NTT DC REIT’s principal investment strategy is to invest in a diversified portfolio of stabilised income-producing real estate assets located globally which are used primarily for data center purposes, as well as assets necessary to support the digital economy.
The term “stabilised, income-producing real estate asset” in relation to the investment mandate above refers to a real estate asset that meets the following criteria as at the date of the proposed offer:
- has achieved a minimum occupancy of at least 80%;
- NTT DC REIT being satisfied that there are no material asset enhancement initiatives required within two years of the acquisition of such asset; and
- is suitable for acquisition by NTT DC REIT taking into account market conditions at the time of the proposed offer.
NTT DC REIT’s key objectives are to provide unitholders with regular and stable distributions and to achieve long-term growth in distribution per unit and net asset value per unit, while maintaining an appropriate capital structure.
The Manager seeks to achieve NTT DC REIT’s key objectives through the following strategies:
- Proactive asset management and asset enhancement strategy – The Manager will actively manage NTT DC REIT’s property portfolio with the objectives of achieving growth in gross revenue and net property income, maintaining optimal occupancy levels and facilitating asset enhancement opportunities. The Manager will look to drive organic growth, build strong relationships with the customers of the properties and seek enhancement and growth opportunities within the properties.
- Investments and acquisition growth strategy – The Manager will seek to achieve portfolio growth through the acquisition of quality income-producing properties that fit within NTT DC REIT’s investment strategy, to enhance the return to unitholders and to pursue opportunities with future income and capital growth. In executing this strategy, the Manager will endeavour to acquire data center properties situated in growth markets for data centers that cater to population and infrastructure growth.
- Capital management strategy – The Manager will endeavour to employ an appropriate mix of debt and equity in financing acquisitions and will adopt financing policies to optimise risk-adjusted returns to unitholders.