Digital Core REIT posted distributable income of US$23.33 million for the six months ended Jun 30, 2026, edging down 0.2% year-on-year (YoY) as the temporary revenue gap from a data-centre redevelopment offset higher renewal rents.
Gross revenue slipped 0.4% YoY to US$88.57 million, while net property income (NPI) retreated 5.7% to US$43.67 million. Cash NPI eased 7.1% to US$42.68 million. The trust declared a distribution per unit (DPU) of 1.80 US cents, unchanged from a year earlier and payable on Sept 24, 2026 to unitholders on record as of Aug 6. Based on the 30 Jun closing price of US$0.51, the annualised distribution yield improved to 7.19% from 6.85% a year ago.
Revenue from the 11-asset portfolio was largely steady as robust leasing offset the redevelopment-related vacancy at 8217 Linton Hall Road in Northern Virginia. In-service occupancy remained high at 97.3%, supported by US$5 million of new and renewal leases signed in 1H 2026 that achieved a 25.0% cash rental reversion. Property expenses, however, rose 5.4% to US$44.90 million, contributing to the softer NPI.
The temporary displacement of a prior tenant at 8217 Linton Hall Road was the key drag on earnings. The property is undergoing conversion works ahead of a 10-year lease with an investment-grade global cloud service provider that commences on Dec 1, 2026. Management expects the contract—covering the entire facility—to lift annualised net property income by 35% versus the previous rent and push portfolio occupancy to 98%.
During the half, the REIT repurchased 8.0 million units at an average US$0.488 apiece, creating an estimated 0.4% accretion to DPU. Aggregate leverage stood at 39.2% as at end-June, with all US$716 million of debt unsecured, a weighted average cost of 3.6% and 70% of interest exposure hedged.
Chief executive John J. Stewart noted that the first-half performance underscored the portfolio’s resilience and the benefit of sponsor support, adding that management remains confident about second-half prospects and sees scope to deliver “durable value” through disciplined capital deployment, sustained high occupancy and the accretive Linton Hall lease.