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The Perfect Storm of the Stock Market III

Wt_know

By Wt_know,
in Investment & Financial Matters

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Throttle2

Throttle2

Supersonic
(edited)
On 7/15/2025 at 1:02 PM, Wt_know said:

i already got MIT ... basically already cover US Datacentre ...

 

Spin one story , talk until got dragon got tiger and so many uncle auntie kena pluck, muayhahhahhahhah.....

 

if open hawker stall, just ask relatives to queue and post in social media saying bestest , all the uncles aunties kena pluck already. 

No wonder Singapore scam rate so high.  muayhahhahhaha 

Edited by Throttle2
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Volvobrick

Volvobrick

Hypersonic
On 7/15/2025 at 1:01 PM, Throttle2 said:

NTT DC REIT ?

YAWN.....not interested at all.  Give ah! you guys take....muayhahhahhah

Given the track records of US centred REITs, this one is going to trade way below par soon...

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Voodooman

Voodooman

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On 7/15/2025 at 1:04 PM, Throttle2 said:

Spin one story , talk until got dragon got tiger and so many uncle auntie kena pluck, muayhahhahhahhah.....

 

if open hawker stall, just ask relatives to queue and post in social media saying bestest , all the uncles aunties kena pluck already. 

No wonder Singapore scam rate so high.  muayhahhahhaha 

Buy DC, must buy those who are skilled operators. Not another MIT, treating it like RE and kanna screwed. 

i won’t touch this as any fund raising can’t be underwritten by NTT or any big shareholders. That is a big red flag for me. 

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Wt_know

Wt_know

Supersonic
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On 7/15/2025 at 1:32 PM, Voodooman said:

Buy DC, must buy those who are skilled operators. Not another MIT, treating it like RE and kanna screwed. 

i won’t touch this as any fund raising can’t be underwritten by NTT or any big shareholders. That is a big red flag for me. 

bro, what meaning ar? i got MIT leh ... kena screwed liao?  [bigcry] 

so how ... 

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Lala81

Lala81

Hypersonic
On 7/15/2025 at 1:51 PM, Wt_know said:

bro, what meaning ar? i got MIT leh ... kena screwed liao?  [bigcry] 

so how ... 

i also. whole day get screwed 😅

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Voodooman

Voodooman

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On 7/15/2025 at 1:51 PM, Wt_know said:

bro, what meaning ar? i got MIT leh ... kena screwed liao?  [bigcry] 

so how ... 

If it is any consolation, I have MIT as well. 

MIT is still a good REIT with a strong management team, a long term hold for me but I really don’t want them to buy more DC assets. Most of what they bought in the US, the tenants didn’t renew. Are they buying into an asset class that they have zero expertise and industrial knowledge? I don’t know. 

I however take comfort that DC remains a very small portion of their portfolio, so I am not losing sleep. 

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Wt_know

Wt_know

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(edited)
On 7/15/2025 at 2:15 PM, Voodooman said:

If it is any consolation, I have MIT as well. 

MIT is still a good REIT with a strong management team, a long term hold for me but I really don’t want them to buy more DC assets. Most of what they bought in the US, the tenants didn’t renew. Are they buying into an asset class that they have zero expertise and industrial knowledge? I don’t know. 

I however take comfort that DC remains a very small portion of their portfolio, so I am not losing sleep. 

after Covid, every analyst and guru say DC is recession proof assets ... sure win ... must buy best buy

now with simi sai AI here AI there ... hopefully DC is the next big thing lor 

but your point is sibei valid, there are good DC and worst DC ... not all DC are equal

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Voodooman

Voodooman

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On 7/15/2025 at 2:19 PM, Wt_know said:

after Covid, every analyst and guru say DC is recession proof assets ... sure win ... must buy best buy

now with simi sai AI here AI there ... hopefully DC is the next big thing lor 

but your point is sibei valid, there are good DC and worst DC ... not all DC are equal


Some say there is a AI DC bubble. I don’t know but the operators should as they are supposed to be insiders. 

Just to correct my earlier post but majority of DC facilities (5, I think) they bought whose leases were not renewed are from Digital Realty, a big DC player.  

 

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Stary

Stary

Turbocharged
(edited)
On 7/14/2025 at 1:21 PM, Vidz said:

anyone gotten NTT DC REIT IPO?

No thanks. 

Anyway when comes to REIT, i mostly only buy ETF. Too lazy to analyse so many of them.  Buy the whole basket and let the ETF manager do the rebalancing and other corp. actions.  I just wanna relak. 

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Vidz

Vidz

6th Gear
(edited)
On 7/16/2025 at 11:17 AM, Throttle2 said:


$8 is my target as mentioned many times.

@Voodooman The Calculator also has some, i remember.  
 

huat ah!

huat ah!!

let's hold and rally !

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Vidz

Vidz

6th Gear
On 7/16/2025 at 11:30 AM, Wt_know said:

daddy son issue still there wor ....

not going to grow old together with them anyway 🙂

just waiting for right price to 💩... 0.5 p/b blue-chip

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Somewhat1975

Somewhat1975

6th Gear
On 7/14/2025 at 5:15 PM, Volvobrick said:

30 minutes so long how to watch?

This one can use AI to summarize

Quote

Here’s a concise summary of the transcript, with key points and timestamps:

00:00–00:22 – Introduction: Adam and Victor outline the topic—NTT DC REIT’s upcoming IPO in Singapore, its size (US $773M, ≈S$988 M), and a headline 7.5% yield offer.

00:48–01:08 – They stress that investors shouldn’t focus solely on the headline yield; digging into the prospectus (800+ pages!) is crucial.

01:08–02:11 – Portfolio overview: six data centers—four in the U.S. (Northern California & Virginia), one in Singapore (leasehold), one in Austria (Euro-denominated rents). U.S. assets are freehold.

02:58–03:29 – Occupancy around 93.6–94.3%, with a tenant downsizing slightly impacting occupancy. Rent remains below market, offering upside potential.

03:50–04:30 – Lease structure: average rent escalation of ~2–3% annually, with hyperscaler tenants currently under market rent.

07:03–08:05 – Singapore asset is Tier III data center with hyperscaler occupancy; portfolio’s weighted average lease expiry (WALE) is a healthy ~4 years.

08:53–11:05 – Tenant concentration: top tenant (likely Tesla, F100 automaker) contributes ~31% of base rent; followed by NTT, Microsoft, Oracle, IBM—credit quality generally solid but concentration risk present.

11:54–12:48 – Risk scenario: if the top tenant leaves, DPU could fall 30–50% due to high fixed costs and leverage.

13:36–15:20 – Tax & structuring risk: cross-border structure relies on U.S. tax rules; changes under U.S. tax law or Trump-era adjustments could impact returns.

16:04–16:18 – Currency risk: a 5% SGD depreciation could slightly reduce effective yield (e.g., from 7.5% to ~7.37%).

19:39–19:58 – Debt profile: ~70% of loans fixed or hedged; no major maturities for the next 3 years, mitigating short-term interest rate risk.

20:49–22:21 – Depreciation is a large non-cash expense reducing reported profits, but DPU likely based on adjusted distributable income.

23:52–26:24 – Valuation: IPO price (US$1.00 vs NAV ~US$0.95) is fair and slightly attractive; cornerstone backing by GIC (~9.8%) and NTT (~25%) boosts confidence, but IPO isn't risk-free.

27:18–29:00 – Subscription details: allocated via DB, UOB, OCBC platforms; S$30 M public tranche; likely heavy oversubscription. Post-IPO, investors can buy on the SGX with same caveats.

Context from market outlets:

NTT DC REIT had a modest debut—flat to +3% on listing—underscoring cautious investor sentiment amid macro and data-center-specific risks (bloomberg.com, ainvest.com, reitsavvy.com, reuters.com).

It's Singapore’s largest REIT IPO in over a decade (since Digital Core REIT in 2021) (reuters.com).

Why this matters:

The REIT taps into strong demand for digital infrastructure, backed by stable occupancy, lease escalations, global diversification, and sponsorship by major players (GIC, NTT).

However, notable downside risks include tenant concentration, potential U.S. tax changes, currency fluctuations, capex needs, and macroeconomic headwinds like interest rates and geopolitical volatility.

In summary:
NTT DC REIT offers an attractive yield with solid fundamentals, yet carries significant risks—especially around tenant loss, cross-border tax structure, and financing. Investors seeking yield should weigh these factors carefully and consider whether the pricing (IPO or post-listing) compensates sufficiently for the uncertainties.

Learn more on Glasp: https://glasp.co/reader?url=https://www.youtube.com/watch?v=OH47KH57hfY

 

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Volvobrick

Volvobrick

Hypersonic
On 7/15/2025 at 1:32 PM, Voodooman said:

Buy DC, must buy those who are skilled operators. Not another MIT, treating it like RE and kanna screwed. 

i won’t touch this as any fund raising can’t be underwritten by NTT or any big shareholders. That is a big red flag for me. 

You are right. 

Closed at 0.975. Those allocated can start crying now....

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Voodooman

Voodooman

Supersonic
On 7/16/2025 at 5:12 PM, Volvobrick said:

You are right. 

Closed at 0.975. Those allocated can start crying now....

I didn’t have a crystal ball and technically NTT is a DC player but I learnt some lessons from my 85% loss in Manulife US REIT. 

Also, I already have significant exposure to DC business outside Singapore. 

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