DigiCo Infrastructure REIT posts FY26 earnings beat, outlines expansion plans

DigiCo Infrastructure REIT reported underlying EBITDA above guidance, announced more capacity, and strengthened its balance sheet for future growth.

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The DigiCo Infrastructure REIT (ASX: DGT) share price is in focus after the company reported FY26 underlying EBITDA of $127 million, surpassing its $125 million guidance, and declared a 12.0 cent per security distribution, in line with its forecast.

REIT written with images circling it and a man touching it.

Image source: Getty Images

What did DigiCo Infrastructure REIT report?

  • Underlying EBITDA: $127 million, above guidance of $125 million
  • Underlying revenue: $239 million, up from $104 million last year
  • Adjusted Funds From Operations (FFO): $71 million
  • Distribution declared: 12.0 cents per security, 94% payout of Adjusted FFO
  • Pro-forma liquidity: ~$1.2 billion following US asset sales
  • Net debt reduced to ~$0.5 billion; gearing lowered to 18%

What else do investors need to know?

DigiCo accelerated the expansion of its Sydney data centre (SYD1), completing the initial 20MW on time and on budget, and has signed Letters of Intent for a further 52MW with high-quality customers. The company's Australian platform continues growing, with an Adelaide brownfield project in advanced customer discussions and greenfield opportunities being evaluated.

During FY26, DigiCo successfully arranged the sale of its Chicago and Los Angeles assets, boosting balance sheet strength and allowing greater focus on its Australian operations. These sales are expected to deliver approximately $470 million in net proceeds, further underpinning its next phase of capacity expansions.

What's next for DigiCo Infrastructure REIT?

Looking ahead, DigiCo expects FY27 underlying EBITDA between $120 million and $125 million, including a minimal contribution from the 52MW Sydney expansion which will begin late in the year. The group anticipates completing the full 88MW Sydney project by end-FY28, with additional growth from the Adelaide expansion and selected greenfield projects in the pipeline.

DigiCo is targeting a 25% increase in FY27 distribution to 15.0 cents per security, and plans to fund major capital expenditure of $300–500 million from its existing liquidity. Management remains committed to prioritising Australian growth and maintaining a strong balance sheet while supporting sustainable digital infrastructure.

DigiCo Infrastructure REIT share price snapshot

Over the past 12 months, DigoCo infrastructure REIT shares have declined 1%, trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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