DigiCo Infrastructure REIT Announces Long-term 71MW Contract at SYD1
Key points
- 71MW leased to a global technology firm with investment grade credit support
- SYD1 is 100% contracted across 88MW of total capacity
- Fixed price lump sum D&C Contract executed for SYD1 Expansion
- SYD1 Expansion fully funded with no new equity required
Full summary
DigiCo Infrastructure REIT (ASX: DGT) has executed a 15-year contract for 71MW of capacity at SYD1 with a global technology firm, with investment grade credit support. This contract includes reallocating 20MW of existing capacity to the new customer, with the remaining 17MW leased to co-location customers. The new contract increases the Weighted Average Lease Expiry (WALE) of DigiCo's Australian portfolio from ~3 years to greater than 10 years, with weighted average annual escalations of ~3%. The first 10MW of the SYD1 Expansion is expected to be energized and income-producing in late Q4 FY27, with the balance delivered progressively over FY28.
Guidance
FY27 Underlying EBITDA guidance of between $120 - 125 million
Outlook
The SYD1 Expansion, together with ADL1, is expected to materially increase DigiCo's contracted Australian capacity and underpin its previously announced pathway to approximately $250 million of Australian Platform Stabilised EBITDA.
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