DigiCo Infrastructure REIT Shares Drop on Earnings Miss

Highlights:

• Earnings miss: DigiCo Infrastructure REIT reported underlying EBITDA of $99m.
• Stock slump: Shares dropped 9.53% at the time of writing.
• Future focus: Company banking on digital infrastructure growth to drive recovery.

Earnings Report Falls Slightly Short

DigiCo Infrastructure REIT (ASX: DGI) saw its shares tumble after releasing its full-year results. At the time of writing, the stock was trading at $2.89, down 9.53% on the day, reflecting investor disappointment in the company’s financial performance.

The real estate investment trust reported full-year underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $99 million. While the result was close to expectations, analysts described it as a “slight miss.” E&P analyst Paul Mason noted that the earnings figure was not significantly below forecasts but was enough to trigger a cautious response from the market.

Market Reaction and Outlook

The sharp decline in DigiCo’s share price underscores the sensitivity of investors to even minor deviations from expectations. Analysts said the stock’s sell-off was also partly driven by broader concerns about interest rates and their impact on REIT valuations, as higher borrowing costs continue to weigh on the sector.

Despite the immediate setback, DigiCo has highlighted its strong portfolio of digital infrastructure assets, including data centres and telecommunications facilities, as a foundation for long-term growth. The company said it remains focused on expanding its footprint in high-demand markets and improving operational efficiency.

Investor Sentiment

The market’s negative reaction reflects ongoing caution around the REIT sector, particularly in an environment where yield and stability are closely scrutinised. Investors will be looking for DigiCo to demonstrate earnings resilience and to provide clearer guidance on how it plans to navigate higher funding costs.

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