Digital Core REIT (DC REIT) announced a distribution per unit (DPU) of 3.6 US cents for FY2025, unchanged y-o-y. During 2025, DC REIT signed new and renewal leases representing US$26 million of annualised rent. The cash rental rate reversion on renewal leases signed was 31%.
In-service portfolio occupancy was 97% as at end-December 2025 and the weighted average lease expiration (WALE) was 4.6 years.
On Jan 5, DC REIT announced it had reached a 10-year agreement with an investment-grade global cloud service provider to occupy the entire facility at 8217 Linton Hall Road in Virginia. The agreement will commence on Dec 1 and is expected to generate approximately US$14.8 million of annualised net property income, or approximately US$13.3 million at Digital Core REIT’s 90% share, representing roughly a 35% increase relative to the previous net rent.
Upon commencement, the Linton Hall facility will return to full occupancy and overall portfolio occupancy will improve to 98%. The annualised rent contribution from investment- grade customers will increase to 82% and the total portfolio weighted average lease expiration will be extended to 5.5 years.
In March 2025, DC REIT completed the acquisition of a 20% interest in a second fully-fitted freehold data centre in Osaka from Mitsubishi Corporation for ¥13 billion, or approximately US$87 million. The transaction is expected to be 1.8% accretive to DPU.
During FY2025, DC REIT bought back 1.8 million units at an average price of US$0.565, generating DPU accretion of approximately 0.1%. The units were held as treasury units and were subsequently cancelled.
See also: Dezign Format issues profit guidance for FY2025 results, expects lower net profit
Aggregate leverage was 37.1% as at Dec 31 2025. The weighted average cost of debt for FY2025 was 3.5% and the weighted average debt maturity was 3.7 years. Approximately 85% of total interest exposure was hedged as at end December 2025.
Digital Core REIT units closed at 53 cents on Feb 4.
