Digital Core REIT NPI reaches $91m in FY22

Its portfolio occupancy is at 96% as of January 2023.

Digital Core REIT report a net property income of $91m (US$69.4m) for the financial year 2022, a 3.8% increase from its forecast of $87.7m (US66.9m).

In a statement, it said its gross revenue was also up by 1.7% from its forecast to $141.3m (US$107.7m), and a distribution per unit of  $0.052 (US$0.0398), which is down by 4.8% from the forecast.

John Stewart, CEO of Digital Core REIT Management, said the company delivered “solid results” despite a rapidly evolving environment.

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“We successfully completed the acquisition of a 25% interest in a state-of-the-art freehold facility in Frankfurt and we repurchased units at a deep discount to NAV, generating meaningful accretion for Unitholders,” Stewart said. 

“We remain focused on leasing up vacancy, proactively managing controllable costs and investing accretively to continue to create sustainable value for Unitholders,” he added.

The REIT’s portfolio was also 98% leased as of 31 December 2022, with the weighted average lease expiration of around 4.5 years.

It noted that a customer occupying around 37,000 net rentable square feet in Toronto filed for bankruptcy protection in April 2022 and vacated on 1 January 2023. This brings the company’s occupancy to 96%.

The REIT executed a short-term lease agreement with an investment grade cloud service provider that covers 50% of the bankrupt customer’s rental obligation. 

US$1 = S$1.31