Highlights

  • DigiCo Infrastructure REIT (ASX:DGT) reported FY2026 Earnings ahead of its previous EBITDA guidance.
  • The company continues to expand its data-centre platform amid rising Demand for digital infrastructure.
  • FY2027 distribution guidance was increased following growth in operating performance.
  • Key focus areas include development execution, funding requirements and asset expansion.

DigiCo Infrastructure REIT (ASX:DGT) reported FY2026 results highlighting continued growth across its digital infrastructure portfolio, supported by expanding data-centre capacity and higher earnings. The result comes as the company continues to build its position as an Australian-listed platform focused on hyperscale and AI-driven data-centre demand.

The company’s latest update outlined earnings growth, increased distribution expectations and a significant development pipeline. Attention now remains on execution of expansion projects, Capital requirements and the ability to convert future capacity into sustainable earnings.

What Just Happened?

DigiCo Infrastructure REIT released its FY2026 Appendix 4E, financial report and results presentation to the ASX on 21 August 2026.

The company reported FY2026 Revenue of $239 million and underlying EBITDA of $127 million, exceeding its previous guidance of $125 million.

The result was accompanied by the scheduled release of 14,312,919 fully paid stapled securities from voluntary escrow. These securities were issued to vendors, including parties associated with the iseek and YourDC acquisitions, as part of consideration for the December 2024 transaction.

The Escrow release occurred on the same day as the results announcement, creating additional securities available for trading alongside the market’s assessment of the financial update.

DigiCo also provided FY2027 guidance, including higher distribution expectations as it continues expanding its data-centre portfolio.

Digging Into the Numbers

DigiCo reported underlying EBITDA of $127 million for FY2026, ahead of its previous target. Adjusted funds from operations (FFO), a key REIT cash earnings measure, reached $71 million after net interest expense of $58 million.

The board declared a FY2026 distribution of 12 cents per security, representing a Payout Ratio of approximately 94 per cent of FFO, within the company’s medium-term target range of 90 to 100 per cent.

For FY2027, DigiCo expects distributions of 15 cents per security, representing growth compared with FY2026.

The company reported net Debt of $1.6 billion against net Assets of $2.3 billion, with net asset value of $4.13 per security. Gearing was 39 per cent, within the company’s target range of 35 to 45 per cent.

Cash holdings stood at $206 million, while interest-rate exposure remained fully hedged with an all-in funding cost of approximately 6 per cent.

Billing capacity across the Australian platform increased to 41 megawatts during FY2026, up from 21 megawatts in FY2025, supported by new customer commencements and recently acquired assets.

Why the Market Is Paying Attention

DigiCo’s latest results highlight the challenge facing companies operating in the rapidly expanding data-centre infrastructure market: balancing significant growth opportunities with capital requirements and execution risk.

The company’s earnings exceeded previous guidance, but investors continue to assess how effectively the development pipeline can translate into completed assets and future income generation.

Data-centre demand has been supported by artificial intelligence adoption and increasing requirements for computing capacity. However, the sector requires substantial upfront Investment in land, power infrastructure and construction capacity.

For DigiCo, the ability to deliver projects on schedule, maintain funding flexibility and secure customer commitments will remain central to the investment outlook.

The Bigger Story

DigiCo has positioned itself as a specialist digital infrastructure platform focused on data-centre assets. The company’s strategy centres on expanding capacity to support growing demand from technology companies, cloud providers and AI-related applications.

The company outlined further expansion plans, including a 52-megawatt expansion at its SYD1 Facility and an additional 15-megawatt expansion at Adelaide 1.

Management is targeting a stabilised underlying EBITDA level of approximately $250 million once the Australian platform reaches 108 megawatts of total billing capacity.

Supporting this expansion requires significant investment. DigiCo expects approximately $1.2 billion of incremental Capital Expenditure across FY2027 and FY2028, including FY2027 capex guidance of $300 million to $500 million.

The company plans to support funding through available liquidity, debt facilities and potential proceeds from asset sales, including planned divestments of US assets.

What Investors Should Watch Next

  • Progress on SYD1 and Adelaide 1 expansions against planned timelines.
  • Completion of planned US asset divestments and deployment of proceeds.
  • Gearing levels as the company executes its development pipeline.
  • Customer leasing activity and conversion of new capacity into earnings.
  • Distribution delivery against FY2027 guidance of 15 cents per security.

Conclusion

DigiCo Infrastructure REIT (ASX:DGT) reported FY2026 earnings growth, higher distribution guidance and continued expansion of its data-centre platform. The company is positioned within a sector benefiting from increasing demand for digital infrastructure and AI-related capacity.

However, the next phase will depend on successful project delivery, disciplined capital management and converting development opportunities into sustainable earnings. As DigiCo expands its platform, execution and funding decisions will remain key factors shaping its long-term outlook.