By Feb 7, DC REIT's manager was sufficiently confident to announce a placement. The REIT raised US$120 million from a placement of 192 million new units at 62.5 US cents apiece, raising units in issue to 1,316.7 million.
Digital Core REIT (DC REIT) has had a tough two years following its IPO in December 2021.
As early as April 2022, its fifth-largest tenant filed for bankruptcy and last year, its second-largest tenant filed for bankruptcy. In addition, most of its debt was at floating rates during its IPO. Since then, more than 70% of its debt is fixed. The resolution of the bankruptcy of its second-largest tenant ended with DC REIT divesting two properties at book value in January. And the REIT’s manager is working hard to fill the space vacated by its fifth-largest tenant.
