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DLR · DIGITAL REALTY TRUST, INC.

50 filings

10-Q

DLR 10-Q Quarterly Reports

DIGITAL REALTY TRUST, INC. - 50 quarterly reports

Filing record · 2016–202610-K1310-Q328-K240

DLR filed 13 annual reports (10-K), 32 quarterly reports (10-Q) and 240 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Sep ’17Sep ’17
  2. Deal closed8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Dec ’25Dec ’25
  1. 2026-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2026

    Digital Realty Trust, Inc. (DLR) reported a strong performance for the quarter ended June 30, 2026. Total operating revenues increased by 28.9% year-over-year to $1.92 billion, driven by significant growth in both stabilized and non-stabilized rental income, alongside a substantial surge in fee income. This robust revenue growth is attributed to the completion of their global development pipeline, new leasing, and renewals, as well as a notable $201 million in promote income related to a recent acquisition. The company also raised approximately $1.2 billion in net proceeds from its ATM Equity Offering program, indicating continued access to capital markets to fund its growth initiatives. The company's balance sheet shows a notable increase in 'Investments in properties, net' to $32.86 billion, reflecting ongoing strategic acquisitions and development activities. While total liabilities also increased, the company maintained a strong equity position. Cash flows from operations improved significantly, providing substantial resources to fund investing and financing activities. DLR's strategic focus on global data center expansion and development appears to be yielding positive financial results, positioning it well for continued growth.

    Jul 31, 2026
  2. 2026-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2026

    Digital Realty (DLR) closed Q1 2026 with total operating revenues of $1.635 billion, up 16.2% year over year, driven by a 10.0% increase in stabilized rental revenue and a 39.7% jump in non-stabilized revenue as the development pipeline leased up. Net income attributable to Digital Realty Trust, Inc. rose to $179.3 million from $110.0 million, and diluted EPS was $0.46 versus $0.27. Operating income before property disposition gains rose to $266.9 million, and the consolidated portfolio occupancy reached 89.4% across 2,408 MW of white space IT load, up from 89.3% at year-end 2025. The company's capital position was shaped by heavy growth spending and equity issuance. Cash flow from operations rose to $532.4 million, but capital expenditures were $795.4 million on a cash basis, and acquisitions totaled roughly $280 million. Digital Realty raised approximately $875 million of net equity through its ATM program at an average price of $178.36 per share, and cash fell to $2.43 billion from $3.45 billion at year-end. Total debt was $18.1 billion at a weighted average rate of 2.85%, with a debt-to-enterprise-value ratio of about 21.7%. Management guides to $2.8 billion to $3.3 billion of remaining 2026 capital expenditures, and 1,169 MW of projects were under construction, 61% pre-leased. Investors should weigh the strong top-line momentum and development pipeline against rising operating costs, notably utilities up 18.8% and G&A up 25.3%, and a sizable funding need. The company also has a €375 million term loan maturing August 11, 2026, and it sold a non-core Atlanta asset for $25 million after quarter-end. Goodwill fell to $9.59 billion, largely from currency translation. A Teraco redeemable noncontrolling interest put right opens in February 2026, a potential future cash or share obligation.

    May 1, 2026
  3. 2025-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2025

    Digital Realty Trust, Inc. (DLR) reported robust financial performance for the quarter ended September 30, 2025. Total operating revenues saw a significant increase of 10.2% year-over-year, reaching $1.58 billion, driven by strong growth in both stabilized and non-stabilized segments. This growth was fueled by increased leasing activity across all regions and the successful lease-up of recently completed development projects. The company also reported a substantial gain on disposition of properties, primarily from contributions to its U.S. Hyperscale Data Center Fund and joint ventures, totaling $952.7 million for the nine-month period. Despite increased operating expenses, largely due to utility costs associated with expansion and higher property taxes, the company maintained a solid financial position. Debt management remains a focus, with efforts to maintain a conservative capital structure and a well-laddered debt maturity schedule. The company also continues to utilize its at-the-market equity offering program to fund its growth initiatives and maintain financial flexibility.

    Oct 31, 2025
  4. 2025-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2025

    Digital Realty Trust, Inc. (DLR) reported a strong financial performance for the quarter ended June 30, 2025, characterized by significant revenue growth and a substantial increase in net income compared to the prior year period. The company demonstrated robust operational execution, evidenced by a notable rise in rental and other services revenue, driven by new leasing and renewals across its global portfolio. The successful completion of development projects and subsequent lease-up contributed significantly to the non-stabilized revenue growth. Key financial metrics show a healthy balance sheet, with total assets growing and a strategic focus on capital allocation. The company successfully raised substantial equity through its ATM program and executed well on its debt management strategy, including refinancing efforts. Digital Realty continues to expand its global data center footprint through strategic contributions to funds and joint ventures, recognizing significant gains on these dispositions. Investors can take confidence from the company's continued ability to generate strong operational cash flow, manage its debt effectively, and strategically deploy capital to drive long-term shareholder value.

    Aug 1, 2025
  5. 2025-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2025

    Digital Realty Trust, Inc. (DLR) reported its first quarter 2025 financial results, showcasing continued revenue growth and strategic initiatives. Total operating revenues increased by 5.7% year-over-year, reaching $1.41 billion, driven by a 5.3% rise in rental and other services and a significant 49.8% increase in fee income. This growth was bolstered by strong leasing activity, with new leases and renewals across various regions, and the successful completion of development projects contributing to revenue. The company also made significant strides in its capital management and strategic partnerships. The formation of its first U.S. hyperscale data center fund, targeting $2.5 billion in commitments, signals a strategic move to leverage external capital for growth while maintaining significant ownership. Furthermore, Digital Realty successfully issued €850 million in senior notes, strengthening its liquidity position. The company maintains a strong liquidity position with over $2.3 billion in cash and cash equivalents and access to its revolving credit facilities.

    May 1, 2025
  6. 2024-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2024

    Digital Realty Trust, Inc. (DLR) reported its third-quarter 2024 financial results, demonstrating continued revenue growth and strategic asset management. The company's total operating revenues saw a modest increase of 2.1% year-over-year for the quarter, reaching $1.43 billion, driven by robust growth in non-stabilized properties and a significant uptick in fee income. For the nine-month period, total operating revenues grew by 0.3% to $4.12 billion. Despite a decrease in stabilized rental revenue primarily due to lower utility reimbursements, the company benefited from the lease-up of recently completed development projects. Strategic asset dispositions, including joint ventures and property sales, contributed significantly to gains on disposition, with approximately $203 million recognized in Q1 2024 related to the Brookfield transaction and $172 million from a Chicago data center sale. The company also successfully raised substantial capital through equity offerings and debt refinancing, enhancing its liquidity position and extending its debt maturity profile.

    Nov 1, 2024
  7. 2024-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2024

    Digital Realty Trust, Inc. (DLR) reported its second-quarter 2024 financial results, demonstrating resilience and strategic execution. Total operating revenues saw a slight decrease of 0.7% year-over-year to $1.36 billion, primarily due to lower utility reimbursements influenced by decreased power pricing. However, fee income and other revenues increased by 12.3%, indicating diversification. The company recorded a significant impairment charge of $168.3 million on certain non-core properties, signaling a strategic portfolio adjustment. Despite this, Digital Realty successfully executed a substantial $1.7 billion equity offering, bolstering its liquidity and strengthening its capital position. The company continues to invest heavily in development projects, with approximately $1.9 billion committed to construction contracts, and maintains a robust liquidity position with $2.28 billion in cash and cash equivalents. Strategically, Digital Realty continues to engage in significant joint venture activities, including collaborations with Blackstone and Mitsubishi, to fund future hyperscale data center development. The company also completed several property dispositions, contributing to gains on dispositions totaling $451.5 million for the six-month period. Management remains focused on long-term growth in earnings and cash flow, prudent capital allocation, and maximizing returns, while adhering to its conservative capital structure and maintaining compliance with debt covenants.

    Aug 2, 2024
  8. 2024-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2024

    Digital Realty Trust, Inc. (DLR) reported its first-quarter 2024 financial results, showing a slight decrease in total operating revenues year-over-year, primarily driven by lower utility reimbursements and a reduction in revenue from properties sold or contributed. However, fee income and other revenue saw a substantial increase of 58.4%. The company recognized significant gains on property dispositions in the quarter, including approximately $203.1 million from the sale of four data centers to Brookfield Infrastructure Partners and $74.4 million from an easement sale. Despite a notable increase in interest expense due to higher rates, DLR maintained a strong liquidity position with $1.2 billion in cash and cash equivalents and ample availability under its revolving credit facilities. Management remains focused on strategic growth through joint ventures and development projects, with planned capital expenditures for development programs estimated between $1.4 billion and $1.9 billion for the remainder of 2024.

    May 3, 2024
  9. 2023-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2023

    Digital Realty Trust, Inc. (DLR) reported solid revenue growth of 17.6% for the third quarter of 2023, reaching $1.40 billion, and a 18.8% increase to $4.11 billion for the nine-month period ending September 30, 2023. This growth was primarily driven by increases in rental and utility reimbursement revenues, reflecting both a strong stabilized portfolio and the lease-up of recently completed development projects. The company also benefited significantly from asset dispositions, including contributions to joint ventures with GI Partners and TPG Real Estate, which generated substantial gains on sale and provided liquidity. Profitability saw a significant boost, with net income attributable to Digital Realty Trust, Inc. reaching $733.6 million for the third quarter, a substantial increase from $237.1 million in the prior year. For the nine-month period, net income was $920.5 million compared to $373.8 million in the prior year. This improved profitability, despite higher operating expenses and interest costs, was largely due to significant gains on property dispositions. The company continues to manage its capital structure prudently, with a focus on maintaining a conservative debt profile and sufficient liquidity.

    Nov 9, 2023
  10. 2023-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2023

    Digital Realty Trust, Inc. (DLR) reported solid revenue growth in the second quarter of 2023, driven by increased rental income and utility reimbursements. Total operating revenues climbed by 19.9% year-over-year for the quarter, reaching $1.37 billion. This growth was supported by strong performance in both stabilized and non-stabilized portfolios, with the latter benefiting from recent development completions and the Teraco acquisition. Despite higher operating expenses, particularly in utilities and property maintenance, the company managed to improve its net income available to common stockholders by 125% to $118.2 million for the quarter. The company continued its strategic capital recycling initiatives, completing the sale of a non-core asset and forming significant joint ventures in Chicago and Northern Virginia that generated substantial proceeds. These activities, combined with proceeds from its ATM equity program, strengthened its liquidity position. DLR also highlighted significant progress in its development pipeline and ongoing investment in enhancing its global data center infrastructure.

    Aug 4, 2023
  11. 2023-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2023

    Digital Realty Trust, Inc. (DLR) reported solid revenue growth for the first quarter of 2023, with total operating revenues increasing by 18.8% year-over-year to $1.34 billion. This growth was driven by both the stabilized and non-stabilized portfolios, with significant contributions from utility reimbursements, new leasing activity, and the completion of development projects. The company also saw a substantial increase in operating expenses, largely due to higher utilities (driven by price and usage) and increased property operating and maintenance costs related to its expanding portfolio and development pipeline. Despite increased operating expenses and a rise in interest expense due to new debt issuances and higher rates, Digital Realty maintained positive net income and increased its Funds From Operations (FFO) per share to $1.60 on a diluted basis. The company's balance sheet remains robust, though total liabilities have increased, primarily due to higher borrowings. Digital Realty continues to invest heavily in development, with significant capital expenditures planned for the remainder of 2023, indicating a focus on future growth.

    May 4, 2023
  12. 2022-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2022

    Digital Realty Trust, Inc. (DLR) reported its financial results for the quarter ended September 29, 2022. The company demonstrated revenue growth, driven primarily by its non-stabilized portfolio, which includes recently completed development projects and the recent acquisition of Teraco Data Environments. Despite a decrease in stabilized revenue due to foreign currency translation effects, overall revenue increased by 5.2% year-over-year for the third quarter. The company maintained a strong balance sheet, though total liabilities increased, largely due to the Teraco acquisition. Management highlighted significant capital allocation activities, including debt financings and equity issuances, to support growth and strategic initiatives, including the substantial acquisition in South Africa.

    Nov 4, 2022
  13. 2022-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2022

    Digital Realty Trust, Inc. (DLR) reported its second-quarter 2022 financial results, showcasing a mixed performance with growth in total operating revenues but a decline in net income compared to the prior year. Total operating revenues increased by 4.2% to $1.139 billion for the quarter, driven by growth in non-stabilized rental and other services revenue due to the completion of global development projects. However, net income attributable to Digital Realty Trust, Inc. decreased by 47.8% to $63.4 million for the quarter, impacted by factors including a significant unfavorable foreign currency translation effect and increased property level operating expenses. The company's balance sheet reflects total assets of $35.96 billion and total liabilities of $18.28 billion as of June 30, 2022. Total stockholders' equity stood at $17.63 billion. DLR continues to invest heavily in its development pipeline, with approximately $1.9 billion in open construction contract commitments. The company also completed a significant acquisition post-period, increasing its interest in Teraco, a South African data center provider, on August 1, 2022.

    Aug 5, 2022
  14. 2022-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2022

    Digital Realty Trust (DLR) reported its first quarter 2022 financial results, showcasing steady revenue growth driven by its non-stabilized portfolio and ongoing development pipeline. Total operating revenues increased by 3.4% year-over-year to $1.127 billion. While stabilized revenues saw a slight decrease, this was offset by significant growth in non-stabilized areas, highlighting the company's successful expansion and lease-up activities. The company maintained a strong liquidity position, with substantial cash and cash equivalents and significant borrowing capacity under its global revolving credit facilities. Despite a notable increase in loss from early debt extinguishment due to note redemptions, and higher operating expenses driven by utility costs and expansion, DLR's overall financial health remains robust. The company continues to invest heavily in its development pipeline, with substantial capital expenditures planned for the remainder of 2022, indicating confidence in future demand for data center space. DLR's strategic focus on global reach, prudent capital allocation, and diversification positions it well for continued growth in the digital infrastructure sector.

    May 6, 2022
  15. 2021-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2021

    Digital Realty Trust, Inc. (DLR) reported solid financial performance for the nine months ended September 30, 2021, demonstrating revenue growth and effective expense management. Total operating revenues increased by 16.7% year-over-year, driven by robust growth in rental and other services, largely influenced by the Interxion Combination and expansion into new markets. The company maintained a strong focus on operational efficiency, with property level expenses increasing at a slower rate than revenue, indicating effective cost control. Key financial highlights include a significant increase in net income available to common stockholders and a corresponding rise in Funds From Operations (FFO). DLR continues to strategically manage its capital structure, with a focus on maintaining a conservative leverage ratio and well-laddered debt maturities. The company also actively manages its liquidity through its revolving credit facilities and ATM equity program, ensuring sufficient resources for ongoing operations, development activities, and potential acquisitions. Investors can take confidence in the company's continued strategic execution and financial resilience in a dynamic market.

    Nov 5, 2021
  16. 2021-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2021

    Digital Realty Trust, Inc. (DLR) reported its financial results for the quarter ended June 30, 2021. The company demonstrated strong top-line growth, with total operating revenues increasing by 10.1% year-over-year for the three-month period and 20.2% for the six-month period, largely driven by the Interxion Combination and new leasing activity. Profitability also saw an increase, with net income available to common stockholders growing significantly. Despite increased operating expenses, including higher utility costs and depreciation, the company managed its financials effectively. DLR's balance sheet remains robust, supported by substantial investments in real estate and a well-managed debt structure. The company also continues to invest heavily in development projects, signaling a commitment to future growth.

    Aug 6, 2021
  17. 2021-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2021

    Digital Realty Trust, Inc. (DLR) reported its first quarter 2021 financial results, showcasing robust revenue growth and a significant increase in net income compared to the prior year. Total operating revenues grew by over 32% year-over-year, largely driven by the ongoing impact of the Interxion combination and contributions from its expanding global data center portfolio. Net income available to common stockholders more than doubled, reflecting improved operational efficiencies and strategic property dispositions. The company continues to invest heavily in its development pipeline, with substantial capital expenditures aimed at expanding its data center capacity across key global markets. While facing ongoing global economic uncertainties and the lingering effects of the COVID-19 pandemic, DLR demonstrated resilience through strong operational execution, successful lease renewals, and strategic debt management. The company's proactive approach to managing its debt structure and maintaining ample liquidity positions it well for continued growth and shareholder returns.

    May 7, 2021
  18. 2020-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2020

    Digital Realty Trust, Inc. (DLR) reported its financial results for the third quarter and nine months ended September 30, 2020. The company experienced revenue growth driven by the Interxion combination, with total operating revenues increasing to $1.02 billion for the quarter and $2.84 billion for the nine months. This growth was partially offset by expiring leases in the stabilized portfolio and property dispositions. Operating expenses saw a significant increase primarily due to the Interxion combination, transaction and integration costs, and higher depreciation and amortization. The company actively managed its debt, completing several refinancing and redemption activities, including issuing new Euro-denominated notes and redeeming existing ones. Operationally, DLR's portfolio expanded to 284 data centers. While the company reported an increase in net cash provided by operating activities, investing activities showed a significant outflow, largely due to real estate acquisitions and development projects, partially offset by proceeds from property sales. Financing activities were robust, reflecting substantial debt and equity issuances to fund its strategic initiatives, including the significant Interxion acquisition. DLR's liquidity remains strong, supported by its revolving credit facilities and operating cash flows.

    Nov 6, 2020
  19. 2020-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2020

    Digital Realty Trust, Inc. (DLR) reported its second-quarter 2020 results, demonstrating continued growth in revenues and a focus on strategic capital allocation. Total operating revenues increased by 24% year-over-year to $993.0 million for the quarter, driven by contributions from the Interxion acquisition and growth in rental and other services. The company's portfolio expanded significantly, with 281 data centers now included, reflecting a strategic push into new markets and enhanced global reach. Despite increased operating expenses and transaction costs related to recent acquisitions, Digital Realty maintained a healthy operating income. The company also focused on strengthening its balance sheet by issuing new debt and equity, managing its capital structure prudently. The report highlights the company's resilience amidst the COVID-19 pandemic, with all facilities remaining operational and rent collections largely on track, although future impacts remain uncertain. The company's management expressed confidence in its strategy to drive long-term growth and shareholder value.

    Aug 10, 2020
  20. 2020-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2020

    Digital Realty Trust, Inc. (DLR) reported its first-quarter 2020 financial results, showing a significant increase in total operating revenues to $823.3 million, up from $814.5 million in the prior year's comparable quarter. This growth was primarily driven by the Interxion combination, which closed in March 2020, and ongoing leasing activity. Net income attributable to Digital Realty Trust, Inc. significantly increased to $224.0 million, or $0.90 per diluted share, compared to $116.8 million, or $0.46 per diluted share, in Q1 2019. The company also recorded a substantial gain on the disposition of properties totaling $304.8 million in the current quarter. Despite the strong revenue growth and increased net income, operating income saw a decrease to $100.0 million from $141.5 million year-over-year, largely due to higher transaction and integration expenses related to the Interxion acquisition and increased operating expenses. DLR maintained a strong balance sheet with $246.5 million in cash and cash equivalents and significant liquidity available under its global revolving credit facilities. The company reaffirmed its commitment to prudent capital management and its REIT status. Management noted that while operations remained stable during the initial impact of COVID-19, the full extent of its impact on future financial performance remains uncertain. DLR is actively monitoring the situation and has implemented business continuity plans.

    May 11, 2020
  21. 2019-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2019

    Digital Realty Trust's Q3 2019 10-Q shows a company in active portfolio transformation. Total operating revenues rose 4.9% to $806.5 million in the quarter (nine-month revenue up 6.8% to $2.42 billion), but net income available to common stockholders fell to $49.8 million from $67.3 million, and diluted EPS dropped to $0.24 from $0.33. The decline reflects the absence of tenant reimbursement presentation changes (now netted into rental revenue under ASC 842), higher interest expense ($84.6 million, up 4.6%), higher G&A, and a $5.4 million loss on early debt extinguishment, partly offset by stronger rental revenue from pre-stabilized properties. Stabilized property revenue actually declined 1.5% in the quarter, citing unfavorable currency translation, expiring leases, and higher bad debt, so organic growth is weaker than headline growth suggests. Balance sheet activity was significant. The Ascenty Brazil data center business was deconsolidated in March 2019 after Brookfield Infrastructure acquired 49% for about $702 million, producing a $67.5 million gain and reducing goodwill by roughly $967 million. Digital also agreed to sell 12 North American Powered Base Building properties to Mapletree for about $557 million and to contribute three Turn-Key Flex data centers into a Mapletree joint venture for roughly $0.8 billion of cash, with both transactions classified as held for sale or contribution at quarter-end. Total debt stood at about $11.0 billion, with a debt-to-enterprise-value ratio near 27%, and cash was only $7.2 million, so the company relies on its revolver. The most material subsequent event is the October 29, 2019 agreement to acquire InterXion via a tender offer at 0.7067 Digital shares per InterXion share. Digital estimates that continuing stockholders will own about 80% of the combined company and InterXion holders about 20%. The deal would add roughly $1.4 billion of InterXion debt, and the Company faces a $254.3 million termination fee exposure. Investors should weigh near-term EPS pressure, elevated leverage, integration risk, and dilution against the long-term growth thesis of scale in data center demand.

    Nov 8, 2019
  22. 2019-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2019

    Digital Realty Trust's Q2 2019 10-Q shows a company in active portfolio recycling and balance-sheet reshaping. The most significant event was the March 2019 formation of an Ascenty joint venture with Brookfield Infrastructure, in which Brookfield paid about $702 million for a 49% stake. Digital Realty deconsolidated Ascenty, recognized a $67.5 million net gain, and now holds its 51% retained stake as an unconsolidated investment valued at $727 million. Consolidated total assets fell to $23.43 billion from $23.77 billion, goodwill dropped from $4.35 billion to $3.35 billion, and unconsolidated joint venture investments rose to $979 million from $175 million. Operating results were mixed. Total operating revenues rose 6.1% for the quarter to $800.8 million, but much of that growth reflects the adoption of ASC 842, which folded tenant reimbursements into rental revenue, so the prior-year comparison is not like-for-like. Net income available to common stockholders fell to $31.7 million from $65.1 million, mainly due to $20.9 million of early extinguishment losses, $11.8 million of preferred redemption issuance costs, and higher interest expense. Stabilized portfolio revenue declined 0.2% year over year, while occupancy was about 87.8%. Operating cash flow for the six months grew 23% to $827 million. Balance-sheet activity was heavy. The company issued $900 million of 3.600% notes due 2029, a €225 million tap of 2.500% notes due 2026, and $200 million of Series K preferred stock, and it redeemed the 7.375% Series H preferred stock for $365 million. It also tendered for or redeemed the 5.875% 2020 notes, the 3.400% 2020 notes, and the 2021 notes. The company reports 5.5x debt-to-Adjusted EBITDA as a target, is in compliance with its covenants, and has about $1.1 billion of forward equity sale proceeds expected by September 2019.

    Aug 7, 2019
  23. 2019-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2019

    Digital Realty Trust (DLR) reported first-quarter 2019 results of operations with total operating revenues of $814.5 million, up from $744.4 million a year earlier, and net income of $121.0 million versus $110.1 million. Diluted EPS was $0.46 versus $0.42. Growth was driven largely by the Ascenty Acquisition and new leasing in pre-stabilized properties, while stabilized portfolio revenue was roughly flat (down 0.6%) due to higher bad debt expense, unfavorable currency translation and lease renewals. Note that the 2019 presentation reflects the adoption of ASC 842 (combining tenant reimbursements into rental revenue), so the revenue line is not directly comparable to the prior year. Operating income declined slightly to $141.5 million from $143.8 million, as G&A rose about $16.9 million and interest expense increased $24.6 million to $101.6 million. The quarter's most significant event was the March 2019 deconsolidation of Ascenty, the Brazilian data center business, following the formation of a 50/50 shared-control joint venture with Brookfield Infrastructure for roughly $700 million for a 49% stake. The transaction produced a $67.5 million net gain, reduced goodwill by about $982.7 million, and lowered total assets to $23.3 billion from $23.8 billion. Operating cash flow rose to $350.7 million from $237.0 million, and FFO per diluted share was $1.92 versus $1.61. Management also emphasized balance sheet actions: $1.43 billion of new 2026 and 2030 notes were issued to repay the 5.875% 2020 notes and reduce revolver borrowings, and the revolver balance fell to $843 million from $1.65 billion. Leverage and liquidity appear conservative, with total debt of $10.4 billion, a fixed-rate share of 88.9%, an effective interest rate of 3.32%, and a debt-to-enterprise-value ratio of about 27%. The company was in compliance with all debt covenants. Forward-looking items include about $1.1 billion of expected proceeds from a forward equity sale due by September 2019, a $1.0 billion at-the-market program that had not yet been used, and expected development capital expenditures of $0.9 to $1.1 billion for the remainder of 2019. Leasing momentum was strong, with renewal rent increases of 4.3% on Turn-Key Flex and 11.1% on Powered Base Building space on a GAAP basis, while portfolio occupancy was 88.6%.

    May 10, 2019
  24. 2018-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2018

    Digital Realty Trust (DLR) reported strong top-line growth in the third quarter of 2018, with total operating revenues of $768.9 million, up 26% from $609.9 million a year earlier, and nine-month revenues of $2.27 billion, up 31%. The growth was driven mainly by the DuPont Fabros Technology (DFT) merger completed in September 2017, which added properties to the pre-stabilized pool. Net income available to common stockholders for the quarter was $67.3 million, or $0.33 per diluted share, versus a loss of $(0.02) a year earlier. Stabilized-portfolio revenue was essentially flat (up 0.5% in the quarter), while stabilized property operating expenses rose 3.3%. Portfolio occupancy was approximately 89.5% across 198 data centers, with 3.6 million square feet under active development and 1.8 million square feet held for development. Balance sheet and liquidity: total debt was about $9.2 billion at a 3.57% effective interest rate, 87.1% fixed (including swapped debt), with a weighted average term of about 5.0 years. Cash was $46.2 million. Operating cash flow for the nine months was $1.03 billion, against $1.0 billion in cash used for property improvements and $117 million in acquisitions, partly funded by $286 million of property sale proceeds. Management reports a debt-to-enterprise-value ratio of about 27%. Subsequent to quarter end, the company issued £400 million of 3.750% notes due 2030 (about $525 million) and refinanced its global revolving credit facility into a $2.35 billion facility, along with new term loans and a yen facility. It also disclosed a pending roughly $1.8 billion acquisition of Ascenty, a Brazilian data center provider, with Brookfield expected to fund half the initial equity in a joint venture. A September 2018 forward equity sale of 9.775 million shares is expected to yield about $1.1 billion upon settlement by September 2019. The filing also shows heavy non-cash charges: depreciation and amortization rose to $294 million in the quarter from $200 million, and the nine-month figure rose to $888 million, largely from acquired intangibles amortization and the DFT merger. Net income is therefore more sensitive to the pace of intangible amortization than the headline figures suggest, so investors may want to focus on FFO. Quarterly FFO was $337.9 million, or $1.57 per diluted share and unit, versus $1.23 a year earlier.

    Nov 2, 2018
  25. 2018-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2018

    Digital Realty Trust (DLR) reported strong second-quarter 2018 results, with total operating revenues of $754.9 million for the three months ended June 30, 2018, up 33.4% from $566.0 million a year earlier, and $1.50 billion for the six months, up 34.3%. The growth was driven mainly by the DuPont Fabros Technology (DFT) merger completed in September 2017, which contributed the bulk of the increase in pre-stabilized revenue and depreciation. Net income available to common stockholders was $65.1 million ($0.32 per diluted share) for the quarter, compared with $57.8 million ($0.36) a year earlier. The per-share decline reflects a much larger share count after the DFT merger, not a drop in absolute earnings. Management reports stabilized-portfolio revenue growth of only 1.5% for the quarter, so most of the top-line expansion came from acquisitions and newly delivered space rather than same-store growth. Funds from operations (FFO) rose to $353.1 million for the quarter ($1.64 diluted per share and unit) from $236.0 million ($1.44) a year earlier. Portfolio occupancy was about 89.4% excluding 3.3 million square feet under active development and 1.5 million square feet held for development. Leasing activity was robust: renewals on Turn-Key Flex space carried GAAP rent increases of 12.5%, and Powered Base Building renewals rose 16.4%. Balance sheet leverage stayed moderate, with total debt of $9.2 billion, a weighted average interest rate of 3.57%, and debt at about 27% of total enterprise value. The company issued $650 million of 4.450% senior notes due 2028 in June 2018, and it sold $199.4 million of properties for a $53.7 million gain during the first half. The main investor watch items are rising capital needs and interest costs. Development capital expenditures are expected at $0.5 to $0.7 billion over the second half of 2018, and interest expense rose 21% in the quarter to $78.8 million as debt grew. Operating cash flow of $673.1 million for the first half covered distributions, though the filing notes that future distributions may need revolver borrowings. Goodwill of $3.4 billion and intangible assets of $2.8 billion remain large relative to equity, which is a point for investors to monitor.

    Aug 7, 2018
  26. 2018-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2018

    Digital Realty Trust (DLR) reported solid first-quarter 2018 results, with total operating revenues up about 35% year over year to $744.4 million, driven mainly by the DuPont Fabros Technology (DFT) merger completed in September 2017. Net income rose to $110.1 million from $84.6 million, helped by a $39.3 million gain on property sales. Net income available to common stockholders was $86.3 million, or $0.42 per diluted share, versus $0.41 a year earlier. Operating income grew about 5% to $143.8 million, but depreciation and amortization nearly doubled to $294.8 million and interest expense rose to $77.0 million, so the growth in profit was modest relative to the revenue increase. Operating fundamentals were healthy. The portfolio was about 89.2% leased across 203 data centers (including held-for-sale and joint venture assets), with 3.6 million square feet under active development and 1.5 million held for development. Renewal rents rose about 4% on a GAAP basis, and the company signed roughly 2.5 million square feet of new and renewal leases in the quarter. Management guided to $0.7 to $0.9 billion of development capex for the remainder of 2018. Leverage remained conservative, with total debt of about $9.2 billion, a debt-to-enterprise-value ratio near 28%, a weighted average effective interest rate of 3.44%, and 82% of debt fixed or swapped. Key watch items include rising interest costs and depreciation from the DFT integration, a rise in receivables, and cash-flow coverage: operating cash flow of $237.0 million covered the $436.8 million of dividends and distributions only partially, with the shortfall funded by revolver borrowings of $395.7 million net. Investors will also want to monitor the lease expirations (5.7% of rentable square feet through year-end 2018 and 13.9% in 2019) and the pace at which the 3.6 million square feet under development is leased.

    May 8, 2018
  27. 2017-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2017

    Digital Realty Trust's Q3 2017 10-Q shows a transformational quarter driven by the September 14, 2017 closing of the DuPont Fabros Technology (DFT) merger. Total assets nearly doubled to $21.2 billion from $12.2 billion at year-end 2016, goodwill rose to $3.4 billion, and total debt (principal) reached about $8.55 billion versus $5.84 billion at December 31, 2016. Operating revenues grew 11.7% in the quarter to $609.9 million, and nine-month revenues rose 10.3% to $1.73 billion, helped by the European portfolio acquisition and the 15 DFT properties (which contributed roughly $27.2 million of revenue in the quarter). Profitability was sharply weaker on a reported basis. Net income fell to $12.5 million from $222.4 million a year earlier, largely because the prior-year quarter included a $169.0 million gain on property sales, while this quarter's gain was only $9.8 million. Transaction and integration expenses jumped to $42.8 million (including $32.9 million of DFT merger costs), and a $29.0 million impairment was taken on three held-for-sale U.S. properties. Net loss available to common stockholders was $(4.1) million, or $(0.02) per share, versus $187.3 million, or $1.25 per diluted share, in Q3 2016. Investors should note that the share count increased to roughly 205.4 million common shares outstanding, from 159.0 million, reflecting the 43.2 million shares issued in the merger, so per-share comparisons are distorted by dilution from the deal. Balance sheet and liquidity remain solid. Cash rose to $192.6 million, the company had about $1.9 billion available on its $2.0 billion global revolver, and debt represented roughly 24% of total enterprise value at the September 30 share price of $118.33. Portfolio occupancy was approximately 90.8% excluding development space, with about 2.8 million square feet under active development and about 1.7 million square feet held for future development. Management noted that the average remaining lease term is about five years and that scheduled expirations through 2018 are 8.2% of net rentable square footage. Management also disclosed four stockholder class actions related to the merger disclosures, which the parties have agreed to dismiss.

    Nov 9, 2017
  28. 2017-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2017

    Digital Realty Trust (DLR) reported Q2 2017 results that show steady operating growth. Total operating revenues rose 9.9% year over year to $566.0 million for the quarter (and 9.6% to $1.12 billion for the six months), driven by the European Portfolio Acquisition, new leasing at stabilized properties, and higher interconnection revenue. Net income available to common stockholders more than doubled to $57.8 million ($0.36 per diluted share) from $28.0 million, though the comparison is flattered by lower preferred dividends after the April 2017 redemption of Series F preferred stock. Operating income grew 16.4% to $130.7 million, while interest expense fell modestly, and management reported that the portfolio was 89.1% leased across 145 properties. Balance sheet and cash flow picture: Total assets reached $12.58 billion and total debt was about $6.5 billion, with a debt-to-total-enterprise-value ratio of roughly 25% and a weighted average debt term of about 4.8 years. Operating cash flow of $519.3 million for the six months increased 31% from the prior year, but capital expenditures of $431.7 million (including $370.9 million on development) consumed far more cash than operations generated, so the company relied on $1.1 billion of revolver borrowings (net of repayments, $288.5 million in net borrowings) and a €125 million floating-rate note issuance. Management expects $0.4 to $0.6 billion of development spending in the second half of 2017. The filing's most significant item for investors is the pending merger with DuPont Fabros Technology (DFT), announced June 9, 2017, which exchanges each DFT common share for 0.545 DLR shares. Transaction and integration costs rose to $14.2 million in the quarter, and the merger agreement carries a $300 million termination fee payable by DLR and a $150 million fee payable by DFT in specified circumstances. Four stockholder class actions related to the merger disclosures have been filed, and the company characterizes them as without merit. A separate sublease guarantee lawsuit (up to roughly £20 million exposure) was resolved in DLR's favor in July 2017.

    Aug 9, 2017
  29. 2017-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2017

    Digital Realty Trust (DLR) reported first-quarter 2017 results (three months ended March 31, 2017) showing continued top-line growth and expanding earnings. Total operating revenues rose about 9.2% year over year to $550.6 million, from $504.2 million, driven by rental revenue (up $33.0 million to $404.1 million), interconnection revenue (up $10.3 million to $57.2 million) and the European Portfolio Acquisition, which contributed roughly $22.5 million of rental revenue and $3.3 million of interconnection revenue. Net income rose to $84.6 million from $62.3 million, and net income available to common stockholders increased to $66.1 million, or $0.41 diluted per share, versus $0.27 a year earlier. Stabilized-portfolio rental revenue was essentially flat, so growth relied heavily on acquisitions, pre-stabilized properties and interconnection. Balance sheet and liquidity remain substantial but leverage increased. Total assets reached $12.33 billion and total debt was about $6.26 billion at quarter end, with the global revolving credit facility balance rising to $574.4 million from $210.1 million at year end. Management reports a debt-to-total-enterprise-value ratio of roughly 25% and a weighted average debt maturity of about 5.1 years. Operating cash flow was $219.1 million, up from $180.6 million, while investing outflows of $215.6 million were dominated by $254.4 million of property improvements, reflecting an elevated development pipeline of about 1.5 million square feet under active construction and management's expectation of $600 million to $800 million of development capital expenditures over the remainder of 2017. Key items for investors include the April 5, 2017 redemption of all 7.3 million shares of Series F preferred stock (about $183 million at $25.00 per share plus accrued dividends), funded with revolver borrowings, and the expected settlement of 2.375 million remaining forward equity shares by May 19, 2017. The portfolio was 89.4% leased excluding development space, with approximately 92% of leases containing contractual rent escalators. Management also noted the litigation over a sublease guarantee with maximum exposure of about £20 million, and the company continues to face foreign currency exposure, especially to sterling and the euro, with 22.1% of revenue generated outside the United States.

    May 10, 2017
  30. 2016-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2016

    Digital Realty Trust's Q3 2016 10-Q shows a quarter transformed by scale and portfolio recycling. Total operating revenues rose 26% year over year to $546.3 million (nine-month revenue up 24% to $1.57 billion), driven largely by the Telx and Europe Portfolio acquisitions, which added interconnection revenue and depreciation. Net income available to common stockholders was $187.3 million, or $1.25 diluted per share, versus $0.28 a year earlier, but that jump is mainly a $169.0 million gain on property sales (including the $144.3 million gain on the Paris asset sold to Equinix), so investors should look through it to the operating picture. Funds from operations (FFO) was $199.5 million for the quarter, or $1.31 per diluted share, compared with $1.28 a year earlier. The balance sheet grew sharply. Total assets reached $12.3 billion, with goodwill up to $780 million from the Europe acquisition. The company funded the $873 million of nine-month acquisitions largely through a $1.1 billion common stock forward settlement, a $675 million euro-denominated 2024 note offering, and an expanded $1.5 billion unsecured term loan. Total debt was about $6.1 billion, with roughly 91% fixed or hedged, a weighted average maturity near 5.6 years, and a debt-to-enterprise-value ratio of about 27%. Series E preferred stock was redeemed in September 2016, and the company reported 89.9% portfolio occupancy with 1.3 million square feet under active development. Key watch items include continued dependence on acquisition-driven growth, rising G&A ($46.1 million in the quarter vs. $22.8 million), the Brexit-related uncertainty affecting its UK and European exposure (the UK is 11.6% of annualized rent by metro), and foreign currency translation losses that reduced equity. Remaining forward equity shares (2.375 million) and planned development capex of $325 to $475 million in Q4 2016 are also relevant to future dilution and cash needs.

    Nov 9, 2016
  31. 2016-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2016

    Digital Realty Trust's second-quarter 2016 10-Q shows a company growing revenue sharply, largely due to the Telx Acquisition. Total operating revenues for the six months ended June 30, 2016 rose to $1.02 billion from $826.9 million (about 23%), and net income fell to $113.3 million from $260.3 million. The decline in net income reflects the absence of 2015's large gains on property sales ($94.5 million in the six-month 2015 period) and the 2015 benefit from a $42.7 million Sentrum contingent consideration reversal, along with higher depreciation, interest expense and G&A. Net income available to common stockholders was $67.1 million, or $0.46 per diluted share, versus $1.61 a year earlier. Operating cash flow improved to $395.6 million from $355.2 million, supported by the Telx business and new leasing, which funded $299.1 million of investing outflows and $434.9 million of dividends and distributions. Leverage remains moderate: total debt was $6.2 billion, with about 92% fixed rate including swapped debt, an effective interest rate of 3.73%, and debt roughly 26% of total enterprise value. The balance sheet also reflects a forward equity sale of 14.375 million shares, expected to yield about $1.3 billion in net proceeds by May 2017, which will support development and acquisitions. Key near-term items include the Q3 2016 closing of the Paris property sale to Equinix (expected gain of about $142 million) and the sale of a four-property portfolio for about $115 million (expected gain of about $27 million). Portfolio occupancy was roughly 90.4% excluding development space, and the UK's EU referendum was flagged as a source of macroeconomic and currency uncertainty given the UK's roughly 10% share of revenue.

    Aug 9, 2016
  32. 2016-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2016

    Digital Realty Trust's first-quarter 2016 10-Q shows a company growing its revenue base sharply, driven mainly by the Telx Acquisition completed in October 2015. Total operating revenues rose about 24% to $504.2 million from $406.6 million, and rental revenue increased to $371.1 million from $317.8 million. Interconnection and other revenue jumped to $47.0 million from $1.4 million, largely from Telx. Net income fell to $62.3 million from $122.3 million, but the prior-year quarter included a $43.0 million non-recurring gain from a change in fair value of contingent consideration (Sentrum earnout) and a $17.8 million gain on property sales. Net income available to common stockholders was $39.1 million, or $0.27 per diluted share, versus $0.75 a year earlier, and the decline reflects both the lapped gain and higher depreciation, operating and G&A costs. Operating cash flow was $179.4 million, up from $138.9 million, which the company attributes to the Telx acquisition and new leasing at stabilized properties. Portfolio occupancy was approximately 90.9% excluding development space, with about 1.8 million square feet under active development and 1.2 million square feet held for future development. The company refinanced its $2.0 billion global revolving credit facility and its term loan on January 15, 2016, extending maturities to 2020 through 2023. Total debt was about $6.2 billion at a 3.60% effective interest rate, with roughly 82% fixed or hedged. Debt to total enterprise value was about 30%, well below the stated 60% policy limit. Management also reported an annualized 2016 FFO of $1.39 per diluted share and unit for the quarter, compared with $1.56 a year earlier, a decline that partly reflects the Telx-driven increase in share count and depreciation. The filing also covers the combined 10-Q for Digital Realty Trust, Inc. and its operating partnership, Digital Realty Trust, L.P. Balance sheet totals and most figures are essentially identical across the two entities, and the main differences are in equity presentation. Management reports that disclosure controls were effective and that the company is not party to any material legal proceedings.

    May 6, 2016
  33. 2015-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2015

    Digital Realty Trust's Q3 2015 10-Q shows a company in the middle of a major transformation. Total operating revenues rose 5.8% year over year to $436.0 million in the quarter (nine-month revenue of $1.26 billion, up 4.9%), led by rental revenue growth of 6.7%. Net income attributable to common stockholders fell sharply to $38.5 million from $109.3 million, but this comparison is distorted by the $93.5 million gain on the 2014 joint venture contribution. Nine-month net income available to common stockholders rose to $257.3 million from $185.0 million, helped by $94.3 million in property sale gains and a $44.3 million reduction in contingent consideration (the Sentrum earnout), which was a non-recurring benefit. Core operating metrics show portfolio occupancy of about 93.0% and substantial development activity, with roughly 1.4 million square feet under active development. The balance sheet reflects heavy capital recycling and financing activity. Total assets were $9.50 billion and total debt was $4.75 billion, with a debt-to-total-enterprise-value ratio of about 31%. Management reported no material legal proceedings. The company issued $500 million of 3.950% notes due 2022, repaid the 4.50% 2015 notes, and sold three properties for $206 million in gross proceeds. Subsequent to quarter end, the company closed the Telx Holdings acquisition on October 9, 2015, funded through a 10.5 million share forward equity sale (about $674 million net), $242.7 million in Series I preferred stock, and $950 million in new 3.400% 2020 and 4.750% 2025 notes. This significantly increases leverage and integration risk, though the filing notes the company's intent to limit debt to 60% of total enterprise value. For investors, the key takeaways are steady organic rent growth and a large Telx deal that expands the company into colocation and interconnection. Investors should watch execution on Telx integration, development lease-up in the roughly 2.6 million square feet of space under development or held for future development, and the sustainability of earnings once one-time gains and earnout reversals are excluded. Foreign currency weakness against the U.S. dollar, notably in the British pound and euro, also weighed on international revenue and book value.

    Nov 6, 2015
  34. 2015-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2015

    Digital Realty Trust (DLR) reported a solid second quarter of 2015 with net income of $138.0 million (vs. $61.3 million in Q2 2014) and total operating revenues of $420.3 million, up about 4.7% year over year. Six-month results were also strong, with net income of $260.3 million, though that figure is inflated by a $94.5 million gain on property sales and a $42.7 million non-cash reduction in contingent consideration tied to the Sentrum Portfolio. Stabilized portfolio revenue declined slightly, largely due to a weaker British pound and euro, while pre-stabilized properties drove growth from new leases on completed development space. Operating cash flow rose to $355.2 million for the six months (from $315.3 million), and FFO per diluted share was $1.26 for the quarter versus $1.20 a year earlier. The balance sheet remains moderately levered. Total debt was about $4.97 billion, with roughly 74.6% fixed-rate including swapped debt, a weighted effective interest rate of 3.78%, and debt at about 33% of total enterprise value. The company issued $500 million of 3.950% senior notes due 2022 and redeemed the $375 million 4.500% notes due 2015. Management is also executing a capital recycling program, with eight properties held for sale and $172.0 million of associated assets. The most significant subsequent event is the pending acquisition of Telx Holdings for approximately $1.886 billion in cash, which is financed by a $1.85 billion bridge facility and a forward equity sale expected to net about $686.4 million. Investors should weigh the strategic appeal of a colocation and interconnection platform against integration risk, the large increase in leverage, and the REIT-related tax exposure from acquiring a C corporation.

    Aug 6, 2015
  35. 2015-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2015

    Digital Realty Trust's first-quarter 2015 10-Q shows a company that grew revenue and net income year over year, with the largest swing coming from a non-recurring accounting item rather than core operations. Total operating revenues rose 4.1% to $406.6 million (from $390.6 million), driven by rental revenue up $13.4 million and tenant reimbursements up $2.2 million, with pre-stabilized properties contributing most of the increase. Net income more than doubled to $122.3 million from $46.7 million, but this was inflated by a $43.0 million reduction in contingent consideration liability tied to the Sentrum Portfolio (the earnout expired without new leases) and a $17.8 million gain on property sales. Net income available to common stockholders was $101.7 million, or $0.75 per diluted share, versus $0.26 a year earlier. The prior-year period also carried a $12.7 million CEO severance charge in G&A, which flatters the year-over-year comparison in the other direction. Operating fundamentals were steady rather than spectacular. The portfolio was 92.1% leased across 130 properties (24.7 million rentable square feet), and the company signed roughly 0.1 million square feet of new leases and 0.3 million square feet of renewals. Renewal rates were mixed: Turn-Key Flex space rolled down 10.0% on a GAAP basis, while Powered Base Building rose 24.5%. Funds from operations (FFO) rose to $1.56 per diluted share and unit from $1.22, though part of that increase reflects the same one-time items and the absence of 2014 debenture-related dilution. Management also disclosed a $0 (zero) contribution from one-time sales, with two properties sold in Q1 for $45.3 million in aggregate proceeds and a further sale of 833 Chestnut Street after quarter-end. The balance sheet shows rising floating-rate exposure and a sizable reliance on the revolver. Total debt was $4.82 billion (up from $4.67 billion at year-end), with the global revolving credit facility climbing to $826.9 million and about 25% of debt variable rate. The effective interest rate was 3.79%, and the debt-to-enterprise-value ratio was roughly 32%. Accumulated other comprehensive loss widened to $91.6 million, driven by a strong U.S. dollar weakening the value of foreign operations, and foreign-currency sensitivity remains significant given that roughly 22.6% of operating revenue comes from outside the U.S. Investors should note that the $43.0 million non-cash gain and the property-sale gains inflate reported earnings, and that the company's planned 2015 development spend of $625 million to $725 million will need continued access to capital markets.

    May 8, 2015
  36. 2014-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2014

    Digital Realty Trust's Q3 2014 10-Q shows a company growing revenue and continuing its capital recycling strategy. Total operating revenues for the nine months ended September 30, 2014 rose about 9.3% to $1.204 billion from $1.101 billion, driven mainly by same-store leasing, completed development deliveries and new properties. Net income for the nine months was $238.2 million versus $264.8 million a year earlier, a decline driven by lower gains on contributions to joint ventures, a $12.7 million severance charge for the former CEO, and a $12.5 million impairment on two properties. Net income available to common stockholders fell to $185.0 million, or $1.39 per diluted share, from $228.6 million, or $1.79. Funds from operations (FFO) rose to $497.1 million for the nine months from $466.1 million, and diluted FFO per share and unit increased to $3.63 from $3.47. Portfolio occupancy was about 93.0% excluding development space, with 1.3 million square feet under active development. Management indicated it plans to sell non-core assets, and five additional properties were classified as held for use with a carrying value of $143.8 million after the quarter end. Leverage remained moderate, with debt at roughly 33% of total enterprise value and $4.7 billion of consolidated debt, of which about 80% was fixed or hedged. Key financing actions included the April 2014 issuance of £300 million of 4.75% notes due 2023, the $353.3 million Series H preferred offering, and the exchange of $261 million of exchangeable debentures into common stock. Operating cash flow was $472.6 million, up from $454.1 million. For investors, the main positives are steady top-line growth, FFO expansion, and a diversified global portfolio. The main concerns are lower GAAP earnings per share, the reliance on development leasing to drive growth, and exposure to a few large markets such as London, Northern Virginia and Dallas, along with the sensitivity of the business to foreign currency movements.

    Nov 7, 2014
  37. 2014-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2014

    Digital Realty Trust (DLR) reported Q2 2014 results (quarter ended June 30, 2014) in this combined 10-Q for Digital Realty Trust, Inc. and its operating partnership, Digital Realty Trust, L.P. Total operating revenues rose 10.3% year-over-year to $401.4 million for the quarter ($792.0 million for the six months, up 9.7%), driven primarily by same-store leasing, completed development deliveries and new properties. Net income attributable to Digital Realty Trust, Inc. was $60.3 million for the quarter, but net income available to common stockholders fell to $41.5 million from $47.1 million, reflecting higher preferred dividends after the March/April 2014 issuance of 14.6 million shares of 7.375% Series H preferred stock. Diluted EPS was $0.31 versus $0.37 a year earlier. Six-month results were also affected by a $12.7 million severance charge tied to the departure of former CEO Michael Foust, which pushed G&A up roughly $17.2 million for the half-year. The balance sheet expanded and was re-financed toward longer-dated, fixed-rate debt. In April 2014 the company issued £300 million (about $499 million) of 4.750% senior notes due 2023 and used proceeds to pay down the global revolving credit facility, which fell to $374.6 million from $724.7 million at year-end. Holders of the 5.50% exchangeable debentures due 2029 exchanged about $261.2 million for 6.7 million common shares, and the remaining debentures were redeemed in cash. Total debt was $4.86 billion, with roughly 82.6% fixed-rate (including swapped debt), an effective interest rate of 4.10%, and a debt-to-total-enterprise-value ratio of about 35%. Portfolio occupancy was 92.8% across 130 properties, with about 1.4 million square feet under active development and 1.3 million square feet held for future development. Key watch items for investors include the cost of the development pipeline (management expects $425–500 million of development capital expenditures in the second half of 2014), the sale of 6 Braham Street for a $15.9 million gain, continued exposure to London (about 11.8% of annualized rent), and Northern Virginia and Silicon Valley, where management flagged possible oversupply. The company also noted no material legal proceedings and reiterated its REIT distribution policy, with a $0.83 quarterly common dividend declared for September 2014.

    Aug 7, 2014
  38. 2014-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2014

    Digital Realty Trust (DLR) reported Q1 2014 total operating revenues of $390.6 million, up 9.0% from $358.4 million a year earlier, and net income of $46.7 million versus $51.7 million. Net income available to common stockholders fell to $34.2 million ($0.26 diluted EPS) from $42.7 million ($0.34). The decline was driven mainly by a $12.4 million severance charge tied to the departure of former CEO Michael Foust, which sits inside a 53% jump in G&A to $30.7 million, along with higher utility costs and depreciation from newly placed-in-service development projects. Same-store rental revenue grew about 10% year over year, and GAAP rent on renewed space rose 14.3% for Turn-Key Flex and 20.5% for Powered Base Building, indicating solid pricing power in a strong datacenter demand environment. Portfolio occupancy was 92.1% across 131 properties, with about 1.3 million square feet under active development. Balance sheet and capital activity were active during the quarter and immediately after. The company issued $300 million of 7.375% Series H preferred stock (about $353 million net after the April over-allotment and re-opening), and in April it issued £300 million of 4.750% notes due 2023 (about $499 million). Those proceeds were used to temporarily repay the global revolving credit facility, which had $790.5 million drawn at quarter-end. Total debt was $5.0 billion, with roughly 75% fixed-rate including swaps and a 38% debt-to-enterprise-value ratio. In April, holders of most of the 5.50% exchangeable debentures exchanged about $261 million of principal for roughly 6.7 million common shares, which largely removes that dilution overhang. For investors, the key takeaways are strong operating momentum and leasing spreads, a one-time severance hit that depresses reported EPS for the quarter, and a liability-management and preferred-funding program that lengthens the debt maturity profile while keeping leverage in the company's stated target range.

    May 12, 2014
  39. 2013-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2013

    Digital Realty Trust (DLR) reported a strong third quarter 2013 (quarter ended September 30, 2013), with total operating revenues up 11.0% year over year to $379.5 million and nine-month revenues up 18.5% to $1.10 billion. Operating income rose to $85.2 million for the quarter, but net income jumped to $153.5 million (versus $56.9 million), largely due to a $115.1 million non-cash gain on contributing nine Powered Base Building data centers to a 20%-owned joint venture with a Prudential Real Estate Investors (PREI) managed fund. Excluding that gain, earnings growth was driven by new leasing, acquisitions and completed development, partially offset by higher utility, property tax and depreciation expenses. Diluted net income per share for the quarter was $1.06 versus $0.37 a year earlier. The balance sheet expanded meaningfully as the company deployed capital into development and acquisitions. Total assets reached $9.43 billion and total debt stood at about $4.78 billion, with roughly 81.5% fixed-rate (including swapped debt) and an effective interest rate of 4.20%. Management reported debt-to-total-enterprise-value of approximately 38% against a self-imposed 60% limit. Liquidity was supported by a refinanced $2.0 billion global revolving credit facility and a $1.0 billion unsecured term loan, both extended to 2017, and the company issued £400 million of 4.25% notes due 2025 in January 2013. Portfolio occupancy was approximately 92.6%, with 2.8 million square feet held for development, and construction work in progress reached $909.5 million. Key risks flagged include concentration in specific metros (London was 12.0% of annualized rent), a view that Silicon Valley may face oversupply, the heavy capital commitment to speculative inventory before leasing, sensitivity to European currency and economic conditions, and the need for continued capital market access to fund development. The company also announced a $500 million share repurchase program on October 23, 2013, and disclosed a $10.0 million non-cash straight-line rent catch-up related to a 111 8th Avenue leasehold that it deemed immaterial.

    Nov 12, 2013
  40. 2013-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2013

    Digital Realty Trust (DLR) reported its second-quarter 2013 results in this combined Form 10-Q for Digital Realty Trust, Inc. and its operating partnership, Digital Realty Trust, L.P. Total operating revenues rose about 20% year over year to $363.5 million for the quarter ($721.9 million for the first half), driven by new leasing at same-store properties and acquisitions, including the Sentrum Portfolio and 400 S. Akard. Net income attributable to Digital Realty Trust, Inc. was $58.5 million, or $0.37 per diluted share, versus $52.3 million ($0.38 per share) a year earlier, as higher depreciation, interest expense and operating costs offset revenue growth. Quarter-end portfolio occupancy was 93.1% across 127 properties, with 2.8 million square feet held for development. The balance sheet grew substantially. Total assets reached $9.18 billion and total debt was $4.70 billion, against an unchanged internal target of limiting debt to 60% of total enterprise value. The company was at roughly 35% on that measure. The main financing event was a £400 million (about $635 million) 4.250% senior note due 2025, issued in January 2013 by a subsidiary and guaranteed by the company. The company also issued 10 million shares of 5.875% Series G preferred stock in April 2013, raising $250 million gross, and used the proceeds to pay down the revolver. Cash flow from operations was $275.5 million for the six months, while capital expenditures on development and improvements were heavy at $546 million, funded mainly by borrowings. Investors should weigh strong top-line growth and high-quality, long-dated leases against rising leverage, a larger development pipeline (about 1.3 million square feet under construction), and exposure to Europe and Asia Pacific, which now produce roughly 24% of operating revenues. Currency movements also weighed on comprehensive income, with a $62.8 million foreign currency translation loss in the first half.

    Aug 8, 2013
  41. 2013-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2013

    Digital Realty Trust (DLR) reported first-quarter 2013 results (quarter ended March 31, 2013) with total operating revenues of $358.4 million, up 26.6% from $283.1 million a year earlier, and net income of $51.7 million versus $49.3 million. Growth was driven by a larger portfolio, which grew to 122 properties from 102 a year earlier, and by stronger same-store rental revenue, which rose about 11%. Net income available to common stockholders was $42.7 million, or $0.34 per diluted share, down from $0.36 a year earlier, as higher depreciation, interest, and operating expenses outpaced revenue growth. Portfolio occupancy was about 94.0% excluding 2.6 million square feet of space held for development. The balance sheet grew meaningfully. Total assets rose to $8.97 billion from $8.82 billion at year-end 2012, and total debt was about $4.68 billion. The most important financing event was a £400 million (about $635 million) 4.25% senior note due 2025, issued in January 2013, which was used to temporarily repay the global revolving credit facility. Management reports a debt-to-total-enterprise-value ratio of about 34%, against an internal policy cap of 60%. FFO per diluted share and unit was $1.16, up from $1.06. Subsequent to quarter end, the company issued 10 million shares of 5.875% Series G preferred stock for net proceeds of $241.5 million, and it increased its authorized common and preferred shares. Investors should weigh strong top-line growth, active acquisitions and development, and a well-laddered debt profile against rising operating costs, a larger foreign currency exposure (especially to the British pound and euro), and a mix of GAAP rent changes that were negative on Turn-Key Flex renewals. The company also completed the conversion of its Series D preferred stock into common stock during the quarter.

    May 8, 2013
  42. 2012-Q2-A

    DIGITAL REALTY TRUST, INC. Quarterly Report (Amendment) for Q2 Ended Jun 30, 2012

    This filing is an Amendment No. 1 to Digital Realty Trust, Inc.'s (DLR) Quarterly Report on Form 10-Q for the period ended June 30, 2012. The primary purpose of this amendment is to refile Exhibit 2.1, which is the Share Sale and Purchase Agreement dated June 26, 2012, related to the acquisition of Sentrum Holdings Limited. This amendment does not alter the original financial disclosures or operational information provided in the initial 10-Q filing dated August 7, 2012. Investors should note that this filing is procedural and does not introduce new financial data or strategic updates beyond what was originally reported. The key takeaway is the formal inclusion and filing of the significant acquisition agreement for Sentrum Holdings Limited, which was an important transaction for DLR during that period. All other financial statements and disclosures remain as originally filed.

    Dec 21, 2012
  43. 2012-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2012

    Digital Realty Trust's Q3 2012 combined 10-Q shows a company in aggressive growth mode, funded heavily by external capital. Total operating revenues rose 25.3% year over year to $342.5 million for the quarter ($929.3 million for the nine months, up 17.3%). Net income attributable to Digital Realty Trust, Inc. was $55.4 million for the quarter, and net income available to common stockholders was $45.6 million, or $0.37 per diluted share, versus $0.31 a year earlier. FFO per diluted share was $1.13 for the quarter, up from $1.01. Growth was driven by acquisitions, most notably the roughly $1.1 billion Sentrum Portfolio in London (closed July 2012), along with Convergence Business Park, 400 S. Akard Street, and other properties. Total assets grew to $8.5 billion from $6.1 billion at year-end 2011. The balance sheet absorbed this expansion through a mix of equity and debt. The company raised about $797 million of common equity in a July 2012 offering, issued $176 million of 6.625% Series F preferred stock, and sold $300 million of 3.625% senior notes due 2022. It also expanded its global revolving credit facility to $1.8 billion and took a new $750 million unsecured term loan. Total debt reached $4.08 billion, with a debt-to-enterprise-value ratio of about 30% and roughly 82.5% of debt fixed or hedged. Management reports 94.2% portfolio occupancy, 2.2 million square feet of redevelopment space, and a weighted average acquisition cap rate of 7.5%. Investor considerations include rising leverage and foreign exposure. Operating revenue from properties outside the U.S. reached 20.6% of the quarter's total, and the Sentrum deal added significant euro and sterling currency risk. Interest expense grew, and the company disclosed contingent earn-out liabilities and roughly $187 million in construction commitments. Management also guided to $250 million to $350 million of development and redevelopment capital expenditures for Q4 2012. Overall, the filing reflects strong top-line momentum and a REIT dividend profile, balanced against a more levered, more international, and more execution-dependent platform.

    Nov 8, 2012
  44. 2012-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2012

    Digital Realty Trust (DLR) reported its Q2 2012 results in this combined Form 10-Q for Digital Realty Trust, Inc. and its operating partnership, Digital Realty Trust, L.P. Total operating revenues rose 13.4% year over year to $303.7 million for the quarter (from $267.9 million), and net income available to common stockholders was $42.0 million, or $0.38 per diluted share, versus $32.0 million, or $0.33, a year earlier. Growth was driven mainly by same-store rent increases from new leasing, with rents on renewed Turn-Key Flex space up 4.4% and Powered Base Building renewals up 22.1% on a GAAP basis. Occupancy was about 93.5% excluding 2.2 million square feet held for redevelopment, and the portfolio grew to 105 properties from 96 a year earlier. Operating expenses rose more than revenues in dollar terms, led by higher utility costs and depreciation tied to new properties and redevelopments. The balance sheet expanded materially during the period. Total assets reached $6.72 billion, up from $6.10 billion at year-end 2011, and total debt was about $3.4 billion, with roughly 81% fixed-rate or swapped and a weighted average effective rate of 4.67%. The company closed a new $750 million unsecured term loan, issued 7.3 million shares of 6.625% Series F preferred stock for $182.5 million, and raised about $62.7 million through its at-the-market equity program. It also converted the Series C preferred into common stock. Management reported that the Series F preferred and common equity issued in July 2012 (roughly $796.8 million net) were used to fund the approximately $1.1 billion Sentrum Portfolio acquisition in London, which closed July 11, 2012, a subsequent event that will expand the portfolio and is a key forward-looking item for investors. The main risks flagged are sensitivity to a weak tech and datacenter demand cycle, tenant concentration, European debt-crisis exposure (about 13% of revenue from properties outside the U.S.), reliance on the revolving credit facility for funding, and the REIT payout requirement that limits retained earnings. Management also states that disclosure controls were effective as of June 30, 2012.

    Aug 7, 2012
  45. 2012-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2012

    Digital Realty Trust (DLR) reported first-quarter 2012 results showing continued growth in its datacenter-focused REIT business. Total operating revenues rose about 12.9% year over year to $283.1 million from $250.7 million, driven mainly by rental revenue growth of $26.0 million, with same-store rental revenue up roughly 9.8%. Net income increased to $49.3 million from $39.0 million, and net income available to common stockholders was $39.2 million, or $0.36 diluted per share versus $0.33 a year earlier. Funds from operations (FFO) per diluted share and unit rose to $1.06 from $1.02, a figure management highlights as a key performance measure. Portfolio occupancy was approximately 94.8% excluding 2.2 million square feet held for redevelopment, and the company owned 102 properties as of March 31, 2012. The balance sheet expanded as the company invested heavily in growth. Total assets reached $6.42 billion, and total debt rose to $3.27 billion, up from $2.94 billion at year-end 2011, largely because the global revolving credit facility was drawn to $678.6 million to fund a $119 million acquisition (Convergence Business Park in Dallas) and elevated capital spending of $174.1 million. Operating cash flow of $70.5 million did not cover investing outflows of $316.8 million, so the gap was funded through borrowings and about $62.7 million of at-the-market common equity issuance. Debt-to-total-enterprise-value was about 27%, and the weighted average effective interest rate was 4.75%. Subsequent events strengthen liquidity and the capital structure. In April 2012, the company issued 7.3 million shares of 6.625% Series F preferred stock for net proceeds of $175.8 million and closed a new $750 million senior unsecured term loan maturing in 2017. Series C preferred stock was converted into common stock. Investors should note the concentration of revenue in a few metropolitan markets (Silicon Valley 12.8%, Dallas 10.4%, Northern Virginia 10.1%), CenturyLink's roughly 9.2% share of revenue, and the growing reliance on a revolving credit line to fund development.

    May 7, 2012
  46. 2011-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2011

    Digital Realty Trust (DLR) reported a strong third quarter of 2011, with total operating revenues of $273.5 million, up 15% from $237.5 million a year earlier, and nine-month revenues of $792.1 million, up 26%. Net income attributable to Digital Realty Trust, Inc. rose to $36.3 million for the quarter from $23.0 million, and diluted income per share was $0.31 versus $0.11. Growth was driven by same-store leasing, the acquisition of new properties, and construction management fees from the Digital Design Services business (formerly POD Architecture). Portfolio occupancy was 93.7% excluding 2.1 million square feet held for redevelopment, and leasing activity was robust, with Turn-Key Datacenter new leases priced at about $185 per square foot. Balance sheet activity was active. The company raised substantial equity through at-the-market programs, with about $237.6 million net in Q3 and $176.9 million net in the nine months, and issued $287.5 million of 7.000% Series E preferred stock in September. It also issued $400 million of 5.250% senior notes due 2021 in March and fully settled its 4.125% exchangeable debentures due 2026 in cash and shares. Total debt was about $2.8 billion, with roughly 94% fixed-rate or hedged and an effective interest rate of 5.33%. Debt-to-total-enterprise-value was about 30%. Subsequent events included a November 3, 2011 replacement of the corporate and Asia Pacific credit facilities with a $1.5 billion global revolving facility maturing in 2015, plus a 0.68 per share quarterly common dividend declared October 24. Investors should note that development and redevelopment spending is large, with nine-month capital expenditures of $460 million and a guided $150 to $200 million for Q4 2011. Heavy reliance on external capital, a debt maturity profile that includes $163 million on the revolver due in 2012, and sensitivity to tenant concentration (for example, related-party tel(x) and SoftLayer revenue and the Solyndra bankruptcy) are the key risk factors to watch.

    Nov 7, 2011
  47. 2011-Q2

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2011

    Digital Realty Trust (DLR) reported strong second-quarter 2011 results, with total operating revenues of $267.9 million for the three months ended June 30, 2011, up 36% from $197.5 million a year earlier, and net income attributable to common stockholders of $32.0 million ($0.33 per diluted share) versus $9.1 million ($0.11) in Q2 2010. Growth was driven by new leasing at same-store properties, strong demand for datacenter space, and the acquisitions of nine properties over the trailing twelve months. The portfolio was approximately 93.9% leased (excluding 2.1 million square feet held for redevelopment), and FFO per diluted share and unit rose to $1.02 from $0.76 in the prior-year quarter. Balance sheet activity was substantial. Total assets grew to $5.66 billion from $5.33 billion at year-end 2010, funded largely by a $400 million 5.25% senior notes offering due 2021, a completed $400 million at-the-market equity program (about 6.8 million shares), and borrowings under the revolving credit facility. Total debt was about $3.07 billion, with roughly 89% fixed-rate (including hedged debt) and an effective interest rate of 5.13%. The company reported a debt-to-total-enterprise-value ratio of about 31%, and the revolving credit facility, with $341.4 million drawn, was extended to August 2012. Management also highlighted about 944,000 square feet of space under construction and an expected $250-375 million of development and redevelopment capital expenditures in the second half of 2011. Investors should note near-term refinancing and capital needs: the 4.125% exchangeable debentures due 2026 were subject to a repurchase/redemption on August 18, 2011, and a $25 million Prudential note matured July 25, 2011. Acquisitions in July (Sydney and London development sites) and the $53.2 million buyout of the Datacenter Park Dallas joint venture interest show continued capital deployment. The filing is a combined report for Digital Realty Trust, Inc. and its operating partnership, Digital Realty Trust, L.P., which holds substantially all assets; Inc. owned about 95.1% of the operating partnership as of June 30, 2011.

    Aug 5, 2011
  48. 2011-Q1

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2011

    Digital Realty Trust (DLR) reported strong first-quarter 2011 results, with total operating revenues rising 31% year over year to $250.7 million (from $191.8 million) and net income climbing to $39.0 million from $25.6 million. Net income available to common stockholders was $31.0 million, or $0.33 per diluted share, versus $0.18 a year earlier. Growth was driven by new leasing at same-store properties, contributions from roughly 12 properties acquired over the prior twelve months, and higher rental rates on completed redevelopment space. Operating expenses also rose, mainly from higher utility costs, depreciation, and interest expense tied to the expanding portfolio, but operating income still grew about 35% to $74.7 million. The balance sheet and funding profile shifted notably during the quarter. The company issued $400 million of 5.250% senior notes due 2021 in March 2011, which netted roughly $395.5 million and was used largely to pay down the revolving credit facility, which fell to $209.7 million drawn from $333.5 million at year-end. Unsecured senior notes now total $1.47 billion, and the company reports debt at about 33% of total enterprise value and a 93% fixed-rate debt mix, with a weighted average debt maturity of about 5 years. Portfolio occupancy was approximately 93.5% excluding 2.2 million square feet of space held for redevelopment, and the company is planning $325 to $400 million of redevelopment capital expenditures over the remainder of 2011. Investors should weigh the strong growth and improved earnings against the rising capital intensity of the business and some near-term refinancing items. Key watch items include the August 2011 put date and maturity of the 2026 exchangeable debentures, the revolver's August 2011 maturity (subject to extension), and the company's continued reliance on equity issuance and dividends that consume most of its cash flow. Dividends remain at $0.68 per common share quarterly, equal to an annual rate of $2.72.

    May 9, 2011
  49. 2010-Q3

    DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2010

    Digital Realty Trust (DLR) reported a strong third quarter of 2010, with total operating revenues of $237.5 million, up 45% from $163.2 million a year earlier, and nine-month revenues of $626.7 million, up 34%. Growth was driven by the New England Portfolio and 365 Main Portfolio acquisitions, which together added roughly $1.2 billion of properties in 2010, as well as same-store rental increases from new leasing. Net income attributable to common stockholders fell to $9.6 million ($0.11 per diluted share) from $12.4 million ($0.16) a year earlier, reflecting higher depreciation, interest expense ($36.7 million vs. $22.6 million), transaction costs and a $4.2 million charge on Series A preferred redemption. The balance sheet expanded significantly, with total assets rising to $5.17 billion from $3.75 billion at year-end 2009. The company funded growth through a $377 million common stock offering in June, roughly $536 million of net equity proceeds (including at-the-market sales), $500 million of 5.875% notes due 2020, and $375 million of 4.50% notes due 2015. Total debt was $2.72 billion, about 30% of total enterprise value, with a weighted average effective interest rate of 5.35% and 91.9% of debt fixed or hedged. Portfolio occupancy was approximately 95.0% excluding 1.9 million square feet of redevelopment space. Liquidity appears adequate, with $66.5 million of cash and $512.5 million of undrawn revolver capacity. Management also announced a November 2010 notice to redeem all $63.3 million of 7.875% Series B preferred stock, to be funded with revolver borrowings. Key watch items include the August 2011 revolver maturity, the 2026 exchangeable debentures' put date in August 2011, rising interest costs, and tenant concentration in technology-related markets.

    Nov 9, 2010
  50. 2010-Q2-A

    DIGITAL REALTY TRUST, INC. Quarterly Report (Amendment) for Q2 Ended Jun 30, 2010

    This filing is Amendment No. 1 (Form 10-Q/A) to Digital Realty Trust's Quarterly Report for the period ended June 30, 2010. Its sole purpose, per the explanatory note, is to furnish XBRL interactive data files (Exhibit 101) as required by Rule 405 of Regulation S-T. The amendment makes no other substantive changes and does not update disclosures from the original Form 10-Q, filed August 5, 2010. The excerpt provided does not include the financial statements, MD&A, or results of operations, so it contains no revenue, earnings, or cash flow figures. The main investor-relevant content is the exhibit index, which reveals significant capital markets and transaction activity in June and July 2010. These include an asset purchase agreement with MainRock-related sellers, executed through Digital Realty Trust, L.P. and amended several times in mid-June, along with a June 14 exchange agreement with Hudson Bay Fund LP and a July 27 exchange agreement with Basso Holdings Ltd. In July 2010, the company issued 4.50% Notes due 2015 under an indenture dated July 8, 2010, with Digital Realty Trust, Inc. as guarantor, and entered into a related registration rights agreement with the underwriters. Other items in the exhibit index include amendments to the company's revolving credit agreement (Amendment No. 3, June 28, 2010), an amendment to the Prudential note purchase and private shelf agreement (June 30, 2010), and second amendments to the employment agreements of A. William Stein and Christopher J. Crosby. Shares outstanding were 87,303,748 as of July 30, 2010. The company identified itself as a large accelerated filer. Investors seeking operating and financial performance should consult the original 10-Q filed August 5, 2010, which this amendment does not restate.

    Aug 12, 2010