Singapore-listed NTT DC REIT is mulling the purchase of data centers in Frankfurt and Tokyo, according to Yutaka Torigoe, CEO of the REIT manager during a webinar with potential investors yesterday. The proposed acquisitions are part of the real estate investment trust’s (REIT) growth strategy to increase Tier 1 market exposure through acquisitions of high quality data centers from its sponsor, NTT Data Center’s global pipeline of 2,000 MW of data center capacity.
However, Yutaka admitted that the acquisitions will take some time as they are waiting for the right timing. He projected that a clearer picture would emerge in May when the US-Iran war would hopefully end. “Our portfolio and share price will be better in May after the war,” he said.
He added that the REIT’s acquisition would broadly mirror NTT Data Center’s geographical exposure namely 40 per cent US, 30 percent Europe and Asia respectively. Factors taken into account when assessing acquisition targets include quality, location, types and diversity of tenant mix, and portfolio fit.
As to the electricity price increase due to the war, Yutaka said that under most of its lease agreements, power increases would be passed on to its customers except where the agreements stipulate that the power price and data center rental are priced into a single package. This would not affect its Singapore data center, SG1, which utilizes 100 per cent renewable energy. But any increase will not take effect immediately and would take about six months to take effect, the CEO said.
Starting this month, the rent reversion in SG1 was 23 per cent to US$ 474 per kilowatt from US$385 per kW with 5 per cent annual rent escalation for the next three years. As a result of the “impressive” uplift in rental rates, DBS Group Research has kept its “buy” call and US$1.20 target price for the REIT.
Consequently, the REIT is expected to enjoy an estimated increase of US$ 1.5 million in rental income in the first year alone, translating to a 1.5% upside to distributable income for FY2025 to FY2026, as reported by The Edge, Singapore. Following the renewal, NTT Singapore will continue to anchor SG1 with 2.7 MW of contracted capacity, which accounts for 31 per cent of SG1’s capacity.
Currently, NTT DC REIT which was listed in July 2025, owns six data centers located in the US, Singapore and Europe valued at about US$1.5–US$1.6 billion. The mostly freehold assets have an average occupancy rate of 94.3 per cent and a combined 90.7 MW of IT load.