DigiCo Infrastructure REIT's stock soared 16.10% during intraday trading on Wednesday, following the company's announcement of a binding agreement to sell its CHI1 data center facility in Chicago for $750 million.
The sale, which represents a near 5% premium to the asset's November 2024 acquisition price, is expected to release approximately A$360 million in net cash proceeds. This transaction is anticipated to significantly boost the company's liquidity to about A$900 million and reduce its pro-forma net debt to A$500 million from A$1.5 billion at the end of last year.
DigiCo stated that the U.S. asset sales are expected to be materially accretive to Funds From Operations (FFO) starting from fiscal year 2027. The company also reaffirmed its fiscal 2026 underlying EBITDA guidance of A$125 million and announced its intention to explore capital management initiatives, including returning excess cash to investors through enhanced distributions. Proceeds from the sale will also be used to fund the development of the company's Sydney data center site.