FAQs

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About Digital Core REIT

What is Digital Core REIT’s investment mandate?

Digital Core REIT is established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets1 located globally which are used primarily for data centre purposes, as well as assets necessary to support the digital economy.

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Who are the Managers and Sponsor of Digital Core REIT?

The Manager of Digital Core REIT is Digital Core REIT Management Pte. Ltd.

The sponsor of Digital Core REIT is Digital Realty Trust, L.P., the operating partnership subsidiary of Digital Realty Trust, Inc. (NYSE: DLR), a company listed on the New York Stock Exchange. (See “The Sponsor” in the prospectus for further details.)

The Sponsor will be the largest unitholder of Digital Core REIT with a US$395 million or approximately 40% ownership stake as at Listing Date.

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What are the restrictions on the ownership of Digital Core REIT units?

To ensure that the underlying Parent U.S. REIT qualify for favourable tax treatment under the U.S. Portfolio Interest Exemption rule, all Unitholders are prohibited from directly or indirectly owning in excess of 9.8% of the outstanding Units ("Unit Ownership Limit") in Digital Core REIT, subject to any increase or waiver pursuant to the terms of Digital Core REIT's Trust Deed and on the written recommendation of the Manager.

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Why should I invest in Digital Core REIT?

The Managers believe that Digital Core REIT offers:

  • An Exclusively Focused on Highly Attractive Data Centre Industry Benefiting from Robust Demand Driven by Digital Transformation
  • High Quality, Mission Critical Portfolio Across Top Data Centre Markets
  • Industry-Leading Pipeline Provides Unparalleled Growth Opportunity via Global ROFR
  • Exclusive Vehicle of Best-in-Class Global Data Centre Sponsor
  • Balance Sheet and Initial Scale Positioned for Substantial Growth
  • Superior Total Return Profile
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What are the Manager's fees payable by Digital Core REIT?

Base Fee: 0.5% per annum of the value of Digital Core REIT’s deposited value.

Performance Fee: 3.5% of Digital Core REIT’s net property income in the relevant financial year (calculated before accounting for the Performance Fee in that relevant financial year).

Acquisition Fee: 1.0% of the acquisition price of any real estate purchased, whether directly or indirectly through one or more subsidiaries, by Digital Core REIT (pro-rated if applicable to the proportion of Digital Core REIT's interest in the real estate acquired) from related parties and 1.0% of the acquisition price for all other cases (or such lower percentage as may be determined by the Manager in its absolute discretion).

Divestment Fee: 0.5% (or such lower percentage as may be determined by the Manager in its absolute discretion) of the sale price of any real estate sold or divested, whether directly or indirectly through one or more subsidiaries, by Digital Core REIT (pro-rated if applicable to the proportion of the REIT's interest in the real estate sold or divested).

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How do you efficiently manage the portfolio of US assets from Singapore?

The Manager is well supported by a team comprising longstanding Sponsor’s team members with extensive data centre, finance and capital markets experience, as well as real estate and finance industry veterans serving as independent directors. The Chief Executive Officer (Mr John Stewart) is based in the U.S. in close proximity to the Sponsor’s global leadership, Chief Financial Officer (Mr Daniel Tith), Director, Capital Markets and Investor Relations (Ms Mabel Tan) and Senior Finance Manager (Mr Chris Cheo) are based in Singapore. The US properties will also be managed by U.S. asset manager and property manager, Digital Realty Property Manager, LLC, a wholly-owned subsidiary of the Sponsor. For the Canada property, this will also be managed by Canadian asset manager and property manager, Digital Realty Canada, Inc., a wholly-owned subsidiary of the Sponsor.

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Investing In Digital Core REIT

What are the stock symbols of Digital Core REIT?

ISIN Code: SGXC50067435
SGX Stock Code: DCRU

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Is the distributable income from Digital Core REIT subject to tax?

Non-U.S. Unitholders are required to comply with certain documentation requirements in order to be exempted from U.S. federal withholding tax of 30% under the United States Internal Revenue Code of 1986, as amended (“IRC”), including under the United States Foreign Account Tax Compliance Act (“FATCA”).

Distributions will be reduced if unitholder does not submit the required U.S. Tax forms establishing exemption from U.S. Source Interest.

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Can I invest in Digital Core REIT with funds from my Central Provident Fund (CPF)?

You may not use your CPF Funds to apply for the Units.

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What is the distribution policy of Digital Core REIT?

The distribution policy is to distribute 100% of Digital Core REIT's Distributable Income from listing date to the end of projection year 2023, and at least 90% thereafter. The distributions will be made on a semi-annual basis.

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How long will the Form W-8BEN/W-9 be valid for?

Forms W-8BEN or W-9 submitted will be valid for the year they are signed and for the next three calendar years.

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What is the distribution currency of Digital Core REIT?

The distributions will be declared in U.S. dollar.

However, each unitholder will receive the distribution in the Singapore dollar equivalent of the U.S. dollar distribution declared, unless the unitholder elects to receive the relevant distribution in USD by submitting a “Distribution Election Notice” by the relevant cut-off date. CDP, the Manager or Digital Core REIT shall not be liable for any loss arising from the conversion of distributions payable to Unitholders from U.S. dollars to Singapore dollars.

Save for approved depository agents (acting as nominees of their customers), each Unitholder may elect to receive his/her entire distribution in Singapore dollars or U.S. dollars and shall not be able to elect to receive distributions in a combination of Singapore dollars and U.S. dollars.

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