hi guys. i spoken to investor relations as nxt stock dropped massively.
Main concern like others on here, was the lack of uptake in Melbourne. They explained that their uptake is consistent with the industry landscape. Major players equinix, and others aren't doing any material deals in Melbourne. Its only sydney right now. E.g. Equinix announced a huge data centre in sydney recently. Industry is struggling to fill the demand in sydney currently. This explains NXT's weak performance in melbourne.
Overall, business wise, they are tracking good , because sydney is doing so well.
Like the industry, they are hopeful melbourne will grow again. Initially melbourne was the one that grew first, now its all Sydney. Melbourne's population is similar in sydney, so they are hopeful that major players will uptake melbourne like sydney, at some stage.
I agree, market would like to see traction in melbourne and perth to drive a re-rate back to where it was. However as long as Sydney tracks well above, then we should be fine overall, growth wise. There is still a lot of signings not showing up in the revenue- lag effect.
Long term structural thematics - AI/big data, are still there on a 10-15 year view.
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