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Business Times
3 days ago
- Business
- Business Times
Will NTT DC Reit recover from its weak debut?
[SINGAPORE] It was a good week for investors in the Singapore market, except perhaps for those who took a chance on the initial public offering (IPO) of NTT DC Real Estate Investment Trust (Reit). The much-hyped data centre trust, which began trading last Monday (Jul 14), ended the week at US$0.95 – or 5 per cent below its IPO price of US$1. With its focus on a hot asset class, and GIC among its cornerstone investors, NTT DC Reit drew a lot of attention when it launched its IPO. Based on the nearly 599.9 million units available, the offering was approximately 4.6 times subscribed. An additional 51.5 million units were over-alloted. NTT DC Reit also came to market at a seemingly opportune moment. For one thing, the Straits Times Index (STI) has been on a tear since the Liberation Day sell-off in April, and has closed above the 4,000 mark on every trading day since Jul 2. On Friday, the local-market benchmark closed at 4,189.50, up nearly 2.5 per cent for the week. There has also been ample appetite in the market recently for Reits that own data centres. In fact, among the seven Reits that are components of the STI, the best performer last week was Keppel DC Reit (KDC) – which rose 4.1 per cent. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up This bump might have been partly due to Maybank initiating coverage on KDC, with a 12-month target price of S$2.40. In a report dated Jul 17, the research house said that KDC – which holds 24 data centres across 10 countries, worth some S$5 billion – is set to benefit from big trends such as digitalisation, cloud migration and the adoption of artificial intelligence. Maybank is forecasting KDC's distribution per unit (DPU) to grow 4.9 per cent a year to 2027, driven by rent escalation and acquisitions. KDC closed Friday at S$2.28, which reflects a 2024 DPU yield of 4.1 per cent. By comparison, NTT DC Reit holds six data centres with an appraised value of nearly US$1.6 billion. At its IPO price, it is forecast to deliver an annualised distribution yield of 7.5 per cent for the nine months to Mar 31, 2026; and a distribution yield of 7.8 per cent for the full year to Mar 31, 2027. So, why did NTT DC Reit have such a lacklustre debut? Where are all the investors who tried to get their hands on its units during the offering? Why is the market not excited about its high projected distribution yield? Rising risks for S-Reits One concern I keep hearing is that NTT DC Reit's projected yield may not be sustainable – because it is based on a 100 per cent payout of its distributable income, and the Reit's capital expenditure requirements may rise in the future. Another concern is that NTT DC Reit faces tenant concentration risks, with its top 10 tenants accounting for 62.6 per cent of its monthly base rent. Worse, its largest tenant – described in its prospectus as a Fortune 100 US automotive company – accounts for 31.5 per cent of its total monthly base rent. Many market watchers assume that NTT DC Reit's largest tenant is Tesla. However, NTT DC Reit's agreements with its customers contain confidentiality provisions that prevent disclosure of their identities. Its prospectus said: 'For many of these customers, it is critical that the geographical locations of the data centres in which (their) equipment, information and data are stored are kept confidential in order to minimise the risk of physical threats and intrusions into the relevant data centre.' The way I see it, the assumption that NTT DC Reit is heavily exposed to Tesla could haunt it in the months ahead – sending a chill down the spines of investors whenever the electric vehicle maker, or its chief executive Elon Musk, makes headlines for the wrong reasons. Responding to questions about this risk, the manager of NTT DC Reit said its largest tenant uses its data centres for mission-critical workloads, and has leases extending to 2033 with no termination clause. The manager added that the tenant is absent from the assets that NTT DC Reit may acquire from the sponsor group over time. '(Therefore), their concentration will only decrease as the Reit continues to make incremental acquisitions.' Another factor that might have contributed to NTT DC Reit's weak debut is the uncertainty about the direction of long-term global interest rates. Ten-year US Treasury bonds currently yield about 4.42 per cent; in 2019, the yield was significantly less than 3 per cent. This is affecting all the Singapore-listed Reits (S-Reits), of course. The iEdge S-Reit Index chalked up a total return of 54.4 per cent during the five-year period up to end-2019, which trounced the STI's total return of 14.9 per cent. The tables turned, however, as interest rates soared following the pandemic; and as companies such as Keppel, Sembcorp Industries and Singtel unlocked value and refocused their businesses. Over the five-year period up to last Friday, the iEdge S-Reit Index returned just 4.6 per cent, while the STI returned 99.3 per cent. The iEdge S-Reit Index has lagged since the beginning of this year as well, with a total return of 5.2 per cent versus STI's total return of 13.4 per cent. While income-oriented investments remain hugely popular with local investors, the most exciting new listings over the next couple of years may well not be in the S-Reit field. Hot data-centre trusts To be clear, I'm not suggesting that NTT DC Reit will not recover from its rocky debut. While higher interest rates since the pandemic have weighed on S-Reits recently, two of the three best-performing components of the iEdge S-Reit Index over the past decade are focused on data centres – namely, KDC (with a total return of 254.4 per cent) and Mapletree Industrial Trust (total return of 133.6 per cent). It is entirely possible, in my view, that NTT DC Reit will eventually find its feet and perform strongly. Of course, much depends on it achieving or surpassing the forecasts and projections in its prospectus, and acquiring an additional asset or two from its sponsor group on terms accretive to its DPU. There is certainly a lot riding on the success of NTT DC Reit. This is, after all, the most significant new listing in the Republic since the Monetary Authority of Singapore formed the Equities Market Review Group last year. The measures announced by the review group so far revolve around spurring demand in the local market, and making it easier for companies to list in Singapore. Perhaps the review group should also look into whether enough is being done to ensure that companies that do list are able to effectively engage with investors, and inclined to quickly address their concerns. Drawing more new listings to the Singapore market will matter only if they are exciting to local investors, and enhance the vibrancy of the market ecosystem.
Borneo Post
16-07-2025
- General
- Borneo Post
Controversial removal of Song Waterfront's iconic dabai tree resolved, new planting at more prominent spot
Photo shows the beloved dabai tree at Song Waterfront which was cut down. Andy Lawrence KAPIT (July 16): The controversial chopping down of the iconic dabai tree at Song Waterfront on Monday has been resolved amicably. Kapit District Council (KDC) chairman Andy Lawrence said a new dabai tree will be planted at a more suitable and prominent location. While pruning and clearing roadside trees, KDC's contractor had cut down the iconic dabai tree in front of the Tai Pek Kong Deity Kang Lin Ten Temple due to safety concerns. Andy said it was unfortunate that the decision overlooked the dabai tree's significance as a cultural symbol and heritage icon for the people of Song, an area earmarked for the 'Dabai Belt' due to the high quality of the fruit there. KDC has since met in Song with Katibas assemblyman Lidam Assan to come up with a resolution. 'In the spirit of unity and as a gesture of goodwill, KDC, Katibas assemblyman Lidam Assan, local community leaders, and Tai Pek Kong Deity Kang Lin Ten Temple committee members have agreed to plant a new dabai tree at a more suitable and prominent location. 'This replanting symbolises peace, reconciliation, and our shared commitment to preserving the cultural identity and aspirations of the Song community,' Andy said in a statement. Moving forward, he said KDC will engage with and share its landscape development plans with the local community to ensure better coordination and mutual understanding in preserving local heritage and enhancing public spaces. The tree was considered iconic as it represented Song's reputation as the producer of top quality dabai. According to locals, the tree produced an estimated RM8,000 worth of fruit every year, which was sold by the temple as a source of fundraising. Andy Lawrence dabai tree lead Tai Pek Kong Deity Kang Lin Ten Temple
Borneo Post
10-07-2025
- Business
- Borneo Post
RM10.5 mln Kapit Waterfront extension completed in time for Baleh-Kapit Raft Safari
Nanta (sixth left) and Andy (seventh left) witnessing the handover of project documents between JKR Kapit engineer Jawa Gara (left) and KDC secretary Opang Melay. KAPIT (July 10): Works Minister, Dato Sri Alexander Nanta Linggi, today officiated the completion of the Kapit Waterfront riverbank extension and slope protection project — a timely upgrade ahead of the Baleh-Kapit Raft Safari, which kicks off today and runs until July 13. The RM10.5 million project, implemented by the Kapit Public Works Department (JKR), began on December 27, 2022, and was completed on June 26 this year. Despite facing delays due to extreme weather and additional scope of work, the project was delivered successfully. 'As Kapit's MP since 1999, I am very concerned about every development that takes place here,' said Nanta, during the officiation ceremony. He noted that the riverbank extension and slope protection works had been long awaited by the local community, and expressed appreciation to all parties involved in bringing the project to fruition. Nanta stressed that both federal and state governments remain committed to building modern, inclusive, and sustainable infrastructure for the people. 'The Kapit Waterfront project is part of the state government's initiative. It not only beautifies the town but also serves as a venue for social, recreational, and economic activities,' he said. Phase 1 of the extension focused on enhancing safety, structural integrity, and visual appeal, particularly to improve access for rural residents who rely on river transport. He added that the upgraded waterfront is expected to boost tourism and support local economic activity, especially for small traders and hawkers. 'It can become a healthy gathering space that unites the community and positions Kapit as a more progressive, competitive township aligned with Sarawak's development agenda.' New features include pedestrian walkways, street lighting, cultural landscaping, design motifs reflecting local identity, as well as dedicated spaces for events and commerce. At the same event, Nanta also launched the 'Tugu Bujang Berani', a monument overlooking the Rajang River. According to Veterans Association of Malaysia (PVATM) Kapit chairman Martin Bilun, the monument honours the brave men of Kapit Division who served in the armed forces since the colonial era, including Iban trackers, British Army veterans, Sarawak Rangers, and members of the Malaysian Armed Forces. 'It is a tribute to the courage and struggles of the Dayak people in defending Sarawak and Malaysia,' said Martin. Present at the event were federal Deputy Digital Minister Datuk Wilson Ugak Kumbong; Deputy Minister in the Premier's Department (Native Customs and Laws) Datuk Jefferson Jamit Unyat; Pelagus assemblyman Wilson Nyabong; Baleh assemblyman Nicholas Kudi Jantai; KDC chairman Andy Lawrence; Political Secretary to Sarawak Premier Watson Awan Jalai; and Political Secretary to Nanta, Ambrose Abong Bugek.
Scoop
27-06-2025
- Politics
- Scoop
"Upholding Our Democratic Right To Be GE-Free"
Kaipara District Council (KDC) recently released its Proposed District Plan for public consultation, with an odd omission at a time when other councils are banding together to oppose extreme and undemocratic proposals in the controversial Gene Technology Bill. The KDC plan as notified is currently silent on the important GE/GMO issue. This is despite Northland's and Auckland's valuable status as a GM Free Food Producer Region and the inclusion of strong precautionary and prohibitive GE/GMO provisions, policies, and rules in the KDC draft District Plan 2022. During the previous round of public consultation, KDC received an overwhelming amount of supportive submissions on this important issue. Northland Regional Council (NRC) and other submittors are urging KDC to rectify the omission in the Proposed District Plan, with NRC noting that "the Northland Regional Policy Statement via Policy 6.1.2 directs a Precautionary approach to GE/GMO use where the effects are scientifically uncertain, unknown, or little understood but potentially significant." "Given the direction in the Northland Regional Policy Statement, the concerns of farmers and tangata whenua, and the need for consistency with adjoining District plans it is considered appropriate to reference and control these matters in the Kaipara District plan," said Martin Robinson, spokesman for GE Free Northland. 'It is critically important that KDC continue to work in a collaborative and fiscally responsible manner with all the other councils of Northland and Auckland. GE contamination does not respect boundaries, and known vectors including seeds, pollen, vegetative material, soils, waterways, animals, insects, machinery, and extreme weather events would not only cause problems in Kaipara itself but the wider Northland rohe," said Robinson. GE Free Northland is particularly concerned about the lack of strict liability to protect farmers and urges Northlanders concerned about outdoor GE/GMO experiments and field trials to make a submission to KDC's Proposed District Plan urging KDC to reinstate the GE/GMO provisions (by next Monday's 5pm deadline, 30 June 2025). "We also thank NRC and Far North District Council (FNDC) for their excellent submissions opposing the Gene Technology Bill, despite the complete absence of consultation with key stakeholders like councils and the tight time frame." "It was gratifying to read NRC's and FNDC's strong objections to the appalling and undemocratic provisions in the current Bill which would void existing District and Regional regulations and significantly reduce the local participation in decision making relating to gene technology experimentation," said Zelka Grammer, chair of GE Free Northland. (*1) "The extreme, impractical, and undemocratic provisions in the Bill must be removed as they would undermine many years of collaboration across Northland and Auckland's local authorities to bring about a cohesive planning regime that represents the values of Northland and Auckland communities(*2) and protects our biosecurity," said Grammer. As stated in its submission, NRC is of the view that regional and district plans should continue to play a part in the management of GMOs in Northland, and in doing so, continue to provide for the input of farmers and local communities into decisions that affect the region. GE Free Northland thanks NRC for pro-actively writing to all councils from south Auckland to Cape Reinga in the Far North (*3), proposing that the Northland/ Auckland "Inter Council Working Party on GMO Risk Evaluation & Management Options" be reactivated, given the threat posed by extreme proposals in the controversial Gene Technology Bill. (*4) Notes: *(1) The explanatory notes in the Gene Technology Bill state: "Subpart 9—Amendments to Resource Management Act 1991 Clauses 246 to 254 amend the Resource Management Act 1991 (RMA). In particular, these clauses— • define genetically modified and Regulator (clause 247): • prohibit a regional council or territorial authority from performing its functions under sections 30 and 31 of the RMA in a manner that treats genetically modified organisms differently from other organisms, including in regional plans, district plans and regional rules (clauses 248 to 253)." All councils from south Auckland to Cape Reinga in Far North/ Te Tai Tokerau have precautionary and prohibitive GE/GMO provisions, policies, and rules- set up in keeping with the wishes of local farmers and other ratepayers, in order to protect our regions biosecurity, wider environment, economy, and existing GM free farmers/ primary producers, including conventional, IPM, regenerative,and organic. Hastings District Council has achieved outright prohibition of all outdoor GE/GMO experiments, field trials, and releases for the duration of the District Plan. *(2) Whangarei District Council "Genetic Engineering Review" webpage, detailing the good work of the Northland/ Auckland INTER COUNCIL WORKING PARTY ON GMO RISK EVALUATION & MANAGEMENT OPTIONS (formed in 2003 by Kaipara District Council and Whangarei District Council) "Three major reports commissioned by the working party have identified a range of risks involved with the trialling and release of GMOs. They also include approaches to managing those risks. GMO Reports [link to documents] Environmental risks · GMOs becoming invasive and affecting other species including native flora and fauna · the development of herbicide or pesticide resistance creating 'super-weeds' or 'super-pests' · long term effects on ecosystem functioning. Socio-cultural risks · effects on Maori cultural beliefs of whakapapa, mauri, tikanga · ethical concerns about mixing genes from different species including human genes · concerns about the long term safety of genetically engineered food. Economic risks · loss of income through contamination (or perceived contamination) of non-GMO food products · negative effects on marketing and branding opportunities such as 'clean and green' or 'naturally Northland' · costs associated with environmental damage such as clean-up costs for invasive weeds or pests. Associated with these risks are limited liability provisions under the Hazardous Substances and New Organisms (HSNO) Act 1996. " ENDS *(3) 15 April 2025 NRC letter to all Northland and Auckland councils *(4) The operative Auckland Unitary Plan contains precautionary and prohibitive GE/GMO provisions, policies, and rules on both land and in the Coastal Marine Area (CMA).
Cision Canada
25-06-2025
- Business
- Cision Canada
Infrastructure funding to help build housing at two Vancouver Island First Nations
CIB providing $66.7 million in loans to Malahat Nation and Cowichan Tribes Disponible en français Enabling infrastructure and water and wastewater treatment to facilitate on-reserve housing and economic development Addresses community housing shortages and affordability First Canada Infrastructure Bank (CIB) projects on Vancouver Island to achieve financial close COWICHAN, BC, June 25, 2025 /CNW/ - Malahat Nation and Cowichan Tribes on Vancouver Island are receiving a combined $66.7 million in loans to enable on-reserve housing construction and business development. Funding for both projects comes from the Canada Infrastructure Bank's Indigenous Community Infrastructure Initiative (ICII). The CIB has committed more than $1 billion to date on projects for and in partnership with Indigenous communities. Malahat Nation's access to a $57.8-million loan will help fund the replacement of a 28-year-old water treatment plant that is at capacity and build a new wastewater treatment plant to replace failing septic beds. Increased water capacity will enhance emergency preparedness while the new wastewater system will better protect local ground water, the ecosystem and shellfish beds in Saanich Inlet. The CIB's investment will amplify $15.8 million in contributions from Indigenous Services Canada to further unlock the development of Malahat's primary reserve lands, located 25 kilometres northwest of Victoria, enabling new housing and economic development opportunities. Planned developments include a multi-residential project with over 200 units, a building for Thales (west coast home of Department of National Defence AJISS Program) and a battery plant. An $8.9-million loan from the CIB to a Khowutzun Development Corporation (KDC) project, in partnership with BC Housing through the Province's BC Builds program, will support enabling infrastructure for the Rivers Edge development. KDC, which is wholly owned by Cowichan Tribes, developed this on-reserve project that includes two rental buildings, commercial space, an outdoor kitchen, children's play area and community gardens. The CIB's investment unlocks the opportunity to build the 200-home development on Cowichan Tribes' reserve lands by financing new infrastructure such as site preparation, utility upgrades and connections, roads and streetscaping, and electric vehicle charging stations Rivers Edge is being celebrated as a model of collaborative partnership, overcoming challenges in securing funding from multiple sources. The project is part of Cowichan Tribes' economic development strategy through KDC and prioritizes the needs of its citizens—who will have the first right of refusal for all homes in Rivers Edge, including the 20% of homes at Rivers Edge that will be rented at below-market rates. The broader development will also generate career and training opportunities for Cowichan Tribes citizens and other First Nations through KDC initiatives such as Cowichan Contractors — a group of 100% Indigenous-owned Cowichan Tribes companies offering services like site servicing and excavation. Economic benefits generated by the project will be reinvested into the community, supporting long-term prosperity. Endorsements The CIB's two investments on Vancouver Island will help First Nations build much-needed housing to welcome off-reserve citizens home. The Malahat Nation water and wastewater project underscores the importance of speeding up development timelines for projects that have outsized positive impacts - even in small communities. Enabling infrastructure will allow the Cowichan Tribes to build much-needed housing for their citizens and the broader community. Ehre n Cory, CEO, Canada Infrastructure Bank Today marks a significant step forward — not just for this project, but for the well-being of our entire community. The CIB's investment in these developments will help deliver a modern, reliable water and wastewater infrastructure. These next steps are vital in creating a brighter future for the next generations, bringing both meaningful employment and the much-needed housing our Nation deserves. Chief Gordon Harry, Malahat Nation As the largest First Nation in BC by population with more than 5,500 citizens, the need for housing for our families is acute. However, there are many complex challenges to building on-reserve housing. I commend KDLLP for the unique partnerships and collaboration they have fostered with the Province of BC, BC Housing, and the Canada Infrastructure Bank to build these 200 new homes. Today marks a milestone for not only this project, but for our community. This major housing development will transform the lives of the residents who will live here, at the edge of the Quw'utsun Sta'lo' (Cowichan River) which has sustained our people physically and spiritually for millennia. Chief Sulsulxumaat Cindy Daniels, Cowichan Tribes As a nation of builders, it's time to build Canada stronger. The CIB's investments in these projects will provide new, modernized wastewater infrastructure, enabling the construction of new homes for hundreds of people in the Malahat Nation and Cowichan Tribes. These important investments will unlock new opportunities for growth, economic development, and help build stronger, more prosperous communities across Vancouver Island. Hon. Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada The health of a community's water source is a clear indicator of the community's overall well-being. Today's announcement is about more than a new facility; it's about building sustainable infrastructure that will meet both the immediate and long-term needs of the community. Malahat Nation and Cowichan Tribes are moving towards a future defined by progress and strength. Hon. Mandy Gull-Masty, Minister of Indigenous Services Today's announcement shows how powerful partnerships can be. As the Member of Parliament for Esquimalt—Saanich—Sooke, I am especially proud to see projects that provide key building blocks for economic and community growth on Vancouver Island. Hon. Stephanie McLean, Secretary of State for Seniors. It's crucial that Indigenous people in B.C. have housing that reflects their needs and values. That's why we're working in partnership with First Nations, non-profits, and all levels of government to fast-track more rental homes. Through Rivers Edge, members of the Cowichan Tribes and people from the broader community will be able to find an affordable home in the community they love, close to family, friends and Elders. We'll keep working with our community and government partners to build stronger neighbourhoods with the services people count on. Hon. Ravi Kahlon, Minister of Housing and Municipal Affairs The Cowichan Valley is an extraordinary place, filled with a rich history passed down from our Hul'qumi'num ancestors. Rivers Edge will help many long-time Duncan residents and Tribes members to stay in the community, including the Elders who teach us and young adults who grew up here. Tribes members will have more opportunities to thrive on our traditional territory, and all residents will be able to stay close to family and loved ones. Debra Toporowski, MLA for Cowichan Valley Today represents the combined efforts of KDLLP, Cowichan Tribes, the Province of B.C., and the Canada Infrastructure Bank — a true testament to the power of collaboration and community. Our team of architects and engineers has delivered an inspired design that reflects the deep significance of the Cowichan River, the land, and the central role family plays in the lives of Cowichan Tribes citizens. Rivers Edge will provide much-needed housing for Cowichan Tribes and the wider Cowichan Valley, creating a positive legacy that will serve generations to come.
