- NTT DC REIT (SGX:NTDU)'s maiden results came in above expectations, underpinned by resilient portfolio performance across its six data centres in the U.S., Austria, and Singapore.
- - Read this at SGinvestors.io -
- Gross revenue rose 1.8% y-o-y to US$49.5mil, while NPI climbed 1.7% to US$22.6mil, both surpassing forecast levels.
- Portfolio occupancy improved 0.8ppts to 95.1%, supported by 0.7MW of net leased capacity, and ~42% of FY25/26 expiries already renewed at a healthy +5.1% positive rental reversion.
- - Read this at SGinvestors.io -
Our views
- NTT DC REIT's results validate its defensive, globally diversified data-centre platform backed by its Sponsor's operational expertise. While short-term income growth will largely be driven by rental step-ups and occupancy improvements, longer-term upside could emerge from sponsor-led acquisitions in Tier-1 markets such as Frankfurt, London, and Tokyo.
- NTT DC REIT's low gearing and fully unencumbered assets provide capacity for inorganic growth.
- NTT DC REIT is positioned for steady earnings momentum as hyperscale and AI-driven data demand accelerates globally.
- Key catalysts include optimisation of portfolio occupancies, yield-accretive acquisitions, and savings in overall financing costs. With no near-term refinancing risk and healthy cash flow visibility (WALE of ~4.4 yrs),
Reiterate BUY rating.
- Read more at SGinvestors.io.
