Summary
Digital Realty Trust, Inc. (DLR) reported solid performance in its second quarter of 2011, demonstrating robust revenue growth driven by both existing and newly acquired properties. The company's strategic focus on technology-related real estate, particularly data centers, continues to yield positive results, with a significant increase in operating revenues of approximately 35% year-over-year for the quarter. This growth is attributed to strong leasing activity, successful redevelopment projects, and the acquisition of nine new properties in the preceding twelve months. Despite a challenging macroeconomic environment, DLR maintained a high occupancy rate of 93.9% (excluding space held for redevelopment) and demonstrated an ability to increase rental rates on new and renewed leases, especially for its specialized Turn-Key Datacenter® offerings. The company's financial position remains stable, supported by a strong balance sheet and ongoing access to capital through its at-the-market equity distribution program and revolving credit facility. DLR's commitment to its REIT status is evident through its dividend distribution policy, which has historically been 100% of taxable income.
Financial Highlights
31 data points| Revenue | $267.88M |
| Operating Expenses | $191.16M |
| Operating Income | $76.72M |
| Interest Expense | $39.33M |
| Net Income | $36.70M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 96.30M |
| Shares Outstanding (Diluted) | 97.51M |
Key Highlights
- 1Total operating revenues increased by approximately 35.7% year-over-year for the three months ended June 30, 2011, reaching $267.9 million.
- 2The company's portfolio expanded to 96 properties (excluding joint ventures) with 17.1 million net rentable square feet, up from 87 properties and 15.2 million square feet in the prior year period.
- 3Occupancy rate remained strong at 93.9% (excluding space held for redevelopment) as of June 30, 2011.
- 4New leasing activity, particularly for Turn-Key Datacenter® space, saw increased rental rates, with an average of 8.43% increase on renewals and a significant premium on new leases.
- 5Digital Realty Trust, Inc. raised approximately $171.2 million in net proceeds from its At-the-Market equity distribution program during the quarter.
- 6The company's debt-to-total enterprise value ratio was approximately 31% as of June 30, 2011, indicating a healthy leverage position.
- 7Funds From Operations (FFO) available to common stockholders and unitholders increased by approximately 58.7% year-over-year for the quarter to $110.9 million.