Digital Core Reit’s Q1 distributable income flat at US$11.7 million
Net property income is down 4.9% at US$21.3 million
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[SINGAPORE] Digital Core Reit reported a distributable income of US$11.7 million for its first quarter ended Mar 31, down just 0.1 per cent year on year.
Revenue dipped 0.2 per cent to US$44.1 million, while net property income was down 4.9 per cent at US$21.3 million.
The real estate investment trust’s (Reit) manager said on Thursday (Apr 23) that a loss of rental revenue from its Linton Hall data-centre facility in the US was offset by a “combination of proactive leasing, accretive investing and prudent financing”.
Linton Hall will experience 11 months of downtime this year due to redevelopment. The facility in January bagged a 10-year lease with an investment-grade global cloud service.
“We expect to realise a full year of annualised rent contribution from Linton Hall in 2027... setting the stage for double-digit distribution per unit growth in 2027,” said the manager.
As at Mar 31, Digital Core Reit’s occupancy stood at 97 per cent across its portfolio, with a weighted average lease expiry of 4.4 years.
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The manager noted that geopolitical uncertainty has increased over the past 60 days, and Reits have “languished on rising energy costs and inflation, as well as the expectation that interest rates appear poised to remain higher for longer”.
Units of Digital Core Reit “continue to change hands at a deep discount to (net asset value), as well as on a relative basis compared to the peer group”, the manager added.
“Along with our sponsor... we intend to narrow the gap over time,” it added, reiterating the focus on “proactive leasing, accretive investing and prudent financing”.
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Units of the Reit closed flat at US$0.515 on Thursday, before the news.
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