Digital Core REIT (DCRU) AI Stock Analysis

• Market Cap: $671.57M
• Dividend Yield: 7.22%
• Average Volume (3M): 4.17M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.73
• Revenue Growth: 36.48%
• EPS Growth: N/A
• Country: SG
• Employees: 3,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.03
• Shares Outstanding: 1,304,009,900
• 10 Day Avg. Volume: 3,617,600
• 30 Day Avg. Volume: 4,166,112
• PEG Ratio: -0.18
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 3.78
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 10.92
• Enterprise Value/Gross Profit: 24.72
• Enterprise Value/Ebitda: 74.62
• 1Y Price Target: $0.77
• Price Target Upside: 48.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): $158.78M

• Rating: 64 Neutral
• Price Target: $0.57 ▲(9.04% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

The score is primarily driven by decent but uneven financial performance: strong 2025 recovery is offset by multi-year volatility, rising leverage, and a 2025 drop to zero free cash flow. Valuation is a positive contributor due to a moderate P/E and high dividend yield. Technical signals are mixed, with neutral momentum and weaker short-term indicators.

Positive Factors

Asset-backed balance sheet

A large asset base and substantial equity provide structural downside protection and borrowing capacity for a data-center REIT. Over the next 2–6 months this supports refinancing options, stability for distributions and the ability to fund selective acquisitions or capex without immediately diluting holders.

Revenue recovery and profit turnaround

A pronounced revenue rebound and swing to positive net income indicate renewed leasing momentum and better operational leverage. For a data-centre REIT, sustained lease uptake and contract structures can translate into multi-quarter predictable cash flows and improved earnings resilience.

Improving operating cash generation

Rising operating cash flow demonstrates stronger cash conversion from property operations, which underpins distributions and coverage of operating costs. Sustained OCF growth provides room for targeted reinvestment and reduces short-term reliance on external funding for maintenance capex.

Negative Factors

Rising leverage and debt load

Material increase in debt raises interest expense sensitivity and reduces financial flexibility. For a capital-intensive REIT, higher leverage elevates refinancing and covenant risk if leasing or cash flows deteriorate, potentially forcing asset sales or higher-cost funding in adverse scenarios.

Volatile historical profitability

Marked swings in profitability reduce predictability of distributable income and complicate long-term planning. Persistent volatility can undermine investor confidence, increase borrowing costs and make it harder to commit to steady payout policies or multi-year growth investments.

Free cash flow deterioration

A drop to zero free cash flow curtails internal funding for debt reduction, acquisitions or special distributions. If structural rather than temporary, it signals higher dependency on external financing for growth and payouts, raising execution and refinancing risk for the REIT.

Digital Core REIT Business Overview & Revenue Model

Company Description

Digital Core REIT, a real estate investment trust, engages in the development, acquisition, ownership, and operation of data centres. It has 10 mission-critical data centres located in the United States and Canada. The company was incorporated in 2021 and is based in Singapore.

How the Company Makes Money

Digital Core REIT generates revenue primarily through leasing its data center properties to various tenants under long-term lease agreements. The rental income from these leases constitutes the bulk of the company's revenue. The company also benefits from potential escalations in rent as lease agreements typically include provisions for periodic rent increases. Additionally, DCRU may engage in strategic partnerships with technology firms and service providers to enhance its offerings, which could lead to joint ventures or revenue-sharing agreements. The growing demand for data storage and processing, driven by trends such as cloud computing and digital transformation, further supports the company's revenue growth potential.

Digital Core REIT Financial Statement Overview

Summary

Income statement shows a strong 2025 revenue rebound (+34% YoY) and improved profitability versus the 2023 loss year, but results have been volatile across years. Balance sheet is asset-backed with sizable equity, though leverage is rising (debt up to ~791M in 2025). Cash flow improved at the operating level, but 2025 free cash flow falling to 0 is a key risk factor.

Income Statement

Revenue rebounded strongly in 2025 (+34% year over year), and profitability improved versus 2023’s loss year (2025 net income of ~47.7M vs. 2023 net loss of ~108.6M). Gross profit remains solid (2025 gross profit ~77.8M on ~176.2M revenue). However, results have been volatile across years (2024 shows unusually high net income relative to revenue and 2023 had negative earnings), which reduces confidence in the steadiness of reported profitability.

Balance Sheet

The balance sheet is asset-backed and equity remains sizable (2025 equity ~1.07B vs. assets ~2.25B). Leverage is meaningful and rising with debt increasing from ~495M (2022) to ~791M (2025), though historical debt-to-equity has been in a moderate range (about 0.53–0.70 in 2022–2024). Overall, it looks workable for a REIT, but higher debt and variable returns on equity signal elevated balance-sheet risk if operating results weaken.

Cash Flow

Operating cash flow has improved from ~40.9M (2023) to ~71.8M (2025), supporting the recovery narrative. Free cash flow was positive in 2020–2024, but 2025 reports free cash flow at 0, suggesting either heavier reinvestment needs or weaker cash conversion that year. Coverage of profits by cash flow has been good in the years provided (operating cash flow exceeding net income in 2022–2024), but the 2025 free-cash-flow step-down is a key watch item.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	131.23M	176.15M	102.27M	108.70M	116.49M	76.62M
Gross Profit	57.95M	77.77M	55.37M	61.72M	76.47M	31.88M
EBITDA	19.20M	73.94M	327.21M	-101.67M	29.91M	53.22M
Net Income	208.43M	47.70M	205.38M	-108.58M	1.54M	29.54M
Balance Sheet
Total Assets	2.22B	2.25B	2.01B	1.51B	1.61B	1.45B
Cash, Cash Equivalents and Short-Term Investments	60.72M	30.55M	44.12M	12.10M	26.66M	4.00M
Total Debt	797.26M	791.08M	653.84M	555.49M	495.03M	348.07M
Total Liabilities	907.14M	909.80M	735.29M	589.41M	535.54M	355.58M
Stockholders Equity	1.06B	1.07B	1.04B	790.48M	934.89M	949.51M
Cash Flow
Free Cash Flow	0.00	0.00	56.03M	40.93M	76.22M	41.40M
Operating Cash Flow	0.00	71.83M	56.03M	40.93M	76.22M	54.75M
Investing Cash Flow	0.00	-105.30M	-45.67M	-50.91M	-1.45B	-936.33M
Financing Cash Flow	0.00	19.90M	20.09M	-3.59M	1.41B	909.81M

Digital Core REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:DCRU, the sentiment is Positive. The current price of 0.52 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.51, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:DCRU.

Digital Core REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UD1U	65 Neutral	S$369.83M	-3.89	1.69%	8.37%	-11.29%	―
DCRU	64 Neutral	$671.57M	14.47	20.33%	7.22%	36.48%	―
ODBU	64 Neutral	$326.95M	15.61	6.49%	8.23%	-1.34%	-6.08%
OXMU	60 Neutral	$281.74M	12.89	0.38%	2.40%	-12.01%	―
XZL	53 Neutral	$147.93M	-5.47	-5.62%	5.06%	-6.01%	-36.46%
CMOU	51 Neutral	$224.56M	-55.13	-2.12%	―	-1.55%	78.22%

Digital Core REIT Corporate Events

Digital Core REIT Details Tax-Neutral 2H25 Distribution

The REIT declared a 2H25 cash distribution of 1.80 U.S. cents per unit, paid entirely as non-effectively connected income largely composed of U.S. source portfolio interest, return of capital, and non-U.S. source income, ensuring no Section 1446(a) withholding for unitholders. The clarity on the distribution mix signals continued tax efficiency for investors and underscores the REIT’s ongoing effort to maintain predictable payouts despite regulatory complexities affecting cross-border data center income streams.

The most recent analyst rating on (SG:DCRU) stock is a Buy with a $0.92 price target. To see the full list of analyst forecasts on Digital Core REIT stock, see the SG:DCRU Stock Forecast page.

Digital Core REIT Pays 2023 Asset Management Fees in Units, Adjusts Manager’s Stake

Digital Core REIT Management Pte. Ltd. has transferred 8,870,932 units of Digital Core REIT to Digital Realty Property Manager, LLC as payment in kind for asset management services rendered in 2023, at an average price of US$0.5073 per unit based on volume-weighted average trading prices on the SGX over four quarterly periods. The manager emphasized that this unit-based fee arrangement is an outsourcing structure that does not add extra costs to the REIT or result in double counting of asset management fees, and following the transfer, the manager now holds 15,739,464 units, or about 1.207% of the total issued units, clarifying current ownership levels for investors.

The most recent analyst rating on (SG:DCRU) stock is a Buy with a $0.92 price target. To see the full list of analyst forecasts on Digital Core REIT stock, see the SG:DCRU Stock Forecast page.

Digital Core REIT Lifts Portfolio Occupancy to 98% With 10-Year Linton Hall Lease

Digital Core REIT has secured a 10-year lease with an investment-grade global cloud service provider for its entire data centre facility at 8217 Linton Hall Road in Virginia, starting 1 December 2026. The deal is expected to generate approximately US$14.8 million in annualised net property income (US$13.3 million at Digital Core REIT’s 90% share), representing about a 35% uplift from the previous rent, while restoring the asset to full occupancy and sharply boosting portfolio performance metrics. Once the lease commences, overall portfolio occupancy will rise from 81% to 98%, the share of rent from investment-grade customers will increase from 79% to 82%, and the weighted average lease expiry will extend from 4.7 to 5.7 years, strengthening the REIT’s income visibility and risk profile. Management framed the transaction as evidence of resilient demand for data centres in core markets and a demonstration of the benefits of its sponsor’s global platform, positioning Digital Core REIT for continued organic growth and future acquisitions aimed at enhancing long-term value for unitholders.

The most recent analyst rating on (SG:DCRU) stock is a Buy with a $0.50 price target. To see the full list of analyst forecasts on Digital Core REIT stock, see the SG:DCRU Stock Forecast page.

Digital Core REIT Confirms U.S. Withholding Exception for Unit Transfers

Digital Core REIT has issued a Qualified Notice stating that, for U.S. tax purposes, it qualifies for an exception from withholding on transfers of its units under U.S. Treasury Regulation § 1.1446(f)-4(b)(3). The REIT certified that it was not engaged in a trade or business within the United States during the relevant tax year up to the designated date, meaning that for a 92-day period from 1 January 2026, transfers of interests in Digital Core REIT are exempt from certain U.S. withholding obligations, providing greater clarity and potential administrative ease for international investors trading its units.

The most recent analyst rating on (SG:DCRU) stock is a Buy with a $0.50 price target. To see the full list of analyst forecasts on Digital Core REIT stock, see the SG:DCRU Stock Forecast page.