DigiCo Infrastructure REIT reported FY26 underlying EBITDA of $126.6 million, beating its $125 million target, as the Australian data-center operator accelerated expansion and reduced leverage. Revenue totaled $238.9 million, while adjusted funds from operations came in at $70.8 million.
Net debt declined to approximately $500 million from $1.6 billion a year earlier, lowering gearing to 18% on a pro forma basis. The company also extended leases for its KCMI and DALI facilities to 2036. Underlying revenue reached $238.9 million, with colocation and rental revenue at $175.9 million and interconnection revenue at $29.3 million.
The SYD1 project in Sydney, an 88MW facility, saw its initial 20MW phase completed in the second half of FY26. Laing O'Rourke was appointed as the integrated delivery partner for a 52MW expansion, with the remaining capacity targeted for FY27 and FY28. Australian billing capacity grew 95% year-over-year to 41MW, with plans to reach 108MW by FY28. Management expects Australian platform stabilized EBITDA to approach $250 million once current projects are finalized.
FY26 capital expenditure totaled $178 million, primarily driven by SYD1 development. The company’s net assets stood at $2.305 billion as of June 2026, with a balance sheet NAV per security of $4.13 and an adjusted NAV of $4.47. Independent valuations placed the portfolio at approximately $4.1 billion, with the Australian segment valued 7% higher at $2.5 billion.
For FY27, DigiCo guided underlying EBITDA to $120-125 million, including two months of contribution from the CHII acquisition. Excluding CHII, guidance ranges from $110-115 million, representing 15-21% growth on a like-for-like basis. Capital expenditure is projected at $300-500 million, while distributions are expected to rise 25% to 15.0 cents per security. Pro forma liquidity is estimated at $1.2 billion, supported by a $500 million capex facility and expected net equity proceeds of $470 million from U.S. asset sales.
Leadership changes took effect on August 21, 2026, with Simon Mitchell and Ralph Goninan appointed as co-heads of DigiCo and CFO/CDO roles, respectively. Shares fell 2.5% to $2.72 following the results, though the stock remains up 26% over the past year.
