- Digital Core REIT (SGX:DCRU) reported distributable income of US$10.9m (-13.7% y-o-y) for 1Q23, which was in line with our expectations.
- Successful backfilling of vacant space at Toronto data centre. Portfolio occupancy was 97% as of Mar 23. Digital Core REIT has signed three colocation leases for its newly acquired Frankfurt data centre, which improved occupancy by 0.9ppt q-o-q to 92.0%. It has signed one short-term lease with an investment grade cloud service provider in Dec 22 that backfilled half of the data centre space vacated by Sungard Availability Service. To date, two thirds of the vacant space at its Toronto data centre at 371 Gough Road has been backfilled.
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Supply constraints drive higher rents.
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- Rising rents and tightening vacancies augur well for Digital Core REIT and Mapletree Industrial Trust (SGX:ME8U)’s efforts to backfill potential vacant data centre space.
Potential negative impact should Cyxtera file for chapter 11 bankruptcy protection.
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