DigiCo Infrastructure REIT shares soar on accelerated SYD1 data centre expansion
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More news: HMC Capital's DigiCo Infrastructure REIT has seen its shares soar after it announced plans to hasten the expansion of its SYD1 data centre after several recent contract wins.
At 10:26am AEST, shares in DigiCo soared 18.1% to $3.22. HMC Capital's share price had lifted 7% to $3.35.
E&P Financial Group has a 'neutral' recommendation on the stock and values the company at $3.61 per share.
E&P analyst Annabel Khun said they are “very pleased to see contracting at DigiCo’s SYD1 site” as well as plans to accelerate the expansion of SYD1 “to bring further capacity online to sell in FY27”.
Khun also said it is “good to see the company finally provide guidance”, although the FY26 underlying EBITDA forecast of between $120 million and $125 million is a miss to the consensus expectation of $143 million, according to Visible Alpha.
What they said: “Overall, we see this as a net positive for DigiCo as these new contracts provide an annualised run-rate EBITDA of at least $180m from July 2026, ramping over 2H26 and an upgrade to current FY27 expectations,” Khun said in a research note.
DigiCo Infrastructure REIT to accelerate SYD1 data centre expansion
The news: Data centre group DigiCo Infrastructure REIT said it will accelerate the expansion of its flagship SYD1 data centre following a string of new customer wins.
The numbers: The new customer wins will increase the company's contracted IT capacity to 41 megawatts by June 2026, up from its previous run-rate target of 27 megawatts, provided in August.
DigiCo has secured new hyperscale, neocloud, enterprise and government customers at SYD1 in Sydney, as well as its Brisbane and Adelaide sites.
The company issued underlying EBITDA guidance in FY26 of between $120 million and $125 million. This would mark an improvement on its annualised underlying EBITDA of $99.1 million in FY25.
DigiCo expects to pay distributions of 12 cents per security.
The context: The HMC Capital-controlled group said it will accelerate the expansion of SYD1 following "strong market demand for larger and denser deployments".
The company has started work to deliver expanded IT load at SYD1, with preparations also underway to bring forward further capacity during FY27.
What they said: "As we noted at our FY25 results, the Australian pipeline, customer demand and scale of deployments has continued to track ahead of expectations at the time of the IPO in December 2024," said CEO Chris Maher.
"DigiCo is uniquely positioned to meet surging demand for high-density AI infrastructure - where performance, latency and connectivity are critical."
The source: ASX
