DigiCo Infrastructure REIT (ASX:DGT) delivered a "good result" for fiscal 2026 with earnings before interest, taxes, depreciation, and amortization coming in slightly ahead of the company's guidance and consensus estimates, Jefferies said in a Friday note.
The company obtained letters of intent totaling 52 megawatts at its SYD1 flagship data center campus in Sydney, and disclosed the expansion of its ADL1 data center in Adelaide to 15 megawatts, driven by advanced customer discussions, the investment firm said.
With the new letters of intent, DigiCo has pre-leased all future capacity at the Sydney data center. The letters are subject to binding agreements, but the project has been largely de-risked, Jefferies said.
It added that the first 10 megawatts at the CHI1 hyperscale data center facility in Illinois, US, is set to become operational late in the fourth quarter of fiscal 2027.
Jefferies maintained a buy rating on DigiCo Infrastructure with a price target of AU$3.
The company's shares fell 9% in recent Friday trade.