NTT DC REIT has made its trading debut on the Singapore Exchange (SGX) with a market capitalisation of approximately US$1.03 billion. Sponsored by NTT Limited, part of the Japanese IT and telecommunications giant NTT Group, the real estate investment trust (REIT) offers a portfolio of six institutional-grade data centres located in the United States, Austria, and Singapore. These centres boast a 94.3% occupancy rate and are valued at $1.6 billion.
The REIT is projected to deliver annualised distribution yields of 7.50% for the nine months ending in 2026 and 7.80% for the financial year 2026/27, based on an offer price of $1.00 per unit. This launch marks a significant addition to the SGX, broadening the scope of AI-related investments available to traders.
The debut of NTT DC REIT comes amidst a backdrop of strong performance in the industrial sector. The FTSE ST Industrials Index has outperformed the Straits Times Index (STI) in 2025, delivering a 17% total return. This growth is driven by global supply chain shifts, increased AI-driven productivity, and a robust pipeline of construction projects. Notably, ST Engineering has emerged as the top performer within both the FTSE ST Industrials Index and the STI, achieving a 78% total return.
As the market continues to evolve, the introduction of NTT DC REIT is expected to attract further interest in data centre investments, potentially influencing future market dynamics.
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