Dear readers, the newly launched NTT DC REIT is now open for subscription, offering investors exposure to the fast-growing data centre sector. On the other hand, Keppel DC REIT is a more established name, known for its strong track record and global portfolio. If you’re considering an investment in a data centre REIT, it’s worth comparing both options to understand their differences in portfolio size, geographic exposure, yield, and growth strategies. In the sections below, we’ll explore how these two REITs stack up, so you can make a more informed investment decision.
NTT DC REIT
IPO-listed July 14, 2025 on SGX, raising approx. US$773–864 M, market cap around US$1.08 B–1.6 B
Portfolio of six data centres ✓: 4 in USA, 1 Austria, 1 Singapore; freehold except one leasehold until 2070
Occupancy ~94–97%, WALE ~4.8–5 years
Sponsor: NTT Ltd retains ~20–25%; cornerstone investors include GIC (~9.8%) and others .
Keppel DC REIT
Established data centre REIT with 25 facilities across APAC & Europe; portfolio valued near S$5 B
Backed by Keppel Corporation and sponsor pipelines in Asia .
📊 Financial Performance & Yield
Metric
NTT DC REIT
Keppel DC REIT
Distribution Yield
~7.0%–7.8% initial forecast
~4.3%–5% yield; DPU ~9.45 Scts in FY24 (~4.9 Scts 2H24)
Revenue / Profit Growth
n/a (pre-listing); portfolio revenue ~US$161 M (9M FY25 pro forma)
FY24: revenue +10.3% to US$310 M, net profit >+100% to US$313.9 M
IPO provides capital recycling model, using sponsor’s pipeline (~2,000 MW) to fuel growth
Geographically balanced between U.S., Europe, and Asia ─ strategically launching in Singapore for regulatory/tax benefits
Forecast distribution ~90% payout; gearing headroom supports accretive acquisitions
Keppel DC REIT
Growing via acquisitions including Tokyo DC 1, KDC Singapore 7 & 8; strong rental reversions (30–40%)
ESG focus: signed Climate Neutral Data Centre Pact; targets for renewables .
Has raised funds actively, e.g., opportunistic divestments at premiums .
Risk Factors
NTT DC REIT
Post-IPO unproven – no track record as listed REIT.
Exposure to U.S. markets may face oversupply– vacancy concerns
Interest rate shifts and FX fluctuations could impact yield despite 70% debt hedge
Keppel DC REIT
Operational hiccups: Guangdong D centres saw rental defaults and allowances impacting earnings .
Costs increased 36–85% due to expenses, finance costs .
Needs continued execution on pipeline to offset China-related headwinds
Community Insights (Reddit Highlights)
Keppel DC REIT has a solid long-term return (~+12.3% annualised since 2014)
Investors see data-centre REITs as bond-like, with strong structural fundamentals; leverage and interest rates must be monitored
On NTT: “NTT imo is a good company”—though site-level culture varies
Who’s Best for What?
Investor Profile
NTT DC REIT
Keppel DC REIT
Yield-seekers
High starter yield (~7–7.8%) post-IPO
Moderate stable yield (~4.3–5%), growing DPU
Track record preference
New listing (no public history)
Established history with transparent earnings
Diversification
Global mix (US, Europe, Singapore)
Focused on APAC & Europe
Growth potential
Sponsor pipeline offers expansion upside
Strong existing pipeline, proven acquisition track record
Risk tolerance
Higher—IPO execution, U.S. market risks
Lower—legacy portfolio but exposure to China operations risk
Key Takeaways
NTT DC REIT is a fresh, high-yielding entrant with strong potential but execution risk; key watchpoints include IPO reception, global occupancy, and ability to scale acquisitions.
Keppel DC REIT offers a solid, seasoned track record with moderate yield and proven results, though it’s also navigating cost pressures and selective portfolio hiccups.
For yield-focused, higher-risk investors, NTT DC REIT’s projected 7%+ yield is compelling.
For stability- and history-oriented investors, Keppel DC REIT provides a dependable income stream with growth potential.
