DigiCo Infrastructure REIT boosts liquidity via US sale and reaffirms FY26 earnings

The DigiCo Infrastructure REIT (ASX: DGT) share price is in focus today after announcing a conditional sale of its LAX1 and LAX2 data centre sites in Los Angeles, freeing up around $1 billion in liquidity and reaffirming FY26 underlying EBITDA guidance.

What did DigiCo Infrastructure REIT report?

• Agreed to sell LAX1 and LAX2 sites in Los Angeles at a price broadly in line with their acquisition cost
• Pro-forma available liquidity expected to increase to approximately $1.0 billion after completion of recent sales
• Proceeds will support investment in the SYD1 development in Sydney
• FY26 underlying EBITDA guidance maintained at $125 million
• Completion of the LAX sale is targeted for the first half of FY27, pending conditions

What else do investors need to know?

DigiCo says the LAX1 and LAX2 divestment aligns with its plan to recycle capital from non-core assets into higher-return projects. Plans are underway to move these funds into the SYD1 development, described as a core strategic initiative for the REIT. The LAX sale follows the already-flagged sale of the Chicago (CHI1) asset, further boosting available cash.

Completion of the sale is conditional upon standard closing requirements and is expected in the first half of FY27. Management affirmed that maintaining strong liquidity will support DigiCo’s development pipeline and long-term growth objectives.

What’s next for DigiCo Infrastructure REIT?

The REIT’s outlook remains steady, with underlying EBITDA guidance for FY26 reaffirmed despite the site disposals. Management has flagged a focus on recycling capital into high-return projects like SYD1, positioning DigiCo for potential growth in the data centre space.

Investors can expect updates on the SYD1 development as recycled capital is deployed and may see further portfolio optimisation as the group progresses its global growth and development mandates.

DigiCo Infrastructure REIT share price snapshot

Over the past 12 months, DigiCo Infrastructure REIT shares have declined 32%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

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The post DigiCo Infrastructure REIT boosts liquidity via US sale and reaffirms FY26 earnings appeared first on The Motley Fool Australia.

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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.