Digital Core REIT (DCRU) Q2 2026 earnings summary

Executive summary

• Focused on sustainable growth as a pure-play data centre REIT, leveraging AI and digital economy trends for continued expansion.

• Linton Hall refurbishment increased sellable capacity by 13%, driving a 35% rise in net rent for that asset, though redevelopment-related vacancy impacted revenue.

• Portfolio comprises 11 data centres across the US, Canada, Germany, and Japan, with $1.9 billion AUM and 97% occupancy.

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

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

Financial highlights

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

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

• Distributable income to unitholders was $23.3 million, with a distribution per unit of 1.80 US cents, 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.

• Data centre sector projected to grow at 14% CAGR through 2030, with strong demand and supply constraints supporting rental growth.

• No debt maturities until December 2027, with $130 million available under existing credit facilities.

• 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.