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NTT DC REIT: Ride the Global Data Centre Boom with Yield‑Rich US$1 B SGX Debut Backed by NTT & GIC

Posted on July 8, 2025 at 8:37 am (GMT+8)

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NTT DC REIT IPO Overview


NTT DC REIT IPO Details

Purpose of IPO

NTT is spinning off six data centres (valued at approximately USD 1.57 billion) into a REIT to raise up to USD 864 million. Proceeds will support capital recycling, expansion, and unlocking value from data centre assets — indicating a growth-driven IPO.

Oversubscription

The IPO is in the book-building phase; actual oversubscription figures are not yet available. However, strong cornerstone investor interest suggests high demand.

Dividend Commitment

  • Jul 2025 – Mar 2026: 7.0% to 7.5%
  • FY2026: 7.29% to 7.80%

IPO Placement & Shares

  • Placement Units: 599.89 million
  • IPO Proceeds: USD 773 million (excluding USD 51.5 million over-allotment)
  • Total Outstanding Units: Over 1 billion

Conclusion

Given size, anchor demand, and dividend yield, the IPO is likely to perform well on listing day.

Investors & Subscription Strength

  • NTT Ltd. (Sponsor): Retains ~25% post-IPO
  • GIC (Singapore): USD 101 million (~9.8%)
  • Others: AM Squared, Viridian, Pinpoint, Ghisallo Capital, Hazelview, UBS-managed funds

Cornerstone tranche: 16.8% of total offering — strong signal.

Investment Banker / Underwriter / Sponsor

  • Bookrunners: Bank of America, UBS, Mizuho, Citigroup, DBS
  • Sponsor: NTT Ltd. (subsidiary of Nippon Telegraph and Telephone Corp)

Top-tier banks and a globally recognized sponsor suggest a robust IPO debut.

Company Overview

Business Model

Owns and manages data centres across the US, Europe, and Singapore. Mission-critical locations with high redundancy.

Portfolio

  • Assets: 6
  • Valuation: ~USD 1.57 billion
  • IT Load Capacity: ~80 MW
  • Occupancy: 89% to 99%
  • Locations: USA, Singapore, Austria

Financial Health

  • 9M FY2025 Revenue: USD 161 million
  • Net Loss: USD 6.1 million (from USD 29.5 million YoY)
  • FY2026: Revenue USD 167.3 million, NPI USD 75.9 million, DI USD 57.3 million
  • FY2027 DI Forecast: USD 80.4 million
  • Payout Ratio: ~90%

Market Position

Backed by NTT Group (~2,200 MW global capacity). Offers exposure to high-demand, low-supply infrastructure.

Management

CEO: Yutaka Torigoe (former NTT Global Data Centers)

Full team in prospectus.

Market & Sector Outlook

a) Global Trends

  • Global market: USD 242.7B (2024), projected USD 584.8B by 2032 (CAGR: 11.7%)
  • Singapore: Top Asia hub

b) IPO Timing

  • Window: July 2025
  • Expected Listing: ~July 14, 2025

c) Economic Environment

High demand amid stable/high interest rates. SGX IPO fundraising up 5× YoY (H1 2025: USD 331.6M).

d) Recent Developments

SGX supports REIT IPOs via tax rebates. NTT DC REIT is SGX’s largest REIT IPO in a decade.

e) Market Conditions

Stable REIT demand, defensive sector, positive institutional signals.

f) Prospectus Analysis

Transparent structure, stable occupancy, long WALE.

g) Risk Factors

  • Client concentration
  • Compliance/regulatory risks
  • Interest rate sensitivity
  • Currency risk (SGD, USD, EUR)

h) Growth Strategy

  • Capital recycling via NTT pipeline
  • ROFR on sponsor assets
  • DI growth: USD 57.3M (2026) → USD 80.4M (2027)

i) Ownership & Lock-in

  • NTT: ~25%
  • GIC: ~9.8%
  • Expected long-term lock-up by cornerstone investors

Metrics Table

Metric NTT DC REIT Keppel DC REIT Digital Core REIT Industry Avg
P/E Ratio ~13x 12x 14x 13x
Price/Book ~1.2x 1.1x 1.3x 1.2x
Revenue Growth 10–20% 8% 12% 10%
Net Property Margin ~42% 40% 45% 42%
Occupancy Rate 89–99% 88% 95% 91%
Distribution Yield 7–7.8% 7.2% 7.5% 7.3%
Debt to Asset ~30% 32% 29% 31%
WALE (Years) ~5 ~4.5 ~6 ~5

Other July 2025 IPOs

No other IPO on SGX of similar size or sector.

Sector 10-Day Performance

  • Keppel DC REIT: +2.8%
  • Digital Core REIT: +3.2%
  • Mapletree Industrial Trust: +1.5%

Analyst Sentiment

Formal coverage pending, but institutional sentiment is neutral to bullish. Yield up to 7.8% is considered attractive.

Should You Subscribe?

✅ Yes – especially for income-focused or infrastructure investors.

First-Day Price Estimate

Expected: USD 1.05 – 1.10 (5%–10% above IPO price of USD 1.00)

Support: GIC, UBS funds, strong sponsorship

Prospectus


Download NTT DC REIT Prospectus (PDF)

Application Details

Apply via ATMs or internet banking platforms of DBS (POSB), OCBC, and UOB, or through banking apps of DBS and UOB.


#NTT DC REIT

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