Good morning and thank you for joining DigiCo's H1 FY '26 results call. Joining me on the call this morning is DigiCo's Chief Financial Officer, Simon Mitchell, and DigiCo's Chief Development Officer, Ralph Goninan.

Today's presentation demonstrates that DigiCo has clear operating momentum, [delivering on our strategy?] , and significant growth ahead.

On the agenda today, we'll take you through our results, the execution of our strategic initiatives, and our strong outlook for the business. An acknowledgement of country.

Before we commence today's presentation, I'd like to acknowledge the traditional custodians of country throughout Australia, and celebrate their diverse culture and connections to land, sea, and community. We pay our respects to their elders, past and present, [and extend that respect to all First Nations people today?]

. I started my role as CEO of DigiCo only two months ago, after spending almost 20 years in the data center industry.

Since joining, I have committed myself to evaluating our strategy, and to listening to our customers, our partners, our stakeholders, and our internal teams. My message today is very clear: our business has an incredibly strong underlying platform, [and we are positioning ourselves to meaningfully?]

close the gap between our market valuation and the net asset value. Our data center asset base is high quality, strategically located, underpinned by hundreds of customer relationships, [and a pipeline of future opportunities.

Most?] exciting of these opportunities is the highly accretive SYD1 development, which I'll talk about shortly.

At the same time, I've identified clear opportunities to sharpen our focus and further enhance performance. These include redesigning the organization to lift accountability and deliver cost efficiencies, for which we're expecting to achieve $5 million in OpEx savings per annum.

We have also strengthened our operating model [substantially?] .

These new team members not only know the industry and the segment, but they have customer relationships and they really understand customer demands. We are also taking a disciplined approach to capital management and capital recycling where it creates value, prioritizing deploying capital only where returns are compelling, and where we can leverage our existing power infrastructure and development approvals.

Our primary capital focus will initially be on SYD1, [ahead of non-core?] assets.

Finally, we're building a pathway to long-term growth. We are securing strategic greenfield sites where we have high visibility to the end customer, but also the power, water, [and zoning approvals required to deliver scalable campuses.

We will only execute on greenfield?] opportunity when we have a very high conviction about the end customer, and when we have the right approach to funding to de-risk the project.

These early actions are about unlocking value, building momentum, and setting a clear path to disciplined and sustainable earnings growth. Moving on to our strategic update.

We acknowledge that the share [price does not currently reflect the underlying value of our assets, which is why we are focused?] on strategic initiatives to close the discount to net asset value.

Since our IPO, the fundamentals of our business have continued to strengthen. Having now spent time with the business, it is clear to me that Sydney 1 is our most significant growth opportunity.

It really is the jewel in the crown. Our expansion pathway is extremely strong, and has been validated by inbound demand from AI [and cloud customers, which has far exceeded our?]

expectations at the time of our IPO. As a result, existing capacity at Sydney 1, including our next 20 MW tranche, is now 100% contracted.

There is no doubt that the 88 MW project represents our most attractive near-term value creation opportunity, and we are confident it will unlock meaningful earnings and NAV growth. The 88 MW project at Sydney 1 is expected to deliver [a yield on cost of approximately 15%].

For this reason, under our new strategy, the management team is focusing on growing out that site to 88 MW as quickly as possible. We are [now fully contracted on the next 20 MW expansion at SYD1, and?]

on track for delivery in Q2 this calendar year. Importantly, the broader expansion program for the 88 MW project is now materially de-risked.

We have state significant development approval, and our 120 MVA power approval has been secured. Design is progressing very well, and a head contractor is expected to be appointed by Q3 this calendar year.

The full 88 [MW development represents an acceleration of our original?] IPO plan.

In relation to funding, we currently have approximately $650 million in cash and undrawn debt lines, providing immediate liquidity to fund a significant part of the Sydney 1 development project. In parallel, we are actively progressing capital partnering and recycling initiatives across the Australian portfolio, with advisors already pointed and multiple [parties engaged in active discussions?]

. On the US assets, we will continue to opportunistically look to partner and recycle capital to fund higher returning projects.

Importantly, any capital partnering [initiatives will maintain our balance sheet strength and ensure a?] sustainable level of gearing.

Turning now to our first half performance, I'd like to take you through a few highlights. In half one of financial year 2026, we signed 22 MW of new customer contracts in the Australian business, taking total Australian contracted capacity to 41 MW, a 95% increase from June 2025.

[Revenue increased by 11.4% to $108 million, and underlying EBITDA increased 15% to $57 million, while operating margin expanded to 52.8%?] , demonstrating that our strategy is delivering real operating momentum.

Our balance sheet remains resilient, with sufficient liquidity and gearing of 35.8%, which is at the low end of our target range. Finally, we have declared a first half distribution of 6 cents per security, equating to a 5.3% annualized yield on yesterday's closing share price.

[Turning to what?] the business has already been able to achieve in the first half of the year.

First, we have secured meaningful customer wins with 22 MW across the Australian business, including 2 MW in Queensland. These customers represent [high-quality hyperscale and enterprise names.

Total?] contracted capacity across Australia has increased to 41 MW, representing 90 95% growth from June 2025.

Second, our development program continues to move at pace. The accelerated expansion at Sydney 1 is tracking well, with the next 20 MW scheduled for delivery in Q2 of this calendar year.

Also, Brisbane 2 is now fully [contracted, and very?] pleasingly, the design for our Adelaide site has been upsized from 8 MW to 15 MW.

We will, of course, only build out this capacity once we find a cornerstone customer and that customer has been secured. This is a substantial development for our business and a very recent achievement.

Chicago 1 remains firmly on track for completion by Q2 for this year. These outcomes reflect disciplined [execution across the business, and demonstrate that we are well?]

positioned to deliver on our development pipeline. DigiCo is ready to capture the surge in data center demand.

In all of my years working in the data center [industry, I've never seen such strong demand fundamentals. We are in the midst of the?]

largest infrastructure buildout we have seen in decades. Customers are demanding larger, hyperscale density footprints than ever before, and continue to signal more capacity to come.

This global surge is translating into local demand for DigiCo, particularly at SYD1, a scarce, Tier 1, global carrier hotel in a tightly held market. At SYD1, 100% of existing capacity [is contracted, reflecting?]

both the velocity and depth of customer requirements. Importantly, we have over 50 MW of embedded development upside here, scaling to 88 MW, positioning Sydney 1 as one of the largest Tier 1 [carrier hotels in the region.

Total pipeline demand currently?] exceeds 200 MW, providing us with meaningful selectivity.

We are not reliant on any one single outcome or any one single counterparty. Instead, we are deliberately partnering with long-term, creditworthy customers where we can deliver high-value solutions at attractive, risk-adjusted returns for the business.

I'll now hand over to Ralph to take you through Sydney 1.

Thanks, Michael, and I'd like to take you through a few highlights, starting with the SYD1 20 MW delivery update on page 11. As flagged last October, we have upsized the original 9 MW project to 20 MW to capture incremental customer demand [and utilize the full capability?]

of the SYD1 facility to deliver high-density capacity at speed. Execution on this project is progressing well.

As you can see from the photos, we've installed a tower crane to expedite delivery of critical items, we are nearing completion of the data halls, and we are installing major cooling infrastructure that not only supports the 20 MW project, but also forms part of the future 88 MW project. We have secured all long-lead-time equipment, and the project remains firmly on track [for delivery in Q2 2026, delivering an accretive yield on cost?]

above 15%. This demonstrates our ability to efficiently convert secured power and adapt our existing asset into contracted, high-return capacity.

Lastly, the work we are doing now not only benefits us in the short term, because by developing an established supply chain for the 20 MW project, it also provides us with a solid foundation for future construction works at SYD1, and gives us the ability to accelerate further development to meet future customer demand, [with target returns of around?] a target of 15% using our secured power.

Turning now to the broader SYD1 88 MW development project, this project has been strategically designed to deliver contiguous, high-density power and AI-driven customer requirements. The full 88 MW project integrates both the SYD East and West buildings into one campus to allow greater flexibility to convert secured power into high-value capacity for DigiCo in an efficient and staged manner.

The key aspect that allows us to deliver future tranches of megawatts in an efficient and staged manner is due to the fact that the structure is already built, and a large portion of the building is empty, which means we do not need to deal with the traditional construction [delays associated with ground-up developments]. Other highlights for the 88 MW project include: for approvals, we've received the State Significant Development approval in December 2025 for the full 88 MW project; for design, the design for the 88 MW project is progressing well and nearing completion; and in regards to delivery, early works are underway, and we have commenced an early contractor involvement process to work alongside the design to ensure that the project is significantly de-risked and able to be delivered in an efficient and cost-effective [manner].

Following commissioning of the initial 20 MW tranche in the June quarter of this year, we expect an incremental 20 MW of capacity to be delivered in 2027, with the full 88 MW project expected to be complete in financial year of 2028, [providing a clear development runway for the business?] which is underpinned by planning approval, disciplined capital allocation, and strong customer demand.

I'll now pass along to Simon, who will provide the financial results overview.

Thank you, Ralph, and good morning to everyone on the call. On slide 13, we show our results for the six-month period to 31 December 2025.

The Appendix 4D and statutory accounts lodged today also show comparable results for the period 1 November 2024 [to 31 December 2024. For the purpose of this presentation, we also?]

show the sequential period, being the six months to June 2025, which represent a full six months of trading and provide a better sequential comparison of trends. Revenue was $108 million, up 11.4% [on the sequential?]

period. Operating costs grew by 8%, at a lower rate than revenue, due to the positive mix shift towards higher-margin US revenue.

Underlying EBITDA grew by 15% to $57 million. Today, we have upgraded FY '26 guidance to the top end of the range, being $125 million, which implies a second-half skew due to the phasing in of contract wins in the Australian business.

Deducting net interest expense [and maintenance CapEx results in adjusted FFO of $35?] million.

From this, we declared a 6 cents dividend, and maintain our full-year guidance of 12 cents per security, reflecting 90% to 100% payout of full-year FFO. I would now like to explain the accounting treatment for the Chicago asset and the corresponding adjustments we have made for underlying EBITDA and adjusted FFO.

The Chicago project is due to be physically handed over to the tenant in stages during the June 2026 [quarter]. This pre-completion rental income of $18.5 million is recognized as unearned rental income on the balance sheet for accounting purposes.

For the purposes of this slide, we have included this income in [adjusted EBITDA to reflect the underlying cash generation, and it will be capitalized?] to the balance sheet until physical handover.

During the half-year period, $12.9 million of pre-completion interest payments that related to the rental income has been included in adjusted FFO to better match revenue and financing costs. Moving to slide 14 and balance sheet.

DigiCo ended the period with cash of $349 million and net debt of $1.51 billion, both largely flat over the period. Adjusting for first-half CapEx in Australia results in an adjusted NAV of $4.62.

Capital expenditure amounted to $50 million during the half. Completion of the Sydney 1 20 MW project will see higher CapEx in the second half to reach our full-year guidance of $160 to $180 million.

The value of investment properties rose by $202 million, [driven by development CapEx and the?] strengthening US dollar.

Turning now to slide 15, capital position and funding. We end the period with a strong liquidity position of $658 million, comprising [cash and undrawn bank facilities.

Gearing was?] 35.8%, at the lower end of the 35% to 45% range.

All interest rate exposure remains hedged to maturity, at an effective all-in cost of 6%. The weighted average debt tenor is 3.4 years, with no maturities before FY '29.

With the ongoing development of Sydney 1 and the stabilization of Chicago, we are well placed to refinance our debt facilities at lower cost when market conditions are right, [as well as securing?] further capital for funding the 88 MW project from the Australian capital partnering process and capital recycling from the US assets.

Overall, the balance sheet remains robust, liquid, and positioned to fund near-term capital projects.

Thank you, Simon. I'd like to briefly provide an update on our Los Angeles project.

As many of LA is an emerging, high-growth, Tier 2 data center market in the United States, and importantly, it is also a supply-constrained market. Challenges around land availability and access to power in California have limited new capacity, which is why our site is generating such strong interest from AI, hyperscale, cloud, and enterprise customers.

[However, recent local zoning concerns have arisen?] and delayed the approval process.

In response, we have voluntarily agreed, as a business, to prepare an environmental impact report to address public concerns, to ensure the project moves forward with full transparency and community support. It is important to be clear that our underlying investment thesis remains unchanged for this asset.

The land in LA is very strategically located, and offers a broad range [of options for value creation. We will remain disciplined?]

regarding capital allocation for the project, and we'll keep the market updated in the usual manner. Turning to our outlook and guidance.

FY '26 underlying EBITDA is expected to be $125 million, now at the top end of our previous guidance range of $120 million to $125 million, despite [lower contributions from our US portfolio. This reflects an annualized exit?]

EBITDA of $180 million. We are maintaining FY '26 growth CapEx at between $160 to $180 million, due to the capacity expansion at Sydney 1, funded through existing [liquidity.

Distributions for FY] '26 are expected to be 12 cents per security, implying a 5.3% annualized yield, which is in line with our policy of 90% to 100% payout on FFO. Thank you, and I'd now like to hand back to the operator for our Q&A.

Good morning, Michael and team. Thanks for your time.

Just the first question on SYD1: the yield on cost is now 15% versus the 12% target indicated at the IPO, if you could please just talk to the underlying assumptions there and what's changed?

Yes, good morning and thank you for your question. Perhaps I can take this answer.

In short, I spoke to the benefits of Sydney 1 earlier, let me start there, and think [about the scarcity value of that asset. There are simply no other?]

data centers like it near Sydney CBD. It's extremely highly connected.

It's a very rich ecosystem. We've, as we mentioned, and I think Ralph mentioned before, we've got our SSDA arranged already, we've got power [secured, and significant customer demand.

That?] site demands a premium, and we think that premium is a yield on cost of 15%.

In fact, just to support that a little bit further, we have proof from recent customer wins that we're able to achieve that sort of pricing.

Thank you. The second question is on capital partnering.

The group previously noted that it could release between half a billion to $1 billion in equity proceeds. You didn't include that statement today.

[Is there any change in your approach to capital partnering on?] SYD1 based on your conversations to date?

Hi David, it's Simon, I might take that one. Nothing has changed in our expectation on the Australian capital partnering process.

We have very strong conversations [underway with high-quality institutional partners, and?] as Mike's just highlighted, we see that asset is very premium in this market and able to demand a premium return.

Obviously, we are still working through some of the final design work on the 88 MW project, which Ralph just spoke to, and any potential partner coming in is going to want to have some visibility on the final costings and the final sequencing of that project. We remain confident that we can achieve an outcome on capital partnering on the asset, and we see no [reason to adjust our expectations on potential equity proceeds].

Thank you. If I just sneak one more in: billing IT capacity was 51 MW across the portfolio.

What do you expect that to be by June? [In the?]

Australian business, and the guidance that we've given, the run rate guidance of $180 million for EBITDA is based on that 41 MW being billed from July onwards. Does that answer your question?

It does. Thank you for your time.

good morning. Can you just remind us what's the total cost expected on the full build-out of SYD1?

[So?]

our expectation on cost for that project, we've previously guided the market to $15 million per megawatt. That includes the 20 MW project that we've talked about today, somewhere around $930 million.

Okay. Just from a, I guess, portfolio composition perspective, can you kind of discuss the options around capital partnering?

Cuz to me, the 15% return on Sydney 1, you'd be better kind of trying to keep that in-house and potentially looking to sell the stabilized US assets where there isn't I would imagine a lot of value [upside compared to the?] development upside within the trust.

Thanks for your question. I'll start answering and Simon, please jump in.

Firstly, we're always looking at remixing the asset. We've talked to you today about our focus on Sydney 1.

We will always look at capital partnering opportunities, whether it be in Australia or the US, to ensure that we're delivering the most value for our shareholders. You may [well see capital partnering?]

opportunities in Australia, but that may not be necessary at this point. As we spoke to before, we've got a very strong balance sheet, including cash and undrawn facilities amounts, and so we're not here to tell you that we're [forced into any specific transaction].

Okay. Thank you.

Hi guys. I just want further clarification in terms of that 15% return, if possible.

Are you guys including the $5 million of cost saves within that calculation? I.e., do we think about that as sitting within SYD1 or is that sitting outside of SYD1 in corporate?

[The cost?] savings, Tim, we kind of consider that to be at the group level, and the 15% is designed to be the pure incremental yield on cost on the project.

Got it. Sorry, just so that I'm perfectly clear, the 15%, the additional CapEx, and you get a 15% return on the total number?

No, the 15% applies to the incremental CapEx that we're spending.

Excellent. Thank you, guys.

Oh, hi, morning, all. I've got a couple of questions.

First one, just on the 88 MW expansion you are bringing forward, and if you can't secure anyone, does it mean that you may phase the project so is going to take a bit longer than FY '28 completion? Just conscious of your gearing targets.

Hi, Roger. Thanks for the question.

The best way to look at that is that the 88 MW project is very modular. As Ralph has described, there's a number of stages, [and we don't need to spend all the capital?]

necessarily in the near term to activate that project. We remain focused on achieving the best long-term outcome on the capital partnering on that asset.

Just to remind you, obviously, that we do have the $650 million

of [liquidity available today]. Great.

In terms of Brisbane, what would trigger your decision to expand Brisbane 4?

Thanks for the question. We're always looking at opportunities to expand in our key market.

As I've explained today, our focus is going to be on Sydney 1, but also we obviously have assets throughout Queensland, [and we're very pleased with the?] fact that the team has been able to redesign Adelaide from 8 to 8 to 15 MW.

Just to answer your question, we would certainly increase capacity in Brisbane if we found the right cornerstone customer, it would have

[to meet our return hurdles]. Great.

Thank you.

Thanks for the presentation, guys. Can you just touch on the timeframe around utility connections?

I think, Michael, you'd previously said if you had all the power available today, you could sell it. Can you just talk about the timing for connection there on the power?

Then just on EBITDA, can you just talk about any remixing effects during the half? Think the team [flagged that earlier].

Thanks for your question, Liam. It's Ralph here.

Perhaps I could answer the first part of your question. We have secured the full power allocation for 120 MVA from Ausgrid.

We have all the feeders, which are the power leads that go from the [substation to the site to get?] that full allocation.

We have that design, it's out for tender, and we'll complete those works this year.

That's great. Just on remixing effects in the EBITDA for the half?

I can take that question, Liam. When we announced the 20 MW project, we did talk about a targeted remixing in Sydney 1 in the customer base.

That remixing has had somewhat of a negative impact in the first half that we've just [seen, but it leads to the strong second-]half skew that comes through in that guidance. That is the unwinding of that negative impact, and the commencement of the 22 MW that we've talked about as being leased during the period.

Thanks, guys.

yes, hi. Good morning.

Thanks for the presentation. I just had a quick question on the budgeted or forecast yield on cost of 15% for SYD1.

[Given the yield on cost for?] SYD1 at the time of IPO was in the order of 60%, perhaps that's just a reference point.

If you could provide some color on that, that would be appreciated. Thanks.

Hi, Ben, it's Simon. [there is a distinction?]

there around the overall yield on cost that we expect and the overall cost per megawatt to build it out. Obviously, you would expect that your margin on incremental capacity is materially higher than the average that applies across the current asset, but we won't be going into detail on what that number is.

No problems. Just in relation to rents achieved on SYD1, on how those rents have come through on the leasing.

Thanks.

Thanks for the question. It's a bit of a short answer, but the rents that we've been receiving from customers, and there's a number of them, have been either in line or above what we've talked about today.

Excellent. Okay.

Thanks, Michael.

capacity is fully?] leased, but given you can bring some of that Sydney 1 capacity online in '27, I'm wondering, how far in advance do you think hyperscalers or neocloud providers would be willing to sign a lease ahead of delivery?

Thanks for the question. [We used to see?]

that customers, particularly the hyperscalers, would want to sign 6, 9, 12 months before. We're seeing that stretch out to longer periods, 12, 18 months, and sometimes more, and that's because of the constraints around demand.

Having said that, it changes by geography and the exact location within the geography, Western Sydney versus CBD, for example. That gives you a rough idea about how we think about timing and pre-securing leases.

[And on Chicago, you mentioned?] stabilization, but given, let's just say a more reserved sentiment around the tenant in that facility in recent months, could you maybe talk about where you think debt costs would land as we think about modeling in that, maybe in the next year or so?

Sure. Obviously we can't talk [about any specific?]

hyperscaler customer, and all our tenants are investment grade in the US. I won't comment specifically on any credit spreads or credit rating of that particular tenant, but what I would say is that we are in a very strong position to refinance that at the right time to bring the margin down.

Obviously Treasury rates are falling as well in the US. We're just waiting for the right time to do that.

Fair enough. Thanks, guys.

Hey, guys. Just a couple from me.

First one, with the big deal that you guys signed in SYD1, there was a few rumors going around that it was a neocloud, but I've sort of subsequently heard it's probably a higher credit quality counterparty. I was just wondering if you could make a basic comment, is it one of the investment grade big customers out there, or is it actually a neocloud that's not one of the sort of rated entities that you might engage with?

Thanks, Paul, for your question, and I can't blame you for pressing on it. [Confidentiality?]

of our customers is paramount to us, and we need to look after who they are. We're just not able to comment, and I can't give you any guidance, unfortunately.

Okay. Yep.

No worries. Maybe more like a [big-picture question?

You've had an?] amazing run building a really really successful business with a few people in Australia.

Have you given much thought to maybe concentrating efforts around here instead of trying to build a North American business, given your track record in Asia Pacific? Are you still pretty committed to building out a really big North American business?

I'm not pre-committed to anything. I think what we've been clear on today is that we feel the right place to allocate our resources today, at the moment, without Singapore and Hong Kong and Japan and in Malaysia, I'm always looking at opportunities in different markets, but at the moment, we need to be focused and disciplined, and at the moment, our focus is to double down and consolidate in Australia.

Perfect, great. Just a really quick one for Simon.

Just on the accounting around Chicago 1, does that all just convert to revenue and interest costs as soon as that site goes live, we can just presume that all goes through the P&L in the [second half?] ?

When physical handover occurs to the tenant, from that date forward, it will be accounted for in a normal way, as you would expect. Rent will be revenue, and interest costs won't be capitalized.

That's [expected?] to occur in the second half.

Great. Thank you.

Hi. Good morning.

It's actually James Druce from CLSA. I had just one question on, and I'm sorry if you've answered this before: for your expansion for SYD1, what rack density are you designing to, and can you just share the cooling system you'll be using?

[There is certainly

a?] trend for AI customers increasing their rack density.

As Michael mentioned, we have a range of customers at SYD1, the density just depends on the type of customer, but we are seeing them increasing.

[And what about the cooling system?] given the envelope of the building?

Thanks, James. Yes, the SYD1 facility has a lot of flexibility built into it.

We have the ability to design and deliver both air-cooled and liquid-cooled solutions. A big part of our offering is ensuring we address the customer needs.

We have the capacity to do that in SYD1, because we have the load capacity in the structure, and we have the ceiling-to-floor head height clearance to be able to meet those specifications.

Thank you very much, and I'd like to thank everyone for their questions, and the team here for the work that's gone into the presentation. A final remarks from me: the first half of the year, [converting?]

demand into contracted capacity, delivering to our milestones, and maintaining our balance sheet strength, as we position DigiCo for the next phase of growth. I'm personally very proud of what the team is achieving, and we have a lot to look forward to.

We've achieved operational efficiency measures delivering around $5 million in OpEx savings per annum. We've pivoted to a strong focus on Sydney growth, as we've spoken about today.

We have 88 MW of capacity where we believe we can achieve 50 [cents?] of additional NAV per security.

We're very focused, as you can see and hear from us today, on prudent capital partnering and recycling where necessary to fund accretive projects. Our amazing new design team has [substantially optimized the pipeline].

Look, I'm very excited about the business, and I think we've got a very exciting time ahead. Thank you for all your time.