Summary
Digital Realty Trust, Inc. (DLR) reported its annual results for the year ended December 31, 2018, showcasing a continued expansion of its global data center footprint and a robust operational performance. The company emphasized its strategic acquisitions, including the significant Ascenty acquisition in Brazil, which bolsters its presence in Latin America, and the integration of DuPont Fabros Technology (DFT), which enhanced its U.S. market reach. DLR's business model focuses on providing comprehensive data center solutions, leveraging its global platform and technology expertise to serve a diverse customer base, including major cloud providers and IT services companies. Financially, DLR demonstrated revenue growth driven by both stabilized and developing properties, alongside strategic capital deployment. The company maintained a disciplined approach to its balance sheet, targeting specific debt-to-EBITDA and coverage ratios. The report also highlights DLR's commitment to sustainability, with various initiatives aimed at environmental efficiency. Investors should note the company's diversified revenue streams, extensive portfolio, and its position as a key player in the growing digital economy.
Financial Highlights
32 data points| Revenue | $3.05B |
| Operating Expenses | $2.50B |
| Operating Income | $549.79M |
| Interest Expense | $321.53M |
| Net Income | $331.25M |
| EPS (Basic) | $1.21 |
| EPS (Diluted) | $1.21 |
| Shares Outstanding (Basic) | 206.04M |
| Shares Outstanding (Diluted) | 206.67M |
Key Highlights
- 1Acquisition of Ascenty for approximately $1.8 billion significantly expanded DLR's presence in Latin America, establishing it as a premier data center provider in the region.
- 2The integration of DuPont Fabros Technology (DFT) for approximately $6.2 billion in an all-stock merger strengthened DLR's U.S. footprint and ability to serve hyper-scale and public cloud solutions.
- 3DLR's portfolio grew to 214 data centers globally, covering approximately 34.5 million rentable square feet, with 89.0% leased as of December 31, 2018.
- 4Total operating revenues increased by 23.9% to $3.05 billion for the year ended December 31, 2018, driven by acquisitions and leasing activity.
- 5The company maintained a diversified customer base, with no single customer accounting for more than 6.8% of aggregate annualized rent, reducing concentration risk.
- 6DLR continued to invest in development, with approximately 3.4 million square feet under active development and 2.1 million square feet held for future development as of year-end 2018.
- 7The company maintained a conservative capital structure, targeting a debt-to-adjusted EBITDA ratio at or below 5.5x and strong fixed charge coverage.