{"success":true,"data":{"pressRelease":{"id":"155364","rtpr_id":"nGNX6zd6Hj-20260929","ticker":"HOST","exchange":"NYSE American","all_tickers":["HOST"],"title":"Host Digital Letter to Shareholders","author":"Globe Newswire","published_at":"2026-09-29T12:30:00.689Z","article_body":"NEW YORK, NY, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Host Digital Inc.\n(https://www.globenewswire.com/Tracker?data=_fvIe9vJSbGMoXKw-R8PFosuVgiixy2Ej6xYrzKsJjPM0b9B2oGLq_-PFhcdMCNhKP4bFDUe6XGNjU_8pp3aYArtQg-Z7XgfduHKhek6xiBJ8e5qI5xdtE68zSLK3n90WIIHNJXStaXN1jzc3BwUvicm-cylgqWsvoMAkwsKMz_isG2eyS_7-miP4N8d4vSTeUXnKoj8UfahU4noUMLMv9ahTA8g0h9qISG6Jh0qnpQ1JDVOYt07gB866oM138jf-S3XnfVXV3TIL1TPBr_ufw==)\n(NYSE American: HOST) (“Host Digital” or the “Company”), a vertically\nintegrated digital infrastructure company that develops, acquires, owns, and\noperates institutional-quality, RightScaled data centers for artificial\nintelligence (“AI”) and high-performance computing (“HPC”), issued the\nbelow letter to shareholders on behalf of its CEO Harmol Samra.\n\n\nDear fellow shareholders,\n\nWith our merger complete and Host Digital now a public company, I want you to\nhear directly from me about the business we're building and where I believe we\ncan take it. As CEO and a significant shareholder, my priority is to build\nlasting value for the people who own this company. Keeping you informed about\nour progress and the decisions we make is an important part of that job.\n\nThe opportunity I see for Host Digital starts with a building, power that's\nalready there, and a customer who needs a place to put it to work. Bringing\nthose pieces together takes experience, financing, and a great deal of work.\nThat's the business we're building. Because right now, one of the scarcest\nresources in computing is a place to plug in the chips, with power already\nflowing. That's the gap Host is built to fill.\n\nHost Digital develops, owns, and operates data centers for customers running\nAI and other demanding computing workloads. We provide the buildings, power,\ncooling, and supporting infrastructure under long-term take-or-pay leases. We\ndon't buy or finance the customer's computers or processing chips. Our focus\nis on the power, the building, the lease, and the opportunity to expand as\ncustomers grow.\n\nFor those who came to Host through Healthy Choice Wellness, this is a very\ndifferent chapter. Our merger brought a data center business into the public\ncompany. I'd like you to get to know me, understand what we're building, and\nsee how we expect that work to create value for you.\n\nI've spent more than a decade in digital infrastructure and real estate\ninvesting, including roles at ICONIQ Capital, Starwood Capital Group, and PGIM\nReal Estate. At ICONIQ, we built IPI, a digital infrastructure investment\nplatform that grew to a portfolio of 82 data centers with more than 2.2\ngigawatts of leased capacity.\n\nWhen I started in this business, a 50-megawatt data center was considered\nhyperscale. IPI's facilities averaged well below that size while serving some\nof the world's largest technology companies. We started Host to put that\nexperience to work with existing infrastructure and lasting customer\nrelationships.\n\nAt Host, we want to build a diversified portfolio of what we call RightScaled\ndata centers, starting with 20 to 100 megawatts of grid power and room to\nexpand where the site allows. Our team has spent the past two years looking\nfor sites with power flowing today or a clear path to power in the near term,\nso we can work toward delivery in months, not years. Our Sponsor already has\nfour additional sites in its pipeline with more than 450 megawatts of\npotential gross power capacity, which could be delivered to tenants by the end\nof 2027. We’re also working on larger projects for 2028 and continuing to\nlook for opportunities across the country to support growth well beyond that.\nOur model is to lease these facilities for the long term to customers with\ninvestment-grade credit or backing. With those customer commitments in place,\nwe aim to secure competitive financing for each project on a standalone basis.\nThe goal is to keep each project's financing tied to that project and protect\nthe broader company from the financial risks of any one site.\n\nThere's a financing reason for that size, too. Securing the enormous capital\ncommitments behind a mega-campus is becoming increasingly difficult as\ninterest rates rise and lenders scrutinize power availability, construction\ntimelines, and when rent will begin. For these mega-campuses, the sheer amount\nof capital required creates a financing hurdle even with a strong customer\nbehind the lease.\n\nI believe our RightScaled approach puts Host in a sweet spot, with the\ncapacity customers need and a more manageable amount of capital to get a\nfacility up and running. Pair that with available power and a long-term lease,\nand we believe we can offer lenders a compelling project to finance.\n\nFor that plan to work, each investment must fit what a customer needs. That\nconnection guides how I think about sites, designs, and capital. If we\nunderstand the customer's plans and deliver well, we have a chance to build\nrelationships that last well beyond the first project.\n\nWhy we start with existing infrastructure\n\nAI and other computing workloads need uninterruptible electricity, cooling,\nand buildings designed to keep equipment running. Finding a suitable property\nis only part of the job. For a new site without power, the wait for a grid\nconnection is measured in years, and capital alone won't shorten it.\n\nWe look for places where some of that work has already been done. An existing\nindustrial property may have electrical infrastructure and access to power\nthat would take years to establish elsewhere. Some also have a building shell\nwe can adapt for the customer. These are known as brownfield or retrofit\nopportunities. Putting that existing foundation to work is at the heart of our\nSpeed to Power approach.\n\nThe real work is deciding whether the foundation is worth building on. We\nexamine the power rights, the utility's ability to deliver, any existing\nbuildings or building pads, and the upgrades a customer requires. Starting\nwith existing infrastructure can shorten the path, while the finished facility\nstill must meet the customer's standards.\n\nA building with power already flowing gets our attention. From there, we need\nto understand how electricity reaches the site, what equipment distributes it,\nhow the facility will be cooled, and how its systems will be maintained. The\nvalue depends on how much of the existing infrastructure we can use and what\nit will take to deliver a reliable facility for the customer. Experience helps\nus choose well and avoid spending time on a site that won't fit.\n\nWhere power, land, and customer requirements allow, a site's expansion\npotential may give us another way to serve the same customer. Knowing their\nplans and operating the facility well can help us see where another investment\nwould be useful. That's the kind of understanding I want behind our growth.\n\nMaking the idea real at Site I\n\nOur first project in northeast Oklahoma is at an energized site with an\nexisting industrial building and a utility-owned electrical substation. We've\nacquired the electrical service agreements for the site. The customer lease\ncovers 55 megawatts of gross capacity, the total power available at the site.\nAfter allowing for cooling and the facility's other systems, this customer's\ndesign provides 43 megawatts of critical IT capacity, the power available for\nits computing equipment.\n\nIn August, we signed a 15-year lease with approximately $1.25 billion of\ncontracted base-term rent, including 3% annual increases. The lease is\ntake-or-pay, which means the customer pays for the capacity it has reserved,\neven if it doesn't use all of it. The signed lease gives us a binding customer\ncommitment, with payments beginning once we've delivered the facility as\nrequired. Those payments remain subject to the lease's terms and our\nperformance obligations. We also expect an investment-grade lease backstop to\nsupport the payments, strengthen the credit behind the rental income, and help\nattract financing for the project.\n\nSecuring a lease with $1.25 billion in contracted rent takes time, experience,\nand a lot of negotiation. Available power can get a conversation started, but\na customer needs confidence in the design, delivery schedule, operating\nstandards, and financial terms. Above all, they need to trust the team\nresponsible for delivering the facility. Working through those requirements\ncan mean revisiting the design, budget, and contract until they fit together.\nOur team's experience helps us work through the sticking points and keep the\ndeal moving.\n\nThose negotiations shape the project itself. The customer's technical\nrequirements affect what we build, and the construction plan affects when we\ncan deliver it. The financial terms must support that investment. Getting\nthose pieces to work together takes people who understand both the facility\nand the business behind it.\n\nSite I already has power and a building. We need to complete the facility to\nour customer's specifications before delivery and the start of rent. We're\ntargeting delivery in the first quarter of 2027, with our focus on finalizing\nfinancing, completing the design and buildout, and testing the systems. That's\nhow we turn the signed lease into a working data center that serves our\ncustomer and generates revenue for Host for years to come.\n\nHow the business makes money and creates value\n\nSite I's lease starts with approximately $67 million of contracted rent in its\nfirst year and includes 3% annual increases over the 15-year base term. That\nadds up to approximately $1.25 billion in contracted rent and gives us a\nlong-term customer commitment to build around.\n\nUnder the lease, the customer pays the facility's operating expenses,\nincluding electricity, in addition to rent. You can think of the cash flow as\na waterfall, starting with the customer's rent payments. From that rent, we\npay any management and other project costs that Host bears, along with\nprincipal and interest on the project loan. The remaining cash flows to Host,\nwhere it can support the business.\n\nWe invest in getting the facility ready before rent begins. We're pursuing a\nloan secured by the site and its lease to fund the remaining buildout, with\nrepayment coming from rental income. Structuring financing this way is\nintended to keep the borrowing at the project level and protect Host as a\nwhole. Once delivered, the facility can serve the customer for years, with\nannual rent increases built into the lease.\n\nThe value of the facility can also extend beyond the initial lease. We would\nstill own a turnkey data center building, and the customer holds renewal\noptions that, if all were exercised, would bring total rent to approximately\n$3.2 billion over 30 years. That gives us a longer-term opportunity to serve\nthe customer from the same site.\n\nBringing Site I to this stage has taken approximately $40 million in cash\ninvestment and drawn on multiple years of development experience, including\nsecuring its long-term customer lease. Our recent offering raised an\nadditional $17.5 million before fees and expenses as Host entered the public\nmarkets. We're now working to finalize financing suited to Site I and its\nlease, bringing us closer to putting the site's power to work for our customer\nand turning that commitment into recurring rental revenue for Host.\n\nHow the Sponsor supports our growth\n\nOur privately held Sponsor, Host Infrastructure Holdings, finds potential\nsites and does the early work to see whether the power, property, design, and\ncustomer requirements can fit together. It advances the opportunities it\nbelieves can become successful data centers.\n\nProjects stay with the Sponsor while it works through those questions, secures\nrights, and pursues customer agreements. The aim is to bring Host projects\nwith signed leases and a clearer understanding of what can be built, who will\nuse it, and how much revenue it can generate.\n\nFinding power, securing community support and approvals, and working through\ncustomer and credit arrangements can take years. Many sites never reach the\nleasing stage. Here, the Sponsor has spent the past two years developing its\npipeline, and this arrangement is intended to keep that early work and its\ncosts with the Sponsor. Host can concentrate on opportunities that have made\nit through that process and secured a customer lease, with more of the\ncommercial picture in place.\n\nFor shareholders, the benefit we're seeking is a continuing source of\nwell-developed opportunities. While our team works toward delivering Site I,\nthe Sponsor can keep advancing potential future sites. That gives us a way to\nprepare for growth while staying focused on the project already in front of\nus.\n\nThe Preferential Rights Agreement gives Host a 24-month period in which it has\nrights to make the first offer on qualifying Sponsor projects and match\noutside offers under the agreement's terms. Host can also decide to pass. Each\nacquisition has its own negotiated terms and approval process, and we consider\nthe customer lease, remaining work, and financing together before deciding\nwhether a project makes sense for Host.\n\nWhen we negotiate a project's contribution value, the price Host would pay to\nacquire it, we consider both what it's worth and what we still need to invest\nto complete it. My goal is to agree on a price that leaves room to create\nvalue for shareholders after that remaining investment. We expect the Sponsor\nto receive most of its payment in Host shares, giving it a continuing stake in\nthe business we're building.\n\nThe Sponsor is owned and controlled by Host's founders, including me, so there\nare shared interests between the two companies. Our review of each proposed\nacquisition needs to focus on what that project and its terms mean for Host's\nshareholders.\n\nMy responsibility as Host's CEO is to build lasting value for you, our\nshareholders. For each proposed acquisition, I want a clear plan for\ndelivering the facility, earning the rent, and strengthening the company you\nown. Our independent directors review proposed acquisitions, and Host's full\nboard reviews and approves transactions under the Preferential Rights\nAgreement on behalf of all shareholders. The board will draw on financial,\nlegal, and other advisers as needed to help assess a project's value and the\nproposed terms.\n\nThe Sponsor's owners are also among Host's largest shareholders, giving us a\nsubstantial stake in the company's long-term share value. We expect\nmanagement's compensation to be weighted toward equity, so a meaningful part\nof our financial reward grows with the value of Host's shares.\n\nKeeping you close to the business\n\nEach time we announce a site or a lease, I'm committed to explaining what it\nmeans for you as a Host shareholder. These five questions will guide those\nupdates. Where a term is still being negotiated, I'll tell you what's settled\nand what remains open.\n1. What does Host own, or expect to acquire, in this project?\n2. What must Host pay to get it?\n3. What must Host spend to deliver it?\n4. When does rent start?\n5. What cash is expected to reach Host after project costs?\nMy first priority is delivering Site I, and growing the portfolio to Site II\nand beyond. As our team makes progress, I'll use these letters and updates to\nkeep you close to the work, explain our decisions, and show you how we're\nputting your capital to work.\n\nYou'll hear about financing, construction, testing, delivery, and the start of\nrent as the project moves toward operation. I'll explain what's been completed\nand what comes next. And as we evaluate another site, I want you to understand\nthe opportunity and what Host would need to invest to pursue it.\n\nYou're helping us build a business whose customer relationships can last for\nmany years. I want you to see it take shape, from the first facility we\ndeliver to the opportunities we pursue next. Your investment makes you part of\nthat story, and keeping you informed is part of my job.\n\nIf you'd like a closer look at our business, Site I, and our growth plans, you\ncan find our investor presentation\n(https://www.globenewswire.com/Tracker?data=RZOjC9b5g3EAQcI_O5wZjf_lbYlBuWMil0sVR4yMt-25ULE3bP9hSY-95nUTCVLh7S-UaeR1rYgA_6XJcFonBp-f0HdNnx0mUxYsPCuTjLVrvl-qQmm6IEoz0vX-itfEB364HiNe4PJP6jNcPmlIXg==)\nat hostdigital.ai.\n\nI'm excited about what we can build from this first project. We have an\nenergized site, a signed customer lease, and a team working to bring them\ntogether. I want Host to grow into a business customers return to, and\nshareholders can follow with confidence. Thank you for being part of it. I\nlook forward to bringing you along as we build.\n\nHarmol Samra\nChief Executive Officer\nHost Digital Inc.\n\nABOUT HOST DIGITAL\n\nHost Digital Inc. (NYSE American: HOST) develops, acquires, owns, and operates\ninstitutional-quality data centers in the United States that support AI and\nHPC workloads. The Company focuses on RightScaled sites of 20 MW to 100 MW\nwith existing or near-term access to power, leased under long-term contracts\nto strong or credit-enhanced counterparties. Host Digital seeks to own and\ncontrol the real estate, power, and data center infrastructure at each site,\nand provides turnkey facilities where tenants select and deploy their own\ncompute infrastructure and model layers.\n\nThrough its wholly owned subsidiaries, the Company also operates a portfolio\nof 19 natural and organic grocery stores across six states under the Ada’s\nNatural Market, Paradise Health & Nutrition, Mother Earth’s Storehouse,\nGreens Natural Foods, Ellwood Thompson’s, and GreenAcres Market brands.\nHealthy Choice Wellness Corp.’s natural and organic grocery business\ncontinues to operate as a division of the Company following the merger.\n\nFor more information, visit www.hostdigital.ai.\n\nFORWARD-LOOKING STATEMENTS\n\nThis press release contains forward-looking statements within the meaning of\nthe Private Securities Litigation Reform Act of 1995, including statements\nregarding the proposed acquisition and development of one or more data center\nfacilities, including the potential acquisition of Site II; the expected\nassets leases and other assets to be acquired from the Sponsor or any other\nthird party; the timing of delivery of the Company’s data center facilities\nto tenants; anticipated contracted revenue, lease terms and renewal options;\nthe Company’s development strategy and ability to execute and scale its\nbusiness model; and the Sponsor’s potential pipeline and contribution of\nadditional data center assets to the Company. Statements that are not\nhistorical facts are based on current estimates, assumptions and projections\nand are not guarantees of future performance. Words such as “anticipates,”\n“believes,” “expects,” “intends,” “may,” “plans,”\n“will,” “would,” “could” and similar expressions identify\nforward-looking statements, although not all forward-looking statements\ncontain these words.\n\nForward-looking statements are subject to risks and uncertainties that could\ncause actual results to differ materially, including risks relating to the\ncompletion of the offering on the anticipated terms or at all; the Company’s\nability to satisfy the applicable listing requirements; the Company’s\nability to successfully integrate the businesses and realize the anticipated\nbenefits of the offering; the Company’s ability to obtain required\nfinancing, complete development and deliver capacity on schedule; and other\nfactors described in the Company’s filings with the SEC, including under the\nheader “Risk Factors” in Exhibit 99.2 to the Current Report on Form 8-K\nfiled with the SEC on September 17, 2026. The Company undertakes no obligation\nto update these statements except as required by law.\n\nMEDIA CONTACT\nJessica Starman\njessica@elev8newmedia.com\n888-461-2233\n\nINVESTOR CONTACT\nJason Assad\ninfo@bridge-comms.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/10a2a32e-6593-4058-8c74-32a16ab5e367)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX6zd6Hj-20260929","title":"Host Digital Letter to Shareholders","author":"Globe Newswire","ticker":"HOST","created":"2026-09-29T12:30:00.689Z","tickers":["HOST"],"exchange":"NYSE American","article_body":"NEW YORK, NY, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Host Digital Inc.\n(https://www.globenewswire.com/Tracker?data=_fvIe9vJSbGMoXKw-R8PFosuVgiixy2Ej6xYrzKsJjPM0b9B2oGLq_-PFhcdMCNhKP4bFDUe6XGNjU_8pp3aYArtQg-Z7XgfduHKhek6xiBJ8e5qI5xdtE68zSLK3n90WIIHNJXStaXN1jzc3BwUvicm-cylgqWsvoMAkwsKMz_isG2eyS_7-miP4N8d4vSTeUXnKoj8UfahU4noUMLMv9ahTA8g0h9qISG6Jh0qnpQ1JDVOYt07gB866oM138jf-S3XnfVXV3TIL1TPBr_ufw==)\n(NYSE American: HOST) (“Host Digital” or the “Company”), a vertically\nintegrated digital infrastructure company that develops, acquires, owns, and\noperates institutional-quality, RightScaled data centers for artificial\nintelligence (“AI”) and high-performance computing (“HPC”), issued the\nbelow letter to shareholders on behalf of its CEO Harmol Samra.\n\n\nDear fellow shareholders,\n\nWith our merger complete and Host Digital now a public company, I want you to\nhear directly from me about the business we're building and where I believe we\ncan take it. As CEO and a significant shareholder, my priority is to build\nlasting value for the people who own this company. Keeping you informed about\nour progress and the decisions we make is an important part of that job.\n\nThe opportunity I see for Host Digital starts with a building, power that's\nalready there, and a customer who needs a place to put it to work. Bringing\nthose pieces together takes experience, financing, and a great deal of work.\nThat's the business we're building. Because right now, one of the scarcest\nresources in computing is a place to plug in the chips, with power already\nflowing. That's the gap Host is built to fill.\n\nHost Digital develops, owns, and operates data centers for customers running\nAI and other demanding computing workloads. We provide the buildings, power,\ncooling, and supporting infrastructure under long-term take-or-pay leases. We\ndon't buy or finance the customer's computers or processing chips. Our focus\nis on the power, the building, the lease, and the opportunity to expand as\ncustomers grow.\n\nFor those who came to Host through Healthy Choice Wellness, this is a very\ndifferent chapter. Our merger brought a data center business into the public\ncompany. I'd like you to get to know me, understand what we're building, and\nsee how we expect that work to create value for you.\n\nI've spent more than a decade in digital infrastructure and real estate\ninvesting, including roles at ICONIQ Capital, Starwood Capital Group, and PGIM\nReal Estate. At ICONIQ, we built IPI, a digital infrastructure investment\nplatform that grew to a portfolio of 82 data centers with more than 2.2\ngigawatts of leased capacity.\n\nWhen I started in this business, a 50-megawatt data center was considered\nhyperscale. IPI's facilities averaged well below that size while serving some\nof the world's largest technology companies. We started Host to put that\nexperience to work with existing infrastructure and lasting customer\nrelationships.\n\nAt Host, we want to build a diversified portfolio of what we call RightScaled\ndata centers, starting with 20 to 100 megawatts of grid power and room to\nexpand where the site allows. Our team has spent the past two years looking\nfor sites with power flowing today or a clear path to power in the near term,\nso we can work toward delivery in months, not years. Our Sponsor already has\nfour additional sites in its pipeline with more than 450 megawatts of\npotential gross power capacity, which could be delivered to tenants by the end\nof 2027. We’re also working on larger projects for 2028 and continuing to\nlook for opportunities across the country to support growth well beyond that.\nOur model is to lease these facilities for the long term to customers with\ninvestment-grade credit or backing. With those customer commitments in place,\nwe aim to secure competitive financing for each project on a standalone basis.\nThe goal is to keep each project's financing tied to that project and protect\nthe broader company from the financial risks of any one site.\n\nThere's a financing reason for that size, too. Securing the enormous capital\ncommitments behind a mega-campus is becoming increasingly difficult as\ninterest rates rise and lenders scrutinize power availability, construction\ntimelines, and when rent will begin. For these mega-campuses, the sheer amount\nof capital required creates a financing hurdle even with a strong customer\nbehind the lease.\n\nI believe our RightScaled approach puts Host in a sweet spot, with the\ncapacity customers need and a more manageable amount of capital to get a\nfacility up and running. Pair that with available power and a long-term lease,\nand we believe we can offer lenders a compelling project to finance.\n\nFor that plan to work, each investment must fit what a customer needs. That\nconnection guides how I think about sites, designs, and capital. If we\nunderstand the customer's plans and deliver well, we have a chance to build\nrelationships that last well beyond the first project.\n\nWhy we start with existing infrastructure\n\nAI and other computing workloads need uninterruptible electricity, cooling,\nand buildings designed to keep equipment running. Finding a suitable property\nis only part of the job. For a new site without power, the wait for a grid\nconnection is measured in years, and capital alone won't shorten it.\n\nWe look for places where some of that work has already been done. An existing\nindustrial property may have electrical infrastructure and access to power\nthat would take years to establish elsewhere. Some also have a building shell\nwe can adapt for the customer. These are known as brownfield or retrofit\nopportunities. Putting that existing foundation to work is at the heart of our\nSpeed to Power approach.\n\nThe real work is deciding whether the foundation is worth building on. We\nexamine the power rights, the utility's ability to deliver, any existing\nbuildings or building pads, and the upgrades a customer requires. Starting\nwith existing infrastructure can shorten the path, while the finished facility\nstill must meet the customer's standards.\n\nA building with power already flowing gets our attention. From there, we need\nto understand how electricity reaches the site, what equipment distributes it,\nhow the facility will be cooled, and how its systems will be maintained. The\nvalue depends on how much of the existing infrastructure we can use and what\nit will take to deliver a reliable facility for the customer. Experience helps\nus choose well and avoid spending time on a site that won't fit.\n\nWhere power, land, and customer requirements allow, a site's expansion\npotential may give us another way to serve the same customer. Knowing their\nplans and operating the facility well can help us see where another investment\nwould be useful. That's the kind of understanding I want behind our growth.\n\nMaking the idea real at Site I\n\nOur first project in northeast Oklahoma is at an energized site with an\nexisting industrial building and a utility-owned electrical substation. We've\nacquired the electrical service agreements for the site. The customer lease\ncovers 55 megawatts of gross capacity, the total power available at the site.\nAfter allowing for cooling and the facility's other systems, this customer's\ndesign provides 43 megawatts of critical IT capacity, the power available for\nits computing equipment.\n\nIn August, we signed a 15-year lease with approximately $1.25 billion of\ncontracted base-term rent, including 3% annual increases. The lease is\ntake-or-pay, which means the customer pays for the capacity it has reserved,\neven if it doesn't use all of it. The signed lease gives us a binding customer\ncommitment, with payments beginning once we've delivered the facility as\nrequired. Those payments remain subject to the lease's terms and our\nperformance obligations. We also expect an investment-grade lease backstop to\nsupport the payments, strengthen the credit behind the rental income, and help\nattract financing for the project.\n\nSecuring a lease with $1.25 billion in contracted rent takes time, experience,\nand a lot of negotiation. Available power can get a conversation started, but\na customer needs confidence in the design, delivery schedule, operating\nstandards, and financial terms. Above all, they need to trust the team\nresponsible for delivering the facility. Working through those requirements\ncan mean revisiting the design, budget, and contract until they fit together.\nOur team's experience helps us work through the sticking points and keep the\ndeal moving.\n\nThose negotiations shape the project itself. The customer's technical\nrequirements affect what we build, and the construction plan affects when we\ncan deliver it. The financial terms must support that investment. Getting\nthose pieces to work together takes people who understand both the facility\nand the business behind it.\n\nSite I already has power and a building. We need to complete the facility to\nour customer's specifications before delivery and the start of rent. We're\ntargeting delivery in the first quarter of 2027, with our focus on finalizing\nfinancing, completing the design and buildout, and testing the systems. That's\nhow we turn the signed lease into a working data center that serves our\ncustomer and generates revenue for Host for years to come.\n\nHow the business makes money and creates value\n\nSite I's lease starts with approximately $67 million of contracted rent in its\nfirst year and includes 3% annual increases over the 15-year base term. That\nadds up to approximately $1.25 billion in contracted rent and gives us a\nlong-term customer commitment to build around.\n\nUnder the lease, the customer pays the facility's operating expenses,\nincluding electricity, in addition to rent. You can think of the cash flow as\na waterfall, starting with the customer's rent payments. From that rent, we\npay any management and other project costs that Host bears, along with\nprincipal and interest on the project loan. The remaining cash flows to Host,\nwhere it can support the business.\n\nWe invest in getting the facility ready before rent begins. We're pursuing a\nloan secured by the site and its lease to fund the remaining buildout, with\nrepayment coming from rental income. Structuring financing this way is\nintended to keep the borrowing at the project level and protect Host as a\nwhole. Once delivered, the facility can serve the customer for years, with\nannual rent increases built into the lease.\n\nThe value of the facility can also extend beyond the initial lease. We would\nstill own a turnkey data center building, and the customer holds renewal\noptions that, if all were exercised, would bring total rent to approximately\n$3.2 billion over 30 years. That gives us a longer-term opportunity to serve\nthe customer from the same site.\n\nBringing Site I to this stage has taken approximately $40 million in cash\ninvestment and drawn on multiple years of development experience, including\nsecuring its long-term customer lease. Our recent offering raised an\nadditional $17.5 million before fees and expenses as Host entered the public\nmarkets. We're now working to finalize financing suited to Site I and its\nlease, bringing us closer to putting the site's power to work for our customer\nand turning that commitment into recurring rental revenue for Host.\n\nHow the Sponsor supports our growth\n\nOur privately held Sponsor, Host Infrastructure Holdings, finds potential\nsites and does the early work to see whether the power, property, design, and\ncustomer requirements can fit together. It advances the opportunities it\nbelieves can become successful data centers.\n\nProjects stay with the Sponsor while it works through those questions, secures\nrights, and pursues customer agreements. The aim is to bring Host projects\nwith signed leases and a clearer understanding of what can be built, who will\nuse it, and how much revenue it can generate.\n\nFinding power, securing community support and approvals, and working through\ncustomer and credit arrangements can take years. Many sites never reach the\nleasing stage. Here, the Sponsor has spent the past two years developing its\npipeline, and this arrangement is intended to keep that early work and its\ncosts with the Sponsor. Host can concentrate on opportunities that have made\nit through that process and secured a customer lease, with more of the\ncommercial picture in place.\n\nFor shareholders, the benefit we're seeking is a continuing source of\nwell-developed opportunities. While our team works toward delivering Site I,\nthe Sponsor can keep advancing potential future sites. That gives us a way to\nprepare for growth while staying focused on the project already in front of\nus.\n\nThe Preferential Rights Agreement gives Host a 24-month period in which it has\nrights to make the first offer on qualifying Sponsor projects and match\noutside offers under the agreement's terms. Host can also decide to pass. Each\nacquisition has its own negotiated terms and approval process, and we consider\nthe customer lease, remaining work, and financing together before deciding\nwhether a project makes sense for Host.\n\nWhen we negotiate a project's contribution value, the price Host would pay to\nacquire it, we consider both what it's worth and what we still need to invest\nto complete it. My goal is to agree on a price that leaves room to create\nvalue for shareholders after that remaining investment. We expect the Sponsor\nto receive most of its payment in Host shares, giving it a continuing stake in\nthe business we're building.\n\nThe Sponsor is owned and controlled by Host's founders, including me, so there\nare shared interests between the two companies. Our review of each proposed\nacquisition needs to focus on what that project and its terms mean for Host's\nshareholders.\n\nMy responsibility as Host's CEO is to build lasting value for you, our\nshareholders. For each proposed acquisition, I want a clear plan for\ndelivering the facility, earning the rent, and strengthening the company you\nown. Our independent directors review proposed acquisitions, and Host's full\nboard reviews and approves transactions under the Preferential Rights\nAgreement on behalf of all shareholders. The board will draw on financial,\nlegal, and other advisers as needed to help assess a project's value and the\nproposed terms.\n\nThe Sponsor's owners are also among Host's largest shareholders, giving us a\nsubstantial stake in the company's long-term share value. We expect\nmanagement's compensation to be weighted toward equity, so a meaningful part\nof our financial reward grows with the value of Host's shares.\n\nKeeping you close to the business\n\nEach time we announce a site or a lease, I'm committed to explaining what it\nmeans for you as a Host shareholder. These five questions will guide those\nupdates. Where a term is still being negotiated, I'll tell you what's settled\nand what remains open.\n1. What does Host own, or expect to acquire, in this project?\n2. What must Host pay to get it?\n3. What must Host spend to deliver it?\n4. When does rent start?\n5. What cash is expected to reach Host after project costs?\nMy first priority is delivering Site I, and growing the portfolio to Site II\nand beyond. As our team makes progress, I'll use these letters and updates to\nkeep you close to the work, explain our decisions, and show you how we're\nputting your capital to work.\n\nYou'll hear about financing, construction, testing, delivery, and the start of\nrent as the project moves toward operation. I'll explain what's been completed\nand what comes next. And as we evaluate another site, I want you to understand\nthe opportunity and what Host would need to invest to pursue it.\n\nYou're helping us build a business whose customer relationships can last for\nmany years. I want you to see it take shape, from the first facility we\ndeliver to the opportunities we pursue next. Your investment makes you part of\nthat story, and keeping you informed is part of my job.\n\nIf you'd like a closer look at our business, Site I, and our growth plans, you\ncan find our investor presentation\n(https://www.globenewswire.com/Tracker?data=RZOjC9b5g3EAQcI_O5wZjf_lbYlBuWMil0sVR4yMt-25ULE3bP9hSY-95nUTCVLh7S-UaeR1rYgA_6XJcFonBp-f0HdNnx0mUxYsPCuTjLVrvl-qQmm6IEoz0vX-itfEB364HiNe4PJP6jNcPmlIXg==)\nat hostdigital.ai.\n\nI'm excited about what we can build from this first project. We have an\nenergized site, a signed customer lease, and a team working to bring them\ntogether. I want Host to grow into a business customers return to, and\nshareholders can follow with confidence. Thank you for being part of it. I\nlook forward to bringing you along as we build.\n\nHarmol Samra\nChief Executive Officer\nHost Digital Inc.\n\nABOUT HOST DIGITAL\n\nHost Digital Inc. (NYSE American: HOST) develops, acquires, owns, and operates\ninstitutional-quality data centers in the United States that support AI and\nHPC workloads. The Company focuses on RightScaled sites of 20 MW to 100 MW\nwith existing or near-term access to power, leased under long-term contracts\nto strong or credit-enhanced counterparties. Host Digital seeks to own and\ncontrol the real estate, power, and data center infrastructure at each site,\nand provides turnkey facilities where tenants select and deploy their own\ncompute infrastructure and model layers.\n\nThrough its wholly owned subsidiaries, the Company also operates a portfolio\nof 19 natural and organic grocery stores across six states under the Ada’s\nNatural Market, Paradise Health & Nutrition, Mother Earth’s Storehouse,\nGreens Natural Foods, Ellwood Thompson’s, and GreenAcres Market brands.\nHealthy Choice Wellness Corp.’s natural and organic grocery business\ncontinues to operate as a division of the Company following the merger.\n\nFor more information, visit www.hostdigital.ai.\n\nFORWARD-LOOKING STATEMENTS\n\nThis press release contains forward-looking statements within the meaning of\nthe Private Securities Litigation Reform Act of 1995, including statements\nregarding the proposed acquisition and development of one or more data center\nfacilities, including the potential acquisition of Site II; the expected\nassets leases and other assets to be acquired from the Sponsor or any other\nthird party; the timing of delivery of the Company’s data center facilities\nto tenants; anticipated contracted revenue, lease terms and renewal options;\nthe Company’s development strategy and ability to execute and scale its\nbusiness model; and the Sponsor’s potential pipeline and contribution of\nadditional data center assets to the Company. Statements that are not\nhistorical facts are based on current estimates, assumptions and projections\nand are not guarantees of future performance. Words such as “anticipates,”\n“believes,” “expects,” “intends,” “may,” “plans,”\n“will,” “would,” “could” and similar expressions identify\nforward-looking statements, although not all forward-looking statements\ncontain these words.\n\nForward-looking statements are subject to risks and uncertainties that could\ncause actual results to differ materially, including risks relating to the\ncompletion of the offering on the anticipated terms or at all; the Company’s\nability to satisfy the applicable listing requirements; the Company’s\nability to successfully integrate the businesses and realize the anticipated\nbenefits of the offering; the Company’s ability to obtain required\nfinancing, complete development and deliver capacity on schedule; and other\nfactors described in the Company’s filings with the SEC, including under the\nheader “Risk Factors” in Exhibit 99.2 to the Current Report on Form 8-K\nfiled with the SEC on September 17, 2026. The Company undertakes no obligation\nto update these statements except as required by law.\n\nMEDIA CONTACT\nJessica Starman\njessica@elev8newmedia.com\n888-461-2233\n\nINVESTOR CONTACT\nJason Assad\ninfo@bridge-comms.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/10a2a32e-6593-4058-8c74-32a16ab5e367)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-09-29T12:30:01.333218534Z","server_sent_at_ms":1790685001333},"received_at":"2026-09-29T12:30:01.385Z","source_url":null},"analysis":{"id":"144101","press_release_id":"155364","analysis_json":{"industry":{"label":"Specialized REITs","sector":"Real Estate"},"redFlags":["CEO chairs and controls the Sponsor from which Host would buy projects — related-party transaction risk","Site I project financing not yet secured; rent payments contingent on delivery and lease performance obligations","Company still carries legacy natural grocery business alongside data center pivot","Micro-cap newly public via reverse merger; forward-looking delivery and financing targets carry execution risk"],"eventType":"other","narrative":"Host Digital CEO Harmol Samra issued a shareholder letter following completion of the merger that took the company public, laying out its strategy of developing RightScaled 20-100 MW data centers for AI and HPC tenants under long-term take-or-pay leases.\n\nThe letter restates previously disclosed Site I economics: a 15-year lease signed in August covering 55 MW gross (43 MW critical IT) with roughly $67 million of first-year rent, ~$1.25 billion of contracted base rent with 3% annual increases, and ~$3.2 billion over 30 years if renewals are exercised. Delivery is targeted for Q1 2027, with project-level financing still to be finalized.\n\nThe Sponsor pipeline holds four additional sites with over 450 MW of potential capacity, and Host has 24-month first-offer rights under a Preferential Rights Agreement. Related-party dynamics are notable: the Sponsor is controlled by Host's founders including the CEO, and the company still operates a 19-store natural grocery business from the Healthy Choice Wellness merger.","sentiment":"neutral","agentHooks":{"shouldPost":false,"suggestedAngle":"Introductory shareholder letter restating Site I economics — watch for project financing close and Q1 2027 delivery as the real catalysts."},"keyFigures":{"customDimensions":{"delivery_target":"Q1 2027","first_year_rent":"approximately $67 million","lease_term_years":15,"gross_capacity_mw":55,"offering_proceeds":"$17.5 million","sponsor_pipeline_mw":"more than 450 megawatts across four sites","annual_rent_escalator":"3%","rightscaled_target_mw":"20 to 100 megawatts","site_i_cash_investment":"$40 million","critical_it_capacity_mw":43,"contracted_base_term_rent":"$1.25 billion","total_rent_with_renewals_30yr":"approximately $3.2 billion","preferential_rights_period_months":24}},"quotedText":"The customer lease covers 55 megawatts of gross capacity, the total power available at the site.","namedEntities":{"people":[{"name":"Harmol Samra","role":"CEO"},{"name":"Jessica Starman","role":"media contact"},{"name":"Jason Assad","role":"investor contact"}],"products":["Ada's Natural Market","Paradise Health & Nutrition","Mother Earth's Storehouse","Greens Natural Foods","Ellwood Thompson's","GreenAcres Market","IPI digital infrastructure platform"],"companies":[{"name":"Host Digital Inc.","ticker":"HOST","relationship":"filer"},{"name":"Host Infrastructure Holdings","relationship":"Sponsor, owned by company founders"},{"name":"Healthy Choice Wellness Corp.","relationship":"predecessor merger partner; grocery business now a division"},{"name":"ICONIQ Capital","relationship":"CEO's prior employer"},{"name":"Starwood Capital Group","relationship":"CEO's prior employer"},{"name":"PGIM Real Estate","relationship":"CEO's prior employer"}],"dollarAmounts":[{"amount":"$1.25 billion","context":"15-year Site I contracted base-term rent"},{"amount":"$67 million","context":"Site I first-year contracted rent"},{"amount":"$3.2 billion","context":"total rent over 30 years if all renewal options exercised"},{"amount":"$40 million","context":"cash investment to bring Site I to current stage"},{"amount":"$17.5 million","context":"net proceeds from recent offering before fees and expenses"}]},"materialImpact":{"score":2,"reasoning":"A CEO shareholder letter introducing the newly public company post-merger; it restates previously announced facts (Site I 15-year lease, ~$1.25B contracted rent, delivery target Q1 2027) rather than disclosing new material information."},"tickerRelevance":{"others":[],"primary":"HOST"},"globalImportance":22,"audienceRelevance":15,"eventTypeSecondary":["operations_update"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"introductory shareholder letter, no new disclosures","issuerAuthored":true,"retailFavoriteBoost":"AI data center narrative may attract retail attention"}},"event_type":"other","event_type_secondary":["operations_update"],"sentiment":"neutral","material_impact_score":2,"narrative":"Host Digital CEO Harmol Samra issued a shareholder letter following completion of the merger that took the company public, laying out its strategy of developing RightScaled 20-100 MW data centers for AI and HPC tenants under long-term take-or-pay leases.\n\nThe letter restates previously disclosed Site I economics: a 15-year lease signed in August covering 55 MW gross (43 MW critical IT) with roughly $67 million of first-year rent, ~$1.25 billion of contracted base rent with 3% annual increases, and ~$3.2 billion over 30 years if renewals are exercised. Delivery is targeted for Q1 2027, with project-level financing still to be finalized.\n\nThe Sponsor pipeline holds four additional sites with over 450 MW of potential capacity, and Host has 24-month first-offer rights under a Preferential Rights Agreement. Related-party dynamics are notable: the Sponsor is controlled by Host's founders including the CEO, and the company still operates a 19-store natural grocery business from the Healthy Choice Wellness merger.","key_figures":{"customDimensions":{"delivery_target":"Q1 2027","first_year_rent":"approximately $67 million","lease_term_years":15,"gross_capacity_mw":55,"offering_proceeds":"$17.5 million","sponsor_pipeline_mw":"more than 450 megawatts across four sites","annual_rent_escalator":"3%","rightscaled_target_mw":"20 to 100 megawatts","site_i_cash_investment":"$40 million","critical_it_capacity_mw":43,"contracted_base_term_rent":"$1.25 billion","total_rent_with_renewals_30yr":"approximately $3.2 billion","preferential_rights_period_months":24}},"named_entities":{"people":[{"name":"Harmol Samra","role":"CEO"},{"name":"Jessica Starman","role":"media contact"},{"name":"Jason Assad","role":"investor contact"}],"products":["Ada's Natural Market","Paradise Health & Nutrition","Mother Earth's Storehouse","Greens Natural Foods","Ellwood Thompson's","GreenAcres Market","IPI digital infrastructure platform"],"companies":[{"name":"Host Digital Inc.","ticker":"HOST","relationship":"filer"},{"name":"Host Infrastructure Holdings","relationship":"Sponsor, owned by company founders"},{"name":"Healthy Choice Wellness Corp.","relationship":"predecessor merger partner; grocery business now a division"},{"name":"ICONIQ Capital","relationship":"CEO's prior employer"},{"name":"Starwood Capital Group","relationship":"CEO's prior employer"},{"name":"PGIM Real Estate","relationship":"CEO's prior employer"}],"dollarAmounts":[{"amount":"$1.25 billion","context":"15-year Site I contracted base-term rent"},{"amount":"$67 million","context":"Site I first-year contracted rent"},{"amount":"$3.2 billion","context":"total rent over 30 years if all renewal options exercised"},{"amount":"$40 million","context":"cash investment to bring Site I to current stage"},{"amount":"$17.5 million","context":"net proceeds from recent offering before fees and expenses"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-29T12:30:18.370Z","global_importance":22,"audience_relevance":15,"importance_components":{"tickerTier":"micro-cap","eventGravity":"introductory shareholder letter, no new disclosures","issuerAuthored":true,"retailFavoriteBoost":"AI data center narrative may attract retail attention"}},"durationMs":9417,"modelName":"glm-5.3-flashx"}}