Broker: DBS
Date of Report: Not specified (inferred from content)
Excerpt from DBS report.
Report Summary
- Action: BUY recommendation reiterated for NTT DC REIT.
- Target Price: USD1.20.
- Key Highlights:
- NTT DC REIT renewed a 3-year lease at its Singapore SG1 asset, achieving a 23% rental uplift to SGD474 per kW, with a fixed 5% annual escalation for the next two years.
- This renewal is expected to provide an immediate increase of approximately USD1.2 million in annual rental income, translating to an estimated 1.5% upside to FY25/26 distributable income.
- Despite a slight decrease in contracted capacity and occupancy, the earnings impact remains strongly accretive, and the REIT is well-positioned to backfill capacity at potentially higher rates.
- DBS sees NTT DC REIT as the top pick among data centre S-REITs due to strong fundamentals, healthy leasing momentum, and the highest forward yield (~8.2%) in its sector.
Above is an excerpt from a report by DBS. Clients of DBS can be the first to access the full report from the DBS website : https://www.dbs.com
