Given the market vacancy of less than 1% now in Northern Virginia, the region where this data centre is located, the REIT is likely able to sign up a new tenant at a higher rate within six months, figures DBS.
DBS Group Research has kept its "buy" call and target price of 75 US cents on Digital Core REIT (DCREIT) even after one of its tenants said they will not renew their lease upon expiry in June.
The tenant for the property at 8217 Linton Hall Road now accounts for 11% of the REIT's revenue but is paying rent at around 10% to 20% below market rates.
