DigiCo REIT Posts $99M EBITDA, Surpassing FY25 Guidance

Strong Financial Performance

HMC Digital Infrastructure Ltd’s DigiCo REIT has reported a robust FY25 performance, delivering an annualised underlying EBITDA of $99 million, surpassing the $97 million target set out in its Prospectus and Product Disclosure Statement. The stapled entity generated total revenue of $105 million for the period ending June 30, 2025, with colocation services accounting for 57% of this figure. Funds from operations (FFO) stood at $39 million after accounting for interest and management fees.

SYD1 Data Centre Achieves ‘Certified Strategic’ Status

A key highlight for DigiCo REIT is the SYD1 data centre’s attainment of the ‘Certified Strategic’ designation under the Australian Government Hosting Certification Framework (HCF). This certification represents the highest level of government endorsement, positioning SYD1 as a cornerstone of Australia’s critical digital infrastructure. It enables DigiCo to host sensitive federal government workloads, a significant competitive advantage in a market increasingly focused on data sovereignty and security.

Growth Projects and Development Pipeline

DigiCo is advancing its growth agenda with a 9MW liquid cooled expansion at SYD1, expected to be operational by early Q4 FY26. This development is designed to meet the rising demand for high-density deployments, particularly from AI and high-performance computing workloads. Additionally, the LAX1 project in Los Angeles is progressing through final approvals, targeting construction commencement in 2026, with a total planned capacity of 33MW. The company’s portfolio now spans 13 properties with a combined valuation of $4.0 billion and contracted IT capacity of 65MW.

Strategic Senior Hires to Drive Commercial Execution

To support its expansion, DigiCo has made several senior appointments, including Paul Dearlove, formerly of Google and SAP, as Head of Sales, and Glen Hastings, with experience at Equinix and NEXTDC, as Head of Commercial. These hires are expected to enhance customer engagement, accelerate leasing activities, and optimise asset management across the portfolio.

Financial Position and Outlook

The REIT maintains a strong balance sheet with $425 million in cash and $315 million in undrawn capital expenditure facilities, providing $740 million in liquidity. Gearing stands at a conservative 35%, at the lower end of its target range. Looking ahead to FY26, DigiCo aims to grow its Australian contracted IT capacity by 30% to 27MW and anticipates EBITDA growth driven by rental ramp-up in its US assets, notably CHI1. The company also plans to continue its capital partnering strategy to unlock further balance sheet flexibility and accelerate growth.