Digital Core REIT (DCRU) Q1 2026 earnings summary

Executive summary

• 1Q26 distributable income reached US$11.7 million, with stable revenue and high occupancy across a diversified data center portfolio.

• Portfolio comprises 11 data centers in key metros across the US, Canada, Germany, and Japan, with 97% occupancy and a weighted average lease expiry (WALE) of 4.4 years.

• Artificial intelligence and digital economy trends are expected to drive continued growth in digital spending and demand for data center capacity.

• Linton Hall refurbishment expanded sellable capacity by 13%, contributing to a 35% increase over previous net rent.

Financial highlights

• Revenue for 1Q26 was $44.1 million, nearly flat year-over-year, while net property income declined 4.9% to $21.3 million.

• Net profit attributable to unitholders rose to $5.4 million, up from $2.1 million in 1Q25, driven by higher unrealized FX gains and lower tax expense.

• Distributable income was stable at $11.7 million, with a slight decrease of 0.1% year-over-year.

• Net asset value per unit was $0.79 as of March 31, 2026, down 1.3% from December 2025.

• Aggregate leverage stood at 39.0%, with $428 million in debt headroom at a 50% leverage cap.

Outlook and guidance

• AI and digital transformation are expected to drive exponential demand growth, with AI inference workloads projected to overtake training by 2027.

• Sponsor pipeline supports a path to a $15+ billion portfolio, with over 300 existing data centers globally and a robust right-of-first-refusal (ROFR) pipeline.

• Management expects continued strong leasing activity and portfolio resilience amid macroeconomic turbulence.