Digital Core REIT income hits $59.4m on strong Osaka and Frankfurt performance

The REIT recorded income growth on portfolio expansion.

Digital Core REIT announced a distributable income of $59.44m (US$46.8m) for financial year (FY) 2025, representing a 1.9% year-on-year increase, according to its financial statement.

The REIT maintained a total distribution per unit (DPU) of 4.57 Singapore cents (3.60 US cents) for FY 2025, supported by a 72.2% surge in gross revenue to $223.77m (US$176.2m) and a 43.5% rise in net property income to $112.65m (US$88.7m).

Digital Core REIT attributed the revenue growth to the consolidation of its Frankfurt facility following an incremental 15.1% interest acquisition in December 2024.

Growth also benefited from the March 2025 acquisition of a 20% interest in a freehold data centre in Osaka, Japan, for approximately $110.49m (US$87m).

“Digital Core REIT delivered strong results for the full year of 2025, demonstrating the resilience of our business, the quality of our portfolio, and the strength of our sponsor support,” said John J. Stewart, CEO of Digital Core REIT Management Pte. Ltd.

The REIT maintained portfolio occupancy at 97% across its 11 mission-critical facilities, valued at approximately $2.29b (US$1.8b), located in core data centre markets in the United States, Canada, Germany, and Japan.

Digital Core REIT signed new and renewal leases representing $33.02m (US$26m) in annualised rent. Renewal leases recorded a cash rental rate reversion of 31%.

Looking ahead, the REIT secured a 10-year agreement with a global cloud service provider to occupy an entire facility in Virginia.

Scheduled to commence in late 2026, the lease is expected to lift portfolio occupancy to 98% and extend the weighted average lease expiry from 4.6 to 5.5 years.

On the capital management front, Digital Core REIT established a $952.50m (US$750m) Euro Medium-Term Note Programme to strengthen access to public debt markets.

As of year-end, the REIT reported aggregate leverage of 37.1%, with 100% of its $852.17m (US$671m) total debt unsecured. The weighted average cost of debt stood at 3.5%, with 85% of interest exposure hedged.

The REIT also utilised a unit buy-back programme during the year, repurchasing 1.8 million units at an average price of $0.72 (US$0.565), generating a 0.1% DPU accretion.

Unitholders on record as of 12 February will receive the final DPU of 2.29 Singapore cents (1.80 US cents) on 26 March 2026.

(US$1 = SG$1.27)