Digital Core REIT (DCRU) H1 2026 earnings summary

Executive summary

• Focused on sustainable growth as a pure-play data centre REIT, leveraging AI and digital economy trends for expansion, with a portfolio of 11 data centres across the US, Canada, Germany, and Japan, valued at $1.9 billion and 97% occupancy.

• Linton Hall refurbishment increased sellable capacity by 13%, driving a 35% rise in net rent, and a new 10-year lease commencing December 2026 is expected to further boost occupancy and rental income.

• Unit buyback of 8 million units at $0.488 delivered 0.4% DPU accretion in 1H2026.

• Signed new and renewal leases totaling $5 million in annualized rental revenue at a 25% cash rental reversion in Northern Virginia.

• Distribution per unit (DPU) was maintained at 1.80 US cents, with an annualized yield of 7.19%, up 34 bps year-over-year.

Financial highlights

• 1H26 gross revenue was $88.6 million, down 0.4% year-over-year; net property income fell 5.7% to $43.7 million, mainly due to redevelopment activities.

• Net profit attributable to unitholders declined 19.8% year-over-year to $9.7 million.

• Distributable income to unitholders was $23.3 million, flat year-over-year, with DPU unchanged from 1H25.

• Distribution yield rose to 7.19% from 6.85% year-over-year.

• Net asset value per unit was $0.79 as of June 30, 2026.

Outlook and guidance

• AI and digital economy expected to drive continued growth in digital spending and demand for data centre capacity, with the sector projected to grow at 14% CAGR through 2030.

• No debt maturities until December 2027, with $130 million available under existing credit facilities and $136 million undrawn revolving credit capacity as at June 30, 2026.

• Sponsor pipeline supports a path to a $15+ billion portfolio, with over 300 data centres globally as potential acquisition targets.

• Manager aims to maximise organic growth via leasing and maintain financial flexibility for accretive investments.

• A major 10-year lease at 8217 Linton Hall Road will commence in December 2026, expected to boost occupancy and rental income.