Digital Core REIT holds FY2025 DPU at 3.60 US cents on 43% NPI growth and 97% occupancy, lifts yield to 7.1%
Summary:
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Gross revenue climbed 72.2% year on year to US$176.2 million in FY2025, while net property income rose 43.5% to US$88.7 million, largely driven by the increased stake and consolidation of its Frankfurt data centre.
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Distributable income to unitholders edged up 1.9% to US$46.8 million, supporting a steady FY2025 DPU of 3.60 US cents; based on a US$0.510 unit price, the annualised distribution yield improved to about 7.1% from 6.2% a year earlier.
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Operational metrics remained strong with 11 data centres valued at US$1.8 billion, portfolio occupancy of 97%, WALE of 4.6 years, and US$26 million of annualised rent secured from new and renewal leases in 2025 at 31% cash rental reversion.
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Balance sheet flexibility was reinforced with aggregate leverage at 37.1%, 85% of interest exposure hedged, and a new US$750 million EMTN programme under which Digital Core REIT issued ¥10 billion of 1.97% notes to fund its 20% Osaka acquisition, expected to be 1.8% DPU accretive.
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The REIT also repurchased 1.8 million units at an average US$0.565, cancelling the units and delivering roughly 0.1% DPU accretion, while a 10-year lease signed in early 2026 with an investment-grade cloud client at Linton Hall is expected to lift portfolio occupancy to 98% and extend WALE to 5.5 years upon commencement.