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:
2025-07-24 Digital Core REIT 1H25 - Maintaining DPU Despite Refurbishment At Linton Hall Road.

Previous report by UOB:
2025-02-14 Digital Core REIT - Good Works That Withstood The Test Of Fire.

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