SGX:DCRU
US$0.490
Yield
7.35%
P/NAV
0.61x
Mkt cap
US$639M
Gearing
39.0%
Occupancy
97%
GroundVision brief
18 Jun 2026
GroundVision deal brief · SGX:DCRU · Data Centre

Digital Core REIT

A small, USD pure-play data-centre trust sponsored by Digital Realty — trading at a deep discount to book, with a high-quality but concentrated tenant base and a long history of customer-default drama.

Filing-sourced diligence — FY2025 (31 Dec 2025) + 1Q2026 update (31 Mar 2026). Every figure is tagged to its source; what the filings don't disclose is listed, not guessed.

The numbers
behind the price

A diligence-ready read assembled from Digital Core REIT's latest SGX filings: balance sheet, asset map, income durability, the concentration/structure most screeners skip, and the points investors usually miss.

Distribution yield ●
7.35%
GroundVision market feed
P / NAV ◐
0.61x
NAV US$0.808
Aggregate leverage ●
39.0%
vs 50% MAS cap
Occupancy ●
97%
latest filing

Portfolio map & geographic exposure

ColocationShell & coreSingle-tenant

Interactive map — drag to pan, use +/− to zoom; hover or tap a marker for the assets there. Bubble size = assets at that location; colour = type.

Portfolio value by geography

Concentrated in two metros — Northern Virginia (37%) and Frankfurt (25%) are ~62% of value across just 11 assets. FY2025 (31 Dec 2025) + 1Q2026 update (31 Mar 2026).

Funding, leverage & refinancing

MetricValueAs of / source
Aggregate leverage 39.0%1Q2026 (37.1% at FY2025)
Interest coverage (ICR) 3.3x1Q2026
Cost of debt 3.5%FY2025 (down from 3.9%)
% fixed / hedged 80%1Q2026 (~85% at FY2025)
Weighted avg debt maturity 3.5 yrs1Q2026
Total debt US$710m1Q2026 (100% unsecured)
Debt headroom (to 50%) ~US$428m1Q2026
Leverage has crept up (37.1% → 39.0%) as the NAV discount makes equity-funded growth dilutive, pushing reliance on debt. 100% unsecured; ~80% fixed at a 3.5% cost; ~3.5-year WADM. The per-year maturity ladder and full currency split aren't disclosed; funding spans USD, EUR and JPY (a ¥10bn 2030 note funds Japan).

Assets, occupancy & lease profile

MetricValueAs of / source
Portfolio value US$1.8BFY2025–1Q2026
Data centres 11across 4 countries / 6 metros
Occupancy (in-service) 97%1Q2026 (98% after Linton Hall)
WALE 4.4 yrs1Q2026 (→5.5y after Linton Hall)
Net rentable area ~1.2m sq ft2026
Tenure 100% freehold2026
NAV per unit US$0.791Q2026

By tenant credit quality

Distribution per unit & durability

DPU history — US¢ per unit

DPU fell through the Sungard/Cyxtera disruption and rate rises (FY22 ~3.98¢ → FY23 3.70¢ → FY24/25 3.60¢), then stabilised flat. FY2025's +72% revenue jump is an accounting effect of consolidating Frankfurt — distributable income rose only +1.9%. Analyst projections: ~3.65¢ FY26E, ~3.76¢ FY27E.

Tenant concentration & the default history

Despite 120+ customers (up from 12 at IPO), a single Fortune-50 software tenant is ~30.5% of rent and the top 10 are ~86%. The trust has weathered TWO customer Chapter 11s — Sungard (2022) and Cyxtera (2023, then ~22% of revenue) — both now resolved.

Tenant / metricShareAs of
Top tenant (Fortune-50 software)30.5%1Q2026
Top 10 customers86.4%1Q2026
Customer count120+1Q2026 (12 at IPO)
Investment-grade % of rent~80%1Q2026 (→82% post-Linton Hall)
Cyxtera was ~22% of revenue when it filed in 2023; resolution cut it to ~5% and lifted IG quality to 85%. The lesson: tenant quality is high, but concentration means single-tenant events move the whole REIT.

Rental income by tenant sector

What investors usually miss

'120+ customers' hides a ~30% single tenant
One Fortune-50 software tenant is ~30.5% of rent and the top 10 are ~86% — diversification is shallower than the customer count implies. 1Q2026 update
Two defaults, not one
Cyxtera (2023, ~22% of revenue) is well-known, but Sungard (Markham, ~7% of revenue) defaulted first in 2022 and was carried by sponsor income support repayable through 2028. DataCenterDynamics
The FY2025 '+72% revenue' is an accounting jump, not growth
It comes from consolidating the Frankfurt facility (Dec 2024). Distributable income rose only +1.9% and DPU was flat. FY2025 results
Distributions are in USD — pure FX risk for SGD investors
The ~8% forward yield is a USD yield; SGD strength/weakness moves the realised payout independent of operations. DBS; IR policy
The deep ~0.6× NAV discount is self-reinforcing
Trading well below book makes equity-funded acquisitions dilutive, so growth leans on debt — gearing rose 37.1% → 39.0%, eating headroom. 1Q2026 update
Tiny, concentrated portfolio — 11 assets, 6 metros
Two metros (N. Virginia 37%, Frankfurt 25%) are ~62% of value; a single re-lease, default or valuation mark swings the whole REIT. IR portfolio

What would change the call

#Risk
1Tenant concentration — ~30.5% single tenant; ~86% top 10.
2USD / SGD FX on distributions.
3Rising leverage (39.0%) and a persistent ~0.6× NAV discount constraining accretive growth.
4Refinancing / rate risk — ~3.5y WADM, ICR ~3.3x.
5Small / concentrated portfolio — single-asset event risk (LA assets ~85% occupied).
6Related-party dependence on Digital Realty for pipeline, pricing and support.

Every figure, with its source

MetricValueAs ofSource
Price / yield / P-NAV / market cap live17 Jun 2026GroundVision market feed (Yahoo Finance, delayed)
Leverage / ICR / cost / %fixed / WADM 39.0% / 3.3x / 3.5% / 80% / 3.5yFY2025–1Q2026Digital Core REIT FY2025 release; 1Q2026 update
Portfolio value / DCs / metros US$1.8B / 11 / 6FY2025FY2025 press release; IR
Occupancy / WALE 97% / 4.4y1Q2026FY2025 release; 1Q2026 update
Top tenant / top 10 / customers 30.5% / 86.4% / 120+1Q20261Q2026 update coverage
FY2025 revenue / NPI / distributable income US$176.2m / US$88.7m / US$46.9mFY2025FY2025 press release
DPU (FY22–FY25) 3.98 / 3.70 / 3.60 / 3.60 US¢FY2022–25IR distribution page
NAV per unit / P-NAV US$0.79 / ~0.6x1Q20261Q2026 coverage
Cyxtera default → resolution ~22% of revenue → ~5%2023The Edge; Dr Wealth
Sponsor ROFR pipeline >US$15B2026DBS; FY2025 coverage
Geo by metro NoVA 37 / Frankfurt 25 / SV 14 / Osaka 11 / Toronto 7 / LA 62026IR portfolio page
Data-quality notes (what the filings don't disclose):
  • Per-year debt-maturity ladder, full debt-by-currency split, current portfolio cap rate, top-5 tenant %, and total MW were not disclosed in accessible filings.
  • FY2025 '+72% revenue' reflects Frankfurt consolidation, not organic growth; distributable income rose +1.9%.
  • FY2022 DPU has a basis discrepancy (~3.98¢ vs 4.29¢ incl. the ~7-month IPO stub).
  • One secondary feed wrongly showed FY2025 DPU '+15% YoY' — it was flat at 3.60¢.

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Source-backed only. Nothing here is financial advice; confirm against primary filings before any decision.