In March 2024, Digital Core REIT completed the acquisition of an incremental 10% interest in an Osaka data centre from Mitsubishi Corporation for ¥7.725 billion, or approximately US$51.5 million at a 1% discount to appraised value. In April 2024, Digital Core REIT completed the acquisition of an incremental 24.9% interest in its Frankfurt Facility from Digital Realty for €117.0 million, or approximately US$128.7 million, at a 6% discount to appraised value. Both transactions enhanced Digital Core REIT’s portfolio quality and improved geographic diversification as well as customer credit quality.
As at end-June, 30 June 2024, Digital Core REIT had US$472 million of total debt outstanding consisting of US$454 million of unsecured term loans due 2025-2027 and US$18 million outstanding on its unsecured revolving credit facility. Aggregate leverage was 34.4% as at June 30. The weighted average cost of debt was approximately 4.1% and the weighted average debt maturity was approximately 2.4 years. Approximately 93% of total interest rate exposure was hedged. The trailing 12-month interest coverage ratio was 3x, but in 2Q2024, the ICR was 4.2x.
Separately, the Monetary Authority of Singapore has announced that, in a consultation paper, it is proposing a minimum ICR for all REITs to be set at 1.5x. The aggregate leverage limit stays at 50%. DC REIT is well within these proposed limits for both ICR and aggregate leverage.
