Digital Core REIT - UOB Kay Hian 2025-02-14: Good Works That Withstood The Test Of Fire

• Digital Core REIT provides an attractive 2025 distribution yield of 6.7%, in comparison to Keppel DC REIT at 4.9%, Mapletree Industrial Trust at 6.6%, Digital Realty at 3.0%, and Equinix at 2.0%. It reported DPU of 1.80 US cents for 2H24 (+1.1% y-o-y), which is slightly above our expectation. P/NAV is 0.68x.

Embedded renewal options largely exercised.

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Completed backfilling of Toronto data centre.

• Digital Core REIT signed a 3-year lease with a next-generation AI computing developer, commencing in 1Q25. The new tenant accounted for 33% of capacity for its Toronto data centre, restoring occupancy from 66% to 100%.
• The new tenant is expected to generate an annualised rent of US$4.2m, which increases annualised rent for the Toronto data centre by 45%. Thus, Digital Core REIT’s portfolio occupancy further improved by 4ppt q-o-q to 97% in 4Q24.

Successfully backfilled vacant space at LA data centres.

• 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/.

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