On Jan 5, Digital Core REIT announced it has 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 1 December 2026 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. In 1H2025, DC REIT's NPI was US$46.3 million.
Upon commencement, the Linton Hall facility will return to full occupancy and overall portfolio occupancy will improve from 81% to 98%. The annualised rent contribution from investment-grade customers will increase from 79% to 82% and the total portfolio weighted average lease expiration will be extended from 4.7 years to 5.7 years.
“We are pleased that our Linton Hall facility was well-positioned to meet the needs of this strategically important customer,” said John Stewart, CEO of Digital Core REIT’s manager.
“This seamless execution is a direct reflection of the power and support of Digital Realty’s global platform, the underlying strength of data centre fundamentals in core global markets, and the high quality of Digital Core REIT’s portfolio of mission-critical facilities. This transaction enables us to capture a portion of the embedded growth potential within our portfolio and sets the stage for continued long-term unitholder value creation through generation of organic growth and execution of our external growth strategy by capitalising on our industry-leading acquisition pipeline,” Stewart adds.
