NTT DC REIT (NTDU) Q1 2027 TU earnings summary

Executive summary

• Distributable income for 1Q FY26/27 exceeded IPO projection by 10.6%, driven by proactive cost management and higher rental reversions.

• Net property income rose 5.0% above IPO projection, supported by lower real estate taxes, operational costs, and favorable FX impact.

• Portfolio occupancy increased to 95.9%, with committed leases expected to bring occupancy to 99.2%.

• Strong balance sheet with 100% unencumbered assets and no debt maturities in the next two years.

Financial highlights

• Gross revenue for 1Q FY26/27 was US$58.1m, slightly below IPO projection by 1.1%.

• Net property income reached US$27.9m, 5.0% above projection.

• Distributable income was US$22.6m, 10.6% above projection.

• Profit attributable to unitholders was US$0.4m, reversing a projected loss.

• Aggregate leverage stood at 31.0%, with a weighted average cost of debt at 3.98%.

Outlook and guidance

• Majority of committed leases are expected to start contributing to revenue in 3Q FY26/27.

• Management fee structure may be revised to enhance alignment with unitholders, with an EGM targeted by 3Q FY26/27.