Digital Core REIT (DCRU) H2 2024 earnings summary

Executive summary

• Achieved FY2024 distribution of 3.60 US cents per unit, with 20% year-over-year AUM growth to $1.6 billion, driven by robust leasing and market rent growth.

• Strengthened balance sheet with $280 million from asset sales and equity fundraising, doubling weighted-average debt maturity to 4.8 years.

• Completed over $250 million in investments, increasing stakes in Frankfurt and Osaka, expanding presence in Europe and Asia.

• Repurchased 27 million units at $0.576 average, resulting in 1.8% DPU accretion.

• Portfolio occupancy at 97% across 10 data centers in key metros in the U.S., Canada, Germany, and Japan.

Financial highlights

• FY2024 revenue was $102.3 million, down 0.3% year-over-year; net property income was $61.8 million, down 1.9%.

• Distributable income attributable to unitholders rose 10.9% to $46.0 million.

• Net asset value per unit increased 14.5% to $0.79; adjusted NAV per unit up 14.9% to $0.77.

• Distribution yield rose to 6.21% from 5.74% year-over-year.

• Total assets grew 33.5% to $2.01 billion; total equity up 39.1% to $1.28 billion.

Outlook and guidance

• AI and digital economy trends expected to drive continued digital spending and data center demand.

• Proactive portfolio management and robust leasing activity position the REIT for further growth.

• 2025-2026 DPU growth potential supported by full-year run-rate from Frankfurt, lease-up in Toronto and LA, and credit facility recast.

• Management expects continued value creation for unitholders in 2025 and beyond.