NTT DC REIT, a pure-play data center real estate investment trust, reported its distributable income for the first quarter (Q1) of FY26/27 exceeded its initial public offering (IPO) forecast by 10.6 per cent, as lower property taxes and operating costs as offset revenue came in below expectations. NTT attributed the stronger net property income to lower real estate taxes, operational costs and a favourable foreign exchange impact.
NTT DC REIT’s current portfolio comprises six data center assets across the US, Singapore and the Europe, Middle East and Africa (EMEA) region with a combined design IT load of 90.7 MW.
The REIT’s total debt increased to US$ 537 million by Jun 30, from US$ 517 million in March. NTT made its trading debut on the Singapore Exchange in July 2025 at an IPO price of US$1. Its units closed 0.5 percent, or US$ 0.005, higher at US$ 0.935 on Aug 12, before the results were announced as detailed in NTT’s 1Q FY26/27 Business Update.
Gross revenue was US$ 58 million, 1.1 percent below the IPO forecast of US$ 58.7 million. The shortfall was partly related to the timing of lease commencements, with most of the committed leases yet to contribute to revenue during Q2.
Distributable income for Q1 was US$ 22.6 million, compared with the IPO projection of US$ 20.5 million. Net property income was also ahead of expectations at US$ 27.9 million, 5 percent higher than the US$ 26.6 million forecast at the time of the REIT’s listing.
Portfolio occupancy by IT load increased to 95.9 percent as of June 30 from 95.1 percent March 31, while occupancy including committed contracts stood at 99.2 percent. The portfolio had a weighted average lease expiry of 4.3 years, with rental reversion the change in rents on renewed or new leases compared with previous rents at 13.4 percent.