AUSTIN,
Texas, April 21, 2022 /PRNewswire/
-- Digital Realty (NYSE: DLR), the largest global provider of
carrier- and cloud-neutral data center, colocation and
interconnection solutions, announced today it has agreed to provide
a cash flow guarantee to Digital Core REIT (SGX: DCRU), a publicly
traded vehicle listed on the Singapore Stock Exchange sponsored by
and externally managed by Digital Realty, related to a recent
customer bankruptcy.
On April 11, 2022, Digital Core
REIT's fifth-largest customer, a privately held IT service provider
occupying 2.7 megawatts of capacity in Toronto and representing approximately
$5 million of annualized revenue, or
7.1% of Digital Core REIT's total revenue, filed for bankruptcy
protection. The customer remains current on its rental
obligations to Digital Core REIT through the month of April and has
disclosed that it has obtained $95
million of debtor-in-possession financing. The
customer has also publicly stated that it intends to pay suppliers
in the normal course of business for goods and services delivered
going forward.
In keeping with Digital Realty's continued commitment to the
success of Digital Core REIT, it has reached an agreement in
principle to guarantee the rental income stream to Digital Core
REIT in the event of a near-term cash flow shortfall due to the
customer bankruptcy. Given the current customer stance as
well as the strength of the Toronto market and the cash flow guarantee,
the customer bankruptcy is not expected to have a material impact
on Digital Core REIT's distribution per unit, or DPU.
"Digital Core REIT is a strategic capital partner, and we are
pleased to demonstrate our commitment to their success," said
Digital Realty Chief Executive Officer A.
William Stein. "This support is a direct reflection of
the strength of Digital Realty's global platform as well as the
depth and breadth of our large and growing installed customer
base."
This same customer is also Digital Realty's 23rd
largest customer and leases approximately 10.5 megawatts directly
from Digital Realty across six facilities in four markets, totaling
approximately $22 million of
annualized revenue, or 0.7% of Digital Realty's total
revenue. Digital Realty expects to provide an update on the
impact, if any, to its 2022 core FFO per share outlook when it
reports first-quarter results after the market close next
Thursday, April 28, 2022.
About Digital Realty
Digital Realty supports the
world's leading enterprises and service providers by delivering the
full spectrum of data center, colocation, and interconnection
solutions. PlatformDIGITAL®, the company's global data center
platform, provides customers a trusted foundation and proven
Pervasive Datacenter Architecture (PDx™) solution methodology for
scaling digital business and efficiently managing Data Gravity
challenges. Digital Realty's global data center footprint
gives customers access to the connected communities that matter to
them with over 280 facilities in nearly 50 metros across 25
countries on six continents. For more information, please
visit digitalrealty.com or follow us on LinkedIn and
Twitter.
About Digital Core REIT
Digital Core REIT (SGX: DCRU)
is a leading pure-play data center REIT listed in Singapore and sponsored by Digital Realty, the
largest global data center owner and operator. Digital Core
REIT aims to create long-term, sustainable value for all
stakeholders through ownership of a stabilized and diversified
portfolio of mission-critical data center facilities concentrated
in select global metros. For more information, please visit
digitalcorereit.com.
Investor Relations
Jordan
Sadler / Jim Huseby
Digital Realty
+1 (737) 281-0101
InvestorRelations@digitalrealty.com
Media & Industry Analyst Relations
Helen Bleasdale
Digital Realty
+1 (737) 267-6822
hcbleasdale@digitalrealty.com
Safe Harbor Statement
This press release contains
forward-looking statements which are based on current expectations,
forecasts and assumptions that involve risks and uncertainties that
could cause actual outcomes and results to differ materially,
including statements related to a customer bankruptcy and expected
cash flow guarantee, the related impact on Digital Core REIT's DPU
and outlook, and the related impact on Digital Realty and its
outlook. For a list and description of risks and
uncertainties, please see the company's reports and other filings
with the U.S. Securities and Exchange Commission. The company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Digital Realty