To recap, the Linton Hall data centre in the US, which was empty for nearly six months after the previous tenant’s departure, has been leased since last December to a new “investment grade” tenant on a 10-year lease at a rate 35% higher than the previous net rent.
Jonathan Koh of UOB Kay Hian has slightly raised his target price for Digital Core REIT to 93 US cents ($1.19) from 92 US cents, after he deems the data centre REIT, with well-rounded support from its sponsor, has switched to a “growth mode”.
As described by Koh in his March 16 note, in which he has maintained his “buy” call, DCREIT’s management, having filled a previously vacant space, can now turn its focus to growth via acquisitions.
