How has DLR's property portfolio grown recently?

DLR has experienced significant portfolio growth, acquiring 10 new properties in the nine months ended September 30, 2006. This brought their total to 53 technology-related real estate properties, encompassing 10.4 million rentable square feet.

What is the company's strategy for leasing its properties, especially redevelopment space?

DLR's strategy involves aggressively managing and leasing its assets. They are also exploring subdividing some larger spaces into multi-tenant 'turn-key' data center solutions to cater to tenants who may lack the expertise or capital for extensive data center infrastructure. Approximately 1.2 million square feet are designated for redevelopment, which requires significant capital investment to prepare for use.

What is DLR's current debt situation and financial leverage?

As of September 30, 2006, DLR had approximately $1,074.8 million in outstanding consolidated long-term debt. Their debt-to-market capitalization ratio was about 33%, which is well below their stated limit of 60%, indicating a relatively conservative leverage position.

How does DLR manage its exposure to interest rate fluctuations?

DLR utilizes a combination of fixed-rate debt and interest rate swap agreements to mitigate its exposure to interest rate movements. As of September 30, 2006, about 78.2% of their debt was fixed-rate (including swapped debt), while 21.8% was variable rate.

DIGITAL REALTY TRUST, INC. 10-Q Quarterly Report Q3 FY2006

Summary

Digital Realty Trust, Inc. (DLR) reported its third-quarter results for the period ending September 29, 2006. The company continues its aggressive growth strategy, significantly expanding its portfolio of technology-related real estate properties. During the first nine months of 2006, DLR acquired 10 new properties, bringing its total to 53 properties spanning 10.4 million rentable square feet. This expansion is a key driver of its revenue growth, which increased by approximately 31% year-over-year for the first nine months of 2006. While the company's portfolio is experiencing strong leasing, with an overall occupancy rate of 94.7% (excluding redevelopment space), investors should note the significant portion of space held for redevelopment (approximately 1.2 million square feet) which requires substantial capital investment. DLR's financial position remains robust, with a debt-to-market capitalization ratio of approximately 33% as of September 30, 2006. The company maintains a substantial unsecured revolving credit facility, providing ample liquidity for ongoing operations and future acquisitions. DLR's commitment to its REIT status requires distributing 90% of its taxable income annually.

Key Highlights

1Portfolio expansion: DLR acquired 10 properties in the first nine months of 2006, bringing the total to 53 properties with 10.4 million rentable square feet.
2Revenue growth: Total operating revenues increased by approximately 31% year-over-year for the nine months ended September 30, 2006, driven primarily by property acquisitions.
3Strong occupancy: The overall portfolio occupancy rate was 94.7% as of September 30, 2006 (excluding space held for redevelopment).
4Significant redevelopment space: Approximately 1.2 million square feet (12% of total space) is held for redevelopment, requiring future capital investment.
5Solid financial leverage: The debt-to-market capitalization ratio was approximately 33% as of September 30, 2006, well within the company's target of 60%.
6Ample liquidity: DLR had $27.7 million in cash and cash equivalents and $160 million available under its $500 million unsecured revolving credit facility as of September 30, 2006.
7REIT compliance: The company intends to maintain its REIT status by distributing 90% of its taxable income annually.

DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2006

Summary

Key Highlights

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