Digital Core REIT Rides AI Boom with Stable Income, 94% Occupancy, and Growth from Strategic Acquisitions
Summary:
Digital Core REIT’s June 2025 investor update highlights strong portfolio fundamentals, stable financial performance, and growth potential in the booming data center sector:
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Robust Portfolio: 10 data centers across key U.S. and European markets, 2.2 million sq ft, 94% occupancy, 4.1 years WALE.
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High-Quality Tenants: ~90% rental income from investment-grade tenants; top 10 contribute 79% of rent (including Microsoft, Meta, Uber).
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Strong Q1 2025 Performance: USD 28.5M revenue, 1.51 US cents DPU, 37.8% leverage, 3.4x interest coverage.
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Growth Path: Frankfurt data center acquisition boosts scale; access to sponsor Digital Realty’s global pipeline enables future expansion.
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Sustainability Focus: 66% of portfolio uses renewable energy; on track for net-zero by 2030.
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Market Tailwinds: Accelerating demand from AI and cloud driving double-digit industry growth, supporting long-term value creation.