NTT DC REIT (NTDU) H1 2025 earnings summary

Executive summary

• 1H FY25/26 financial results exceeded adjusted IPO forecasts, driven by strong operational performance and higher revenue from colocation and power services, especially in Austria and Singapore.

• Listed as a Singapore REIT, the group owns six data centers across the US, Austria, and Singapore, with an appraised portfolio value of US$1.5 billion as of 30 September 2025.

• The period covered is from 28 March 2025 (constitution) to 30 September 2025, marking the first financial results since IPO.

• Portfolio occupancy increased to 95.1%, with positive rental reversion of 5.1% and 41.9% of FY25/26 expiries renewed.

• The group aims for long-term value through a diversified, mission-critical data center portfolio and intends to distribute 100% of annual distributable income until March 2027.

Financial highlights

• Gross revenue reached US$49.5m, up 1.8% vs. adjusted IPO forecast; net property income was US$22.6m, up 1.7%.

• Distributable income was US$17.4m, 3.3% above forecast; distribution per unit was 1.69 US cents, annualized yield of 7.82%.

• Net asset value per unit was US$0.97 as at 30 September 2025.

• Total assets increased 5% to US$1,608m; net assets attributable to unitholders rose 2.5% to US$1,002m.

• Basic and diluted earnings per unit were both (0.02) US cents, reflecting a small net loss after tax.

Outlook and guidance

• Manager aims to reduce portfolio concentration risk and improve profitability through higher rental reversions and new leasing incentives.

• ESG initiatives include sourcing green power for customers, targeting 100% net-zero (Scope 2) for SG1 by 2026.

• Global data center demand remains robust, driven by AI, cloud, and digital transformation.

• The group is positioned to capture growth opportunities, focusing on reducing tenant concentration and increasing geographic diversification.