What is Digital Realty Trust's primary business focus?

Digital Realty Trust's primary business is investing in and redeveloping technology-related real estate, with a strong focus on data centers and facilities critical to the operations of technology industry tenants.

How is DLR addressing potential interest rate risks?

DLR utilizes a mix of fixed-rate debt and interest rate swap agreements to manage its exposure to interest rate fluctuations. As of June 30, 2008, a significant portion of its debt was either fixed-rate or hedged with swaps.

What is the company's strategy for future growth?

DLR's growth strategy involves acquiring additional technology-related real estate assets, aggressively managing and leasing its existing properties to increase cash flow, and building out its redevelopment portfolio when justified by anticipated returns. They also focus on developing Turn-Key Datacenter™ space.

What are the key risks facing Digital Realty Trust?

Key risks include adverse economic or real estate developments, dependence on significant tenants, increased interest rates and operating costs, difficulties in acquiring or developing properties, increased competition in the data center space, and the company's susceptibility to downturns in the technology industry.

DIGITAL REALTY TRUST, INC. 10-Q Quarterly Report Q2 FY2008

Summary

Digital Realty Trust, Inc. (DLR) reported its second-quarter results for the period ending June 29, 2008. The company demonstrated strong revenue growth, with total operating revenues increasing by 29.5% year-over-year for the quarter and 29.1% for the first six months. This growth was primarily driven by new leasing and the acquisition of 12 new properties in the past year, expanding the portfolio to 74 properties totaling 12.9 million net rentable square feet. The company maintains a high occupancy rate of 95.2% (excluding redevelopment space) and focuses on the specialized technology-related real estate sector, particularly data centers. DLR continues to invest in its redevelopment program, with 1.9 million square feet held for redevelopment, indicating a commitment to future growth. Despite a challenging economic environment, DLR has successfully raised capital through preferred stock and common stock offerings and secured new credit facilities, bolstering its liquidity. The company's debt-to-market capitalization ratio remains conservative at approximately 27%.

Key Highlights

1Total operating revenues increased by approximately 29.5% to $123.8 million for the three months ended June 30, 2008, compared to $95.6 million for the same period in 2007.
2The company's property portfolio expanded to 74 properties, totaling 12.9 million net rentable square feet, with an occupancy rate of 95.2% (excluding redevelopment space) as of June 30, 2008.
3DLR acquired 12 new properties in the twelve months ended June 30, 2008, contributing significantly to revenue growth.
4The company raised $333.6 million in net proceeds from the issuance of Series D cumulative convertible preferred stock in February 2008 and $211.6 million from a common stock offering in July 2008.
5As of June 30, 2008, DLR had approximately $1.4 billion in outstanding consolidated long-term debt, with a debt-to-total market capitalization ratio of approximately 27%.
6The company has a significant redevelopment pipeline, with 1.9 million square feet held for redevelopment, indicating a strategic focus on future development and leasing opportunities.
7DLR secured a $675.0 million revolving credit facility, with $352.0 million available for use as of June 30, 2008, providing strong liquidity.

DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2008

Summary

Key Highlights

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