---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000818917.md"
description: "$Keppel DC Reit(AJBU.SG)Keppel DC REIT: Strong AI Growth, But Premium Valuation Warrants PatienceKeppel DC REIT posted another impressive 1HFY2026, with DPU climbing 11.3% YoY to 5.714 cents, supported by positive rental reversions, acquisitions of Tokyo Data Centre 3 and the remaining stakes in Keppel DC Singapore 3 & 4, while maintaining a healthy 34.0% aggregate leverage and 6.9x interest coverage. Portfolio WALE improved to 6.7 years, reinforcing earnings visibility. (The Edge Singapore⁠)Management is also proactively reshaping its portfolio. The ageing KDC SGP 1 facility in Singapore is being gradually vacated for a potential redevelopment into a next-generation, AI-ready hyperscale data centre. Although this temporarily reduces occupancy, it reflects disciplined capital recycling and positions the REIT to capture stronger long-term demand from hyperscalers. (The Business Times⁠)Technically, the long-term uptrend remains intact, supported by resilient earnings momentum. However, Keppel DC REIT continues to trade at a premium P/B and P/E relative to peers such as NTT DC REIT, while offering a lower forward dividend yield of around 5%. With units trading near the upper end of their 12-month valuation range, approximately one standard deviation above the trailing mean, I would remain constructive on its long-term AI-driven fundamentals but prefer accumulating on price weakness rather than chasing the current premium.This revision strengthens the investment thesis by explaining that the temporary shutdown of KDC SGP 1 is not a negative development but a strategic upgrade to unlock higher-value AI and hyperscale demand, an important distinction for long-term investors."
datetime: "2026-07-28T00:17:06.000Z"
locales:
  - [en](https://longbridge.com/en/topics/100000000818917.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000818917.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/100000000818917.md)
author: "[FaithAnchor](https://longbridge.com/en/profiles/24833348.md)"
generator: "portal-rs"
---

# $Keppel DC Reit(AJBU.SG)Keppel DC REIT: Strong AI …


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**