NTT DC REIT (NTDU) H1 2027 earnings summary

Executive summary

• 1H FY26/27 distributable income was US$45.0m and DPU was 4.32 US cents, each 10.0% above IPO projections.

• Portfolio occupancy reached 97.5% by IT load, committed occupancy was 98.1%, and rental reversion was 11.7%.

• Six assets across the U.S., EMEA and APAC had 90.7 MW design IT load and 4.0-year WALE.

• Prior-year comparisons are not meaningful because 1H FY25/26 reflected partial-period operations following acquisition and listing.

Financial highlights

• Gross revenue was US$119.8m, 2.0% above IPO projection; NPI was US$55.8m, 4.9% above projection.

• Property operating expenses were US$64.0m, 0.3% below projection; net finance costs were US$10.4m, 5.5% below projection.

• Profit attributable to unitholders was US$4.7m versus a projected US$2.5m loss; distributable income was US$45.0m versus US$40.9m projected.

• NPI outperformance reflected higher tenant fit-out activity, lower real estate taxes and favorable FX; lower interest rates reduced finance costs.

• Revenue from colocation and power services was US$112.3m; other operating income was US$7.5m, 54.8% above forecast, primarily from tenant fit-outs and leasing activity.

Outlook and guidance

• CA1 and CA3 leases secured in 1H mostly commenced in September and are expected to contribute a full quarter of rental revenue from 3Q FY26/27.

• Focus remains on proactive leasing, positive rental reversions, disciplined accretive growth and prudent capital management.

• Tenant expansion contracts are expected to contribute more meaningfully to revenue from 3Q FY26/27 onward.

• Strong data-centre demand is supported by AI, cloud adoption and digitalisation; constrained power and tighter regulation favor established operational facilities.