Digital Core REIT - UOB Kay Hian 2023-06-06: Overhang Crystalises, Working On Backfilling Vacant Space

• Cyxtera, Digital Core REIT’s second-largest tenant accounting for 22.4% of annualised rent, has filed for chapter 11 bankruptcy protection. We expect Cyxtera to reject the two leases for data centres in Los Angeles as occupancy is low at 57%.
• - Read this at SGinvestors.io -

Worst fear has crystallised.

• Digital Core REIT (SGX:DCRU)’s second-largest tenant Cyxtera, which accounted for US$16.3m or 22.4% of annualised rental revenue, has filed for chapter 11 bankruptcy protection in the District Court of New Jersey on 4 Jun 23.
• - Read this at SGinvestors.io -
• Cyxtera has obtained up to US$200m of debtor-in-possession financing and intends to pay vendors and suppliers in full.

Preliminary assessment.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-02-14 Digital Core REIT - Good Works That Withstood The Test Of Fire.

Previous report by UOB:
2025-01-08 Digital Core REIT - Successful Backfilling At Toronto & Los Angeles Not Fully Appreciated.

Price targets by other brokers at Digital Core REIT Target Prices.

Listing of research reports at Digital Core REIT Analyst Reports.

Relevant links:
Digital Core REIT Share Price History,
Digital Core REIT Announcements,
Digital Core REIT Dividend Payout Dates & Corporate Actions,
Digital Core REIT News