DigiCore Reit USD reported a distribution per unit (DPU) of USD 0.018 for the six months ending December 31, 2024, marking a 1.1% increase compared to the same period last year.
The data center-focused REIT saw its revenue for the first half of the year rise by 9.8% year-on-year to USD 54 million, while its net property income (NPI) grew by 12.6% to USD 31.4 million.
During the same period, income available for distribution to unitholders increased by 17% to USD 23.4 million.
The REIT's manager stated on Wednesday (February 12) that the revenue growth was primarily driven by the write-off of straight-line rents due to a customer's bankruptcy in the second half of 2023.
Cyxtera Technologies, a global colocation and interconnection provider, filed for bankruptcy protection in June 2023. To address this issue, Digital Core REIT reached an agreement with Brookfield Infrastructure Partners to divest part of its Silicon Valley assets for USD 160 million.
The reduction in rental income from the divestment was offset by increased co-location income from the REIT's two Los Angeles assets (3015 Winona and 200 North Nash) and additional income from the Frankfurt facility, which became a subsidiary in December 2024.
Financial income surged by 66.2% from USD 3 million in the second half of 2023 to USD 5 million, partly due to increased bank term deposits.
The net fair value gain on investment properties was USD 251.6 million, reversing a loss of USD 139.2 million in the same period last year. This was attributed to an 11% gain, approximately USD 135.7 million, in the REIT's North American investment portfolio, driven by positive market fundamentals and the execution of new leases and lease renewals.
For the full year, Digital Core REIT's DPU declined by 2.7% to USD 0.036. Revenue for fiscal year 2024 decreased by 0.3% to USD 102.3 million, while NPI fell by 1.9% to USD 61.8 million.
As of December 31, the trust managed assets worth USD 1.6 billion, primarily invested in core data center markets in the United States, Canada, Germany, and Japan.
New leases and lease renewals generated annual rental income of USD 74 million, with a cash rental reversion rate of 4.3% for renewed leases.
The portfolio occupancy rate stood at 96.7%, with a weighted average lease expiry of 4.8 years.
Ahead of the results announcement, Digital Core REIT's units closed up 1%, or USD 0.005, at USD 0.515 on Wednesday.
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