DigiCo Infrastructure REIT (ASX:DGT): SYD1 Contract, FY26 Earnings and Data Centre Expansion

Aditi Sarkar

19 October 2026 09:10 PM AEDT

DigiCo Infrastructure REIT (ASX:DGT): SYD1 Contract, FY26 Earnings and Data Centre Expansion

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Highlights

DigiCo Infrastructure REIT (ASX:DGT) announced a long-term 71MW SYD1 contract in October 2026.
FY26 underlying revenue reached AUD 239 million and underlying EBITDA totalled AUD 127 million.
Adjusted funds from operations were AUD 71 million, with distributions of 12.0 cents per security.
The Chicago data centre disposal completed in September as DigiCo refocused investment on Australia.

DigiCo Infrastructure REIT (ASX:DGT) owns, operates and develops data centres, with its portfolio strategy increasingly centred on Australian capacity. The trust reported full-year results for the 12 months ended 30 June 2026 and, in October, announced a long-term 71 megawatt customer contract at its Sydney SYD1 facility. At the time of writing on 19 October 2026, DigiCo securities were trading at AUD 2.04, down 5.12% during the day’s trading session.

Company Business

DigiCo Infrastructure REIT (ASX:DGT) invests across operating data centres, assets requiring improvements and development projects. Its facilities provide physical infrastructure for organisations that need computing capacity, connectivity and dedicated technology accommodation. Contracted information technology capacity, available electrical power, occupancy and the timing of customer billing are operational measures relevant to the business.

The Australian platform includes the SYD1 campus in Sydney and ADL1 in Adelaide. The group also held facilities in the United States during FY26, although management announced a programme of American asset sales to recycle capital into Australian development. DigiCo is associated with HMC Capital’s digital infrastructure investment platform, but reports separately under its own ASX ticker.

Recent Development

In October 2026, DigiCo Infrastructure REIT (ASX:DGT) disclosed the execution of a long-term 71MW contract at SYD1. The announcement represents a material contracting milestone for the Sydney campus. Investors can distinguish signed customer capacity from commissioned capacity and revenue recognition: a contract does not necessarily mean all associated infrastructure is already operating or generating billings.

At the August FY26 results, the trust reported completion of a 20MW upgrade at SYD1 and outlined an accelerated 52MW expansion to be delivered in stages across FY27 and FY28. Its presentation also discussed a 15MW expansion at ADL1. Those projects require construction, equipment commissioning and customer handover before capacity can contribute fully to reported earnings.

In September, DigiCo completed the sale of its Chicago CHI1 data centre. The company said disposals of Los Angeles facilities LAX1 and LAX2 remained subject to final due diligence at that time. Accordingly, the proposed balance-sheet benefits of the wider US disposal programme should not be treated as fully realised until the remaining transactions are completed.

Financial Performance and Sector Context

For FY26, DigiCo Infrastructure REIT (ASX:DGT) reported underlying revenue of AUD 239 million, underlying EBITDA of AUD 127 million and adjusted funds from operations of AUD 71 million. EBITDA exceeded its AUD 125 million guidance. The trust declared distributions totalling 12.0 cents per security for the year. These measures describe different aspects of financial performance and should not be interpreted as interchangeable with statutory net profit.

At 30 June 2026, gearing stood at 39%, within the company’s stated target range of 35%–45%. Available liquidity was AUD 706 million. In its September update, the trust outlined pro-forma liquidity of approximately AUD 1.2 billion and gearing of approximately 18%, conditional on completion of the contemplated US asset sales and related assumptions.

The August release set FY27 underlying EBITDA guidance at AUD 120 million–125 million, including two months of CHI1 earnings; excluding CHI1, guidance was AUD 110 million–115 million. It also outlined anticipated FY27 capital expenditure of AUD 300 million–500 million and distributions of 15.0 cents per security. These are management forecasts, not completed outcomes.

Data centre operations depend on electricity access, cooling systems, network connectivity and customers’ technology deployment schedules. Increasing demand for computing infrastructure is relevant to the development programme, although contractual milestones, construction costs and energisation schedules ultimately determine how promptly additional capacity can contribute to reported results.

Risks to Consider

DigiCo Infrastructure REIT (ASX:DGT) faces execution risk from the staged delivery of substantial data centre capacity. Construction scheduling, utility connections, equipment availability and customer fit-out could affect when capacity becomes billable. Power and cooling requirements also create operating and capital-cost exposure, while reliance on major customers can influence revenue concentration.

The balance-sheet outlook depends partly on asset disposals and funding availability. Pro-forma gearing and liquidity figures are conditional rather than audited post-transaction outcomes. Interest costs, refinancing arrangements and project spending could affect cash available for distributions. Contracted demand also needs to translate into operating facilities before its financial contribution is established.

What to Watch Next

For DigiCo Infrastructure REIT (ASX:DGT), immediate monitoring points include development progress at SYD1, commissioning of the expanded capacity, customer billing commencement and subsequent disclosures about contracted versus operating megawatts. Updates on ADL1, any outstanding US asset transactions and capital spending will help explain the group’s changing geographic exposure.

The trust has scheduled its annual general meeting for 11 November 2026. Future reporting will allow comparison of actual earnings, gearing, funds from operations and distributions against the FY27 guidance issued in August, taking account of asset sales and construction timing.

Key Insights

DigiCo’s FY26 results combined AUD 127 million in underlying EBITDA with a programme to fund Australian data centre expansion. The October 71MW SYD1 announcement adds a significant contracted-capacity development, while the September Chicago disposal reflects the portfolio repositioning. Subsequent financial disclosures will show when new capacity contributes to earnings and how transaction proceeds, capital expenditure and funding requirements affect the trust.

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