Singapore's Digital Core REIT H1 net property income slips on facility redevelopment

Digital Core REIT

29/07/2026 10:31

Overview
Singapore data centre REIT's gross revenue for 1H 2026 declined slightly yr/yr
Net property income for 1H 2026 fell 5.7%, mainly due to facility redevelopment
Company repurchased 8.0 mln units, generating 0.4% distribution per unit accretion

Outlook
Digital Core REIT signed a 10-year lease commencing Dec 2026, expected to boost occupancy to 98%
Company says annualised rent contribution from investment grade customers will increase to 83% after new lease begins
Digital Core REIT expects portfolio weighted average lease expiration to extend to 5.1 yrs after new lease

Result Drivers
FACILITY REDEVELOPMENT - Net property income declined due to redevelopment of 8217 Linton Hall facility in Virginia
LEASE SIGNINGS - Co signed new and renewal leases for 1H 2026 representing $5.0 mln annualised rental revenue at a 25.0% cash rental reversion
UNIT BUY-BACK - Co repurchased 8.0 mln units at an average price of $0.488, generating 0.4% DPU accretion

Company press release: ID:nSN1mJmy1

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Gross Revenue
 
$88.60 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy."
Wall Street's median 12-month price target for Digital Core REIT is $0.69, about 39.4% above its July 28 closing price of $0.50
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)