DBS Group Research Updates Keppel DC REIT Outlook

DBS Group Research has raised its target price for Keppel DC REIT from 2.50 to 2.55 Singapore dollars while maintaining a buy rating. The report emphasizes the significance of the REIT's Singapore portfolio for its projected 3.0% compound annual growth rate in distribution-per-unit (DPU) over the next three years, supported by strong rent growth in the hyperscale data center segment. Additionally, a recent acquisition of stakes in two Japanese data centers is expected to positively impact the REIT's earnings.