Digital Core REIT Delivers Robust Growth, Expands Footprint Across Key Global Markets
Highlights:
Digital Core REIT reported a 20% year-over-year increase in AUM, driven by strong leasing activity and market rent growth across its global portfolio 4.
The REIT achieved 97% occupancy and a 4.8-year weighted average lease expiry (WALE) as of FY2024 4.
Digital Core REIT strategically expanded its presence in the Osaka data center market, acquiring a 20% stake in a new facility and further diversifying its portfolio 22 – 23.
The REIT’s pro forma AUM increased to $1.7 billion, with the Osaka acquisition contributing to a more balanced geographic mix 23.
Digital Core REIT’s balance sheet remains healthy, with 34% aggregate leverage and $540 million in debt headroom at the 50% leverage limit 19.
Price-Sensitive Information:
The REIT announced a 1.8% DPU accretion from its FY2024 unit buyback program 4.
Digital Core REIT’s pro forma DPU, after adjusting for the Osaka acquisition and other portfolio changes, is expected to increase by 2-4% compared to the reported FY2024 DPU 9.
Outlook:
The data center industry continues to experience robust demand, driven by the growth of cloud computing, enterprise digital transformation, and the rapid expansion of artificial intelligence workloads 6 – 7.
Digital Core REIT is well-positioned to capitalize on these favorable market trends, with a high-quality, diversified portfolio and a strong balance sheet to support future growth initiatives.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.
