Digital Core REIT faces DPU reduction risk after 8217 Linton Hall lease expiry
The renewal option for the property has expired.
Digital Core REIT said the renewal option for 8217 Linton Hall in Northern Virginia expired unexercised on 31 December 2024.
The property, occupied by a sole tenant, contributes 11.5% of the REIT’s annualised rent as of 30 September 2024.
Each month of downtime after the 30 June lease expiry reduces the REIT's distribution per unit by about 0.06 cents.
The REIT, however, said potential short-term DPU disruption will be outweighed by long-term value creation opportunities, including re-leasing at market rents or redeveloping excess land.