The current lease expires on June 30; the customer is expected to move out once the lease expires.
According to the REIT manager, every month of downtime is expected to reduce its distribution per unit (DPU) by about 0.06 cents.
In prepared remarks by the manager at the REIT’s 3QFY2024 business update, the REIT is looking at a series of options that includes potentially re-leasing the facility as is; developing an annexe in the parking lot; or demolishing the existing building and developing a much larger facility on the site.
“However, given the severe power constraints in a market with less than 1% vacancy – in addition to the size of the parcel and the potential access to power – we believe the potential short-term DPU disruption is far outweighed by the opportunity for long-term value creation,” the manager added at the time.
See also: SGX gives approval-in-principle to FHT to delist
Units in Digital Core REIT closed flat at 58 US cents on Dec 31, 2024.
