Digital Core REIT (DCRU) EGM 2024 Presentation summary

Transaction overview

• Acquisition of a 15.1% interest in the Frankfurt Facility for €71.0 million, with a total acquisition cost of €72.4 million (approx. US$76.6 million).

• Agreed value of the facility is €470 million, reflecting a 19% discount to JLL and 16.5% to Newmark valuations.

• Funding is primarily through debt, with the acquisition fee and professional expenses included in the total cost.

• The facility is 100% freehold, 4.5 years old, and 99% occupied as of June 2024.

• Unitholders are to vote on the acquisition as an Interested Person Transaction, with majority approval required.

Strategic rationale

• Acquisition offers exposure to a high-quality data centre in a core global market at a significant discount.

• Enhances portfolio quality and diversification, reducing concentration risk.

• Expected to be accretive to both Distribution Per Unit (DPU) and Net Asset Value (NAV).

• Increases annualised rent contribution from Europe and Asia Pacific to 39% on a pro forma basis.

• Frankfurt is a leading European data centre market with strong connectivity and economic fundamentals.

Property overview

• Frankfurt Facility is a purpose-built, high-quality data centre with 449,546 sq ft and 34,000 kW IT load.

• 22 customers, 85% of rent from investment grade tenants, and a WALE of 5.8 years by rent.

• 1H24 cash net property income at 100% share was €13.4 million (US$14.2 million).

• Facility is fully fitted, completed in phases between 2017 and 2022, and located on Wilhelm-Fay Straße, Frankfurt.

• JLL and Newmark valuations as of September 2024 were €580 million and €563 million, respectively.