Digital Core Reit 9M distributable income falls 8.5% to US$31.5 million

DIGITAL Core Real Estate Investment Trust’s (Reit) distributable income for the nine months ended Sep 30 fell to US$31.5 million, down 8.5 per cent year on year from US$34.4 million posted in the year-ago period.

This came on the back of higher expenses – in particular, finance expenses – which more than tripled, the Reit’s business update on Thursday (Oct 26) indicated.

Revenue for the data centre play fell 1.2 per cent to US$79.7 million, from US$80.7 million a year ago, while net property income slipped 3.7 per cent to US$51 million, from US$53 million in 9M 2022.

Digital Core Reit’s weighted average lease expiry (Wale) was 3.6 years, down slightly from its H1 2023 Wale of 3.9 years.

Aggregate leverage rose slightly on the quarter, to 34.4 per cent, and weighted average debt maturity was 3.2 years.

The manager said that it intends to strengthen existing portfolio by backfilling the remaining vacancy in Toronto, leasing up existing vacancy in Frankfurt and managing costs. It currently manages 11 data centres worth US$1.6 billion.

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Units of the Reit ended down 5.9 per cent, or US$0.03 to US$0.48 on Thursday.