DigiCo posts strong FY25 results with AUD $99m EBITDA & gains key certification

DigiCo Infrastructure REIT has delivered its financial year 2025 results, reporting performance above prospectus and product disclosure statement forecasts, with progress in development, operations, and management highlighted in the report for the period ending 30 June 2025.

Strategic developments

During the reporting period, DigiCo's SYD1 data centre was granted 'Certified Strategic' status under the Australian Government Hosting Certification Framework. This is the highest level of certification available under the framework and further cements DigiCo's role in critical digital infrastructure across Australia. The company now maintains a national presence of certified sites in both New South Wales and Queensland, with the ADL1 data centre in progress and targeted for certification by the second quarter of FY26.

Further expansion to DigiCo's team across sales, commercial and asset management functions was undertaken, aiming to support the company's focus on growth and customer delivery as it positions itself for increased market demand.

Development and operations

The SYD1 development is underway, with 9MW of liquid-cooled capacity slated for delivery early in the fourth quarter of FY26. In the United States, the LAX1 data centre is advancing toward development approval by the second quarter of FY26. DigiCo also commenced contractual rent billing for phases 1 and 2 of the CHI1 site, with phase 3 expected to start in August 2026.

Operationally, DigiCo completed 2.6MW of renewals for key customers at an average premium of 8.2% over passing rates. At the end of the period, DigiCo reported a billing IT capacity of 53MW, contracted capacity of 65MW, installed capacity of 76MW, future expansion capacity of up to 156MW, and total planned IT capacity of up to 232MW. Company management indicated that demand in the Australian market has exceeded expectations since the acquisition of key sites.

Financial performance

The REIT reported FY25 annualised underlying EBITDA of AUD $99 million, exceeding prospectus and PDS guidance, and a distribution per security in line with forecasts at 10.9 cents. DigiCo ended the period with available liquidity of AUD $740 million, consisting of AUD $425 million in cash and AUD $315 million in undrawn capital expenditure facilities. This financial position supports planned growth and continued investment in infrastructure.

Outlook for FY26

DigiCo indicated that with the recent HCF certification and ongoing SYD1 expansion, the Australian business is now positioned to secure increasing customer demand. The company is targeting contracted IT capacity of 27MW by June 2026 in Australia, reflecting 30% growth over the prior year. In the US, expected rental ramp-ups at CHI1 are forecast to deliver incremental EBITDA of approximately USD $40 million in FY26, with funds from operations benefiting from these earnings, partially offset by related cash interest expenses.

FY26 growth capital expenditures are anticipated to be in the range of AUD $100–120 million, primarily linked to the completion of SYD1's 9MW expansion and continued progression of an 88MW project. Distribution payments are expected to remain in line with the stated policy of distributing 90–100% of available funds from operations.

Leadership changes

Recent management changes were confirmed with Chris Maher appointed Chief Executive Officer as the business transitions from integration towards accelerated development. Damon Reid, previously CEO, has become Chief Operating Officer to focus on operational execution in the Australian segment.

Maher said, "FY25 has been a pivotal year for DigiCo, delivering strong financial performance, achieving key strategic milestones, and positioning the business for growth. The granting of 'Certified Strategic' status for SYD1 under the Australian Government Hosting Certification Framework marks a significant achievement, reinforcing our role as a cornerstone of Australia's sovereign digital infrastructure. This certification not only strengthens our competitive position but also opens substantial new growth opportunities with federal government and enterprise customers in highly regulated sectors."

Maher added, "Our sales pipeline has materially exceeded expectations at the time of acquisition, supported by surging demand in AI, hyperscale cloud, and enterprise segments. The commencement of the SYD1 9MW expansion, alongside progress in major developments such as Los Angeles and Chicago, ensures we are well positioned to meet this demand. These projects are designed to deliver high-quality, high-density capacity that support our customers' most advanced workloads, including AI and high-performance computing."

"We have also invested in strengthening our operating platform, making senior industry hires across sales, commercial, and asset management. These appointments bring deep sector experience, enhance our execution capabilities, and broaden our relationships across hyperscale, enterprise, and government customer segments. The combination of experienced leadership, a highly connected asset base, and a diversified development pipeline provides a strong platform for sustainable long-term growth."

Chief Financial Officer Simon Mitchell commented, "We finished FY25 ahead of PDS guidance, with annualised EBITDA of $99 million, liquidity of $740 million, and gearing at the lower end of our 35–45% target range. This robust capital position provides the flexibility to progress our SYD1 development programme, advance our U.S. campus developments and execute on capital partnering initiatives that will enhance balance sheet capacity for future growth."

Mitchell stated, "Looking ahead to FY26, we expect to deliver earnings growth underpinned by contracted rental uplifts in the U.S., accelerated leasing momentum in Australia, and the delivery of key development milestones. Demand fundamentals across our target segments remain strong and our portfolio is strategically positioned in high-growth, supply-constrained markets. DigiCo remains focused on executing our growth strategy with discipline, while delivering sustainable value creation for securityholders."