“We understand that although energy prices have came off the peak and have stabilised, the high interest rate environment calls into question Cyxtera’s ability to continue expanding and growing, which has been once of the key drivers of its business strategy,” DBS says.
To date, Cyxtera is current in its rent, DBS reports. “Based on our estimates, Cyxtera is DC REIT’s second largest tenant, accounting for 22.6% of DCREIT’s revenues. Although this may seem like a concern for DCREIT, we take comfort from its Sponsor’s commitment to the REIT. Similar to what we saw with SunGard previously, DCREIT’s Sponsor was quick to step in and provide support for the REIT.”
A spokeswoman for DC REIT's manager says that its tenants are current with their rent with no aged receivables. She adds that DC REIT has no banking or customer relationship with Silicon Valley Bank, Signature Bank and Silvergate Bank. "None of our tenants are tech start-ups or venture capital companies. Our customers are all publicly traded companies," the spokeswoman says.
