NTT DC REIT (SGX:NTDU) is a newly listed pure-play Singapore REIT (S-REIT) with a portfolio of six high-quality data centre (DC) assets – four in the US, one in Austria, and one in Singapore.
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The REIT’s sponsor, NTT Group, is the world’s third largest DC provider, with a strong growth pipeline.
Modern assets with low power usage effectiveness (PUE).
The average age of its assets since operational commencement is about 12 years. All assets have undergone refurbishments over the last three years, thereby minimising near-term capex requirements. All assets except for the one in Singapore are on freehold land.
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Good rent growth potential from under-rented portfolio.
Based on independent market research reports, NTT DC REIT’s assets are considerably under-rented (~9-76% below market rents), with the biggest rent growth potential coming from its Singapore and Northern California assets. In particular, with a short WALE of below one year, its Singapore asset offers strong near-term growth potential.
As at 1HFY26, NTT DC REIT's portfolio occupancy rate is at a healthy 95.1%, and based on its IPO prospectus, management expects the occupancy rate to rise to 97.6% and 97.7% by end-FY26 and end-FY27.
1HFY26 DPU beat the forecasts stated in its IPO by 3.3%.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
