Digital Core REIT asset, 2401 Walsh Avenue, Silicon Valley. (Photo: Digital Core REIT)

Digital Core REIT has reached a series of agreements to lessen the impact from its second largest customer’s bankruptcy.

While the REIT made no mention of this customer in its statement on 1 November, the customer is understood to be Cyxtera.

This customer represents approximately USD16 million or 22% of the REIT’s annualised rental revenue.

It filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the
District of New Jersey on 4 June 2023.

Related: Digital Core REIT addresses concerns over major tenant’s bankruptcy, price volatility

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.