Keppel DC REIT continues to benefit from strong demand in the data center sector, according to Maybank Research analyst Krishna Guha. The firm maintains a Buy rating on the REIT after it posted an 8.8% year-on-year increase in nine-month distribution per unit, supported by acquisitions, solid operational performance, and lower financing costs.

The REIT remains focused on enhancing recently acquired properties, including KDC SGP 8, while pursuing new hyperscale data center assets, a segment seeing rising global demand from cloud and AI infrastructure.

Maybank has raised its target price to S$2.60 from S$2.44, driven by improved growth assumptions in its dividend discount valuation model and a reduced cost of equity.

The upgrade signals confidence that Keppel DC REIT is well-positioned for continued expansion as digital transformation and data consumption accelerate worldwide.