The new lease incorporates fixed 5% annual rent escalations, providing contractual organic income growth over the three-year lease term commencing on April 1.
“We are pleased to have achieved stronger than expected rental reversion, which would be accretive to NTT DC REIT’s income," says Yutaka Torigoe, CEO of the manager.
"Transitioning to a longer-term lease at higher rent further strengthens the visibility and stability of our cash flows.
"Looking ahead, we remain focused on delivering resilient performance while leveraging the strong pipeline of opportunities within our Sponsor and the wider NTT group to drive sustainable, long‑term value creation,” he adds.
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Following the renewal, NTT Singapore will continue to anchor SG1 with 2.7 MW of contracted capacity, which accounts for 31% of SG1’s capacity.
NTT DC REIT units closed at 92 US cents, up 0.55%.
