Summary
Digital Realty Trust, Inc. (DLR) concluded its 2017 fiscal year with significant strategic growth, notably the acquisition of DuPont Fabros Technology, Inc. (DFT) for $6.2 billion in September 2017. This acquisition expanded DLR's footprint in key U.S. metropolitan areas and bolstered its capacity to serve hyper-scale and public cloud demands. The company's portfolio at the end of 2017 comprised 205 data centers across 33 major metropolitan areas globally, spanning approximately 32.1 million square feet, with 90.2% occupancy for its stabilized properties. DLR's business model focuses on providing data center solutions, including colocation and interconnection services, catering to a diverse range of industry verticals. The company emphasizes its global platform, presence in key metropolitan areas, secure and network-rich facilities, and a comprehensive product offering as competitive strengths. Despite increased operating expenses and interest expenses driven by recent acquisitions and development activities, DLR maintained a strong focus on prudent capital allocation and balance sheet flexibility, targeting a debt-to-adjusted EBITDA ratio of at or below 5.5x.
Financial Highlights
32 data points| Revenue | $2.46B |
| Operating Expenses | $2.01B |
| Operating Income | $451.30M |
| Interest Expense | $258.64M |
| Net Income | $248.26M |
| EPS (Basic) | $0.99 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 174.06M |
| Shares Outstanding (Diluted) | 174.90M |
Key Highlights
- 1Completed the $6.2 billion acquisition of DuPont Fabros Technology, Inc. (DFT) in September 2017, significantly expanding its U.S. data center portfolio and hyper-scale capabilities.
- 2Operated a global portfolio of 205 data centers across 33 metropolitan areas, totaling approximately 32.1 million square feet.
- 3Maintained a strong global platform with a focus on key metropolitan areas, network density, and comprehensive data center solutions.
- 4Diversified customer base with over 2,300 tenants, where the largest customer accounted for only 6.5% of annualized rent, mitigating single-customer risk.
- 5Invested heavily in development and acquisitions, with approximately 2.7 million square feet under active development and 1.7 million square feet held for future development as of year-end 2017.
- 6Maintained a conservative capital structure with a target debt-to-adjusted EBITDA ratio at or below 5.5x and sufficient liquidity through its global revolving credit facility.
- 7Demonstrated strong sustainability initiatives, recognized by industry awards and participation in U.S. Department of Energy programs.