 million through the issuance of new units. This offering is aimed at funding the acquisition of a data center in Inzai City, Japan, and is expected to enhance the company’s portfolio and strengthen its position in the data center industry.

Keppel DC REIT Launches S$404.5 Million Preferential Offering

Keppel DC REIT has announced a fully underwritten non-renounceable preferential offering to raise approximately S$404.5 million. The offering is priced at S$2.24 per new unit, representing a 5.2% discount to the volume-weighted average price. This move is aimed at strengthening the company’s financial position and supporting its strategic growth initiatives in the data center industry.

Keppel DC REIT Announces S$404.5 Million Preferential Offering

Keppel DC REIT has announced a preferential offering to raise approximately S$404.5 million, with the new units expected to be listed on the SGX-ST by October 22, 2025. This move is aimed at strengthening the company’s capital base, with the new units offering entitlements to distributable income from July 2025 onwards, potentially enhancing shareholder value and reinforcing its position in the data center market.

Keppel DC REIT Wins Silver for Best Investor Relations at Singapore Corporate Awards

Keppel DC REIT has been awarded the Silver Award for Best Investor Relations in the REITS & Business Trusts category at the Singapore Corporate Awards 2025. This accolade highlights the company’s commitment to corporate governance and transparency, reinforcing its position in the data centre industry and encouraging other companies to enhance their investor relations practices.

Keppel DC REIT Issues New Units for Management Fee Payment

Keppel DC REIT has issued 726,097 new units as part of its management fee payment for the second quarter of 2025. This issuance covers fees related to their interests in several data centers, including those in Amsterdam, Eindhoven, Guangdong, London, Tokyo, and Singapore. The units were priced based on the average trading price on the Singapore Exchange over the preceding ten business days. This strategic move aligns with the trust deed allowing management fees to be paid in units and cash, reflecting the company’s ongoing commitment to optimizing its financial management and enhancing shareholder value.