Digital Core REIT *Official" (SGX: DCRU)

Shion

Shion

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Digital Core REIT says it is not exposed to US regional banks​


https://www.theedgesingapore.com/news/reits/digital-core-reit-says-it-not-exposed-us-regional-banks
The manager of Digital Core REIT DCRU 0.00% says the REIT has no customer or banking relationship to the failed US banks, Silicon Valley Bank (SVB), First Republic Bank or any other US regional bank.

It adds that none of the REIT’s customers are financial services firms, technology startup companies or backed by venture capital.

“Substantially all ([over] 99% of annualized revenue) of Digital Core REIT’s customers are publicly traded companies and the vast majority (75% of annualized revenue) are investment grade or equivalent,” says the manager in its March 17 statement.

Since the news of the banks’ failures broke, units in Digital Core REIT have not been performing well, falling some 20.5% from its last-traded unit price of 56 US cents (75.49 cents) on March 10.

Units in the REIT closed at 43 US cents on March 16.
 
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Happierdays

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Phillip Securities Research team's view on Digicore REIT

"2 reasons why we think DigiCore REIT USD crashed recently.

1) One of their top 10 tenants, Cyxtera, accounting for 22.6% of GRI is attempting to refinance a revolving credit facility that matures in Nov 2023 (but still unsuccessful). Moody's downgraded Cyxtera's corporate family rating from B3 to Caa2 as it believes the possibility of default via distressed debt or a restructuring over the next few months is a significant and increasing risk.

2) The sharp drop in share price could be due to the offloading of shares by a substantial unitholder at market (there is big trading volume the past few days), taking up a few levels of BID orders. As DigiCore is relatively smaller REIT with a market cap of under 500mn USD, any selling (or buying) by a substantial unitholder of decent value at market could really move the market.
Will have to wait and see if there are any disclosures of changes in interest of substantial unitholders in the next few days."


The source is from Phillip Securities' Poems Mobile 3 app. Cannot be accessed via PC, only mobile. You need to download the Poems Mobile 3 - Trading app and login to view the source. Download Poems Mobile 3 app>Login>Community>Singapore Equities Research
 
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homer123

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Belle69 said:
I wish I had known about Gabriel 1 year ago
Click to expand...
I like all his analysis. This guy really knows his stuff as he was previously a fund manager and got very strong accounting background.. However, he was not very popular with his youtube , maybe he looks weird with his flamboyant outlook despite being middle age.
 
direbmem

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His YouTube is to sell his course, gives useful but very limited info, hard to be popular I think
 
Shion

Shion

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Digital Core REIT 1QFY2023 net income down 10% y-o-y on higher financing costs​


https://www.theedgesingapore.com/ca...t-income-down-10-y-o-y-higher-financing-costs
Digital Core REIT has reported a distributable income attributable to unitholders of US$10.9 million for 1QFY2093 ended March, down 10% y-o-y from US$12.1 million recorded for 1QFY2022.

Revenue in the same period was US$26.78 million, up 1.2% y-o-y.

Digtal Core REIT owns a portfolio of 11 data centres in locations largely in the US and Canada, but also one at Frankfurt.

The REIT's bottomline was weighed down by sharply higher finance costs. From US$1.26 million incurred for 1QFY2022, this shot up to US$5.4 million for 1QFY2023. The REIT's tax expense, too, doubled to US$3.4 million.

The portfolio, valued at US$1.58 billion, has a weighted average lease expiry of 4.2 years and is 97% occupied as at March 31.

The REIT's net asset value per unit, as at March 31 was 81 US cents. Its unit price in recent weeks has been weighed down by reports of its data centre customers in financial woes.

In its business update, Digital Core REIT says it is trying to backfill the remaining vacant space at its Toronto asset. it is also trying to lower existing vacancy at its Frankfurt asset.

Year to date, Digital Core REIT units are down by more than half to close at 45 US cents on April 26.
 
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lzydata

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Asphodeli said:
Cyxtera files for bankruptcy:
https://links.sgx.com/1.0.0/corpora...62c748abbfd09be04c4be15ad1c71ea1b061be42dee6b
Click to expand...

All else equal, if 100% of the annual revenue from this customer were to be eliminated, the Manager estimates that Digital Core REIT’s distribution per unit, or DPU, would be reduced by approximately 2.00 U.S. cents; total asset value would be reduced by approximately $85 million, or roughly 6%; net asset value, or NAV, per unit would be reduced from $0.81 to $0.74, or approximately 9%; and aggregate leverage would increase by approximately 200 basis points, from 34.4% to 36.5%. However, the Manager expects to be able to minimise any potential DPU impact and maintain or enhance long-term value and returns for unitholders given the following mitigating factors.

https://links.sgx.com/FileOpen/Digi...ankruptcy.ashx?App=Announcement&FileID=761531
 
Shion

Shion

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Digital Core Reit warns DPU could be halved as second-largest tenant goes bust​


https://www.businesstimes.com.sg/co...uld-be-halved-second-largest-tenant-goes-bust
THE manager of Digital Core real estate investment trust (Reit) on Monday (Jun 5) warned that the Reit’s distribution per unit (DPU) could be reduced by about US$0.02 if the annual revenue of its second-largest tenant were to be completely eliminated.

This comes after the tenant, a “global co-location and interconnection provider”, filed for Chapter 11 bankruptcy protection on Sunday.

Digital Core’s FY2022 DPU stood at US$0.0398, 4.8 per cent lower than the US$0.0418 forecast.

The Reit manager did not name the tenant, but The Business Times understands it to be Cyxtera, a Nasdaq-listed data centre operator.

Dan Tith, chief financial officer of Digital Core Reit’s manager, said: “We want to reassure investors that we have several lines of defence prepared for this scenario and feel very good about the contingency plans we have in place.”

According to the Reit manager, the tenant in question represents about US$16.3 million or 22.4 per cent of the Reit’s annual rental revenue.

It currently occupies 100 per cent of five shell and core facilities in Silicon Valley and Los Angeles, and 4 per cent of a fully-fitted facility in Frankfurt.

The tenant’s facilities are spread across six of the Reit’s data centres, representing 26.6 per cent of the Reit’s total portfolio value as at end-2022.

Digital Core’s manager noted that the data centre operator has remained current on its rental obligations through May 2023 but has yet to pay rent for June.

It added that its tenant obtained a commitment for up to US$200 million of debtor-in-possession financing, stating it intends to pay vendors and suppliers in full for goods and services provided on, or after, the filing date.

Assuming that 100 per cent of annual revenue from the Reit’s second-largest customer will be eliminated, the manager expects aggregate leverage to increase by approximately 200 basis points, to 36.5 per cent from 34.4 per cent.

Its total asset value would also be reduced by about US$85 million or 6 per cent, and net asset value per unit would fall about 9 per cent to US$0.74, from US$0.81.

Digital Core Reit’s manager nonetheless said it expects to be able to minimise any potential DPU impact on the Reit, in view of mitigating factors such as below-market rents and favourable fundamentals of the locations where the Reit’s assets are located.

The manager also said it is “well-positioned” to step into agreements with existing end-user co-location customers.

Tith said: “Should any of our leases be rejected during the court process, we would either be able to step into agreements with the existing end-user co-location customers currently relying upon these facilities to support their digital infrastructure requirements, or re-lease the assets, which are all in top-tier markets with favourable demand-supply dynamics.”

John Stewart, chief executive officer of Digital Core Reit Management, said he is “disappointed” by news of the tenant’s bankruptcy filing.

“We stand prepared to guard against any potential near-term disruption while capturing long-term upside potential as the opportunity presents itself,” he said.

“We remain committed to our strategy of investing in a diversified portfolio of mission-critical data centre facilities in top-tier global markets and remain focused on preserving and creating long-term value for Digital Core Reit unitholders.”

Units of Digital Core Reit closed at US$0.41 on Thursday, before it called for a trading halt on Monday prior to the market open.
 
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