NTT DC REIT (NTDU) BofA 2025 Asia Pacific Conference summary

Market and industry outlook

• Global data center (DC) market is forecast to grow at a 27.5% CAGR from 2024–2027, with rising capacity absorption and declining vacancies across regions.

• Hyperscale and wholesale colocation prices are expected to increase across Americas, EMEA, and APAC through 2027.

• Data centers have outperformed other real estate classes in total returns over the past three years, driven by AI, cloud adoption, and digital transformation.

• AI and cloud are major growth drivers, with global tech giants doubling capex and AI revenues forecast to grow at a 77% CAGR.

Sponsor and portfolio overview

• Backed by a leading global sponsor, the 3rd largest DC provider outside China, with over 2,200 MW capacity across 91 sites worldwide.

• The sponsor holds a 25% stake in the REIT, aligning interests and providing a robust acquisition pipeline via a global right of first refusal (ROFR).

• The REIT’s portfolio comprises six assets across the US, EMEA, and APAC, totaling 90.7 MW design IT load and 94.3% occupancy.

• Assets are geographically diversified, including top markets in Northern Virginia, Northern California, Vienna, and Singapore.

Asset quality and customer base

• All properties are carrier-neutral, Tier III-equivalent, and meet stringent operational and technical standards.

• The customer base is balanced between hyperscale (51%) and colocation (49%), anchored by Fortune 100 companies and high credit quality tenants.

• Weighted average lease expiry (WALE) is 4.8 years, with no single year exceeding 20% of expiries and a 98.3% average customer retention rate over three years.