Link:  https://links.sgx.com/1.0.0/corporate-announcements/LLOVQTRVTPBNYG5S/138d72ec85dd667dd851c0626d1b85c94b515e88e310f9d64a42b7119e726c2d

Summary:

• Platform at a Glance:

  • Pure-play S-REIT focused on data centres, sponsored by Digital Realty (global leader).

  • Portfolio: 11 core data centres — US$1.7B AUM, >120 customers, 100% freehold, 98% occupancy, weighted average lease expiry (WALE) 4.5 years.

  • Aggregate leverage: 38.3%; no debt maturities until Dec 2027. 85% of debt fixed-rate.

  • Repurchased 1.8M units at US$0.565 (1H25), delivering 0.1% DPU accretion. 1H25 DPU: 1.80 US cents (unchanged).

• Market Position & Growth:

  • Inorganic growth: Acquired 20% interest in second Osaka data centre; global sponsor pipeline supports growth to US$15B.

  • Sponsor is a top global operator: 300+ data centres, 5,000+ customers, $80B enterprise value, S&P 500 constituent, investment grade.

• Portfolio & Tenancy:

  • Geographically diversified: Flagships in Northern Virginia, Silicon Valley, Frankfurt, Osaka, Toronto, Los Angeles.

  • 81% of rent from investment grade customers; top tenants are hyperscale/cloud software, colocation/IT services, social media, and AI.

  • Rentally diversified: 64% from hyperscale/cloud, 30% from colocation/IT, 6% from “other.”

  • High occupancy (98%), 100% freehold, long WALE.

• Financials (1H 2025):

  • Revenue: US$88.9M (+84% YoY), Net property income: US$46.3M (+52% YoY).

  • Distributable income: US$23.4M (+3.5% YoY); DPU 1.80 US cents.

  • Net asset value (NAV) per unit: US$0.80; unit price: US$0.53; distribution yield 6.85%.

  • Total assets: US$2.22B; total liabilities: US$907M; equity: US$1.31B.

• Capital Management:

  • Significant debt capacity: $444M headroom (at 50% leverage); average cost of debt 3.4%, ICR at 3.6x.

  • Unsecured funding; prudent management targeted at fueling accretive growth.

• Market & Sector Outlook:

  • AI, digital transformation, and hyperscale cloud demand drive global and APAC data centre expansion.

  • Demand outpaces supply in core metros (Northern Virginia, Silicon Valley, Osaka, Frankfurt, Toronto, Los Angeles).

  • Regulatory, power, land constraints affect expansion in top metros, but sponsor’s land bank and build capabilities provide resilience.

• Sustainability & Governance:

  • Targets: 100% renewable energy available, 30% reduction in Scope 1 & 2 emission intensity, strong board diversity, best-in-class ESG.

  • No major sponsor or management changes; robust sponsor alignment with unitholders.

TL;DR: Digital Core REIT combines a high-quality portfolio, strong sponsor support, prudent capital management, and clear tailwinds from AI and digital transformation. Global scale, diversified tenants, 98% occupancy, and a robust acquisition pipeline position it for sustainable, accretive growth.