Digital Core REIT forecasts about 17% rise in 2027 distribution per unit

Digital Core REIT’s manager expects distribution per unit (DPU) of US$0.0415 to US$0.0425 in 2027, its first formal DPU forecast. Chief executive John Stewart said at an earnings call on Oct 27 that the midpoint represents an increase of about 17 per cent from the current US$0.036.

Stewart attributed the expected increase to a 10-year lease at Linton Hall beginning in December and a full year of contributions from an asset swap with Digital Realty. He said preparations at Linton Hall remained within budget and on schedule. The facility has been vacant since its previous tenant departed in June 2025.

For the nine-month period ending Sep 30, distributable income declined to US$34.8 million from US$35.2 million a year earlier. Revenue increased to US$134.5 million from US$132.4 million, according to the manager’s Oct 27 exchange filing.

Net property income fell 4.3 per cent to US$64.8 million from US$67.7 million. Stewart linked the decline to Linton Hall, which contributed for six months in 2025 but made no contribution in 2026.

The manager also forecast positive mid-single-digit cash rental reversion in 2027 and an average interest rate between 3.25 per cent and 3.75 per cent.

A proposed portfolio reshuffle includes selling interests in facilities in Los Angeles, Toronto and Northern Virginia, alongside purchases of partial interests in Singapore and Osaka data centres. The manager previously estimated gross disposal proceeds at about US$315.9 million and total investment in the purchases at around US$176 million.

Stewart expects completion in the fourth quarter. The changes would reduce the portfolio from 11 data centres to 10 and assets under management from US$1.9 billion to US$1.8 billion. Unitholders approved the transaction on Oct 22, with 99.92 per cent of votes cast supporting it.