What is Digital Realty Trust's (DLR) current occupancy rate and how does it compare to the prior year?

As of September 30, 2009, DLR's portfolio was approximately 95.2% leased, excluding 1.9 million square feet held for redevelopment. This is consistent with the overall portfolio's performance, with 'same store' properties also maintaining strong occupancy.

How is DLR managing its debt and interest rate exposure, especially in the current economic climate?

DLR utilizes a mix of fixed and variable rate debt and employs interest rate swap and cap agreements to mitigate exposure to interest rate fluctuations. As of September 30, 2009, approximately 90.6% of its total debt was fixed rate (including hedged variable rate debt). The company's debt-to-total market capitalization ratio was a manageable 26%.

What are the key risks and challenges facing DLR based on this filing?

Key risks include the impact of deteriorating global economic and market conditions, potential decreases in IT spending, tenant bankruptcies, increased interest rates and operating costs, and challenges in acquiring or operating properties in foreign jurisdictions. The company's specialization in technology-related real estate also exposes it to industry-specific downturns and technological changes.

What are DLR's plans for capital expenditures and acquisitions in the near future?

DLR anticipates incurring approximately $85.0 million to $95.0 million in capital expenditures for its redevelopment program in the three months ending December 31, 2009. For acquisitions during the same period, the company expects to invest between $100.0 million and $105.0 million, though these figures are subject to change based on market conditions and opportunities.

DIGITAL REALTY TRUST, INC. 10-Q Quarterly Report Q3 FY2009

Summary

Digital Realty Trust, Inc. (DLR) reported solid revenue growth for the nine months ended September 30, 2009, driven by acquisitions and strong performance in its same-store properties, despite challenging global economic conditions. The company's strategic focus on technology-related real estate, particularly data centers, continues to be a key driver of its business. While DLR is navigating a difficult economic environment characterized by tight credit markets and reduced IT spending, its portfolio occupancy remains robust at 95.2% (excluding redevelopment space), and its debt-to-market capitalization ratio is a manageable 26% as of September 30, 2009. Key areas of focus for investors include DLR's ongoing expansion of its property portfolio, a significant portion of which is designated for redevelopment, and its capital expenditure plans for the upcoming quarter. The company's proactive approach to managing interest rate risk through swaps and caps, alongside its commitment to maintaining REIT status through distributions, are also crucial considerations. Investors should monitor the company's ability to successfully lease redevelopment space and manage operating expenses, particularly concerning energy costs and potential regulatory changes.

Key Highlights

1Total operating revenues increased by $21.2 million to $163.2 million for the three months ended September 30, 2009, and by $87.0 million to $467.4 million for the nine months ended September 30, 2009, compared to the prior year periods.
2Portfolio occupancy remained strong at 95.2% as of September 30, 2009, excluding approximately 1.9 million square feet of space held for redevelopment.
3The company acquired four new properties in the twelve months ended September 30, 2009, expanding its portfolio to 78 properties.
4Debt-to-total market capitalization was approximately 26% as of September 30, 2009, indicating a relatively conservative leverage position.
5The company reported $41.2 million in cash and cash equivalents, excluding restricted cash, and maintained significant availability under its revolving credit facility ($587.0 million available as of September 30, 2009).
6Despite global economic challenges, the company demonstrated growth through new leasing and acquisitions, particularly in its 'same store' properties.
7The company's focus on technology-related real estate and data centers, while specialized, is seen as a growth sector, though it carries specific industry risks.

DIGITAL REALTY TRUST, INC. Quarterly Report for Q3 Ended Sep 30, 2009

Summary

Key Highlights

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