DigiCore DC REIT Not As Stable As It Seemed-Beware 3rd Crisis Since IPO.

Let me be clear on this, the announcement of Linton Hall going to be finally leased out end of 2026 on January 5th, 2026 announcement does not absolve the inherent challenges faced by unit-holders holding on to DigiCore DC REIT ("DCREIT"). I thought that DCREIT management has been rather misleading in their previous December 2025 results presentation. The occupancy rate as per above shows a 98% occupancy giving most stakeholders am extremely false impression of the true status of occupancy. There is a very tiny footnote at the bottom of this powerpoint that states that the actual occupancy rate of DCREIT is only 81% instead of 98%. They have excluded Linton Hall during the last presentation, that is undergoing refurbishment post the exit of a major tenant around mid-2025 that contributed around 10%-11% of rental income. I thought that DCREIT management ought to be more transparent in its dealing with unit-holders given that it had already underwent a few crisis post IPO such as the Sungard and Cyxtera bankruptcy/restructuring cases that led to a significant plunge in distribution to unit-holders.

Linton Hall Will Only Be Backfilled from December 1, 2026- (1.5 years vacant)

Back in 2023, I had taken up a position in DCREIT when its price plunged to below US$0.50 as I had taken a more optimistic view of its business. I had then bought and exited half of it with about +22% realised capital gain but keeping the other half was a mistake as its traded price remained in doldrum for the next few years and now, there a 3rd incident of another operational issue with a major tenant exiting in mid-2025 and DCREIT's team is only able to backfill the space from December 1, 2026  (as per the latest SGX announcement). Wow, this is almost a 1.5 years of vacancy! 

From DCREIT track record over the past 3 years, this REIT has proven that it is not stable at all. It has problem building up sufficient size for adequate diversification of key tenant exit risk as well as credit risk. 

Parting Thoughts

Over time, DCREIT’s market price has fallen significantly below its IPO level of US$0.88 per unit to the recent US$0.545 as at January 6, 2025 (Monday). This represents a whopping decline of around <-38%> relative to its IPO price. I have thus exited all my investment holdings in DCREIT back in December 2025 due to persistent under performance and bad management based on my personal view. Additionally, the AI craze maybe a bubble that will eventually pop and I am not sure whether DCREIT with its really bad track record can survive such crisis.