- Digital Core REIT has announced a 10-year lease with an investment-grade global cloud service provider to occupy the entire Linton Hall data centre starting 1 Dec 26. This lease is expected to generate annualised net property income (NPI) of US$14.8m (US$13.3m at Digital Core REIT’s 90% share), representing an increase of 35%, which is derived from an increase in capacity of 13% to 10.8MW and a positive rental reversion of 20%.
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Strengthens portfolio resiliency.
- The Linton Hall data centre would return to full occupancy, boosting portfolio occupancy from 81% to 98%. The tenant has leapfrogged to become Digital Core REIT’s second-largest tenant, occupying 17% of net rentable square feet. The proportion of annualised rent from investment-grade customers would increase from 79% to 82%.
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Contributing cash flow starting Dec 26.
- Linton Hall data centre in Northern Virginia is fully fitted and water-cooled. It can support high power density AI workloads. It accounted for 8.9% of Digital Core REIT’s annualised rents as of Jun 25.
- Digital Core REIT will incur capex of US$40m to upgrade the electrical system, while the tenant will bear the cost of fitting out. The refurbishment will take 15 months. The data centre is expected to come back online and resume contribution in Dec 26.
Strategic milestone for growth.
- Read more at SGinvestors.io.
