Keppel DC REIT (KEPE.SI): First Take: Powering Through the Placement Pause

Our First Take: KDCREIT's implied 3Q26 DPU of 2.857 Scts rose 12.6% YoY, bringing 9M26 DPU to 8.571 Scts, largely in-line with our FY26e (76.7%) and Bloomberg Consensus (76.3%). Growth reflects positive reversions, escalations, Tokyo DC 3 contributions and increased interests in SGP 3 & 4. DPU declined c.0.8% QoQ as September placement units preceded income contributions from Tokyo DC 4 & 5, which completed on 1 October. We view the update positively, with stronger reversions and acquisition contributions supporting the earnings outlook into 4Q26 and FY27. 3Q26 reversion rose to ~16% (2Q26: ~5%), lifting 9M26 to ~14%; occupancy improved 50 bps QoQ to 93.0%, with contracted power capacity up to c.96% from c.95%. Cost of debt was flat QoQ at 2.7% for 3Q26 and 2.6% for 9M26. SGP 1 occupancy slipped 20 bps QoQ to 46.3% ahead of redevelopment, and Cardiff DC remains vacant;