With the continuous interest rate hikes, it is not surprising that REITs are seeing a lack of investors’ interest. As interest rates increase, the cost of debt for REITs will increase as well. This will result in a lack of growth opportunities because the cost of debt might be higher than the return on investment. As such, REITs are less incentivized to make aggressive acquisitions, which will cause the overall REITs’ performance to slow down or even stagnate. Digital Core REIT (SGX: DCRU) was not spared from this as well but, they have recently announced a possible acquisition that might help accelerate the REITs growth. Let’s dive deeper and understand what happened to this REIT and if it’s still worthy of an investment based on its current circumstance.
FY2022 Q3 Earnings
FY2022 Q3 Earnings
As Digital Core REIT had its IPO in December 2021, we can only compare its performance against the management’s...