This comes even as its distributable income rises 3.5% to US$23.4 million

 

[SINGAPORE] The manager of Digital Core Real Estate Investment Trust : DCRU -0.89% (Reit) on Wednesday (Jul 23) posted a distribution per unit (DPU) of US$0.018 for the first half ended June 30, 2025.

 

This was unchanged from the same period a year ago, even as the Reit&rsquo s distributable income rose 3.5 per cent to US$23.4 million, from US$22.6 million in H1 FY2024. The distribution will be paid on Sep 18, after the record date on Jul 31. 

 

Digital Core Reit&rsquo s H1 FY2025 revenue increased 84.2 per cent to US$88.9 million, from US$48.3 million in the year-ago period. Net property income rose 52.2 per cent year on year to US$46.3 million. 

 

However, property expenses also rose to US$42.6 million, from US$17.8 million for H1 FY2024. 

 

The Reit&rsquo s manager said that these increases in revenue, net property income and property expenses were mainly due to the acquisition of an additional 15.1 per cent interest in a Frankfurt data centre last December.

 

The acquisition brought the Reit&rsquo s interest in the facility up to 65 per cent, from 49.9 per cent before. 

 

The total purchase outlay amounted to about US$76.6 million. This comprised a purchase consideration of 71 million euros (S$100.6 million), an acquisition fee of around US$751,000 paid to the Reit&rsquo s manager in the form of around 1.2 million newly issued Digital Core Reit units, and other fees.

 

Also contributing to Digital Core Reit&rsquo s higher property expenses in H1 FY2025 were repair and maintenance integration costs for its assets in Los Angeles, California, as well as a loss allowance for a receivable from a legacy customer at 1500 Science Park in Silicon Valley, said the manager. 

 

As at Dec 31, 2024, Digital Core Reit had about US$1.7 billion in assets under management. It has 11 data centres and a weighted average lease expiry of 4.5 years, with a 98 per cent occupancy rate as at Jun 30, 2025. 

 

In March, the Reit completed the purchase of a 20 per cent interest in a data centre in Osaka &ndash its second in the Japanese city &ndash for 13 billion yen (S$110 million). The transaction is expected to be 1.8 per cent accretive to the Reit&rsquo s DPU, noted the manager. 

 

Digital Core Reit&rsquo s gearing, as at Jun 30, stands at 38.3 per cent it has US$675 million of total debt outstanding, all of which is unsecured. Year-to-date weighted average cost of debt, excluding amortisation of upfront debt fees, is 3.6 per cent and the weighted average debt to maturity is 4.2 years. 

 

Looking ahead, the Reit&rsquo s manager said that it plans to &ldquo maximise organic growth primarily through leasing activity and to maintain financial flexibility and leverage debt capacity to pursue accretive investments&rdquo . 

 

To this end, it will focus on &ldquo expanding (its) asset base, enhancing diversification and capitalising on strong tailwinds&rdquo in areas such as hyperscale demand and digital transformation.

 

John J Steward, chief executive officer of the Reit&rsquo s manager, noted that data centre fundamentals &ldquo continue to tighten across core global markets&rdquo . He added: &ldquo We remain focused on capitalising on the favourable industry backdrop to continue to create durable value for unitholders.&rdquo

On May 28, Digital Core Management&rsquo s lead independent non-executive director John Herbert acquired 250,000 units of Digital Core Reit at US$0.495 per unit. This was his first acquisition on the open market since joining the board in November 2021. Herbert has decades of global investment banking and real estate expertise, having led major real estate divisions at HSBC, Merrill Lynch, and Citigroup, and overseen deals across more than 35 countries.

 

For its Q1FY25 (ended Mar 31), the manager reported Digital Core Reit delivered strong execution with 10 per cent growth in distributable income from Q1FY24, rising occupancy, a strategic Osaka acquisition, and successful fixed-rate debt issuance ahead of tariff impacts. In late March, the Reit also acquired a 20 per cent stake in a fully leased, purpose-built Osaka data centre for 13 billion yen (US$87 million), enhancing its Asia Pacific diversification, lifting distribution per unit by 1.8 per cent, and positioning Osaka as its fourth-largest market. The manager also highlighted that the portfolio is 98 per cent occupied, with over 85 per cent of rental revenue shielded from energy cost inflation via pass-throughs, and full freehold ownership protects against rising ground rents. 

Its revenue is up 79.9% at US$44.2 million net property income grows 41.8% to US$22.4 million

 

[SINGAPORE] Digital Core Real Estate Investment Trust : DCRU +1.06% (Reit) posted distribution income attributable to unitholders of US$11.7 million for the three months ended Mar 31, 9.9 per cent higher from the year-ago period.

 

The manager of the data centre-focused Reit said in a business update on Wednesday (Apr 23) that revenue for its first quarter jumped 79.9 per cent to US$44.2 million, from the same quarter in 2024. Net property income also rose, by 41.8 per cent year on year to US$22.4 million.

 

Tax expenses however, were 61.2 per cent higher, at US$4.1 million. The manager did not provide distribution per unit for the quarter.

 

Occupancy at the Reit&rsquo s data centres in Frankfurt, which account for 29 per cent of Digital Core&rsquo s portfolio, was 99.6 per cent as at Mar 31, slightly higher than 99.5 per cent the year before.

 

Occupancy at the data centres in Northern Virginia and Silicon Valley, which account for 40 per cent of the Reit&rsquo s portfolio, was unchanged at 100 per cent.

The purchase is expected to be about 1.8% accretive to the Reit&rsquo s distribution per unit

 

[SINGAPORE] Digital Core Real Estate Investment Trust : DCRU +2.8% (Reit) acquired a 20 per cent interest in an Osaka data centre for about 13.2 billion yen (S$117 million), the Reit&rsquo s manager said on Wednesday (Mar 26).

 

The total acquisition cost comprised a purchase consideration of 13 billion yen, an acquisition fee of 130 million yen paid to the Reit&rsquo s manager, and other professional fees and expenses incurred of about 47 million yen.

 

The acquisition was completed on Tuesday and marks Digital Core Reit&rsquo s second investment in Osaka. The Reit already holds a 20 per cent stake in a neighbouring facility on the same data centre campus.

 

The acquisition is expected to be about 1.8 per cent accretive to the Reit&rsquo s distribution per unit (DPU), bringing it from US$0.036 to US$0.0367 on a pro-forma basis. The Reit&rsquo s net asset value per unit is not expected to change.

 

The newly acquired data centre is freehold and fully fitted, with a net rentable area of 193,535 square feet. It was completed in 2021 and is predominantly leased to leading global cloud providers.

 

The Reit acquired its stake from third-party vendor Mitsubishi Corporation via its wholly owned subsidiary, Digital CR Singapore 4, and financed the deal using yen-denominated borrowings on the Reit&rsquo s multi-currency global revolving credit facility. The manager expects to refinance the debt with long-term, fixed-rate yen-denominated debt over the near term, at an estimated borrowing cost of about 2 per cent.

 

The acquisition will raise the share of annualised rent contributed by Osaka from 7 per cent to 11 per cent. Aggregate leverage is projected to increase from 34 per cent to 37.3 per cent following the deal.

 

The manager said the deal supports the Reit&rsquo s strategy to expand its presence in top-tier global data centre markets. Japan is the world&rsquo s third-largest data centre market by revenue and a key connectivity hub for internet traffic between Asia and North America, it added.

Revenue is up 9.8% at US$54 million net property income grows 12.6% to US$31.4 million

 

DIGITAL Core Real Estate Investment Trust : DCRU +0.98% (Reit) posted a distribution per unit (DPU) of US$0.018 for the six months ended Dec 31, 2024, up 1.1 per cent from the year-ago period.

 

The data centre-focused Reit&rsquo s revenue for the half-year was up 9.8 per cent year on year at US$54 million its net property income (NPI) rose 12.6 per cent to US$31.4 million.

 

Distributable income to unitholders grew 17 per cent to US$23.4 million over the same period.

 

The Reit manager on Wednesday (Feb 12) said the growth in revenue came largely from straight-line rent written off due to a customer bankruptcy in H2 2023.

 

Cyxtera Technologies, a global co-location and interconnection provider, filed for bankruptcy protection in June 2023. To resolve this, Digital Core Reit entered an agreement with Brookfield Infrastructure Partners to divest some of its Silicon Valley assets for US$160 million.

 

The decrease in rental income from the divestment was offset by higher co-location income from two of the Reit&rsquo s Los Angeles assets &ndash 3015 Winona and 200 North Nash &ndash as well as additional income from its Frankfurt facility, which became a subsidiary in December 2024.

 

Finance income grew 66.2 per cent to US$5 million, from US$3 million in H2 2023, due partly to higher fixed deposits placed with banks.

 

Net fair-value gain in investment properties was US$251.6 million, reversing a loss of US$139.2 in the prior corresponding period. This was attributed to the Reit&rsquo s North American portfolio notching an 11 per cent gain of around US$135.7 million, on the back of positive market fundamentals and a combination of new and extended lease executions.

 

For the full year, Digital Core Reit posted a 2.7 per cent fall in DPU to US$0.036. FY2024 revenue was down 0.3 per cent at US$102.3 million, while NPI declined 1.9 per cent to US$61.8 million.

 

As at Dec 31, the trust had US$1.6 billion in assets under management, mostly in core data centre markets across the US, Canada, Germany and Japan.

 

New and renewal leases represented US$74 million of annualised rental revenue, while the cash rental rate reversion on renewal leases was 4.3 per cent.

 

Portfolio occupancy was 96.7 per cent, with weighted average lease expiration at 4.8 years.