Rate Of Return$Keppel DC Reit(AJBU.SG)
Sentiment towards AJBU remains cautiously neutral amid persistent inflation and delayed interest rate cuts. Higher financing costs may compress distributable income and weigh on valuation expansion. At the same time, climate concerns surrounding energy-intensive data centres could increase regulatory scrutiny and operating expenses, potentially impacting NPI margins. While structural demand from AI, cloud computing and digitalisation remains supportive, earnings momentum may soften in the near term due to elevated utility costs and slower rental reversions. Tenant default risks remain manageable for now, though weaker smaller tenants could face rising financial stress in a prolonged high-rate environment.
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