DigiCo Infrastructure REIT (ASX: DGT) saw a sharp rally on Friday, with its stapled securities pushing to A$3.10 as of 3 pm AEST, up more than 13% on strong intraday momentum.
The surge comes after the data-centre operator unveiled new customer agreements and bolstered investor confidence by issuing more concrete forward guidance. While precise details of the contracts remain under wraps, management signalled that they expect FY26 underlying EBITDA to land in the range of A$120 million – A$125 million, an incrementally more explicit target than prior messaging.
Investors responded enthusiastically. The jump in share price suggests renewed appetite from market participants willing to reprice the stock after months of uncertainty. DigiCo’s listing — at A$5.00 per stapled security in late 2024 — has been under pressure, and the stock has traded well below that level as scepticism about balance sheet strength, capital cost pressures, and utilisation risk mounted.
Operationally, DigiCo continues to lean on its flagship data centre in Sydney (SYD1), which has been granted “Certified Strategic” status under federal data centre policy, potentially unlocking access to government contracts. The company is also pushing ahead with expansion across its development pipeline.
Still, watchers caution that today’s rebound does not erase persistent risks. Capital intensity in data centre development and sensitivity to interest rates remain headwinds. Much will hinge on DigiCo’s ability to convert its pipeline into contracted revenue and deliver consistent earnings delivery.
Today’s move signals renewed optimism that clearer guidance and visible operational traction can shift sentiment — but the test now is in execution, not just the announcement.