Digital Core REIT's 3QY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue declined slightly YoY. NPI and income available for distribution experienced a significant decline due to the absence of one-off income in 3Q2023, along with higher property expenses and financing costs.

Rental Reversion

Rental reversion for 3Q stands at 10.5%.

Acquisition

On 6 September 2024, DCR exercised its option to acquire additional interest in the Frankfurt Facility. The actual amount of interest to be acquired will be determined and announced at a later date. 

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable
• REIT Manager's Shareholding: Favorable
• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Occupancy: Moderate
• WALE: Moderate
• Highest Lease Expiry in 4 Years: Favorable
• Weighted Average Land Lease Expiry: Favorable

Debt Profile

• Gearing Ratio: Moderate
• Cost of Debt: Moderate 
• Fixed Rate Debt %: Favorable
• Unsecured Debt %: Favorable
• WADM: Moderate
• Highest Debt Maturity in 4 Years: Favorable
• Interest Coverage Ratio: Favorable

Diversification Profile

• Top Geographical Contribution: Favorable
• Top Property Contribution: Less Favorable
• Top 5 Properties' Contribution: Less Favorable
• Top Tenant Contribution: Less Favorable
• Top 10 Tenants' Contribution: Less Favorable

Key Financial Metrics

• Property Yield: Less Favorable
• Management Fees over Operating Distributable Income: Less Favorable
• Operating Distributable Income on Capital: Moderate
• Operating Distributable Income Margin: Moderate
• Operating Distribution Proportion: Less Favorable

DPU Breakdown

• TTM Distribution Breakdown:
• 82.7% from Operation
• 17.3% from Management Fees Paid in Units

Trends (Up to 10 Years)

• Uptrend: Operating Distributable Income over Manager's Fees, Operating Distributable Income Margin
• Flat: Operating Distributable Income on Capital
• Slight Downtrend: Committed Occupancy
• Downtrend: DPU from Operations, NAV per Unit, Adjusted Interest Coverage Ratio, Property Yield, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y & 3y
• P/NAV: Average for 1y & 3y

Author's Opinion

The performance is similar to the previous quarter. For debt, there is no debt maturity until 2027. 

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.