Digital Core posts H2 DPU of US$0.0192, lower than forecasted
THE manager of Digital Core Reit reported on Thursday (Feb 2) a distribution per unit (DPU) of US$0.0192 for its second half ended December 2022, on the back of weaker-than-expected distributable income to unitholders.
The real estate investment trust (Reit) listed on the Singapore Exchange in December 2021. The manager noted in the bourse filing that DPU for H2 FY22 was lower than the US$0.0209 forecast disclosed in its initial public offering prospectus in November 2021.
For H2 FY22, the Reit reported gross revenue of US$54.9 million, up 3.6 per cent from its forecast. However, property expenses were also higher than expected.
This resulted in distributable income to unitholders of US$21.5 million for H2 FY22, lower than the US$23.8 million forecasted.
For the full FY2022, Digital Core’s DPU stood at US$0.0398, 4.8 per cent lower than the US$0.0418 forecasted.
Gross revenue for the full year came in at US$107.7 million, slightly higher than the US$105.9 million forecasted. Meanwhile, distributable income for the full year was 5.8 per cent lower than forecasted, coming in at US$44.8 million.
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“Digital Core Reit delivered solid results in 2022 despite the rapidly evolving environment,” John J. Stewart, chief executive of the manager, said.
“We remain focused on leasing up vacancy, proactively managing controllable costs and investing accretively to continue to create sustainable value for unitholders.”
Digital Core Reit’s portfolio was 98 per cent leased as at Dec 31, 2022 with a weighted average lease expiration of approximately 4.5 years.
The Reit had US$500 million of total debt outstanding as at end-2022, consisting entirely of unsecured term loans due 2025-2027.
The manager added that aggregate leverage was 34 per cent and the weighted average cost of debt was approximately 3.9 per cent. Around 75 per cent of total interest rate exposure was hedged as at Dec 31, 2022, up from 50 per cent as at Jun 30, 2022.
Units of Digital Core Reit rose 4.6 per cent or US$0.03 on Thursday to close at US$0.685, before the earnings announcement.
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