NTT DC REIT’s 9M FY25/26 update yesterday reveals a resilient and growing business, enabling it to achieve Distributable Income of US$36.3 million, on the back of strong sponsor backing, stable financial performance, robust capital management, and promising operational momentum. Robust data center growth and moderating rates helped as well, according to an analysis by Minichart which rated the REIT as “Accumulate On Weakness”.
In July 2025, NTT DC REIT debuted on the Singapore Exchange (SGX), raising US$ 773 million, marking Singapore’s largest IPO in four years since Digital Core REIT’s $977 million debut in 2021.
Sponsored by NTT Limited, one of the world’s largest data center providers, NTT DC REIT shows growth potential across its global portfolio comprising six data centers located in Northern California, Vienna and Singapore, with a total design IT Load of 90.7 MW.
NTT DC REIT is currently in discussions with its sponsor to amend the management fee structure with changes targeted by 1H FY26/27. As well, the sponsor has implemented a new scheme which is expected to deliver strong leasing performance.
Key statistics for 9M FY25/26 include gross revenue at US$106.0 million, outperforming the adjusted IPO forecast of US$104.2 million by 1.7%. Its Net Property Income (NPI) dipped slightly to US$47.1 million, due to lower occupancy and softer power revenue, but this was partially offset by higher tenant fit-out revenue.
Occupancy demand was robust with positive rent reversion amid higher occupancy rate at 97.3% (including committed leases yet to commence), up from 94.6%, according to the analyst note. Occupancy rate, currently at around 94-95 per cent, is expected to rise in 4Q FY25/26 once the committed leases commence. And with less than 12 per cent of leases expiring in the period in review, occupancy rate is expected to be stable, reinforced by average lease commitments of 4.4 years.
Its total debt stands at US$523 million, with no maturities in the next three financial years. With US$201 million headroom, it has substantial leverage to make future acquisitions or asset enhancements. Its debt/EBITDA ratio of 6.1x is considered healthy relative to sector standards.
The DC REIT’s top 10 customers account for 75.5 per cent of monthly base rent – among them are Fortune 100 companies and the NTT Group, all with excellent credit ratings.
Additionally, as of 1st January 2026, the SG1 data center in Singapore is fully powered by renewable energy while VIE1 in Vienna supplies waste heat to the district heating network, contributing to local decarbonization.
NTT Limited is the global data center arm of NTT DATA, Inc., part of the NTT Group. NTT Global Data Centers operates 92 sites with 2,300+ MW capacity, making it the third largest data center provider globally (excluding China). The REIT is also backed by Singapore’s sovereign wealth fund GIC.