Digital Core REIT - DBS Research 2023-07-28: Attractive Valuations & Near-Term Catalysts

• Digital Core REIT (SGX:DCRU)'s 1H23 revenues were ~2.7% lower as compared to 2H22. However, property expenses were also lower, leading to the ~3.5% increase in NPI h-o-h.
• Although occupancy at the Toronto DC is currently at 67.4%, two-thirds of the absence in income from the previous Sungard lease has already been backfilled.
• - Read this at SGinvestors.io -
• Despite the higher financing costs, income contribution from the acquisition of the 25% stake in the Frankfurt DC helped to maintain Distributable Income (DI) and DPU.

Leasing activity slowed in Toronto, but picked up in Frankfurt

• Digital Core REIT's overall portfolio occupancy declined marginally from 96.9% to 96.7% q-o-q, due to the slight decline of 2.1% in occupancy at the Toronto DC. Although rents continue to rise in Toronto and supply remains tight, leasing activity seems to have slowed down.
• - Read this at SGinvestors.io -

Cap rates of data centres have widened across markets and property types

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-04-24 Digital Core REIT - Sustained Leasing Momentum In The US.

Previous report by DBS:
2025-02-13 Digital Core REIT - Robust Performance In North America & Europe.

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