Digital Core Reit posts 1.1% dip in 9M distributable income to US$34.8 million

[SINGAPORE] The manager of Digital Core Real Estate Investment Trust (Reit) reported a 1.1 per cent fall to US$34.8 million in its distributable income for the nine months ended Sep 30, from US$35.2 million a year earlier.

Revenue rose 1.6 per cent year on year to US$134.5 million, from US$132.4 million, the manager said in a Tuesday (Oct 27) bourse filing.

Net property income of the pure-play data centre Reit stood at US$64.8 million, down 4.3 per cent from US$67.7 million previously.

As at Sep 30, the Reit had 11 data centres and assets under management worth US$1.9 billion, with 65 per cent in North America, 24 per cent in Germany and 11 per cent in Japan.

Portfolio weighted average of leasing expiry (Wale) stood at four years, while in-service portfolio occupancy stood at 97 per cent.

Push for Asia assets

Digital Core Reit unveiled in August a proposed major portfolio revamp that marked its entry into Singapore, and grew its Japan presence alongside its divestments in three North American assets.

The Reit’s manager noted then that the sale of interests in its Los Angeles, Toronto and Northern Virginia facilities is expected to generate gross proceeds of some US$315.9 million.

The partial-interest purchases of data centres in Singapore and Osaka is estimated to represent a total investment of around US$176 million, the manager said at the time.

Following the transaction, the Reit’s pro-forma assets under management will dip slightly to US$1.8 billion, with 52 per cent of its assets in North America, 26 per cent in Germany, 18 per cent in Japan and 4 per cent in Singapore.

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In addition, the number of data centres the Reit will have under its belt will fall to 10, while Wale will stand at five years with a 99 per cent occupancy.

Units of Digital Core Reit ended Tuesday flat at US$0.44, before the announcement.