DigiCo Infrastructure REIT (ASX: DGT) today announced a substantial strengthening of its financial position through the binding sale of its Chicago (CHI1) facility for US$750 million. DigiCo Infrastructure REIT is a diversified owner, operator, and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add, and development opportunities. The sale price represents approximately a 5% premium to the November 2024 purchase price, with the transaction anticipated to reach financial close in Q1 FY27. This strategic divestment aims to release capital and reduce gearing, underpinning DGT’s long-term growth and enhancing securityholder returns.
The divestment of CHI1 is projected to significantly impact DGT’s financial metrics. Pro-forma net debt is expected to decrease from $1.5 billion as at 31 December 2025 to approximately $0.5 billion, and gearing is anticipated to reduce from 36% to 17%. The sale will also increase available liquidity to approximately $0.9 billion. In addition to CHI1, DGT is exploring options to monetise its LAX1 and LAX2 sites, while its Kansas City (KCM1) and Dallas Fort Worth (DAL1) data centres continue to deliver strong stabilised returns.
This fortified balance sheet will ensure robust funding for DGT’s highly accretive and accelerated SYD1 88MW project in Sydney, identified as its most compelling growth opportunity. The US asset sales are expected to be materially Funds From Operations (FFO) accretive from FY27. DGT also intends to explore capital management initiatives, including returning excess capital through enhanced distributions in the short term, above FFO. The company confirmed practical completion for the first 15MW of the SYD1 20MW upgrade, with the remaining 5MW on track for delivery by 30 June 2026. This development program is supported by sustained customer demand and SYD1’s position as a globally relevant, network-dense colocation facility, while DGT reaffirms its FY26 Underlying EBITDA guidance of $125 million.
