DigiCo Infrastructure REIT (ASX:DGT) is an ASX-listed data centre REIT managed by HMC Capital. It owns and develops data centre Assets in Australia and has held assets in the United States, which it is in the process of selling. Its key Australian assets include SYD1 in Sydney and ADL1 in Adelaide.

On 2 October 2026, DigiCo securities were trading at $2.45, down 2.78%. The listed property sector was weaker overall, with the S&P/ASX 200 Real Estate index (ASX:XRE) falling 1.65% to 3,178.8 as of 11:47 am, while the S&P/ASX 200 (ASX:XJO) gained 67.70 points to 8,682.10. REIT prices have been affected by expectations of further Interest Rate rises in Australia, the US and other markets. Higher rates can increase funding costs, reduce property values and make cash and fixed income more appealing, while elevated bond yields can raise financing costs and draw Capital away from REITs.

DigiCo reports underlying EBITDA and adjusted FFO as key measures, alongside distributions per security.

Recent Developments

On 21 August 2026, DigiCo released its results for the full year ended 30 June 2026, reporting underlying EBITDA ahead of guidance. Key figures include:

  • Underlying Revenue was $239 million, and underlying EBITDA was $127 million, above guidance of $125 million.
  • Adjusted FFO was $71 million.
  • Distributions were 12.0 cents per security, in line with guidance.
  • Gearing was 39%, within the 35% to 45% target range, reducing to a pro forma 18% after completion of US asset sales.
  • Available Liquidity was $706 million, increasing to a pro forma ~$1.2 billion.

Operationally, DigiCo reported record customer demand. The SYD1 88MW project has been accelerated, with a 20MW upgrade complete and letters of intent signed for the remaining 52MW capacity with high-quality customers, subject to binding documentation. The expansion is expected to be delivered in phases over FY27 and FY28 and is fully funded. The ADL1 15MW expansion is supported by advanced customer discussions. US asset sales are on track, and terms have been agreed to extend the Kansas City and Dallas Fort Worth leases to 10-year terms expiring in 2036.

DigiCo said these outcomes position it to fund growth and support a pathway to Australian platform stabilised EBITDA of about $250 million once SYD1 and ADL1 reach stabilised occupancy. For FY27, it expects underlying EBITDA of $120 million to $125 million, including two months of contribution from CHI1, with minimal contribution from the SYD1 52MW expansion, the first 10MW of which is expected to be operational late in the fourth quarter of FY27. FY27 Capital Expenditure is expected to be $300 million to $500 million.

DigiCo said its strategic update followed the decision to redeploy capital after the US asset sales, prioritising its geographic strategy. The pro forma gearing of 18% and liquidity of about $1.2 billion assume completion of the US asset sales and repayment of debt, and are based on a 0.71 AUD/USD exchange rate. The company said the improved liquidity positions it to fund growth initiatives.

Sector Context

Data centres have become a fast-growing segment of real estate, driven by Cloud Computing and AI workloads. Operators with secured power, land and customer commitments can benefit from long-term contracts, but projects require significant capital and time to build.

Data centre REITs are also affected by interest rates, as development is funded with Debt and equity, and valuations depend on discount rates. Competition from global operators and hyperscalers building their own facilities is a consideration. Customer contracts and power availability are key determinants of value.

Australia has become an important data centre market in the Asia-Pacific region, with Demand from global cloud providers and AI developers. Sydney is the country's largest data centre hub, while other cities such as Adelaide and Melbourne have seen growing investment. Access to power and suitable land has become a key constraint, which can benefit operators with existing sites and approved capacity.

Data centre development timelines often depend on electrical infrastructure upgrades and equipment supply, which can affect when capacity becomes available to customers.

Risks and Uncertainties

DigiCo's SYD1 expansion depends on converting letters of intent into binding contracts. FY27 EBITDA guidance is slightly below FY26, reflecting asset sales and limited contribution from new capacity. Capital expenditure of up to $500 million carries execution risk. US asset sales must complete as planned. Rising interest rates could affect funding costs and valuations.

Customer concentration, with a small number of large customers taking significant capacity, could increase risk if contracts are not renewed. Currency movements may also affect the proceeds from US asset sales.

Catalysts Investors Can Watch

Investors may watch for binding contracts on SYD1 capacity, completion of US asset sales, progress on ADL1, and the first 10MW of the SYD1 expansion becoming operational. Interest rate movements and data centre demand will also be relevant.

Updates on the pathway to Australian platform stabilised EBITDA of about $250 million and on capital expenditure within the $300 million to $500 million FY27 range will also be relevant.

Summing Up

DigiCo's FY26 result showed EBITDA above guidance and accelerated expansion at SYD1, supported by planned US asset sales. Converting demand into contracts and delivering capacity are likely to be key focus areas.

Its pathway to about $250 million in Australian platform stabilised EBITDA provides a longer-term reference point.