NTT DC REIT (NTDU) Citi 2026 Global Property CEO Conference summary

Key highlights and financial performance

• Achieved stable financial performance for 9M FY25/26, with revenue of $104.2m and distributable income of $36.1m, both in line with adjusted IPO forecasts.

• Net property income was slightly below forecast due to lower occupancy and softer power revenue, partially offset by higher tenant fit-out revenue and positive FX impact.

• Maintained a strong balance sheet with 32.5% aggregate leverage, 70% fixed rate debt, and 4.0x interest coverage ratio.

• No debt maturity in the next three financial years, providing financial flexibility and headroom to increase leverage if needed.

• Portfolio is 100% unencumbered, with all loans unsecured, supporting future growth opportunities.

Leasing and operational updates

• Portfolio occupancy increased to 97.3% as of 31 Dec 2025, driven by strong leasing activity and committed backfill, with most new leases commencing from 4Q FY25/26.

• Achieved solid rent reversion of +9.2% for 9M FY25/26, supported by positive pricing momentum.

• In advanced negotiations for a related-party lease at SG1, with expectations of further rent reversion.

• New leasing incentive scheme implemented, securing meaningful backfill at CA1 and CA3.

• SG1 fully powered by renewable energy since Jan 2026; VIE1 supplies waste heat to Vienna's district heating network.

Portfolio and customer profile

• Portfolio comprises six assets across the U.S., EMEA, and APAC, with a total design IT load of 90.7 MW and 94.6% occupancy as of 31 Dec 2025.

• Weighted average lease expiry is 4.4 years, with less than 12% of leases expiring in FY25/26, providing income stability.

• Top 10 customers (excluding sponsor) contribute 62.7% of monthly base rent; top tenants include Fortune 100 companies and global technology firms.

• Average escalation on leases is 2.7%, with 89.4% of rent under fixed escalation terms.