DGT is a REIT focused on data centre (DC) assets. The stocks had a baptism of fire since listing in late 2024, more than halving from its listing price of $5 – new industries don’t always deliver easy money. DGT is essentially a specialised property trust, similar in structure to traditional REITs, but instead of owning office towers or shopping centres, it owns data-centre assets and associated digital infrastructure (power, cooling, fibre, and land). They operate SYD1 in Sydney, which is their flagship Australian site, undergoing a large expansion, as well as US campuses in Virginia and Texas, targeting hyperscale clients. DGT also has a pipeline of early-stage development sites with power and land secured.
This was a classic case of a hyped-up IPO that priced on a big multiple for its stage of development – we’ve seen it before and will again. However, the now $1.5bn business is looking more interesting around $2.75, with $146mn of revenue forecast in FY26. Their recent scale of contracted wins, spanning hyperscale, neocloud, enterprise, and government clients, was impressive and provides solid visibility through FY27 and beyond. With DGT now trading at a meaningful discount to global peers such as Equinix and Digital Realty, we believe it’s time to consider the stock, aided by its forecasted 4.4% yield.
- We like the risk/reward towards DGT around the $2.75 area.
MM likes DGT for aggressive exposure to DCs.
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