NTT's Data Center Real Estate Investment Trust Concludes Its Initial Public Offering in Singapore at a Total Value of SGD 773 Million, without any Change in Its Unit Price
Singapore's technology sector received a significant boost this week with the successful initial public offering (IPO) of NTT DC Real Estate Investment Trust (REIT), a data center real estate investment trust. The IPO, which raised approximately $773 million, marks the largest REIT IPO on the Singapore Exchange in a decade and provides investors an opportunity to access high-quality, stabilized data center assets.
NTT DC REIT, a subsidiary of the NTT Group, owns a portfolio of six data centers across the US, Austria, and Singapore. The portfolio, worth about $1.6 billion, includes data centers in Ashburn, Virginia; Sacramento, California (three sites); Vienna, Austria; and Singapore. The combined capacity of these data centers is 90.7 megawatts, spanning more than 41,000 square meters of space with an occupancy rate ranging from 90% to 97%.
On its first trading day, NTT DC REIT finished unchanged at $1, giving it a market capitalization of roughly $1 billion. The units were priced at $1 per unit in the IPO and rose about 3% to $1.03 on their debut, later trading around $1.02. The IPO offered a yield of approximately 7.5%, making it attractive for income-focused investors.
Singapore’s sovereign wealth fund, GIC, is the second-largest shareholder in NTT DC REIT after its sponsor NTT, holding a 10% stake and acting as a cornerstone investor in the IPO. NTT, the parent company, retains the largest shareholding at 25%, continuing to manage the REIT.
Alongside the IPO, a financing facility of $585 million was arranged, led by Bank of America and Mizuho Bank. Among the cornerstone investors in NTT DC REIT are hedge funds Ghisallo Capital Management and Pinpoint Asset Management.
The IPO of NTT DC REIT has boosted Singapore's subdued listing market this year. So far in 2025, Singapore has only seen three listings raising roughly $840 million, with more than 90% of that amount coming from NTT DC REIT's IPO.
The growth of AI and digital infrastructure is expected to drive demand for data center services, making NTT DC REIT an appealing investment for many. The portfolio generated 51% of its total monthly base rent from global cloud service providers and tech giants in 2024. The weighted average lease expiry for NTT DC REIT's portfolio is 4.8 years, indicating a stable revenue stream for the REIT.
However, the company did experience a 9% decrease in revenue to $178.7 million in the 12 months through March. This decrease was attributed to a change of the anchor tenant at one of its California data centers, resulting in a vacancy period of up to 6 months.
Despite this, the IPO of NTT DC REIT marks a significant milestone for Singapore's technology sector and the Singapore Stock Exchange. It joins other prominent data center REITs on SGX such as Keppel DC REIT and Digital Core REIT, further strengthening Singapore's position as a hub for technology investments.
Japan's finance sector might take an interest in NTT DC REIT, given its successful IPO in Singapore and the opportunity for investors to access high-quality data center assets. The technology sector in Singapore witnessed a significant boost with the IPO, as NTT DC REIT, a subsidiary of the NTT Group, is now listed on the Singapore Exchange, providing access to a portfolio of six data centers across multiple countries, including Japan, where the demand for AI and digital infrastructure could drive future growth.
