Summary
Digital Realty Trust, Inc. (DLR) reported a strong third quarter ending September 30, 2012, with total operating revenues growing to $342.5 million, a significant increase from $273.5 million in the same period last year. This growth was driven by the company's strategic acquisitions, including the significant Sentrum Portfolio acquisition, and successful leasing across its existing properties, particularly in Turn-Key FlexSM and Powered Base Building spaces. Despite increasing operating expenses and interest costs, the company managed to grow its net income to $56.9 million from $37.7 million in the prior year's quarter. DLR maintained a healthy occupancy rate of 94.2% (excluding redevelopment space) and a conservative debt-to-enterprise value ratio of approximately 30%, indicating a solid financial position.
Financial Highlights
30 data points| Revenue | $342.48M |
| Operating Expenses | $245.40M |
| Operating Income | $97.08M |
| Interest Expense | $41.05M |
| Net Income | $55.39M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 122.03M |
| Shares Outstanding (Diluted) | 122.35M |
Key Highlights
- 1Total operating revenues increased by $69.0 million to $342.5 million for the three months ended September 30, 2012, compared to the prior year period, driven by acquisitions and new leasing.
- 2Net income grew to $56.9 million for the three months ended September 30, 2012, up from $37.7 million in the same period of 2011.
- 3The company's portfolio expanded to 110 properties totaling 21.2 million net rentable square feet as of September 30, 2012, up from 98 properties and 17.4 million square feet a year prior.
- 4Occupancy rate remained strong at 94.2% (excluding redevelopment space) as of September 30, 2012.
- 5Digital Realty Trust, Inc. successfully raised significant capital through equity offerings, including a common stock offering that generated approximately $797.2 million in net proceeds, strengthening its financial flexibility.
- 6The company maintained a prudent leverage ratio, with debt to total enterprise value at approximately 30% as of September 30, 2012.
- 7Rental rates on renewed leases showed positive trends, with Turn-Key FlexSM space increasing by 5.0% and Powered Base Building space by 21.9% on a GAAP basis.