Digital Core Reit Q1 2023 distributable income dips 10 per cent to US$10.9 million
DIGITAL Core real estate investment trust (Reit) announced Q1 2023 distributable income of US$10.9 million, a decline of 10 per cent from US$12.1 million in Q1 2022.
Revenue for the quarter edged up 1.2 per cent to US$26.7 million from US$26.5 million a year prior. Net property income for Q1 2023 fell 2.3 per cent to US$17.5 million from US$17.9 million in Q1 2022.
The fall in net property income was driven by higher property expenses for Q1 2023, which rose 8.5 per cent to US$9.3 million from US$8.5 million in Q1 2022.
The weighted average lease expiry for Digital Core stands at 4.2 years as at Mar 31, 2023, with occupancy rates at 97 per cent. The weighted average debt maturity is at 3.7 years with no debt maturity until December 2025, and a revolving credit facility of US$195 million still available.
The data centre Reit has over US$15 billion in the sponsor acquisition pipeline. Digital Core will strengthen its existing portfolio, back filling vacancy in its Toronto data centres. It is also driving lease-up of existing vacancy in its Frankfurt facility and proactively managing costs.
The Reit will be on the lookout for accretive investment opportunities, as well as enhance its geographic and customer diversification. Currently, its top two customers lease out 60.7 per cent of Digital Core’s data centres.
Units of Digital Core closed down 1.1 per cent or US$0.005 to US$0.445 on Wednesday.
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