BUZZ-Data center REIT Fermi sinks to new depths after annual report

Reuters03-31
BUZZ-Data center REIT Fermi sinks to new depths after annual report

** Fermi FRMI.O shares sink ~25% on Mon to fresh record low after data center real estate investment trust released its first annual results while it has yet to secure any customers

** FRMI shares fall to as low as $4.63 on the session and last down 18.1% at $5.06, off nearly 80% from Oct IPO price

** FRMI reported net loss of $486.4 mln, or $1.13/sh, in 2025, its first year in operation, compared to LSEG estimate for loss of $196.7 mln, or 44 cents/sh

** In Sept, FRMI had announced a non-binding letter of intent with its first tenant at its Project Matador site, but the deal was terminated in Dec

** “We understand the question at the top of every shareholder’s mind: when will Fermi announce its first definitive tenant lease? Our answer has remained deliberate and consistent — we will move forward only when the terms, the partner, and the capital structure meet the disciplined capital and risk standards we require for long-term value creation,” founder and CEO Toby Neugebauer said in a letter to shareholders

** FRMI is in "active discussions with multiple prospective tenants across various stages," Neugebauer said

** Amarillo, Texas-based FRMI, co-founded by former Texas Governor and U.S. Energy Secretary Rick Perry, is aiming to build the world's largest energy and data complex, powered by nuclear, natural gas and solar power

** All 10 analysts covering the stock are bullish with $29.50 median PT - LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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