“Most importantly, the acquisition opens up a new market – Frankfurt, which is one of the fastest growing data centre markets in Europe, characterized by its status as a major financial hub, central location, and availability of land,” Lee points out.
Citi Research analyst Brandon Lee has resumed his “buy” call on Digital Core REIT following a “period of restriction”. The analyst has also given the REIT a target price of 82 US cents ($1.10), which is down by 18% from his previous report, with a higher risk-free rate of 3.5%.
Lee’s report, dated Dec 27, comes after the REIT’s completion of its inaugural acquisition of a 25% stake in a freehold 34MW data centre in Frankfurt, Germany. The acquisition was made at a consideration of US$146 million paid via 100% debt, and resulted in a 2% distribution per unit (DPU) accretion.
