Data centre Reit NTT DC closes flat after lukewarm debut on SGX

SINGAPORE – NTT DC real estate investment trust (Reit), the largest Reit listing on the Singapore Exchange’s (SGX) mainboard in 10 years, closed at its offer price of US$1 following a lukewarm debut on July 14.

The counter opened at US$1.02 at 2pm, and peaked at US$1.03 about five minutes into trading, before closing at US$1. More than 118 million shares had changed hands by market close.

NTT DC Reit’s primary backer NTT is part of Japan’s telecommunication giant Nippon Telegraph and Telephone Group.

It is the third pure-play data centre Reit listed on SGX, after Keppel DC Reit and Digital Core Reit.

It comprises six operational data centres in the US, Austria and Singapore, which are together valued at around US$1.57 billion (S$2 billion).

NTT DC Reit’s trading debut came four days after its IPO closed with enthusiastic support.

It offered 599.89 million units altogether, with around 569.9 million units for institutional and international investors, and 30 million units for the public in Singapore. The Reit is forecasting an annualised distribution yield of 7.5 per cent for the nine-month period from July 1, 2025, to March 31, 2026.

The public tranche of 30 million units, priced at $1.276 per unit, was

about 9.8 times oversubscribed

.

Overall, the IPO was about 4.6 times oversubscribed.

NTT remains the largest stakeholder with a 25 per cent stake, followed by Singapore’s sovereign wealth fund GIC, which has a 9.8 per cent stake.

Mr Nicolo Magni, head of global banking in South-east Asia and South Asia at UBS – which served as the IPO’s underwriter – said Singapore’s data centre sector benefits from the country’s reputation as a regional hub with a stable political environment and robust legal framework.

The sector also has good access to expertise and capital from local and international institutions, as well as private equity and infrastructure funds, he said.

“Singapore’s Reit market is also conducive for data centre players seeking a public investor base who are familiar with the asset class,” he added.

Despite the overall positive outlook for Singapore Reits, data centre Reits’ performance in particular has been mixed. Keppel DC Reit rose 13.3 per cent over the last year, but fell 3 per cent over the last month to $2.21 per unit, while Digital Core Reit has dropped 15 per cent over the last 12 months to $0.53 per unit.

Mr Gerald Wong, founder of investment advisory platform Beansprout, cautioned against making investment decisions based solely on a Reit’s popularity. He noted that while NTT DC Reit was oversubscribed, the public offer represented just 5 per cent of the total offer.

“Investors should focus on the Reit’s underlying fundamentals, such as asset quality, risks and distribution yield, when evaluating its investment merits.”

NTT DC’s listing comes at a time when SGX is beginning to see stronger interest from firms keen to list here after a sluggish first half in 2025.

Local software firm Info-Tech Systems debuted on the mainboard on July 4.

Local interior fit-out firm Lum Chang Creations also launched its IPO on July 9, and is expected to begin trading on the Catalist board on July 21.

Investors can also look forward to another listing, after mainboard-listed accommodation provider Centurion Corporation announced its spin-off Reit,

Centurion Accommodation Reit

, on July 14.

Its $1.8 billion portfolio comprises 14 properties in Singapore, Australia and Britain.