A portfolio of 36 data center properties will secure $665 million in asset-backed securities (ABS), coming to market from the DataBank Issuer and DataBank Co-Issuer, Series 2026-1.
Of the 36 properties in the portfolio, 14 multi-consumer enterprise data centers, or 27.5% of the pool, are leasehold interests with lease expiration dates that range from 2032to 2054, according to ratings analysts at Kroll Bond Rating Agency.
The centers are also located in 15 markets, with the largest market accounting for 20.3% of the pool's annualized revenue.
The transaction will sell notes through two tranches in a master trust structure, so it can sell subsequent series of notes if the transaction meets certain requirements, according to analysts at KBRA. The rating agency said the A1 notes and A2 notes in each series are of equal payment priority to each other and senior to the class B notes.
Series 2026-1, classes A2 and B, have an anticipated repayment date of February 2031, with a legal final maturity date of February 2056. Based on outstanding debt at closing, KBRA says the A2 notes have a loan-to-value ratio of 48.4% and 50.1% of the class B notes.
Guggenheim Securities is the sole structuring advisor on the deal, KBRA said, and the Asset Securitization Report's deal database notes that the deal is slated to close on January 30.
DataBank Issuer's portfolio is diverse in several ways, according to KBRA. The top ten assets generate 58.1% of the pool's annualized adjusted net operating income (AANOI), which is within the range of other KBRA-rated data center deals.
The 36 properties in the portfolio also have an appraised value of $4.2 billion, with annualized revenue of $433 million, which have a weighted average (WA) remaining term of 48 months.
Beyond the AANOI, the customer base is also diversified, as 1,757 customers generate revenue to the notes. The largest customer and top five customers account for 3.9% and 15.3% of annualized monthly recurring revenue (AMRR), respectively.
