- 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 the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-06-06
Read also UOB's most recent report:
2023-09-07 Digital Core REIT - Overcoming Resistance As Cyxtera Is Rehabilitated.
Previous report by UOB:
2023-08-01 Digital Core REIT - Restructuring Of Cyxtera Well Underway.
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 Dividends & Corporate Actions,
Digital Core REIT News Articles
