Digital Core REIT loses 5.7% of NPI to higher costs in H1 2026

Property outgoings increased 5.4% to $57.6m during the first half.

Digital Core REIT’s January to June 2026 (H1 2026) net property income fell 5.7% year-on-year (YoY) to $56.0m (US$43.7m), dragged by higher property expenses.

According to a local bourse filing, income growth declined specifically due to the redevelopment of 8217 Linton Hall in Northern Virginia.

The company declared a distribution per unit of 1.80 U.S. cents for H1 2026. Gross revenue marginally dipped 0.4% YoY to $113.6m (US$88.6m) during the period. Meanwhile, property expenses climbed 5.4% YoY to $57.6m (US$44.9m).

“Digital Core REIT continued to execute against key strategic priorities in the first half of 2026, demonstrating the resiliency of our business, the quality of our portfolio, and the strength of our Sponsor support,” John J. Stewart, CEO of Digital Core REIT Management Pte. Ltd., said in a statement.

“Looking ahead to the second half of the year and beyond, we remain confident in the fundamentals underpinning our business and the unique opportunity to continue to create durable value for Unitholders,” added Stewart.

Distributable income to unitholders slipped 0.2% to $29.9m (US$23.33m). The annualised distribution yield was 7.19%, based on a unit price of $0.65 (US$0.51) at the end of the reporting period, compared with 6.85% a year earlier.

The distribution will be paid on 24 September 2026 to unitholders registered as at 6 August 2026.

Digital Core REIT signed new and renewed leases representing $6.4m (US$5m) in annualised rent during the first half.

Renewal leases recorded a cash rental increase of 25%. Its portfolio occupancy remained at 97.3% as at 30 June, whilst the weighted average remaining lease term was about 4.3 years.

The REIT owns 11 data centre properties worth $2.4b (US$1.9b) across the United States, Canada, Germany and Japan.

A 10-year lease with an investment-grade global cloud service provider for the entire Linton Hall facility is due to begin on 1 December 2026.

The lease is expected to generate about $19.0m (US$14.8m) in annual net property income, or $17.1m (US$13.3m) based on Digital Core REIT’s 90% interest.

The new lease represents an increase of about 35% from the property’s previous net rent.

Once it begins, portfolio occupancy is expected to rise to 98%, whilst the weighted average lease term is expected to increase to 5.1 years.

Digital Core REIT also bought back eightm units during the first half at an average price of $0.63 (US$0.488) each.

The buy-back increased distribution per unit by about 0.4%. The units were later cancelled.

The REIT had $918.0m (US$716m) in total unsecured debt as at 30 June. Its aggregate leverage stood at 39.2%, whilst the average cost of debt was 3.6% and the average debt maturity was 3.3 years. About 70% of its interest rate exposure was hedged.

($1.00 = US$0.78)

Follow the link s for more news on

Financial Statements

REIT

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia