DigiCo Infrastructure REIT (ASX:DGT), a data centre real estate Investment trust, has recorded a decline in its security price over the past year. DigiCo Infrastructure REIT (ASX:DGT) securities were priced at $2.28, down 6.94% in today’s session, and are down 22.71% over the past year. The REIT released its results for the year ended 30 June 2026 (FY26) on 21 August 2026, with Underlying EBITDA ahead of guidance and an accelerated expansion at its SYD1 data centre in Sydney.

For context, the S&P/ASX 200 Real Estate index [XRE] (INDEXASX: XRE) stood at 3,202.90, up 1.11% (+35.20 points) in today’s session as of 6 Oct, 4:45 pm, and is down nearly 22% over the past year.

Business Model and Operational Footprint

DigiCo owns and develops data centres, earning Revenue from customers who contract space and power in its facilities. It is managed by HMC Digital Infrastructure Ltd, with Equity Trustees Limited as Responsible Entity of the HMC Digital Infrastructure Trust. Its Australian platform includes SYD1 in Sydney and ADL1 in Adelaide, and its US Assets include Kansas City (KCM1) and Dallas Fort Worth (DAL1).

Following a decision to redeploy Capital after US asset sales, DigiCo has prioritised an Australian geographic strategy. The SYD1 88 MW project has had a 20 MW upgrade completed, with letters of intent signed for the remaining 52 MW. The ADL1 15 MW expansion is underpinned by advanced customer discussions. Terms have been agreed to extend the KCM1 and DAL1 leases to 10-year terms expiring in 2036. The REIT references a pathway to an Australian platform stabilised EBITDA of about $250 million.

Sector Dynamics

Data centre operators depend on customer Demand for power and space, the cost and timing of construction, access to grid power and funding. Supply-constrained metropolitan markets such as Sydney can see customer demand ahead of available capacity. Capital intensity means financing costs and Balance Sheet capacity are key variables.

DigiCo’s 22.71% one-year decline compares with a fall of nearly 22% for the S&P/ASX 200 Real Estate index, and with a 23.93% decline for Storage King Group (ASX:SKG). In today’s session DigiCo is down 6.94% at $2.28, while the index is up 1.11%.

Relative to the index, DigiCo Infrastructure REIT’s one-year decline of 22.71% is about 0.7 percentage points larger than the index’s decline of nearly 22%, while its move today is down 6.94% against the index’s 1.11% rise.

FY26 Results Release

Underlying revenue was $239 million and Underlying EBITDA was $127 million, above guidance of $125 million. Adjusted Funds From Operations (FFO) were $71 million, and distributions were 12.0 cents per security, in line with guidance. Gearing was 39%, within a 35% to 45% target range, and is expected to reduce to a pro forma 18% following completion of the US asset sales. Available Liquidity was $706 million, rising to about $1.2 billion pro forma, and the SYD1 88 MW development is fully funded.

The REIT reports record customer demand and says the SYD1 expansion will be delivered in phases over FY27 and FY28, with the first 10 MW expected to be operational in late Q4 FY27. US asset sales are on track.

FY27 Underlying EBITDA guidance is $120 million to $125 million, including two months of CHI1 EBITDA. Excluding CHI1, guidance is $110 million to $115 million, representing 15% to 21% growth on a like-for-like FY26 basis. Capital Expenditure is expected to be $300 million to $500 million, mostly for the SYD1 expansion and weighted to the second half.

The pro forma figures in the release use net Debt as at 30 June 2026, adjusted for anticipated net equity sale proceeds from the US asset sales after debt repayment, and assume an AUD/USD Exchange Rate of 0.71. The REIT states that SYD1 expansion works have been brought forward to satisfy demand, and that the first 10 MW is expected to be operational in late Q4 FY27.

Growth Catalysts and Critical Operating Risks

Growth catalysts identified include the 52 MW SYD1 expansion backed by letters of intent, the ADL1 expansion, Lease extensions at US sites, a funded development program and the redeployment of sale proceeds into the Australian platform.

Operating risks include letters of intent that are subject to execution of binding documentation, minimal contribution from the SYD1 expansion in FY27 guidance, capital expenditure of up to $500 million, gearing of 39% before US sale proceeds and the completion risk of those US sales. The pro forma figures assume an AUD/USD exchange rate of 0.71 and are subject to costs and completion adjustments. The stabilised EBITDA pathway depends on all contracted capacity coming online and billing.

Where Things Stand

DigiCo reports EBITDA ahead of guidance, a funded expansion program and a planned shift to an Australian platform, while its securities remain lower over twelve months and fell in today’s session. Reference points ahead include completion of the US asset sales and delivery of the first SYD1 expansion capacity.