Digital Core REIT (DCRU) Q3 2024 earnings summary

Executive summary

• 9M24 distributable income rose 9.7% year-over-year to $34.5 million, driven by portfolio management and AI/digital economy tailwinds.

• Portfolio comprises 10 data centers across the US, Canada, Germany, and Japan, with $1.4 billion AUM and 93% pro forma occupancy.

• Weighted average lease expiry (WALE) extended to 5.0 years, and weighted average debt maturity doubled to 4.9 years with no debt due until December 2027.

• Unit buyback of 22.2 million units year-to-date resulted in 1.5% DPU accretion.

Financial highlights

• Revenue for 9M24 was $71.99 million, down 9.7% year-over-year; net property income fell 11.3% to $45.26 million.

• Net profit attributable to unitholders increased 36.6% year-over-year to $23.83 million for 9M24.

• Distributable income to unitholders reached $34.55 million, up 9.7% year-over-year.

• Net asset value per unit was $0.67 as of 30 September 2024.

Outlook and guidance

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

• Sponsor’s $15+ billion global acquisition pipeline and ROFR mandate support external growth opportunities.