--- title: Quick REIT - Keppel DC REIT DPU decreased by 8.1%! description: Keppel DC REIT's DPU for FY 2023 dropped by 8.1% due to increased finance costs and provisions for uncollected rental income. However, favorable reversions, acquisitions, and tax savings helped mitigate the higher expenses. 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[By- REITsavvy Team,](https://reitsavvy.com/insights/author/reitsavvy-team) Keppel DC REIT reported FY 2023 results with DPU of 9.383 cents. In comparison to FY 2022, the DPU dropped by 8.1%! ###### What caused the decrease in FY 2023 DPU? The year-over-year declines primarily resulted from increased finance costs (up 56.1%) and provisions for uncollected rental income from the Guangdong Data Centres. Additionally, there were reduced net contributions from certain Singapore colocation assets due to higher facility expenses (up 46.3%) and less favorable foreign exchange hedges. What helped to lighten the higher expenses? The elevated expenditures were partially mitigated by favorable reversions and escalations, contributions from acquisitions completed in FY2022, increased finance income (+18.1%), and tax savings. ![2024901_KDC_FY2023_Financial_Summary-1](https://reitsavvy.com/hs-fs/hubfs/Keppel%20DC%20REIT/2024/2024901_KDC_FY2023_Financial_Summary-1.png?width=1560&height=616&name=2024901_KDC_FY2023_Financial_Summary-1.png) Other Crucial Metrics Aggregate leverage: 37.4% Interest coverage ratio: 4.7 times for FY 2023 Average cost of debt: 3.3%, with 74% of borrowings fixed through interest rate swaps Debt profile: Bulk of debt expiring in 2026 and beyond. Remarks from Manager: Forecast foreign sourced distributions have been substantially hedged till end December 2024, and progressively hedged till end June 2025. For more details please refer to this[link](https://wpcms.kepcorp.com/wm/cms-site/kcl/file/media/media-releases-sgx/2024/jan/26-jan-kdcreit-results/kdcr-2h-and-fy2023-financial-highlights-mrel.pdf)   --- See you tomorrow at the SGX 2024 S-REITs Outlook event. The REITsavvy Team will be onsite and do say hello to us! ![20240127-SGX-REIT-Market-Outlook_Final](https://reitsavvy.com/hs-fs/hubfs/Others/20240127-SGX-REIT-Market-Outlook_Final.png?width=1552&height=710&name=20240127-SGX-REIT-Market-Outlook_Final.png)   ![op can-4](https://reitsavvy.com/hubfs/op%20can-4.png) **[Insights](https://reitsavvy.com/insights)** **[REITs Screener](https://screener.reitsavvy.com/)** Unless otherwise specified, all return figures shown above are for illustrative purposes only, are not actual customer or model returns and are not indicative of future performance or results. Actual returns will vary greatly and depend on various factors including personal and market circumstances. 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