Summary
Digital Realty Trust, Inc. (DLR) reported solid revenue growth in the second quarter and first half of 2009 compared to the prior year, driven by increased leasing activity and recent property acquisitions. Despite the challenging global economic environment, the company maintained a high occupancy rate of 94.8% (excluding redevelopment space) and demonstrated its ability to secure new leases, particularly for its specialized datacenter facilities. The company also managed its debt effectively, maintaining a debt-to-market capitalization ratio of approximately 30% as of June 30, 2009, indicating financial stability in a tight credit market. The company's strategic focus on technology-related real estate, including datacenter development and redevelopment, positions it to benefit from long-term growth trends in corporate IT infrastructure. While acknowledging potential risks from economic downturns and shifts in technology, DLR's operational performance and proactive capital management suggest resilience. Investors should note the company's continued investment in redevelopment and acquisitions, aimed at expanding its portfolio and enhancing long-term earnings and cash flow.
Financial Highlights
22 data points| Revenue | $155.01M |
| Operating Expenses | $112.16M |
| Operating Income | $42.85M |
| Interest Expense | $22.50M |
| Net Income | $20.37M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 76.12M |
| Shares Outstanding (Diluted) | 76.85M |
Key Highlights
- 1Total operating revenues increased by 25% year-over-year for the three months ended June 30, 2009, reaching $155.0 million, and by 27% for the six months ended June 30, 2009, reaching $304.1 million.
- 2The portfolio maintained a high occupancy rate of 94.8% as of June 30, 2009, excluding 1.1 million square feet of space held for redevelopment.
- 3Rental revenue growth was strong, with same-store rental revenues up by $24.5 million and $47.8 million for the three and six-month periods, respectively, driven by new leasing and completed redevelopment space.
- 4The company maintained a healthy debt-to-total market capitalization ratio of approximately 30% as of June 30, 2009, indicating a manageable debt load.
- 5Significant investments continue in redevelopment and acquisitions, with anticipated capital expenditures for the redevelopment program between $150-$160 million for the second half of 2009 and expected acquisitions of $120-$200 million.
- 6The company's revolving credit facility remained largely available, with $673.5 million available for use as of June 30, 2009, providing significant liquidity.
- 7Operating income increased by 47% year-over-year for the three months ended June 30, 2009, to $42.8 million, and by 51% for the six months ended June 30, 2009, to $82.0 million, demonstrating improved profitability.