How did Digital Realty Trust's (DLR) revenue performance compare year-over-year in the third quarter of 2007?

DLR reported a significant increase in total operating revenues for the third quarter ended September 30, 2007, reaching $104.8 million, up 48.4% from $70.7 million in the same period of 2006. This growth was driven by both acquisitions of new properties and increased rental revenues from existing properties.

What is the current state of DLR's property portfolio and occupancy rates?

As of September 30, 2007, DLR's portfolio consisted of 67 technology-related real estate properties, totaling 12.0 million rentable square feet. The occupancy rate for the leased portfolio (excluding space held for redevelopment) was robust at 95.1%.

How is DLR managing its debt and capital resources?

DLR maintained a conservative financial position with a debt-to-market capitalization ratio of approximately 31% as of September 30, 2007. The company expanded its unsecured revolving credit facility to $650 million and raised $150.5 million in net proceeds from a common stock offering in October 2007, which was used to repay borrowings under its credit facility. This indicates a strong focus on liquidity and financial flexibility.

What is DLR's strategy for growth, and how is it reflected in the financials?

DLR's growth strategy centers on acquiring and developing technology-focused real estate. This is evident in the acquisition of 15 new properties during the twelve months leading up to September 30, 2007, which significantly contributed to the revenue growth. The company also continues to invest in developing its 1.7 million square feet of redevelopment space, signaling a commitment to expanding its future revenue streams.

DIGITAL REALTY TRUST, INC. 10-Q Quarterly Report Q3 FY2007

Summary

Digital Realty Trust, Inc. (DLR) reported its financial results for the third quarter and the first nine months of 2007. The company demonstrated significant growth in its real estate portfolio, expanding to 67 properties totaling 12.0 million rentable square feet. Total operating revenues for the quarter increased by approximately 48% year-over-year to $104.8 million, driven by both acquisitions and same-store rental revenue growth. Net income available to common stockholders was negative for the quarter at $(0.224) million, primarily due to preferred stock dividends, though it was positive for the nine-month period at $21.0 million. The company maintained a strong occupancy rate of 95.1% (excluding redevelopment space) and continued its strategy of acquiring and developing technology-focused real estate. Financially, DLR raised substantial capital through equity offerings, including $150.5 million in October 2007, and expanded its unsecured revolving credit facility to $650 million. The company's debt-to-market capitalization ratio remained conservative at approximately 31% as of September 30, 2007. While experiencing growth, investors should note the ongoing investments in redevelopment projects and the potential impact of interest rate fluctuations on its variable rate debt.

Key Highlights

1Total operating revenues grew 48.4% to $104.8 million for the third quarter ended September 30, 2007, compared to $70.7 million in the prior year period.
2The company's real estate portfolio expanded to 67 properties (excluding one joint venture investment) with 12.0 million rentable square feet as of September 30, 2007.
3Occupancy rate remained strong at 95.1% for the leased portfolio (excluding redevelopment space).
4Net income available to common stockholders was $(0.224) million for the third quarter, impacted by preferred stock dividends, compared to $11.3 million in the prior year quarter.
5For the nine months ended September 30, 2007, net income available to common stockholders was $21.0 million.
6The company raised $150.5 million in net proceeds from a common stock offering in October 2007 and expanded its unsecured revolving credit facility to $650 million.
7Debt-to-market capitalization ratio was approximately 31% as of September 30, 2007, indicating a conservative leverage position.

DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2007

Summary

Key Highlights

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