NTT DC REIT 1H FY25/26 revenue at US$49.5 million, distributable income at US$17.4 million on higher tenant fit-out revenue

NTT DC REIT posted distributable income of US$17.43 million for the half-year ended Sept 30, 2025 (1H FY25/26), 3.3 per cent above its adjusted IPO forecast, helped by incremental tenant fit-out revenue that lifted the trust’s top line.

Gross revenue came in at US$49.52 million, surpassing projections by 1.8 per cent. Net property income reached US$22.57 million, 1.7 per cent ahead of forecast. The distribution per unit (DPU) attributable to the period was 1.69 US cents, versus the forecast 1.64 US cents. In line with the stated policy, no interim distribution was declared; the first payout, covering 28 Mar 2025 to 31 Mar 2026, is scheduled on or before 29 Jun 2026.

Revenue from colocation and power services edged 1.1 per cent above expectations, while other operating income rose 16.7 per cent to US$2.4 million, reflecting additional customisation works requested by tenants. The higher fit-out income was largely offset by a corresponding rise in tenant fit-out expenses, alongside increases in property taxes and management fees.

Portfolio occupancy by IT load improved 0.8 percentage point to 95.1 per cent after 0.5 MW of net leasing in the California (CA1-3) and Virginia (VA2) data centres and 0.3 MW at Singapore’s SG1. Aggregate leverage stood at 32.5 per cent, while the interest-coverage ratio was 4.1 times, with no refinancing due until FY Mar 2029. All six IPO properties remain unencumbered.

The manager noted that global data-centre demand should stay strong, citing structural drivers such as artificial intelligence, cloud adoption and data growth, particularly in North America, Europe and Asia. It added that NTT DC REIT will continue to seek yield-accretive acquisitions in Tier 1 markets to diversify its tenant base and geography, supported by its sponsor NTT Limited’s global platform.

Chief executive Yutaka Torigoe said the maiden results highlight the resilience of the portfolio and that the trust will focus on disciplined capital management and selective expansion to sustain long-term value for unitholders.