Should we buy Digital Core REIT with the announced share buyback?

By Beansprout • July 28, 2022

TL;DR

Digital Core REIT's (DC REIT) 1H22 distribution per unit (DPU) of US$0.0206 was below its IPO projections due to higher interest cost.
On a more positive note, Digital Core REIT announced the approval of its share buyback mandate, allowing it to purchase 10% of total units outstanding.
Digital Core REIT targets to make its maiden acquisition from its sponsor's portfolio in Europe and US in 3Q22.
Digital Core REIT currently offers a dividend yield of 4.8%. This could increase if an accretive acquisition is made in the coming months.

What happened? It’s not often that we see companies missing on their IPO projections. After all, management would usually be quite conservative in coming up with these forecasts to make sure that they can be met. So it must be quite a disappointment to unitholders of Digital Core REIT (DC REIT) that the REIT reported 1H22 distributions per unit (DPU) of US$0.0206, below its previous projection of US$0.0209....

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By Beansprout

Hi, I’m Gerald! I have been working in investment analysis for more than 12 years. Often, I encounter everyday investors who find it difficult to invest. At Beansprout, we believe that with the right tools and knowledge, everyone can be an investor. Hence, we founded Beansprout to make quality investment insights more accessible. We hope that you can join us on this journey to grow your financial knowledge and confidence as an investor.

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