DigiCo Surpasses FY25 Targets as SYD1 Earns Top Government Certification
DigiCo Infrastructure REIT has reported FY25 results ahead of forecasts, boosted by the SYD1 data centre’s ‘Certified Strategic’ status and robust development progress across Australia and the US.
- FY25 annualised EBITDA of $99 million exceeds Prospectus and PDS guidance
- SYD1 data centre awarded highest ‘Certified Strategic’ status under Australian Government HCF
- Development projects in Sydney, Los Angeles, and Chicago advancing on schedule
- Strong liquidity position of $740 million supports growth initiatives
- Management reshuffle with Chris Maher as new CEO and Damon Reid as COO
Strong Financial Performance
DigiCo Infrastructure REIT (ASX, DGT) has delivered a robust FY25 performance, reporting an annualised underlying EBITDA of $99 million, comfortably ahead of its initial Prospectus and Product Disclosure Statement forecasts. The company maintained a distribution per security of 10.9 cents, aligning with expectations and underscoring its steady income generation capability.
Strategic Certification Elevates SYD1
A key highlight was the SYD1 data centre achieving ‘Certified Strategic’ status under the Australian Government Hosting Certification Framework (HCF), the highest level of certification available. This milestone not only cements DigiCo’s role as a critical pillar in Australia’s sovereign digital infrastructure but also opens doors to lucrative government and enterprise contracts in highly regulated sectors, enhancing its competitive moat.
Development Pipeline Progress
On the development front, DigiCo is advancing several major projects. The SYD1 expansion, adding 9MW of liquid-cooled capacity, is on track for early Q4 FY26 delivery. Meanwhile, the Los Angeles (LAX1) project is expected to secure development approval by Q2 FY26, and Chicago’s (CHI1) phases 1 and 2 have commenced rent billing, with phase 3 set for August 2026. These developments are strategically designed to meet surging demand from AI, hyperscale cloud, and enterprise customers, positioning DigiCo well in supply-constrained markets.
Robust Liquidity and Growth Outlook
With $740 million in available liquidity, comprising $425 million in cash and $315 million in undrawn capital expenditure facilities, DigiCo is well-capitalised to fund its growth ambitions. The company targets a 30% increase in contracted IT capacity in Australia by June 2026, supported by strong leasing momentum and the ramp-up of US rental income from Chicago. Growth capital expenditure for FY26 is forecast between $100 million and $120 million, primarily allocated to completing the SYD1 expansion and progressing the 88MW D&O project.
Leadership Transition to Accelerate Growth
Reflecting its shift from integration to accelerated growth, DigiCo appointed Chris Maher as CEO, with former CEO Damon Reid transitioning to COO to focus on operational delivery. This leadership realignment aims to enhance commercial execution and customer engagement, leveraging senior hires across sales and asset management to capitalize on the expanding market opportunities.
Looking Ahead
While FY26 earnings growth is expected to be underpinned by contracted rental uplifts and development milestones, DigiCo acknowledges that timing of new contracts and renewals will influence outcomes. Nonetheless, the company’s strategic positioning in high-demand, supply-constrained markets, combined with its strengthened operational platform, provides a solid foundation for sustainable long-term value creation.
Bottom Line?
DigiCo’s FY25 momentum and strategic certification set the stage for a pivotal growth phase amid rising demand for sovereign digital infrastructure.
Questions in the middle?
- How quickly will SYD1’s ‘Certified Strategic’ status translate into new government contracts?
- What impact will US rental income ramp-up have on overall profitability and cash flow?
- How will DigiCo manage potential risks related to timing of new contract commencements and renewals?
