Digital Core REIT (DCRU) Q1 2025 earnings summary

Executive summary

• 1Q25 distributable income reached US$11.7 million, up 9.9% year-over-year, with strong leasing momentum and high occupancy across a diversified, mission-critical data center portfolio in the U.S., Canada, Germany, and Japan.

• Completed acquisition of a 20% interest in a second Osaka data center, expanding APAC presence and contributing to DPU accretion.

• Established a US$750 million medium-term note program, enhancing access to public debt markets and supporting future growth.

• Repurchased 1.8 million units at an average price of $0.565, resulting in 0.1% DPU accretion.

Financial highlights

• Revenue for 1Q25 was $44.2 million, up 79.9% year-over-year; net property income rose 41.8% to $22.4 million.

• Net profit attributable to unitholders was $2.1 million, down 76.2% year-over-year, mainly due to higher tax and unrealized FX losses.

• Distributable income attributable to unitholders increased 9.9% year-over-year to $11.7 million.

• Total assets grew 5.6% to $2.13 billion as of 31 March 2025; net asset value per unit was $0.78.

Outlook and guidance

• AI and digital economy trends are expected to drive continued growth in digital spending and data center demand.

• Sponsor pipeline supports a path to a $15+ billion portfolio, with global ROFR and over 300 data centers in the sponsor's network.

• Market fundamentals remain favorable, with robust demand and low vacancy in key metros.