Summary
Digital Realty Trust (DLR) reported solid revenue growth in the second quarter and first half of 2010, driven by acquisitions and increased leasing in its same-store properties. The company's portfolio expanded significantly with the addition of 12 properties in the twelve months leading up to June 30, 2010, bringing the total to 87 properties. Occupancy remained strong at 95.0% excluding redevelopment space. Despite a challenging global economic environment, DLR demonstrated resilience, with operating revenues increasing by approximately 27% and 42% for the three-month and six-month periods ended June 30, 2010, respectively, compared to the prior year. However, increased operating expenses and interest expenses also impacted net income, which saw a slight decrease year-over-year for the three-month period but a modest increase for the six-month period. The company maintained a healthy leverage ratio of approximately 26% of total enterprise value, providing a solid financial footing.
Financial Highlights
30 data points| Revenue | $197.46M |
| Operating Expenses | $143.31M |
| Operating Income | $54.15M |
| Interest Expense | $33.16M |
| Net Income | $19.19M |
| EPS (Basic) | $0.11 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 80.54M |
| Shares Outstanding (Diluted) | 83.02M |
Key Highlights
- 1Portfolio expansion: Acquired 12 new properties in the twelve months preceding June 30, 2010, increasing the total portfolio to 87 properties and approximately 15.2 million net rentable square feet.
- 2Strong occupancy: Maintained a high occupancy rate of 95.0% for leased space, excluding areas held for redevelopment.
- 3Revenue growth: Reported a significant increase in operating revenues, up 27% for the quarter and 42% for the year-to-date period compared to the prior year, driven by new leases and acquisitions.
- 4Healthy leverage: Maintained a conservative debt-to-total enterprise value ratio of approximately 26% as of June 30, 2010.
- 5Secured significant financing: Completed several debt offerings and equity issuances, raising substantial capital to fund acquisitions and general corporate purposes.
- 6Strategic acquisitions: Completed significant acquisitions including the New England Portfolio for approximately $375.0 million and the 365 Main Portfolio for approximately $725.0 million.
- 7Redevelopment focus: Actively managing approximately 1.9 million square feet of space held for redevelopment, with a significant portion under construction for Turn-Key Datacenter® space.