Summary
Digital Realty Trust, Inc. (DLR) reported solid revenue growth for the nine months ended September 30, 2011, with total operating revenues increasing by approximately 26.7% to $792.1 million compared to the prior year. This growth was driven by a combination of increased rental income and tenant reimbursements from both existing 'same store' properties and newly acquired assets, alongside significant contributions from construction management services. The company's strategy of investing in and developing technology-related real estate, particularly data centers, continues to be a key driver of its expansion. The company maintained a strong occupancy rate of 93.7% (excluding redevelopment space) and demonstrated effective leasing activity, with rental rates on new and renewed leases showing positive trends. DLR also highlighted its commitment to strengthening its capital structure and liquidity, evidenced by active equity and debt management, including the issuance of new notes and the establishment of a new global revolving credit facility. Despite facing macroeconomic headwinds and potential interest rate fluctuations, DLR's financial position appears robust, supported by its strategic focus on the growing demand for data center space.
Financial Highlights
31 data points| Revenue | $273.48M |
| Operating Expenses | $201.85M |
| Operating Income | $71.63M |
| Interest Expense | $37.08M |
| Net Income | $36.34M |
| EPS (Basic) | $0.32 |
| EPS (Diluted) | $0.31 |
| Shares Outstanding (Basic) | 100.59M |
| Shares Outstanding (Diluted) | 101.91M |
Key Highlights
- 1Total operating revenues increased by 26.7% to $792.1 million for the nine months ended September 30, 2011, compared to $626.7 million in the prior year.
- 2Occupancy rate remained strong at 93.7% for the portfolio (excluding redevelopment space) as of September 30, 2011.
- 3The company actively managed its capital structure, issuing new debt and equity, and establishing a $1.5 billion global revolving credit facility, replacing previous credit lines.
- 4Rental revenue from 'same store' properties increased by 8.9% for the nine months ended September 30, 2011, indicating steady performance of its existing portfolio.
- 5New property acquisitions and development contributed significantly to revenue growth, with total revenues from 'new properties' increasing by 147.5% for the nine months ended September 30, 2011.
- 6DLR's debt-to-total enterprise value ratio was approximately 30% as of September 30, 2011, indicating a manageable leverage level.
- 7Funds From Operations (FFO) available to common stockholders and unitholders increased by 47.3% to $330.7 million for the nine months ended September 30, 2011.