| Latest Forum Topics / NTT DC REIT USD Last:0.94 -- |
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chengwh1
Elite |
09-Apr-2026 14:12
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Forex risks is mitigated thru hedging, as has been done successfully by many other REITs.
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chengwh1
Elite |
09-Apr-2026 14:10
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Tenant concentration risk would be one risk here, regardless of whether is able to mitigate this or not,.... in terms of finding a better replacement tenant or tightness of the data centre mkt out there. another way to put it is : finding a good replacement tenant is a risk and may need time too.
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Alignment
Elite |
08-Apr-2026 13:52
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Good point. Just finished my review of the sector as a whole, and this REIT is definitely one of the best valued in the space. Two positive points to note which may not be obvious in terms of relative value are 1) most REITs have recently paid dividends but this one has not so you are getting about a 3.6% dividend value in the share price, and 2) this REIT is one of the lowest geared at 32.5% with no pref shares, so there is a lot of scope to push DPU up by doing deals without stretching the balance sheet. One negative or reason why the DPU yield should be higher is the US$ denomination. Trump' s policies are negative for that although arguably you should look through to the underlying assets although the market may not do so. |
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JAMMIE
Senior |
08-Apr-2026 11:00
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any change in tenant is not a bad deal too. Look at DC CORE REIT, who signed a new tenant with a much higher rent and longer term tenure. With limited DC capacity available, a concentration is not a risk. | ||||
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Alignment
Elite |
08-Apr-2026 10:35
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This top tenant is probably tesla. I agree that 30% concentration is potentially a risk, but at the same time a good relationship with a dynamic growing company like Tesla is a great opportunity for further demand growth and one has to judge what the net balance is of such a relationship. Having a big government backed company like NTT as a sponsor also provides some protection in this regard. | ||||
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chengwh1
Elite |
08-Apr-2026 01:28
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There is another risk with NTT DCR - the top tenant by GRI contributes 30%-odd of the rental income collected by NTT DCR. If this tenant has a chg in strategy or in whatsoever way towards this occupancy, the dpu will drop badly. Have a feeing the mkt is looking at this risk too. Apart from this, all other factors seemed fine with this REIT. | ||||
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Alignment
Elite |
06-Apr-2026 23:51
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Three factors drive the share price for this REIT as for any other 1) DPU, 2) the spread of the company' s DPU yield vs the US treasury bond yield, and 3) the US treasury bond yield. The company' s management has most power over 1), very limited power over 2) and none over 3). On DPU the company is outperforming its IPO guidance, so it is pretty much doing all it can. The fact that the share price is below $1 is therefore due to factors outside its control. Besides doing even better than it already is on DPU, there are things the company can do to influence 2) like better IR, buybacks etc. But at the end of the day 3) is a big deal. |
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JAMMIE
Senior |
06-Apr-2026 09:35
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NTTDC had already crossed over $1 and was very strongly positioned to march towards about $1.45. The FED was custting rates and there was good news expected like the recent rental revision. Its the WAR that has complicated all equations. The WAR was unexpected and deifnitely not expected to last last this long. and now the FED will not cut rate anytime soon and can also be expected to increase (unlikely but possible). So either you can double down and accumulate more, and expect a mugh higher dividend yield in years to come , or you can exit if you are unable to ride out this long period of volatility. | ||||
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n3wbie
Elite |
02-Apr-2026 22:23
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Hope this dont become like the other overseas dc reit with Digicore, still yet to recover to IPO price after all these years despite a strong and reputable sponsor. What does it take for NTT DC reit to turn around, amidst the concerns for where rates would be? | ||||
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Joelton
Supreme |
01-Apr-2026 09:17
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NTT DC REIT renews master lease for SG1 at 23% increase in rent NTT DC REIT has successfully renewed the SG1 master services agreement dated March 31 between NTT Global Data Centers SG1 LLP, a wholly-owned subsidiary of NTT DC REIT, and NTT Singapore, an indirect wholly-owned subsidiary of NTT. SG1 is located on 51 Serangoon North Avenue 4,. The renewed SG1 Master Services Agreement delivers a positive rental reversion of about 23% to $474 per kilowatt, compared with the $385 per kilowatt committed under the previous one-year lease. The new lease incorporates fixed 5% annual rent escalations, providing contractual organic income growth over the three-year lease term commencing on April 1. Yutaka Torigoe, Chief Executive Officer of the Manager, said: &ldquo We are pleased to have achieved stronger than expected rental reversion, which would be accretive to NTT DC REIT&rsquo s income. Transitioning to a longer-term lease at higher rent further strengthens the visibility and stability of our cash flows. Looking ahead, we remain focused on delivering resilient performance while leveraging the strong pipeline of opportunities within our Sponsor and the wider NTT group to drive sustainable, long‑ term value creation.&rdquo Following the renewal, NTT Singapore will continue to anchor SG1 with 2.7 MW of contracted capacity, which accounts for 31% of SG1&rsquo s capacity. |
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Alignment
Elite |
19-Jan-2026 19:35
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They have already announced their first financial results on 12 November (for the period up to September). Distributable income was US$17.4m versus the IPO forecast of US$16.9m, so 3.3% higher.
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chengwh1
Elite |
19-Jan-2026 12:44
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Thank you,... How are you able to gauge that NTT DCR has over-delivered before the first official financial results ? I think this first result will be an anchoring tool to help gauge if we shld pour in more into NTT DCR.
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Alignment
Elite |
18-Jan-2026 09:46
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I know they are a different subset of REIT. What I am comparing them on is the guidance they gave at IPO versus what they have subsequently delivered. Daiwa have underdelivered versus what they promised. In contrast NTT so far has overdelivered. What is a commonality is that they are both managed by Japanese managers which is somewhat unusual for SGX listed REITs. So perhaps Daiwa' s situation has tainted the NTT share price.
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investshare
Supreme |
17-Jan-2026 19:47
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One question I have on DC reit.
How do the company manage the risk of obsolescence? You see Nvidia coming faster and better chips, in a year or two the existing DC will likely very hard to compete with new DC with new chips. |
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chengwh1
Elite |
17-Jan-2026 11:57
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Thank you, bro,.. Emm,... Daiwa owns a different asset class, and I wouldn' t compare Daiwa with NTT DCR. NTT DCR has yet to prove its ability to fulfill what it said,... we will need a few reporting rounds to gauge better. JMHO,... Had the data centre assets been located inside Japan, I would think investors would be more receptive. But again,... that' s just gut feel, having invested in ' a number of successful REITs' in my investing journey,.... One of the questions posed in the SIAS talk last few days made this insight come into me  ,... it' s a revelation,...
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Alignment
Elite |
16-Jan-2026 19:35
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Yes I agree with you, NTT will have to prove itself. Daiwa' s operational performance since IPO has been disappointing. So far NTT has done better but let' s see.
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chengwh1
Elite |
16-Jan-2026 17:52
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The mkt doesn' t seem to trust that this REIT can perform in spite of all the publicity activities that been carried out by Mr Ozaki and Team,.... participating in REITs-On-The-Move SIAS talk 2 days ago, and I think there will be more coming. Lstening closely to the talk 2 days ago and using my gut feel,... I think mkt is skeptical abt the data ctrs located outside of SG, with ONLY one DC inside SG and the rest in Europe and in The USA. This REIT has to prove itself over a few reportings before mkt is convinced,........
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Alignment
Elite |
15-Jan-2026 20:00
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Should be trading at a higher price given what the other DC REITS are yielding. The underlying business is pretty strong. Guess the market still does not trust Japanese managers. | ||||
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Joelton
Supreme |
14-Jan-2026 09:45
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UOBKH initiates coverage on NTT DC Reit with &lsquo buy&rsquo , forecasts 41% upside
The analyst points out that the Reit has enjoyed a &lsquo steady rise&rsquo in portfolio occupancy
[SINGAPORE] NTT DC Reit : NTDU -0.98% has the highest distribution yield among data centre real estate investment trusts (Reits), said UOB Kay Hian (UOBKH) on Thursday (Jan 8), as it initiated coverage with a US$1.42 target price.
The Reit&rsquo s potential acquisition of a hyperscale data centre in Germany could also enhance its presence in Tier 1 markets, said analyst Jonathan Koh. He forecast a 40.6 per cent upside from its US$1.01 closing unit price on Wednesday.
Despite being Singapore&rsquo s biggest initial public offering (IPO) in four years, NTT DC Reit&rsquo s units ended their first week of trading 5 per cent below the IPO price of US$1 in July.
Still, Koh pointed out that it has enjoyed a &ldquo steady rise&rdquo in portfolio occupancy, which was up 0.8 percentage point quarter on quarter at 95.1 per cent in September.
The Reit is &ldquo evaluating the potential acquisition of a Frankfurt hyperscale data centre with net property income yield of 6 per cent and weighted average lease expiry (Wale) of 10 years in the first half of 2026&rdquo .
Tesla-driven positivity ahead
NTT DC Reit&rsquo s largest tenant is a &ldquo technology powerhouse&rdquo &ndash a Fortune 100 US electric vehicle (EV) company widely believed to be Tesla &ndash which could be a key driver of its 2026 fortunes, said Koh. It accounted for 29.9 per cent of base rent as at September, with leases having Wale of eight years and rental escalation at 3 per cent.
&ldquo The EV company is expanding its autonomous taxi service to new geographical areas,&rdquo he said. &ldquo It has recently unveiled a new product, an autonomous humanoid robot, which could create more demand for NTT DC Reit&rsquo s data centre capacity.&rdquo
He noted that the Reit has a global right of first refusal over its sponsor&rsquo s stabilised data centres, covering 123 properties with a capacity of 2,000 megawatts (MW), of which 130 MW are prioritised targets for execution over the next three to five years.
Meanwhile, three of its data centres expanded net leased capacity due to scheduled ramp-ups by existing tenants and the addition of new tenants. As a result, their occupancies proved 0.6 percentage point, 0.8 percentage point and 3.4 percentage points to 95.7 per cent, 98.1 per cent and 93.4 per cent.
That increase is set to continue in the remainder of FY2026 and into 2027, said Koh.
&ldquo Overall, portfolio occupancy could improve by as much as 2.5 percentage points to 97.7 per cent in H2 FY2026.&rdquo
The Reit also posted positive rental reversion of 5.1 per cent in Q2 FY2026.
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SmallSmall
Supreme |
12-Jan-2026 11:47
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UOB Kay Hian starts NTT DC REIT at &lsquo buy&rsquo , sees 42% upsideFelicia TanMon, Jan 12, 2026 &bull 11:32 AM GMT+08 &bull &bull 3 min rea
Analyst Jonathan Koh has a target price of US$1.42 ($1.83), which represents a 42% upside to the REIT&rsquo s IPO and last-closed price of US$1 at Jan 12. Photo: NTT DC REIT
UOB Kay Hian analyst Jonathan Koh has initiated &ldquo buy&rdquo on NTT DC REIT on Jan 9 as he likes the REIT&rsquo s &ldquo lucrative yield&rdquo and sees incremental upside from asset injections. &ldquo NTT DC REIT has a global right of first refusal over its sponsor&rsquo s stabilised data centres covering 123 properties with a capacity of 2,000MW, of which 130MW are high-conviction potential acquisitions for execution over the next three to five years,&rdquo says Koh. |
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