On 26 July 2024, Keppel DC REIT (“KDC”) have announced their half year result for FY2024. DPU has increased with the distribution of proceeds from the settlement of DXC Dispute. With management intending to distribute this in two tranches on a half yearly basis for FY2024, there is visibility on the next distribution to be paid in the first quarter of the calendar year 2025. However, without the support, distributable income would have seen a decrease when compared to FY2023.

KDC has paid off a portion of their debt which allowed them to lower gearing. Presumably this will also translate to significant savings on finance cost as well given the current high-interest rate environment. At this point of time, I have not decided if paying off their debt is a good idea given the high speculation of interest rates for the next few months. The current market narrative is