DigiCo Infrastructure REIT shares dive on inaugural financial results
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More news: Shares in DigiCo Infrastructure REIT slumped in early trade after the data centre investor missed market estimates in its inaugural financial results.
DigiCo shares were down 7.5% to $2.96 at 10:45am AEST, having dropped more than 10% at the open. Shares are down more than 40% since floating at $5 per share in December.
E&P Capital analyst Paul Mason said the result was a "slight miss but not far off expectations". However, he noted that it is "complicated by the company's guidance approach which has decided not to provide an actual range."
In its earnings release, DigiCo said "FY26 EBITDA growth will ultimately be dependent on the timing of new contract commencements, renewals and remixing of existing capacity in the Australian business".
What they said: "Given comparable companies all have no issues providing a range, we expect the stock will see some pressure," Mason said.
HMC Capital's DigiCo data centre REIT books $105m revenue in inaugural result
The news: HMC Capital's DigiCo Infrastructure REIT reported $105 million in revenue in the eight months since it began operating last November.
The company says its annualised underlying EBITDA for the year is $99 million.
The company said it expects an uplift in sales for FY26 after its SYD1 facility was granted "Certified Strategic" status earlier this month, meaning it can be used for sensitive government projects.
DigiCo also flagged the hiring of Paul Dearlove, formerly of Google and SAP, and ex-NextDC and Equinix exec Glen Hastings as head of sales and head of commercial, respectively.
The numbers: Colocation revenue was DigiCo's big earner, bringing in $60 million. Interconnection followed at $18.8 million, followed by $14 million in rental revenue and $12.3 million in power and "other" revenue.
DigiCo in its earnings announced a distribution-per-share of 10.9 cents.
DigiCo reported net income for the period of $400,000. That does not factor moves in foreign exchange, however, which inflicted a $6.3 million loss on the company, bringing its comprehensive income to a loss of $5.9 million.
The DigiCo Infrastructure REIT owns billions-worth of US data centres, funded by a USD616 million debt facility, making it sensitive to FX swings.
What they said: "Our sales pipeline has materially exceeded expectations at the time of acquisition, supported by surging demand in AI, hyperscale cloud, and enterprise segments," said chief executive Chris Maher.
Chief financial officer Simon Mitchell added: "We finished FY25 ahead of PDS guidance, with annualised EBITDA of $99 million, liquidity of $740 million, and gearing at the lower end of our 35-45% target range."
Correction, 18 August: This briefing has been updated correcting an error that listed DigiCo Infrastructure REIT's revenue as $14 million.
The source: ASX
