Steady Distribution from DigiCo REIT, But What About Pipeline Progress?
DigiCo Infrastructure REIT has announced a FY25 distribution of 10.90 cents per security, aligning with its initial guidance and reflecting steady income returns for investors.
- FY25 distribution set at 10.90 cents per security
- Distribution aligns with prospectus forecast
- Annualised yield of 4.0% based on IPO price
- Portfolio includes 13 data centres across Australia and North America
- 238MW planned IT capacity with 162MW development pipeline
Distribution Announcement
DigiCo Infrastructure REIT (ASX – DGT) has confirmed a distribution of 10.90 cents per security for the financial year ending 30 June 2025. This payment is consistent with the forecast provided in the REIT’s initial prospectus, reassuring investors of the trust’s steady income stream.
The distribution translates to an annualised yield of 4.0% based on the IPO issue price of $5.00 per security, a figure that aligns with market expectations for a digital infrastructure-focused real estate investment trust. Key dates for investors include an ex-distribution date of 27 June 2025, a record date of 30 June 2025, and payment scheduled around 29 August 2025.
Portfolio and Growth Pipeline
DigiCo’s portfolio currently comprises 13 data centres strategically located across Australia and North America. These facilities collectively offer a planned IT capacity of 238 megawatts (MW), with 76MW already installed and operational. The remaining 162MW represents a robust development pipeline, signaling ongoing expansion and potential for future income growth.
This diversified asset base positions DigiCo to capitalize on the growing demand for data centre infrastructure driven by cloud computing, digital services, and enterprise IT needs. The balance between stabilised assets and development opportunities reflects a broad investment mandate designed to manage risk while pursuing growth.
Investor Confidence and Market Implications
By delivering a distribution in line with prior guidance, DigiCo reinforces investor confidence in its operational performance and financial stability. The steady yield offers an attractive income proposition in a sector that continues to benefit from secular growth trends.
However, the announcement stops short of providing detailed commentary on the progress of the development pipeline or future distribution outlooks. Market participants will likely await upcoming financial reports for deeper insights into how ongoing projects might influence earnings and valuation.
Bottom Line?
DigiCo’s steady distribution underscores its operational resilience, but eyes remain on pipeline progress for future growth signals.
Questions in the middle?
- How will the 162MW development pipeline impact future distributions?
- What is the timeline and expected returns from ongoing data centre developments?
- Are there plans to expand beyond current Australian and North American markets?
