🚀 Why Data Centre S-REITs Are Under Pressure - Even With Booming AI Demand

Keppel DC REIT (AJBU) and NTT DC REIT USD (NTDU) are trading near 52-week lows despite strong structural demand.

Here is what is happening 👇

📉 Macro & Interest Rate Headwinds

• Yield competition: Higher US Treasury yields mean risk-free bonds look more attractive, pulling capital away from dividend stocks.

• Refinancing costs: Older, cheaper debt is maturing and being replaced at today’s higher rates. This directly reduces distributable income.

🏢 What Affects Each One

• NTT DC REIT (NTDU): Still finding its footing post-IPO, plus US dollar currency swings on SGX.

• Keppel DC REIT (AJBU): Higher overall borrowing costs and market caution around specific asset allowances in Guangdong.

💡 The Key Insight

• Business remains strong: Occupancy stays above 98%, and AI plus cloud growth keeps pushing rental income higher.

• It’s pricing, not performance: The drop reflects higher capital costs across the sector, not weakening demand from tenants.

🤔 With prices at these levels, are you adding to your positions or waiting for more clarity?

Not financial and investment advice. Do your own due diligence ☺️.

$NTT DC REIT USD(NTDU.SG)$Keppel DC Reit(AJBU.SG)