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Will NTT DC Reit recover from its weak debut?

Concerns about unsustainable yields, tenant concentration risks, and the direction of long-term global interest rates may be weighing on its performance

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Ben Paul

Ben Paul

Published Mon, Jul 21, 2025 · 07:00 AM
    • Data centre-focused S-Reits Keppel DC Reit and Mapletree Industrial Trust have delivered triple-digit total returns over the past decade, despite a steep rise in interest rates since the pandemic.
    • Data centre-focused S-Reits Keppel DC Reit and Mapletree Industrial Trust have delivered triple-digit total returns over the past decade, despite a steep rise in interest rates since the pandemic. PHOTO: TAY CHU YI, BT

    [SINGAPORE] It was a good week for investors in the Singapore market, except perhaps for those who took a chance on the initial public offering (IPO) of NTT DC Real Estate Investment Trust (Reit).

    The much-hyped data centre trust, which began trading last Monday (Jul 14), ended the week at US$0.95 – or 5 per cent below its IPO price of US$1.

    With its focus on a hot asset class, and GIC among its cornerstone investors, NTT DC Reit drew a lot of attention when it launched its IPO. Based on the nearly 599.9 million units available, the offering was approximately 4.6 times subscribed. An additional 51.5 million units were over-alloted.

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