To The Moon

Technical Analysis (TA)

‌‌‌‌Based on the provided daily candlestick chart for NTT DC REIT USD (SGX: NTDU) up to May 23, 2026: $NTT DC REIT USD(NTDU.SI)$

‌

‌

Trend & Moving Averages‌‌‌

• Moving Average Structure: The chart plots a MACross (20,50,200). The short-term MA (red, 20-day) sits at 0.991. The medium-term MA (blue, 50-day) sits at 0.96. The long-term MA (green, 200-day) is flat lining around 0.98.

• Current Price Action: After attempting a bullish push past the psychological $1.00 mark and peaking above $1.025 in early-to-mid May, the stock experienced a sharp retracement. The price sliced straight down through its 20-day and 50-day moving averages.

• Support Confluence: The latest daily candles show the price hovering right at 0.960. This is a pivotal technical junction. It represents an exact retest of its 200-day moving average and matches the historical red-dashed horizontal support line.

‌

Key Technical Levels‌‌‌

• Immediate Support: 0.960. Holding this line is critical to preserving the medium-term bullish structure. If breached, momentum indicators suggest a potential slide to the next consolidation floor in the 0.900 – 0.925 territory.

• Immediate Resistance: 0.983 – 0.991. The overlapping 50-day and 20-day MAs will now flip to act as dynamic overhead resistance on any short-term rebound.

• Major Resistance: 1.006 and the local high near 1.050.

‌

Fundamental Analysis (FA)‌‌‌

NTT DC REIT positions itself as a premier, high-quality vehicle benefiting from institutional backing:

• Valuation & Pricing: NTDU trades relatively close to its intrinsic asset value. At 0.960, it represents a slight, attractive discount to its initial book value / NAV (~$1.00), giving income investors a fundamentally solid entry point.

• Operational Metrics (FY2025/2026): In its financial year ending March 31, 2026, the REIT reported resilient underlying performance. Its initial 6-asset global portfolio (spanning the US, Vienna, and Singapore) recorded a strong positive rental reversion of +8.5%, driven by escalating data infrastructure needs.

• Lease Stability: The portfolio maintains high structural stability with a Weighted Average Lease Expiry (WALE) of 4.5 years, providing clear cash flow visibility.

• Balance Sheet Health: * Gearing Ratio: Conservative at 35.0%, leaving massive debt headroom (up to the 50% regulatory ceiling) for yield-accretive acquisitions. Hedging & Cost of Debt: Smartly positioned with ~70% of borrowings hedged to fixed interest rates. Maturity Profile: Excellent near-term insulation with zero debt maturities over the next two years; major facilities are safely pushed out to FY2028/2029.

‌

Tailwinds & Headwinds‌‌‌

Tailwinds‌‌‌

• The AI & Generative Workload Secular Boom: Hyperscale cloud providers and tech enterprises are voraciously securing Tier III infrastructure. NTT DC REIT's mix of hyperscale and colocation assets places it in a prime position to capitalize on continuous global rent escalations.

• Colossal Sponsor Pipeline: Sponsored by NTT Limited (part of the NTT Group, the world's 3rd largest global data center provider excluding China), the REIT has access to an incredible 2,200+ MW sponsor pipeline. With ~130 MW already identified for near-term pipelines, NTDU has a visible pathway to organically and inorganically double its initial asset capacity over the medium term.

• Blue-Chip/Sovereign Backing: Anchored by heavyweight cornerstone investors like Singapore's sovereign wealth fund GIC, the trust has premium access to institutional liquidity and competitive capital pricing.

‌

Headwinds‌‌‌

• Geopolitical & Execution Risks: Operating a highly decentralized portfolio across three completely distinct geographic pillars (North America, EMEA, and APAC) introduces localized regulatory compliance friction and tax/tariff complexities.

• Macro Interest Rate Strain: Even with a 70% fixed-rate hedge, any persistent "higher-for-longer" macroeconomic global interest rate environment applies soft upward pressure on marginal refinancing costs for future pipeline acquisitions.

• CapEx Drag for High-Spec AI Power Requirements: As generative AI demands denser power configurations and cooling solutions, older Tier III or retail colocation designs may require ongoing capital expenditures (AEIs) to stay fully competitive with custom-built hyperscale structures.

‌

Performance Since IPO‌‌‌

NTT DC REIT marked a historic moment for the SGX, debuting on July 14, 2025, as the largest REIT IPO in Singapore in a decade, raising US$773 million at an IPO Issue Price of US$1.00.

• Price History Trajectory: On its listing day in mid-2025, the stock experienced a highly orderly, muted debut—closing exactly at its offer price of US$1.00 despite strong public oversubscription, as institutional investors priced in global macroeconomic execution variables. Moving into early 2026, the AI tailwind pushed the stock to local highs around US$1.03 to US$1.05.

• Net Performance: At the current price of US$0.96, the stock is trading just -4% below its IPO baseline.

• Total Return Perspective: Given its steady entry into the distribution payout phase across late 2025 and early 2026 (offering projected yields in the ~6-7% annualized ballpark), the total return for an IPO investor remains roughly at a flat, break-even equilibrium. The current technical pull-back to the 200-day MA represents the first major consolidation test of its public trading history.

Kenny Loh is a distinguished MAS Private Wealth Advisor (RNF: LKK300389588) representing Financial Alliance with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

👉You can join his Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

👉Tag your Tiger Broker account to receive a complimentary Investment Advice or Portfolio Review, DM kennyloh@fapl.sg on the tagging process.

👉Kenny Loh Services https://kennyloh.net

👉Kenny Loh Linkedin https://www.linkedin.com/in/kennyloh-investment-retirement/

👉Follow Kenny Loh on Tiger