Digital Core Reit posts 1.1% dip in 9M distributable income to US$34.8 million

Digital Core Reit recorded a 1.1% decrease in its nine-month distributable income, amounting to US$34.8 million, as of September 30. Despite a 1.6% rise in revenue to US$134.5 million from US$132.4 million over the same period, the pure-play data centre REIT experienced a 4.3% decline in net property income to US$64.8 million from US$67.7 million.

The firm currently manages 11 data centres with assets worth US$1.9 billion, comprising 65% in North America, 24% in Germany, and 11% in Japan. The portfolio's weighted average lease expiry is four years, while the in-service portfolio occupancy stands at 97%. The Reit recently announced a major portfolio revamp, which includes the sale of interests in Los Angeles, Toronto, and Northern Virginia facilities, generating gross proceeds of around US$315.9 million.

Additionally, the purchase of partial interests in Singapore and Osaka data centres is expected to represent an investment of approximately US$176 million. Post-transaction, Digital Core Reit's pro-forma assets under management will decrease to US$1.8 billion, with 52% in North America, 26% in Germany, 18% in Japan, and 4% in Singapore.

Consequently, the number of data centres under the Reit's management will reduce to 10, with a weighted average lease expiry of five years and a 99% occupancy rate. The REIT's units remained stable at US$0.44 on Tuesday following the announcement.