DigiCo REIT Posts $99M FY25 EBITDA, Slightly Above IPO Forecast
DigiCo Infrastructure REIT confirms its FY25 EBITDA slightly exceeded IPO guidance and aligned with analyst forecasts, attributing recent share price declines to the absence of FY26 earnings guidance.
- FY25 Annualised EBITDA of $99 million slightly above IPO guidance of $97.3 million
- Earnings aligned with consensus analyst forecasts between $94 million and $95.1 million
- No material variance requiring earlier market disclosure identified
- Share price decline linked to lack of FY26 earnings guidance, not FY25 performance
- DGT confirms compliance with ASX continuous disclosure rules and board approval of responses
Context of the Earnings Announcement
DigiCo Infrastructure REIT (ASX – DGT), a recently listed digital infrastructure real estate investment trust, has responded to an ASX inquiry regarding its full year financial results for the period ended 30 June 2025. The company’s FY25 Annualised EBITDA was reported at $99 million, marginally exceeding the $97.3 million guidance provided in its December 2024 IPO prospectus.
This confirmation comes amid scrutiny following a notable share price drop from $3.20 to $2.74 immediately after the results announcement. The ASX requested clarity on whether the earnings figures materially differed from market expectations and if any disclosure obligations were unmet.
Earnings in Line with Market Expectations
DigiCo clarified that the only earnings measure for which it provided guidance was EBITDA, excluding the financial impact of the SYD1 data centre acquisition due to timing uncertainties at IPO. The reported EBITDA slightly surpassed the IPO guidance and was consistent with the consensus estimates derived from eight sell-side analyst reports, which ranged between $94 million and $95.1 million.
The company’s internal monthly financial monitoring confirmed that expectations remained steady throughout the year, and no material deviations were identified that would necessitate earlier disclosure under ASX Listing Rules. DigiCo emphasized that the minor variance between actual and forecasted EBITDA was immaterial and did not warrant market-sensitive disclosure.
Explaining the Share Price Movement
Despite the positive earnings outcome, DigiCo’s securities experienced a price decline post-announcement. The company attributes this primarily to the absence of specific FY26 earnings guidance rather than any shortfall in FY25 performance. The board decided against providing forward guidance due to insufficient certainty around ongoing customer negotiations, reflecting a cautious approach to market communication.
DigiCo management has since engaged with analysts and reviewed financial press coverage, including reports in the Australian Financial Review, to better understand market reactions. They maintain that the FY25 results themselves do not explain the share price fall.
Compliance and Forward Outlook
DigiCo confirmed full compliance with ASX continuous disclosure obligations and that all responses to the ASX inquiry were authorized by the board. The company’s transparent communication underscores its commitment to regulatory standards and investor relations.
Looking ahead, the market will be keenly awaiting any updates on FY26 guidance and how DigiCo plans to navigate uncertainties in customer engagements and asset acquisitions. The slight premium to guidance in FY25 sets a positive baseline, but the absence of forward earnings clarity leaves room for cautious investor sentiment.
Bottom Line?
DigiCo’s FY25 results met expectations, but the market’s focus now shifts to the company’s FY26 guidance and growth trajectory.
Questions in the middle?
- When will DigiCo provide clearer FY26 earnings guidance to reassure investors?
- How will ongoing customer negotiations impact DigiCo’s future earnings visibility?
- What strategic moves will DigiCo make to sustain growth beyond the SYD1 acquisition?
