DigiCo Infrastructure REIT owns and develops data centres, the specialised property that houses the computing and storage infrastructure behind Cloud Computing and artificial intelligence. As Demand for data-centre capacity surges with AI and digitisation, DigiCo offers property investors exposure to one of the fastest-growing real-estate categories, though — like all property — its valuations and funding are influenced by interest rates.

For FY26, DigiCo (ASX:DGT) reported underlying Revenue of A$239 million and underlying EBITDA of A$127 million, exceeding guidance, with a distribution of 12.0 cents per security and gearing of 39%. It sold United States data-centre Assets to bolster Liquidity — expected to rise to around A$1.2 billion on a pro-forma basis — and is reinvesting into its Sydney SYD1 expansion, which it says is fully funded, having completed a 20-megawatt upgrade and signed letters of intent for a further 52 megawatts.

For FY27, DigiCo guided to underlying EBITDA of A$120–125 million, a distribution of 15.0 cents per security (a 25% increase), and Capital Expenditure of A$300–500 million, targeting stabilised EBITDA of around A$250 million once its Australian expansions are fully occupied.

What Could Drive the Shares Next?

Catalysts include leasing of the SYD1 and other expansions, delivery of the FY27 EBITDA and distribution guidance, the pace of AI-driven data-centre demand, and the direction of interest rates. Converting the signed letters of intent into leases and building toward stabilised EBITDA would be significant.

Evidence that the expansion pipeline is leasing up and driving Earnings toward the stabilised target would be the clearest positive driver.

Risks Investors Should Watch

Data-centre development is capital-intensive, with large capital-expenditure requirements, and gearing of 39% and the funding of expansions are considerations, especially if rates rise. Leasing risk — filling new capacity — and construction execution are key.

Interest-rate movements affect valuations and funding costs, and the shares have shown they can come under pressure around results and asset sales.

Investor Takeaway

DigiCo Infrastructure REIT beat FY26 guidance with A$127 million of underlying EBITDA, recycled United States assets to fund a fully funded Sydney expansion, and guided to a 25% higher FY27 distribution. Whether it is a property name to watch depends on leasing its expansions and on rate expectations. Leasing progress, the expansion pipeline and interest rates are the things to watch.