Digital Core REIT (DCRU) H2 2025 earnings summary

Executive summary

• Achieved FY2025 distribution of 3.60 U.S. cents per unit, unchanged year-over-year, with a strong focus on sustainable growth and digital economy trends, including AI-driven demand.

• Expanded portfolio to 11 data centres across the U.S., Canada, Germany, and Japan, valued at $1.8 billion, with 97% occupancy as of 31 December 2025.

• Secured a 10-year lease with a global cloud provider in Virginia, increasing portfolio occupancy from 81% to 98% and WALE from 4.6 to 5.5 years.

• Signed new and renewal leases totaling $26 million in annualized rental revenue, with 31% cash rental reversion in 2025.

• Repurchased 1.8 million units at an average price of $0.565, resulting in 0.1% DPU accretion.

Financial highlights

• FY2025 revenue rose 72.2% year-over-year to $176.2 million; net property income increased 43.5% to $88.7 million.

• Distributable income attributable to unitholders was $46.8 million, with a stable distribution per unit of 3.60 U.S. cents.

• Net asset value per unit increased to $0.80, up 1.3% from the prior year.

• Annualized distribution yield for FY2025 was 7.06%, up from 6.21% in FY2024.

• Aggregate leverage stood at 37.1% as of 31 December 2025, with $500 million debt headroom at 50% leverage.

Outlook and guidance

• AI and digital economy trends expected to drive continued growth in digital spending and leasing demand.

• Management expressed confidence in business fundamentals and durable value creation for unitholders in 2026 and beyond.

• Sponsor pipeline offers access to $15+ billion in future opportunities, supporting long-term expansion.

• Market rent and AUM growth anticipated to remain robust, with a focus on core global metros.

• A 10-year lease agreement with a global cloud provider will commence in December 2026, expected to boost occupancy to 98% and extend WALE to 5.5 years.