DigiCo Infrastructure REIT targets 95% capacity growth by June
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The news: HMC Capital's DigiCo Infrastructure REIT expects its Australian IT capacity to nearly double by June 2026, as it eyes capital partners for its local colocation portfolio.
The numbers: DigiCo said its Australian IT capacity is set to hit 41 megawatts by June following recent customer wins, marking 95% growth year over year.
The company also said its US business will benefit from contracted rental ramp up at its Chicago 1 facility, which is expected to deliver incremental EBITDA of around $40 million in FY26.
Group underlying EBITDA is expected to be in the range of $120 million to $125 million for the year.
Elsewhere, DigiCo is planning $160-180 million in growth capital expenditure from existing cash reserves and undrawn debt facilities, to drive capacity expansion at its Sydney data centre SYD1.
The company is also advancing capital partnering opportunities in both Australia and the US, with the potential to release between $500 million and $1 billion in equity proceeds.
Full-year distributions are expected to be 12 cents per share, in line with the company's policy of 90-100% payout of funds from operations.
What they said: "It is important to acknowledge that despite strong operational and financial outcomes, our share price performance has been disappointing," said HMC Digital Infrastrcture chair Joseph Carrozzi.
"Your management team is working hard to deliver the capacity growth and capital outcomes that will translate into earnings growth and share price strength over time."
The source: ASX
