The analyst is not too worried over the temporary vacancy, saying he expects a downtime of six months and a new tenant to start contributing in 1Q2026 given the strong demand and low vacancy rate of below 1% in Northern Virginia.
UOB Kay Hian analyst Jonathan Koh has kept his “buy” call on Digital Core REIT with a higher target price of 99 US cents ($1.36) from 95 US cents previously
Koh’s report dated Jan 8 comes after units in the REIT declined following news that one of its tenants will not be renewing its lease for 8217 Linton Hall in Northern Virginia. The news was announced on Jan 2.
