The manager of Digital Core REIT DCRU % says the REIT has no customer or banking relationship to the failed US banks, Silicon Valley Bank (SVB), First Republic Bank or any other US regional bank.
It adds that none of the REIT’s customers are financial services firms, technology startup companies or backed by venture capital.
“Substantially all ([over] 99% of annualized revenue) of Digital Core REIT’s customers are publicly traded companies and the vast majority (75% of annualized revenue) are investment grade or equivalent,” says the manager in its March 17 statement.
Since the news of the banks’ failures broke, units in Digital Core REIT have not been performing well, falling some 20.5% from its last-traded unit price of 56 US cents (75.49 cents) on March 10.
Units in the REIT closed at 43 US cents on March 16.
