Q4 2026 DigiCo Infrastructure REIT Earnings Call

August 21, 2026

Speaker #2: Thank you for standing by, and welcome to the DigiCo Infrastructure REIT FY26 full-year results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator 2: Thank you for standing by, and welcome to the DigiCo Infrastructure REIT FY26 full year results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. David Di Pilla, DigiCo Non-Executive Director. Please go ahead.

Operator: Thank you for standing by, and welcome to the DigiCo Infrastructure REIT FY 2026 full year results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. David Di Pilla, DigiCo Non-Executive Director. Please go ahead.

Speaker #2: If you wish to ask a question, you will need to press the star key, followed by the number 1, on your telephone keypad. I would now like to hand the conference over to Mr. David DePaula, DigiCo Non-Executive Director.

Speaker #2: Please go ahead.

Speaker #3: Good morning, and thank you for joining us for DigiCo's financial year 2026 full-year results. Before turning to the results, I'm pleased to be here today to provide an update on DigiCo's management structure and to share why the group is so excited about the outlook for the entity.

David Di Pilla: Good morning, and thank you for joining us for DigiCo's financial year 2026 full-year results. Before turning to the result, I am pleased to be here today to provide an update on DigiCo's management structure and an update on why the group is so excited about the outlook for the entity. I am pleased to confirm the board's appointment of Simon Mitchell and Ralph Goninan as co-heads of DigiCo, effective today, while retaining their existing roles as Chief Financial Officer and Chief Development Officer, respectively. I am also pleased to confirm the appointment of Damian Secen as Managing Director Infrastructure for the HMC Group. Damian brings more than 25 years of infrastructure investment and development experience, including senior leadership roles at Macquarie Asset Management and Equis. He will provide senior oversight across HMC's infrastructure businesses, including DigiCo and Aluna Energy.

David Di Pilla: Good morning, and thank you for joining us for DigiCo's financial year 2026 full-year results. Before turning to the result, I am pleased to be here today to provide an update on DigiCo's management structure and an update on why the group is so excited about the outlook for the entity. I am pleased to confirm the board's appointment of Simon Mitchell and Ralph Goninan as co-heads of DigiCo, effective today, while retaining their existing roles as Chief Financial Officer and Chief Development Officer, respectively. I am also providing, pleased to confirm the appointment of Damian Secen as Managing Director Infrastructure for the HMC Group. Damian brings more than 25 years of infrastructure investment and development experience, including senior leadership roles at Macquarie Asset Management and Equis. He will provide senior oversight across HMC's infrastructure businesses, including DigiCo and Aluna Energy.

Speaker #3: I'm pleased to confirm the board's appointment of Simon Mitchell and Ralph Ganinian as co-heads of DigiCo, effective today. While retaining their existing roles as Chief Financial Officer and Chief Development Officer, respectively, I'm also pleased to confirm the appointment of Damien Seacon as Managing Director, Infrastructure, for the HMC Group.

Speaker #3: Damien brings more than 25 years of infrastructure investment and development experience, including senior leadership roles at Macquarie Asset Management and Equis. He will provide senior oversight across HMC's infrastructure businesses, including DigiCo and Illumer Energy.

Speaker #3: These appointments formalize a structure that is operationally working well and provide continuity as we execute on the next phase of growth. On behalf of the board, I'd like to thank Chris Marr for his leadership as interim CEO of DigiCo and his support through the transition process.

David Di Pilla: These appointments formalize a structure that is operationally working well and provides continuity as we execute on the next phase of growth. On behalf of the board, I would like to thank Chris Maher for his leadership as interim CEO of DigiCo and his support through the transition process. We wish Chris every success in the future. Now, turning to the result for financial year 2026 and a year of delivery by the team. We delivered on the commitments we made to security holders. We completed the first 20-megawatt stage of the Sydney 1 project. We commenced and are now well advanced on the recycling of capital from lower-yielding US assets, and we have positioned the balance sheet to fully fund our highest conviction growth opportunities in Australia. These achievements underpin our confidence in the business and support our conviction in our digital platform.

David Di Pilla: These appointments formalize a structure that is operationally working well and provides continuity as we execute on the next phase of growth. On behalf of the board, I would like to thank Chris Maher for his leadership as interim CEO of DigiCo and his support through the transition process. We wish Chris every success in the future. Now, turning to the result for financial year 2026 and a year of delivery by the team. We delivered on the commitments we made to security holders. We completed the first 20-megawatt stage of the Sydney one project. We commenced and are now well advanced on the recycling of capital from lower-yielding US assets, and we have positioned the balance sheet to fully fund our highest conviction growth opportunities in Australia. These achievements underpin our confidence in the business and support our conviction in our digital platform.

Speaker #3: We wish Chris every success in the future. Now, turning to the results for financial year '26, and a year of delivery by the team.

Speaker #3: We delivered on the commitments we made to security holders. We completed the first 20-megawatt stage of the Sydney One project. We commenced, and are now well advanced on, the recycling of capital from lower-yielding U.S. assets.

Speaker #3: And we've positioned the balance sheet to fully fund our highest conviction growth opportunities in Australia. These achievements underpin our confidence in the business and support our conviction in our digital platform.

David Di Pilla: Three key messages from today's result I'd like you to take away. Firstly, the remaining 52-megawatt expansion of the 88-megawatt Sydney 1 project is fully funded through existing liquidity and available debt facilities with no equity required. Second, we've secured LOIs with customers for the entire remaining 52 megawatts of capacity with high-quality counterparties. Documentation is in an advanced stage, and we expect execution in the near term. Third, the successful completion of the first 20-megawatt stage of the Sydney 1 development demonstrates our ability to execute and deliver complex projects at scale. These achievements reflect the deliberate investment we've made since IPO in our capabilities.

Speaker #3: Three key messages from today's result I'd like you to take away. Firstly, the remaining 52-megawatt expansion of the 88-megawatt Sydney One project is fully funded through existing liquidity and available debt facilities, with no equity required.

Speaker #3: Second, we've secured LOIs with customers for the entire remaining 52 megawatts of capacity with high-quality counterparties. Documentation is at an advanced stage, and we expect execution in the near term.

Speaker #3: And third, the successful completion of the first 20-megawatt stage of the Sydney One development demonstrates our ability to execute and deliver complex projects at scale.

Speaker #3: These achievements reflect the deliberate investment we've made since IPO in our capabilities. With a team of over 100 dedicated professionals, DigiCo has genuine in-house technical expertise across data center operations, leasing, engineering, and delivery.

David Di Pilla: With a team of over 100 dedicated professionals, DigiCo has genuine in-house technical expertise across data center operations, leasing, engineering, and delivery. It's one of DigiCo's most important competitive advantages as we look into the future. With the combination of this capability, we move toward a clear pathway to generate an expected Australian platform stabilized EBITDA of AUD 250 million. With that, I'll now hand over to Simon and Ralph to take you through today's presentation.

Speaker #3: It’s one of DGT’s most important competitive advantages as we look to the future. Now, with the combination of this capability, we move toward a clear pathway to generate an expected Australian platform stabilized EBITDA of $250 million.

Speaker #3: With that, I'll now hand over to Simon and Ralph to take you through today's presentation.

Speaker #4: Thanks, David. And let me add my welcome to those on the call. I'm excited to be presenting this result to you today in my new role as co-head of DigiCo.

Simon Mitchell: Thanks, David, and let me add my welcome to those on the call. I'm excited to be presenting this result to you today in my new role as co-head of DigiCo. Starting on slide 5. DigiCo's first full year reflected strong outcomes across earnings momentum, leasing, development, and capital management. Underlying EBITDA was AUD 127 million, above the AUD 125 million guidance, driven by strong growth in the Australian platform as new leasing revenue commenced. Distributions for FY26 were AUD 0.12 per security, also in line with guidance and more than covered by FFO. We are seeing unprecedented demand for high-quality capacity in the Sydney market and have signed LOIs for the remaining 52 megawatts of capacity at Sydney 1. Final binding documentation is expected to be signed in the coming weeks.

Speaker #4: Starting on slide 5, DigiCo's first full year reflected strong outcomes across earnings momentum, leasing, development, and capital management. Underlying EBITDA was $127 million, above the $125 million guidance, driven by strong growth in the Australian platform as new leasing revenue commenced.

Speaker #4: Distributions for FY26 were 12 cents per security, also in line with guidance and more than covered by FFO. We are seeing unprecedented demand for high-quality capacity in the Sydney market.

Speaker #4: And have signed LOIs for the remaining 52 megawatts of capacity at Sydney One. Final binding documentation is expected to be signed in the coming weeks.

Speaker #4: We've also agreed terms to extend our leases at our remaining U.S. assets in Kansas City and Dallas for 10 years, to 2036. This significantly enhances value and optionality for both assets.

Simon Mitchell: We've also agreed terms to extend our leases at our remaining US assets in Kansas City and Dallas for 10 years to 2036. This significantly enhances the value and optionality for both assets. During the period, we made significant progress on development, which Ralph will talk more about soon. After successful completion of the Sydney 1 20-megawatt project, we are in the final stages of construction contracting for the remaining 88-megawatt project. We have been able to accelerate this timeline with the first tranche of capacity expected to be online in Q4 FY27, and the remainder to be completed in FY28. This revised schedule will result in most of the capacity being commissioned in calendar year 2027, which is highly sought after by customers. Our 15-megawatt expansion of the Adelaide 1 facility is also progressing, and we expect this to be online in FY28.

Speaker #4: During the period, we made significant progress on development, which Ralph will talk more about soon. After the successful completion of the Sydney One 20-megawatt project, we are in the final stages of construction contracting for the remaining 88-megawatt project.

Speaker #4: We've been able to accelerate this timeline, with the first tranche of capacity expected to be online in the fourth quarter of FY27, and the remainder to be completed in FY28.

Speaker #4: This revised schedule will result in most of the capacity being commissioned in calendar year 2027, which is highly sought after by customers. Our 15-megawatt expansion of the Adelaide One facility is also progressing, and we expect this to be online in FY28.

Speaker #4: The combination of this accelerated development plan at Sydney One and Adelaide One, with tangible progress on customer contracting, means that we expect the Australian platform of DigiCo to generate stabilized EBITDA of around $250 million following these capacity expansions.

Simon Mitchell: The combination of this accelerated development plan at Sydney 1 and Adelaide 1 with tangible progress on customer contracting means that we expect the Australian platform of DigiCo to generate stabilized EBITDA of around AUD 250 million following these capacity expansions. During the year, we also significantly improved the group's balance sheet, with our US assets on track to be sold to reduce net debt from AUD 1.6 billion to around AUD 450 million. We also reached agreement with our lender syndicate to upsize our Australian senior facility by AUD 200 million to AUD 1.45 billion. Together, these initiatives give us AUD 1.2 billion of pro forma liquidity, which is more than enough to fund the Sydney 1 development. I will now hand over to Ralph to take you through our development and growth outlook.

Speaker #4: During the year, we also significantly improved the group's balance sheet, with our US assets on track to be sold to reduce net debt from $1.6 billion to around $450 million.

Speaker #4: We also reached agreement with our lender syndicate to upsize our Australian senior facility by $200 million to $1.45 billion. Together, these initiatives give us $1.2 billion of pro forma liquidity, which is more than enough to fund the Sydney One development.

Speaker #4: I'll now hand over to Ralph to take you through our development and growth outlook.

Speaker #3: Thank you, Simon, and good morning, everyone. I want to start by reiterating Simon's words that it is a pleasure to be here today, presenting in our new capacity as co-heads of DigiCo.

Ralph Goninan: Thank you, Simon, and good morning, everyone. I want to start by reiterating Simon's words that it is a pleasure to be here today presenting in our new capacity as co-heads of DigiCo. DigiCo's strategy is clear. We will build on our existing momentum by doing three things. First, we will deliver. Next, we will expand. Finally, we will scale. To achieve this strategy, I would like to outline some of our key priorities that will enable sustainable growth over the next three years and beyond. First is geographic focus. Following the sale of the US assets, we will redeploy the capital back to the Australian market, which is both supply-constrained and where our national in-house delivery and operational capability is focused. Second is focusing on delivering our current accretive projects. As mentioned, at Syd 1, we have completed the 20-megawatt project, and we are accelerating the next 52-megawatt deployment.

Speaker #3: DigiCo's strategy is clear: we will build on our existing momentum by doing three things. First, we will deliver. Next, we'll expand. Finally, we'll scale.

Speaker #3: To achieve this strategy, I would like to outline some of our key priorities that will enable sustainable growth over the next three years and beyond.

Speaker #3: First is geographic focus. Following the sale of the U.S. assets, we will redeploy the capital back to the Australian market, which is both supply constrained and where our national in-house delivery and operational capability is focused.

Speaker #3: Second is focusing on delivering our current creative projects. As mentioned, at Syd One, we have completed the 20-megawatt project, and we are accelerating the next 52-megawatt deployment.

Speaker #3: Third is capital management and funding. We will continue to develop Syd One through existing balance sheet capacity and committed facilities, with no further equity required.

Ralph Goninan: Third is capital management and funding. We will continue to develop Syd 1 through existing balance sheet capacity and committed facilities with no further equity required. Finally, we will focus on expansion and growth. Initially, we will focus on our adaptive brownfield developments, where we will be making use of available power to expand our existing facilities. We are also actively evaluating strategic greenfield opportunities that have access to renewable power. By focusing on these priorities and building on our established capabilities, we are well-positioned to execute on our strategy, which is to deliver, expand, and then scale over the next three years and beyond. Turning now to page 8 to talk about Sydney 1.

Speaker #3: And finally, we will focus on expansion and growth. Initially, we will focus on our adaptive brownfield developments, where we'll be making use of available power to expand our existing facilities.

Speaker #3: We are also actively evaluating strategic greenfield opportunities that have access to renewable power. By focusing on these priorities and building on our established capabilities, we are well-positioned to execute on our strategy.

Speaker #3: Which is to deliver, expand, and then scale over the next three years and beyond. Turning now to page eight to talk about Sydney One—we are very pleased to be able to announce this morning that the remaining Syd One capacity is substantially committed, with terms agreed under LOIs executed with high-quality customers to be delivered in 10-megawatt tranches, which accounts for the remaining capacity at Syd One.

Ralph Goninan: We are very pleased to be able to announce this morning that the remaining Syd 1 capacity is substantially committed with terms agreed under LOIs executed with high-quality customers to be delivered in 10-megawatt tranches, which accounts for the remaining capacity at Syd 1. Over the past six months, several critical milestones have been achieved, which positions us to successfully accelerate the delivery of Syd 1's mining capacity to meet this customer demand. We have received planning approval, completed the design and ECI, early construction works have commenced, and Laing O'Rourke has been appointed as an integrated delivery partner. Delivery will be phased, with the first 10-megawatt tranche targeted to be energized and income producing by the end of FY27, and the remaining 42 megawatts targeted through FY28, with the ability to accelerate subject to customer requirements. Moving to slide 9.

Speaker #3: Over the past six months, several critical milestones have been achieved, which position us to successfully accelerate the delivery of Syd One’s remaining capacity to meet this customer demand.

Speaker #3: We've received planning approval, completed the design and ECI. Early construction works have commenced, and Langarock has been appointed as an integrated delivery partner. Delivery will be phased, with the first 10-megawatt tranche targeted to be energized and income-producing by the end of FY27, and the remaining 42 megawatts targeted through FY28, with the ability to accelerate subject to customer requirements.

Speaker #3: Moving to slide nine, these photos show elements of the first 20 megawatts, which have been delivered on schedule and within budget, and, importantly, within five operating data centers.

Ralph Goninan: These photos show elements of the first 20 megawatts, which have been delivered on schedule and within budget, and importantly, within the live operating data center. Some of the 20-megawatt works also enable the next phase of the 52-megawatt project, which will result in a more accelerated program. This project has allowed us to further build our in-house engineering and delivery capability while also developing key relationships with our contractors and across the broader supply chain. As a result, we are well-positioned to deliver the remaining 52-megawatt expansion. Turning now to slide 10, aligning with our strategy to expand and then scale, Adelaide 1 15-megawatt project is another adaptive reuse development, which is underpinned by accelerating customer demand and is targeted for completion by the end of FY28.

Speaker #3: Some of the 20-megawatt works also enable the next phase of the 52-megawatt project, which will result in a more accelerated program. This project has allowed us to further build our in-house engineering and delivery capability, while also developing key relationships with our contractors and across the broader supply chain.

Speaker #3: As a result, we are well positioned to deliver the remaining 52-megawatt expansion. Turning now to slide 10, aligning with our strategy to expand and then scale, Adelaide One 15-megawatt project is another adaptive reuse development, which is underpinned by accelerating customer demand and is targeted for completion by the end of FY28.

Speaker #3: Beyond our existing assets, we are actively evaluating greenfield opportunities targeting large-scale AI campuses, which align with the federal government's proposed new data center framework.

Ralph Goninan: Beyond our existing assets, we are actively evaluating greenfield opportunities targeting large-scale AI campuses, which align with the federal government's proposed new data center framework. We are currently in the planning and due diligence phase and look forward to providing further updates as we progress. On slide 11, building on our development pipeline and to illustrate the implementation of our strategy, I would like to outline our pathway to an Australian platform stabilized EBITDA of around AUD 250 million. Starting with the FY25 billing capacity of 21 megawatts, we have achieved a 95% increase in FY26 to 41 megawatts. As mentioned, we have terms agreed under LOIs with high-quality counterparties on long-dated basis for the balance of the 52 megawatts at SYD1. We expect this to start converting to billing capacity from the end of FY27 and be fully online by the end of FY28.

Speaker #3: We are currently in the planning and due diligence phase, and look forward to providing further updates as we progress. On slide 11, building on our development pipeline and to illustrate the implementation of our strategy, I would like to outline our pathway to an Australian platform stabilized EBITDA of around $250 million.

Speaker #3: Starting with the FY25 billing capacity of 21 megawatts, we have achieved a 95% increase in FY26 to 41 megawatts. As mentioned, we have terms agreed under LOIs with high-quality counterparties on long-dated basis for the balance of the 52 megawatts at Syd One.

Speaker #3: We expect this to start converting to billing capacity from the end of FY27, and to be fully online by the end of FY28. Next is the 15-megawatt brownfield expansion at Adelaide One.

Ralph Goninan: Next is the 15-megawatt brownfield expansion at Adelaide 1, which we have unlocked from within our existing footprint. This development opportunity is targeted to be online and billing by the end of FY28. Together, these developments would result in 108 megawatts of Australian billing capacity, which is 123% increase on our current FY26 billing capacity. Delivery of the additional 67 megawatts is expected to require approximately AUD 1.2 billion of incremental CapEx over the next two years. These developments underpin the pathway to a stabilized EBITDA of around AUD 250 million across the Australian platform. The strategy is clear. The demand is there and accelerating, the development is funded, and we have a clear pathway to around AUD 250 million of stabilized EBITDA across the Australian platform with meaningful upside beyond it. I will now hand back to Simon to run through the FY26 financial results.

Speaker #3: which we have unlocked from within our existing footprint. This development opportunity is targeted to be online and billing by the end of FY28. Together, these developments would result in 108 megawatts of Australian billing capacity, which is a 123% increase on our current FY26 billing capacity.

Speaker #3: Delivery of the additional 67 megawatts is expected to require approximately $1.2 billion of incremental capex over the next two years. These developments underpin the pathway to a stabilized EBITDA of around $250 million across the Australian platform.

Speaker #3: So the strategy is clear. The demand is there and accelerating. The development is funded, and we have a clear pathway to around $250 million of stabilized EBITDA across the Australian platform, with meaningful upside beyond that.

Speaker #3: I'll now hand back to Simon to run through the FY26 financial results.

Speaker #1: Thank you, Ralph. Turning now to slide 13, where we show earnings and FFO results for the 12-month period ending 30 June 2026. The comparable period is from 1 November 2024 to 30 June 2025, which only includes six and a half months of trading.

Simon Mitchell: Thank you, Ralph. Turning now to slide 13, where we show earnings and FFO results for the 12-month period to 30 June 2026. The comparable period is for 1 November 2024 to 30 June 2025, which only includes six and a half months of trading, meaning the numbers are not directly comparable. Revenue for the year was AUD 239 million, representing a 21% increase for the H2 versus the H1. This growth largely came from increased billings in the Australian business and a full year, H1 contribution from the first two phases of the Chicago data center, partly offset by some foreign currency headwinds. Underlying EBITDA was AUD 127 million, slightly ahead of guidance. EBITDA showed strong progression through the year, growing by 21% H2 on H1, which was in line with the revenue growth.

Speaker #1: Meaning the numbers are not directly comparable. Revenue for the year was $239 million, representing a 21% increase for the second half versus the first half.

Speaker #1: This growth largely came from increased billings in the Australian business, and a full-year, half-year contribution from the first two phases of the Chicago data center, partly offset by some foreign currency headwinds.

Speaker #1: Underlying EBITDA was $127 million, slightly ahead of guidance. EBITDA showed strong progression through the year, growing by 21% in the second half compared to the first half.

Speaker #1: Which was in line with the revenue growth. Net interest for the year was $58 million, which was higher in the second half, reflecting the phased delivery of Chicago and investment in the Sydney One 20-megawatt project.

Simon Mitchell: Net interest for the year was AUD 58 million, which was higher in the H2, reflecting the phased delivery of Chicago and investment in the Sydney 1 20-megawatt project. Deducting this interest expense and after adjusting for the management fees settled in scrip, results in adjusted FFO of AUD 71 million. Out of this, we declared a 12-cent distribution for the year, which amounted to a 94% payout of FFO. Consistent with our treatment in the H1, pre-completion rent received of AUD 37 million relating to Chicago and Sydney 1 has been included in revenue and underlying EBITDA. Also consistent with the prior period, AUD 13 million of pre-completion interest expense attributable to this rental income has been included in adjusted FFO. Moving to slide 14 and the balance sheet, DigiCo ended the period with cash of AUD 206 million and net debt of AUD 1.6 billion.

Speaker #1: Deducting this interest expense, and after adjusting for the management fees settled in scrip, results in adjusted FFO of $71 million. Out of this, we declared a 12% distribution for the year, which amounted to a 94% payout of FFO.

Speaker #1: Consistent with our treatment in the first half, pre-completion rent received of $37 million relating to Chicago and Sydney One has been included in revenue and underlying EBITDA.

Speaker #1: Also consistent with the prior period, $13 million of pre-completion interest expense attributable to this rental income has been included in adjusted FFO. Moving to slide 14 and the balance sheet.

Speaker #1: DigiCo ended the period with cash of $206 million and net debt of $1.6 billion. Net assets were $2.3 billion, which equates to a net asset value per security of $4.13.

Simon Mitchell: Net assets were AUD 2.3 billion, which equates to a net asset value per security of AUD 4.13. The 9% decline in NAV over the period largely reflects the adverse foreign currency impact on the US dollar-denominated assets and ongoing depreciation of the Australian asset base. The independently valued gross asset value was AUD 4.1 billion, reflecting an adjusted NAV per security of AUD 4.47, which was largely flat during the year. Pleasingly, the Australian portfolio valuation rose by 7% to AUD 2.5 billion, but this was largely offset by adverse foreign currency movements on the US assets. Capital expenditure amounted to just under AUD 180 million, predominantly driven by the 20-megawatt project at Sydney 1 and early development work for the 88-megawatt project. After entering into contracts for sale in Chicago and Los Angeles, these assets have been moved to assets classified as held for sale at AUD 1.2 billion.

Speaker #1: The 9% decline in NAV over the period largely reflects the adverse foreign currency impact on the US dollar-denominated assets and ongoing depreciation of the Australian asset base.

Speaker #1: The independently valued gross asset value was $4.1 billion, reflecting an adjusted NAV per security of $4.47, which was largely flat during the year.

Speaker #1: Pleasingly, the Australian portfolio valuation rose by 7% to $2.5 billion. But this was largely offset by adverse foreign currency movements on the US assets.

Speaker #1: Capital expenditure amounted to just under $180 million, predominantly driven by the 20-megawatt project at Sydney One, and development work for the 88-megawatt project.

Speaker #1: After entering into contracts for sale on Chicago and Los Angeles, these assets have been moved to assets classified as held for sale at $1.2 billion.

Speaker #1: The remaining $386 million of investment properties represents the Kansas City and Dallas assets. Turning to slide 15, capital management and funding. We ended the period with a strong liquidity position of $708 million.

Simon Mitchell: The remaining AUD 386 million of investment properties represents the Kansas City and Dallas assets. Turning to slide 15, capital management and funding. We ended the period with a strong liquidity position of AUD 708 million, which includes the upsizing of our Australian senior facility by AUD 200 million. Post this upsize, we now have AUD 500 million of undrawn debt facilities. Based on our announced US asset sales, we expect to receive AUD 470 million of net equity proceeds in the H1 of FY27, which will result in AUD 1.2 billion of pro forma liquidity. This provides more than enough funding for the full expansion of Sydney 1. Gearing was 39%, close to the middle of the 35% to 45% target range. All interest rate exposure remains hedged to maturity and an effective all-in cost of 6%. The weighted average debt tenor is 2 years with no maturities before FY29.

Speaker #1: This includes the upsizing of our Australian senior facility by $200 million. Following this increase, we now have $500 million of undrawn debt facilities.

Speaker #1: Based on our announced US asset sales, we expect to receive $470 million of net equity proceeds in the first half of FY27, which will result in $1.2 billion of pro forma liquidity.

Speaker #1: This provides more than enough funding for the full expansion of Sydney One. Gearing was 39%, close to the middle of the 35% to 45% target range.

Speaker #1: All interest rate exposure remains hedged to maturity, with an effective all-in cost of 6%. The weighted average debt tenor is 2.6 years, with no maturities before FY29.

Speaker #1: Overall, the balance sheet remains robust, liquid, and well-positioned to fund our development projects. Now, turning to an update on our US assets on slide 16.

Simon Mitchell: Overall, the balance sheet remains robust, liquid, and well-positioned to fund our development projects. Now turning to an update on our US assets on slide 16. We continue to make strong progress in releasing capital from our US asset portfolio to redeploy into our higher return Australian development projects. Before the end of the financial year, the Chicago project reached a substantial completion, with the tenant now occupying and paying rent on all phases of the project. Completion of this sale is expected by the end of the Q1 of FY27. The property sales in Los Angeles are undergoing final due diligence, and we expect completion to occur in the Q2 of FY27. After the end of the period, we reached agreement with the enterprise tenant of our Kansas City and Dallas data centers for a 5-year lease extension.

Speaker #1: We continue to make strong progress in releasing capital from our U.S. asset portfolio to redeploy into our higher-return Australian development projects. Before the end of the financial year, the Chicago project reached substantial completion.

Speaker #1: With the tenant now occupying and paying rent on all phases of the project, completion of this sale is expected by the end of the first quarter of FY27.

Speaker #1: The property sales in Los Angeles are undergoing final due diligence, and we expect completion to occur in the second quarter of FY27. After the end of the period, we reached agreement with the enterprise tenant of our Kansas City and Dallas data centers for a five-year lease extension.

Speaker #1: This extends the current lease term to a total of 10 years, expiring in 2036. These assets continue to provide high-quality cash flow for the group.

Simon Mitchell: This extends the current lease term to a total of 10 years, expiring in 2036. These assets continue to provide high-quality cash flow for the group, and their role in the portfolio will continue to be assessed in the context of overall group capital needs. Moving now to outlook and guidance on slide 19. FY27 underlying EBITDA is expected to be AUD 120 to AUD 125 million, inclusive of two months of Chicago 1 EBITDA. Excluding Chicago, FY27 underlying EBITDA is expected to be between AUD 110 and AUD 115 million, representing 15% to 21% growth on an FY26 like-for-like basis. This guidance incorporates minimal contribution from the 52 megawatts expansion at Sydney 1, with the first 10 megawatts expected to be operational in late Q4 FY27. CapEx in FY27 is expected to be between AUD 300 to AUD 500 million, mostly driven by the Sydney 1 capacity expansion and expected to be H2-weighted.

Speaker #1: And the role in the portfolio will continue to be assessed in the context of overall group capital needs. Moving now to look at guidance on slide 19.

Speaker #1: FY27 underlying EBITDA is expected to be $120 to $125 million, inclusive of two months of Chicago One EBITDA. Excluding Chicago, FY27 underlying EBITDA is expected to be between $110 and $115 million, representing 15% to 21% growth on an FY26 like-for-like basis.

Speaker #1: This guidance incorporates minimal contribution from the 52-megawatt expansion at Sydney One, with the first 10 megawatts expected to be operational in late fourth quarter of FY27.

Speaker #1: Capex in FY27 is expected to be between $300 million and $500 million, mostly driven by the Sydney One capacity expansion, and is expected to be second half weighted.

Speaker #1: This capex is expected to be funded from existing cash reserves and undrawn debt facilities. Distributions in FY27 are expected to total 15 cents per security.

Simon Mitchell: This CapEx is expected to be funded from existing cash reserves and undrawn debt facilities. Distributions in FY27 are expected to total AUD 0.15 per security, representing 25% growth on FY26. Over the medium term, DigiCo expects to maintain its distribution policy of paying out 90% to 100% of FFO. With that, I will now hand back Paul to the operator for questions.

Speaker #1: Representing 25% growth on FY26. Over the medium term, DigiCo expects to maintain its distribution policy of paying out 90% to 100% of FFO. With that, I'll now hand back to Paul, and the operator, for questions.

Speaker #2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Richard Jones with J.P. Morgan. Please go ahead.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Richard Jones with J.P. Morgan. Please go ahead.

Speaker #2: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Richard Jones with JPMorgan. Please go ahead.

Speaker #3: Good morning, Simon. Just wondering if you could provide what return on cost you're anticipating out of the Adelaide expansion.

Richard Jones: Good morning, Simon. Just wondering if you could provide what return on costs you are anticipating out of the Adelaide expansion?

Speaker #1: So, Richard, we've talked about an overall capex forecast, or guidance, for the Sydney One development and Adelaide together, and that's the $1.2 billion.

Simon Mitchell: Richard, we have talked about an overall CapEx forecast or guidance for the Sydney 1 development and Adelaide together, and that is the AUD 1.2 billion. We had previously talked about a yield on cost of around 15% on our development project at Sydney 1. Across the whole of Sydney 1 and Adelaide 1, we are expecting to get close to that 15%, but just given recent cost escalations for trades and also for equipment, we think we will be slightly below 15%, but pretty close.

Speaker #1: We had previously talked about a yield on cost of around 15% on our development project at Sydney One. For the whole of Sydney One and Adelaide One, we're expecting to get close to that 15%.

Speaker #1: But just given recent cost escalations for trades, and also for equipment, we think we will be slightly below the 15%, but pretty close.

Speaker #3: So just to confirm, 15, you're still calling on Syd One, but combined with Adelaide slightly below; is that right?

Richard Jones: Just to confirm, 15%, you are still calling on Syd 1, but combined with Adelaide, slightly below, is it?

Speaker #1: Pretty much, yes.

Simon Mitchell: Pretty much, yes.

Speaker #3: Okay. Just on Dallas and Kansas, can you talk about how the lease extension came about, and whether you see those as core holdings moving forward?

Richard Jones: Okay. Just on Dallas and Kansas, can you talk about how the lease extension came about and whether you see those as core holdings moving forward?

Speaker #1: So, the lease extensions that we've negotiated on those two facilities were really just to give the tenant more certainty and visibility on the assets.

Simon Mitchell: The lease extensions that we have negotiated on those two facilities were really just to give the tenant more certainty and visibility on the assets, and it is a very good outcome for the group to be able to extend the full lease term to 10 years. I think that is a proactive measure by us to extend those and also to enhance the value of the assets.

Speaker #1: And it's a very good outcome for the group to be able to extend the full lease term to 10 years. I think that's a proactive measure by us to extend those, and also to enhance the value of the assets.

Speaker #3: And have they been valued post that extension?

Richard Jones: Have they been valued post that extension?

Speaker #1: No, they haven't. So the valuation that you see—well, the $4.1 billion gross asset valuation that we just talked about today—is pre those lease extensions.

Simon Mitchell: No, they have not. The valuation that you see, well, the AUD 4.1 billion gross asset valuation that we just talked about today is pre those lease extensions.

Speaker #3: Okay, good one. And then just on the final question—sorry, the Greenfield opportunities—there’s nothing that you have your hands on from a land perspective at the moment, right?

Richard Jones: Okay, good one. Just on the, final question. Sorry. The greenfield opportunities, there is nothing that you have your hands on from a land perspective at the moment, right? You are just investigating opportunities. Is that how we read that?

Speaker #3: You're just investigating opportunities? Is that how we should read that?

Speaker #1: Richard, I'll take that question. It's David. DJT is working with HMC on a couple of opportunities, and we're not going to get into too much detail on the call today.

Ralph Goninan: Richard, I'll take that question. It's David. DigiCo is working with HMC on a couple of opportunities, and we're not going to get into too much detail on the call today. But we have got a number of opportunities under evaluation and have got options in place over land.

Speaker #1: But we have got a number of opportunities under evaluation and have got options in place, overland.

Richard Jones: Okay. Thanks, David.

Speaker #3: Okay. Thanks, David.

Speaker #2: Thank you. Your next question comes from Tim Plum with UBS. Please go ahead.

Operator 2: Thank you. Your next question comes from Tim Plum with UBS. Please go ahead.

Operator: Thank you. Your next question comes from Tim Plum with UBS. Please go ahead.

Speaker #3: Hi guys. Just two questions from me. If possible, please Simon, just on the 52 megawatts, LOIs, can you maybe give us a little bit of color in terms of how many counterparties that's with or maybe like a bit of a broad mix of customers, like two thirds hyperscalers, one third neocloud, presumably that there's no enterprise within that.

Tim Plum: Hi, guys. Just two questions from me, if possible, please. Simon, just on the 52 MW LOIs, can you maybe give us a little bit of color in terms of how many counterparties that's with or maybe a bit of a broad mix of customers like two-thirds hyperscalers, one-third neo cloud? Presumably there's no enterprise within that, but if you can give any color to that would be great. That's question one. Then just the second one around BNE 3. Previously, you guys were talking about that as a potential opportunity. It's no longer in the pack. Should we assume that that is no longer an opportunity?

Speaker #3: But if you can give any color to that, that would be great. That's question one. And then just the second one, around BNE3, previously you guys were talking about that as a potential opportunity.

Speaker #3: It's no longer in the pack. Should we assume that is no longer an opportunity?

Speaker #1: Yeah, thanks, Tim. Let me just cover off on the 52-megawatt LOIs. So, as we discussed, we're able to bring online what we think is quite a unique amount of capacity in calendar year '27, which is highly sought after by customers at the moment.

Simon Mitchell: Yeah. Thanks, Tim. Let me just cover off on the 52-megawatt LOIs. As we discussed, we are able to bring online, we think, quite a unique amount of capacity in calendar year 2027, which is highly sought after by customers at the moment. That has enabled us to agree to LOIs with multiple parties that we are very happy with. These are high-quality counterparties. We believe they will be significantly accretive to average lease term for the asset. It is obviously very difficult for us to go into any more detail about who those parties might be, but we are very confident that we will reach buying documentation stage in the coming weeks.

Speaker #1: So that's enabled us to agree to LOIs with multiple parties, which we're very happy with. These are high-quality counterparties. We believe they will be accretive to, or significantly accretive to, the average lease term for the asset.

Speaker #1: It's obviously very difficult for us to go into any more detail about who those parties might be, but we are very confident that we will reach the binding documentation stage in the coming weeks.

Speaker #3: And thanks for the second question, Tim. It's Ralph here. So, consistent with our strategy for growth, we are focusing on our existing assets in the short term, predominantly being Adelaide.

Ralph Goninan: Thanks for the second question, Tim. It is Ralph here. Consistent with our strategy for growth, we are focusing on our existing assets in the short term, predominantly being Adelaide. We think this is the most accretive use of our capital. We are leveraging off an existing asset and expanding some available power. BNE continues to remain as an option, but we are focusing on Adelaide in the short term.

Speaker #3: We think this is the most accretive use of our capital. We're leveraging an existing asset and expanding some available power. BNE continues to remain as an option.

Speaker #3: But we're focusing on Adelaide in the short term. Got it. Okay, thanks, guys.

Tim Plum: Got it. Okay. Thanks, guys.

Speaker #2: Thank you. Your next question comes from David Pobucky with Macquarie Group. Please go ahead.

Operator 2: Thank you. Your next question comes from David Pobucky with Macquarie Group. Please go ahead.

Operator: Thank you. Your next question comes from David Pobucky with Macquarie Group. Please go ahead.

Speaker #3: Good morning. David, Simon, Ralph, thanks for taking my questions. Just following up on the last question around customer demand—if you can more broadly talk about how that has evolved over the past 12 months, and again more broadly, what are you seeing in terms of pricing discussions and leasing negotiations?

David Pobucky: Good morning, David, Simon, Ralph. Thanks for taking my questions. Just following up on the last question around customer demand. If you could more broadly talk about how that has evolved over the past 12 months, and again, more broadly, what are you seeing in terms of pricing discussions and leasing negotiations. Thank you.

Speaker #3: Thank you.

Speaker #1: Yeah, sure. Hi, David. So, as I mentioned, we see ourselves in quite a strong position because we're able to bring on capacity over the next 18 months.

Simon Mitchell: Yeah, sure. Hi, David. As I mentioned, we see ourselves in quite a strong position because we are able to bring on capacity over the next 18 months. And we are seeing very tight conditions across the market for anything that is available over the next 18 months, especially in Sydney. In terms of the customers that we are talking to and the capacity requirements that they are looking for, we are seeing very favorable conditions in terms of pricing.

Speaker #1: And we're seeing very tight conditions across the market for anything that's available over the next 18 months, especially in Sydney. So, in terms of the customers that we are talking to and the capacity requirements that they're looking for, we're seeing...

Speaker #1: We are experiencing very favorable conditions in terms of pricing.

Speaker #3: Thank you. Just the second question from me, on capital management. I'm just curious to know how you're thinking about weighing up capital returns to shareholders.

David Pobucky: Thank you. Just the second question from me on capital management. Just curious to know how you are thinking about weighing up capital returns to shareholders. Clearly, the distribution guidance for FY27 is strong versus investment in further developments, as well as how you are thinking about the balance sheet, post the CapEx that you need to spend on Syd 1 and Adelaide. Thank you.

Speaker #3: Clearly, the distribution guidance for 4,527 is strong versus investment in further developments, as well as how you're thinking about the balance sheet post the CapEx that you need to spend on Seed One and Adelaide.

Speaker #3: Thank you.

Speaker #1: Sure. So in terms of balance sheet and capital management, we've talked about the strong pro forma liquidity position we'll have post the US asset sales of $1.2 billion.

Simon Mitchell: Sure. In terms of balance sheet and capital management, we have talked about the strong pro forma liquidity position we will have post the US asset sales of AUD 1.2 billion. And we have talked about the AUD 0.15 distribution for FY27. We are expecting that distribution to be mostly covered by FFO, but there was an intention by the board to return a little bit more to shareholders than the likely FFO generation. And we can see a pathway to that dividend, obviously growing from the AUD 0.15. It is obvious with the AUD 250 million stabilized EBITDA number that we have talked about today, that we have plenty of potential to raise that distribution over time.

Speaker #1: And we've talked about the $0.15 distribution for FY27. We're expecting that distribution to be mostly covered by FFO, but there was an intention by the Board to return a little bit more to shareholders than the likely FFO generation.

Speaker #1: And we can see a pathway to that dividend, obviously growing from the 15 cents. It's obvious with a $250 million stabilized EBITDA number that we've talked about today.

Speaker #1: That we have plenty of potential to raise that distribution over time.

Speaker #3: Thanks for taking my questions.

David Pobucky: Thanks for taking my questions.

Speaker #2: Thank you. Your next question comes from Ben Brayshaw with Barron Joey. Please go ahead.

Operator 2: Thank you. Your next question comes from Ben Brayshaw with Barrenjoey. Please go ahead.

Operator: Thank you. Your next question comes from Ben Brayshaw with Barrenjoey. Please go ahead.

Speaker #3: Hi, Simon. Could you break up the $1.2 billion in capex for the two projects—just into each of the two, if possible? And are you able to say, when you include the capital spent on Seed One to date, what you're forecasting for the total project cost for Seed One?

Ben Brayshaw: Hi, Simon. Could you break up the AUD 1.2 billion in CapEx for the two projects just into each of the two, if possible? Are you able to say, when you include the capital spent on Syd 1 to date, what you are forecasting for the total project cost for Syd 1?

Simon Mitchell: Hi, Ben. We are talking about the capital investment across both projects as effectively one package. We are not really going into detail around the split between the two sites. I think we previously indicated that the 20-megawatt project we have completed at Sydney 1 was going to cost close to AUD 200 million, and that is the number that we have obviously spent within FY26.

Speaker #1: Hi Ben. So, we're talking about the capital investment across both projects as effectively one package. We're not really going into detail around the split between the two sites.

Speaker #1: And I think we previously indicated that the 20-megawatt project we completed at Sydney One was going to cost close to $200 million.

Speaker #1: And that's the number that we've obviously spent in FY'26.

Speaker #3: Okay, thank you. And just—sorry, apologies if you've already commented on this—but just any feedback on the payout ratio, whether you're meeting the term target as applicable for FY27?

Ben Brayshaw: Okay, thank you. Just, sorry, apologies if you have already commented on this, but just any feedback on the payout ratio, whether your medium-term target is applicable for FY27?

Speaker #1: Is this in relation to the distribution policy?

Simon Mitchell: This is in relation to the distribution policy?

Speaker #3: Yes, that's right.

Ben Brayshaw: Yes, that's right.

Speaker #1: Yeah, so I mentioned that the $0.15 distribution that we've guided to for this current year, FY27, is mostly covered by FFO.

Simon Mitchell: Yeah. So I mentioned that the AUD 0.15 distribution that we've guided to for this current year, FY27, is mostly covered by FFO. It's quite close. At the same time, we've said that over the medium term, we intend to stick to the policy of paying out 90% to 100% of FFO. So that's still the intention going forward. As you can see from the AUD 250 million number that we've spoken about today, there's plenty of growth that we're expecting to come through in FFO.

Speaker #1: It's quite close. But at the same time, we've said that over the medium term, we intend to stick to the policy of paying out 90 to 100 percent of FFO.

Speaker #1: So that's still the intention going forward. And as you can see from the $250 million number that we've spoken about today, there's plenty of growth that we're expecting to come through in FFO.

Speaker #3: Okay, thanks Simon.

Ben Brayshaw: Okay. Thanks, Simon.

Speaker #2: Thank you. Your next question comes from Liam Schofield with Morgan's. Please go ahead.

Operator 2: Thank you. Your next question comes from Liam Schofield with Morgans. Please go ahead.

Operator: Thank you. Your next question comes from Liam Schofield with Morgans. Please go ahead.

Speaker #4: Good morning, David, Simon, and Ralph. Two quick questions. Simon, can you just link that $180 million EBITDA run rate that you gave at the half year to the updated guidance?

Liam Schofield: Morning, David, Simon, and Ralph. Two quick questions. Simon, can you just link that AUD 180 million EBITDA run rate that you gave at the H1 to the updated guidance? What are the constituent parts there? Then the second question: I think you just sort of alluded to greenfield opportunities around renewable energy. Can you just perhaps comment on the market for co-locating with energy generation versus metro deployment?

Speaker #4: What are the constituent parts there? And then, the second question—I think you just sort of alluded to Greenfield opportunities around renewable energy. Can you perhaps comment on the market for co-locating with energy generation versus metro deployment?

Speaker #1: Hi Liam. Just in terms of the first question on the guidance, so as you rightly pointed out, we had previously given guidance of 180 million dollars for EBITDA as the run rate as we exit FY 26.

Simon Mitchell: Hi, Liam. Just in terms of the first question on the guidance. So as you rightly pointed out, we had previously given guidance of AUD 180 million free EBITDA as the run rate as we exit FY26. So to arrive at the guidance that we've given today, to reconcile to that, you have to remove the Chicago earnings, which are around AUD 65 million. That gets you back to AUD 115 million. Then there's an adverse foreign currency impact from when we gave that guidance to now. We're using 71 cents as the basis for our current guidance. So that gets you within that AUD 110 to AUD 115 million range, which is excluding Chicago, that we've just given you today.

Speaker #1: So, to arrive at the guidance that we've given today, to reconcile to that, you have to remove the Chicago earnings, which are around $65 million Australian.

Speaker #1: That gets you back to $115 million. And then there's an adverse foreign currency impact from when we gave that guidance to now. We're using $0.71 as the basis for our current guidance.

Speaker #1: So that gets you within that $110 to $115 million range, which is excluding Chicago that we've just given you today.

Speaker #4: Perfect. Thank you.

Liam Schofield: Perfect. Thank you.

Speaker #3: And Liam, in relation to the Greenfield opportunities being located with renewable energy opportunities, the market certainly—and the customers—value that. I think it's critical for our social license.

Ralph Goninan: Liam, in relation to the greenfield opportunities being located with renewable energy opportunities, the market certainly and the customers value that. I think it is critical for our social license. It is consistent with what the federal government is indicating as well as at the state level. The ability to co-locate with metro deployments, as you put it somewhat depends on the site specifics. But obviously, to be located next to some of this major renewable infrastructure, that is not possible within metro areas and is more on the fringes.

Speaker #3: It's consistent with what the federal government is indicating, as well as at the state level. The ability to co-locate with metro deployments, as you put it, somewhat depends on the site specifics.

Speaker #3: But obviously, to be located next to some of these major renewable infrastructure, that is not possible within metro areas and is more on the fringes.

David Di Pilla: Liam, it is David. Given the long-dated view we have taken in terms of renewables across the group and digital, we think it will become a competitive advantage for the group as we move forward.

Speaker #5: Liam, it's David. There's a wrong-dated view we've taken in terms of renewables across the group. And digital—we think it'll become a competitive advantage for the group as we move forward.

Speaker #2: Thank you. Your next question comes from Paul Mason with E&P. Please go ahead.

Operator 2: Thank you. Your next question comes from Paul Mason with AMP. Please go ahead.

Operator: Thank you. Your next question comes from Paul Mason with AMP. Please go ahead.

Speaker #6: Hi. Just the first one—I'm not sure if you guys can comment, but I was interested to know if the LOIs you have at Seed One are from pre-existing customers or brand new ones?

Paul Mason: Hey, I got two. Just the first one, I do not know if you guys can comment, but I was just interested if the LOIs you have got at Syd 1, are they your preexisting customers, or are they brand new? The second one, I was just hoping you guys could give a bit of detail on the maturity profile on your swap book, because obviously, your net debt is going to fall a lot with some of the proceeds coming from the US asset sales and then probably gradually go up again. Just interested to understand how the interest costs might actually move or not move as your debt balance moves down and then up again in the next couple of years.

Operator: Hey, I got two. Just the first one, I do not know if you guys can comment, but I was just interested if the LOIs you have got at Syd 1, are they your preexisting customers, or are they brand new? The second one, I was just hoping you guys could give a bit of detail on the maturity profile on your swap book, because obviously, your net debt is going to fall a lot with some of the proceeds coming from the US asset sales and then probably gradually go up again. Just interested to understand how the interest costs might actually move or not move as your debt balance moves down and then up again in the next couple of years.

Speaker #6: And then the second one, I was just hoping you guys could give a bit of detail on the maturity profile on your swap book, because obviously your net debt's going to fall a lot with some of the proceeds coming from the US asset sales.

Speaker #6: And then probably gradually go up again. So yeah, I'm just interested to understand how the interest costs might actually move, or not move, as your debt balance moves down and then up again over the next couple of years.

Simon Mitchell: Hi, Paul. Just in terms of the question on the LOIs. We are obviously focused on making sure we have a high-quality customer base and also a diversified customer base at the asset. You should assume that the majority of the capacity that underpins the LOIs is for new customers. Moving to your second question, which I think was in relation to interest. Going forward, clearly you have to adjust for the Chicago debt being retired as that sale completes. Then we will effectively repatriate that capital back to Australia, that will be sitting on deposit, so you need to adjust for interest income on that. Then we will be drawing that cash down to fund the developments that we have talked about. Then at the appropriate time, we will start to draw on the debt capabilities.

Speaker #1: Hi Paul. Just in terms of the question on the other, we're obviously focused on making sure we have a high-quality customer base and also a diversified customer base at the asset.

Speaker #1: So, yeah, you should assume that the majority of the capacity that underpins the LOIs is for new customers. And then, moving to your second question—which I think was in relation to interest.

Speaker #1: So, going forward, clearly you have to adjust for the Chicago debt being retired as that sale completes. Then we will effectively repatriate that capital back to Australia.

Speaker #1: That will be sitting on deposits, so you'll need to adjust for interest income on that. And then, we will be drawing that cash down to fund the developments that we've talked about.

Speaker #1: And then at the appropriate time, we'll start to draw on the debt capitalities. So there's a lot of moving parts within that. And then, obviously, you'll need to adjust for capitalized interest as well as we're completing the development of City One.

Simon Mitchell: There is a lot of moving parts within that. Then obviously you will need to adjust for capitalized interest as well as we are completing the development of Syd 1.

Speaker #6: And could I ask, because you guys have a pretty big swap book—I think it was about $1.2 million of swaps at face value.

Paul Mason: Could I ask, because you guys have a pretty big swap book, so I think it was like AUD 1.6 billion of swap at face value. Does a lot of that mature pretty soon? Or do you still have effectively a fixed rate on the swaps that you are— Just for, is your interest cost as in a percentage effectively going to go up a bit because of the debt is falling, but the swap is still there? Or the swaps sort of roll off, in line with the net debt falling this year as well?

Simon Mitchell: Could I ask, because you guys have a pretty big swap book, so I think it was like AUD 1.6 billion of swap at face value. Does a lot of that mature pretty soon? Or do you still have effectively a fixed rate on the swaps that you are— Just for, is your interest cost as in a percentage effectively going to go up a bit because of the debt is falling, but the swap is still there? Or the swaps sort of roll off, in line with the net debt falling this year as well?

Speaker #6: So does a lot of that mature pretty soon so that or do you still have like effectively like a fixed rate on the swaps that you're like just for like is your interest cost in a percentage effectively going to go up a bit because of the debts falling but the swaps still there or the swaps sort of roll off sort of in line with the debt the net debt falling this year as well?

Speaker #1: Yeah. So, effectively, the swaps will roll off with—well, the swap that relates to the Chicago asset-level debt will obviously be out when that debt's retired.

Simon Mitchell: Yeah. So effectively, the swaps will roll off with. The swap that relates to the Chicago asset-level debt will obviously be out when that debt's retired. And we don't have any other swaps maturing this year.

Speaker #1: And we don't have any other swaps maturing this year.

Speaker #6: Okay. Great. Thank you.

Paul Mason: Okay, great. Thank you.

Simon Mitchell: Okay, great. Thank you.

Speaker #2: Thank you once again. If you wish to ask a question, please press star one on your telephone. Your next question comes from Roger Samuel with Jefferies.

Operator 2: Thank you. Once again, if you wish to ask a question, please press star one on your telephone. Your next question comes from Roger Samuel with Jefferies. Please go ahead.

Operator: Thank you. Once again, if you wish to ask a question, please press star one on your telephone. Your next question comes from Roger Samuel with Jefferies. Please go ahead.

Speaker #2: Please go ahead.

Speaker #7: Well, hi. Morning, guys. Two questions from me. Firstly, just on your stabilized EBITDA target of $215 million in FY28. Given the very strong environment for data centers we're in right now, do you feel that $250 million is a base case, or is there potential upside to that?

Roger Samuel: Well, hi. Morning, guys. Two questions from me. Firstly, just on your stabilized EBITDA target of AUD 250 million in FY28. Given the very strong environment for data centers we are in right now, do you view that AUD 250 million as a base case or there's potentially upside to that? And also, just for the avoidance of doubt, do you include your management fee in that number? Second question is on future development, and yeah, you've mentioned about Adelaide, but what about Brisbane for BNE4, which you've got in your prospectus. Do you still see that there's a need to develop that asset?

Speaker #7: And also, just for the avoidance of doubt, do you include your management fee in that number? Second question is on future development, and yeah, you've mentioned Adelaide, but what about Brisbane? So, BNE4, which you've got in your prospectus?

Speaker #7: Do you still see that there is a need to develop that asset?

Speaker #1: Hi Roger, it's Simon. So, the $250 million stabilized number that we've talked about today does include management fees—so it's after the management fees.

Simon Mitchell: Hi, Roger. It's Simon. The AUD 250 million stabilized number that we've talked about today, it does include management fees. It's after the management fees. Yes, there are some factors that can contribute to that number being higher. But we've obviously made a judgment on what we think is reasonable as a set of assumptions to put that number out publicly.

Speaker #1: And yes, there are some factors that can contribute to that number being higher. But we've obviously made a judgment on what we think is reasonable, as a set of assumptions, to put that number out publicly.

Speaker #3: And Roger, in regards to your second question for future development—yes, we are focusing on our brownfield development in Adelaide. The reason is that we can turn that capacity on more quickly.

Ralph Goninan: Roger, in regards to your second question for future development. Yes, we are focusing on our brownfield development in Adelaide. The reason being is because we can turn that capacity on quicker. That's an existing asset with built form, and we'll continue to fit that out to bring on that new capacity. BNE4, which I believe may be BNE3, yes, that remains our pipeline for greenfield developments, but we are looking beyond that also.

Speaker #3: That's an existing asset. We've built form, and we'll continue to fit that out to bring on that new capacity. BNE4—which I believe may be BNE3—yes, that remains our pipeline.

Speaker #3: For greenfield developments, but we are looking beyond that as well.

Speaker #7: Got it. Thank you.

Roger Samuel: Got it. Thank you.

Speaker #2: Thank you. Your next question comes from David Guarino with Green Street. Please go ahead.

Operator 2: Thank you. Your next question comes from David Guarino with Green Street. Please go ahead.

Operator: Thank you. Your next question comes from David Guarino with Green Street. Please go ahead.

Speaker #8: Hey, thanks, guys. On the 52 megawatt LOIs, it sounds like a few larger tenants. I was wondering, can you talk about the average lease duration and the average annual rent escalator you're targeting?

David Guarino: Hey, thanks guys. On the 52 MW of LOIs, it sounds like a few larger tenants. Warren, can you talk about the average lease duration and the average annual rent escalator you are targeting? The second question probably aimed over at David. As we think about that 1 GW of future incremental greenfield capacity, I respect you do not want to talk about location, but it seems like by the time those projects start, Sydney and Melbourne might look like the rest of the world's top data center markets and have exhausted all the near-term power resources. Maybe at a high level, could you talk about what other Australian markets you think that demand might spill over into?

Speaker #8: And then the second question, probably aimed over to David, is as we think about that 1 gigawatt of future incremental greenfield capacity. I respect you don't want to talk about location, but it seems like by the time those projects start, Sydney and Melbourne might look like the rest of the world's top data center markets and have exhausted all the near-term power resources.

Speaker #8: So, maybe at a high level, could you talk about what other Australian markets you think that demand might spill over into?

Speaker #1: Hi, David. Let me take the first question. So, we're expecting the lease terms under these LOIs to be materially longer than what we've seen previously at Sydney One.

Simon Mitchell: Hi, David. Let me take the first question. We are expecting the lease terms under these LOIs to be materially longer than what we have seen previously at Sydney 1. We are expecting it to result in a material uplift in the WALE for the asset, but it is difficult to go into any more detail than that. In terms of escalators, you should assume that we will be looking to standard escalation of around that 3% mark.

Speaker #1: So, we're expecting it to result in a material uplift in the value for the asset. But it's difficult to go into any more detail than that.

Speaker #1: And in terms of escalators, you should assume that we would be looking to standard escalation of around that 3% mark.

David Di Pilla: David, on your comment, I think we have been pretty consistent now since we came out with strategy reset for the business in May. The view we put forward at the time was that we could see the world shifting very quickly in terms of data center developments globally. What we identified was in the US that, I think at the time, 14 states had rolled out blanket moratoria on the development of new data center capacity. That number has now gone to beyond 20 states in the United States. What we are now seeing is a lot of that overflow capacity and demand is materializing here in Australia. Increasingly, the debate is around access to power and water. That is becoming an increasing issue. That is why assets like Sydney and Adelaide that have brownfield adaptive reuse capacity are such premium assets in this market.

Speaker #7: And David, on your comment, I think we've been pretty consistent now since we came out with the strategy reset for the business in May. The view we put forward at the time was that we could see the world shifting very quickly in terms of data center developments globally, but what we identified was, in the US, that—I think at the time—14 states had rolled out blanket moratoria on the development of new data center capacity.

Speaker #7: That number has now gone on to be in 20 states in the United States. What we're now seeing is a lot of that overflow capacity and demand is materializing here in Australia. Increasingly, the debate is around access to power and water.

Speaker #7: That is becoming an increasing issue. That's why assets like Sydney and Adelaide that have brownfield adaptive reuse capacity are such premium assets in this market.

Speaker #7: The ability to deliver capacity in 2027 is challenging, and therefore, the fact that we have it and we have the ability to deliver that is an extremely strong story to tell.

David Di Pilla: The ability to deliver capacity in 2027 is challenging, and therefore the fact that we have it and we have the ability to deliver that is an extremely strong story to tell our investor base. Coupled with that, the fact that we are looking now at a federal government backdrop here in Australia around the fact that new data center capacity needs to be linked to renewable capacity and needs to be obviously considering social license are all critical overlay factors that we have been planning for some years and put us in a very good position to move forward as an organization. We feel like we have been planning, we are ready, and we think there is a big opportunity for our organization to capture.

Speaker #7: Our investor base. Coupled with that, the fact that we are looking now at a federal government backdrop here in Australia, around the fact that new data center capacity needs to be linked to renewable capacity and needs to be, obviously, considering social license, are all critical overlay factors that we've been planning for, for some years.

Speaker #7: And put us in a very good position to move forward as an organization. So, we feel like we've been planning, we're ready, and we think there's a big opportunity for our organization to capture.

David Guarino: Fair enough. Thank you.

Speaker #1: Fair enough. Thank you.

Speaker #2: Thank you. There are no further phone questions at this time. I'll now hand back to Ralph for closing remarks.

Operator 2: Thank you. There are no further phone questions at this time. I will now hand back to Ralph for closing remarks.

Operator: Thank you. There are no further phone questions at this time. I will now hand back to Ralph for closing remarks.

David Di Pilla: Thank you for joining us on the call today, and we look forward to catching up with many of you over the coming days. Thank you.

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Q4 2026 DigiCo Infrastructure REIT Earnings Call

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