Broker: DBS
Date of Report: Not specified in the excerpt
Excerpt from DBS report.
Report Summary
- Stock Focus: NTT DC REIT
- Action: BUY (Reiterate)
- Target Price: USD1.20
- Key Highlights:
- NTT DC REIT secured a 3-year lease extension at its Singapore asset (SG1) with its sponsor, achieving a 23% positive rental reversion and a fixed 5% annual rental escalation.
- The lease renewal is expected to add approximately USD1.2 million in rental income in the first year, with a 1.5% upside to FY25/26 distributable income despite a minor dip in occupancy.
- DBS cites strong operational execution, continued robust demand in Singapore’s data centre market, and the REIT’s proactive management as reasons for confidence in the stock.
- Forward yield is estimated at 8.2%, the highest among data centre-focused S-REITs.
Actionable Insight: Investors are advised to BUY NTT DC REIT with a target price of USD1.20, supported by strong rental growth, solid fundamentals, and positive leasing momentum.
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.sg
