10-QPeriod: Q1 FY2013

DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 8, 2013For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) reported its first quarter 2013 results, demonstrating continued growth in its global data center portfolio. The company's total operating revenues increased by 26.6% year-over-year to $358.4 million, driven by a significant expansion in its property portfolio and new leasing activity. Net income also saw a modest increase to $51.7 million. DLR continues to invest heavily in development, with $749.6 million in construction work in progress as of March 31, 2013, signaling a commitment to future growth. Financially, DLR maintains a solid balance sheet with a debt-to-enterprise value ratio of approximately 34%, indicating prudent leverage. The company also successfully raised significant capital through the issuance of new notes and preferred stock, bolstering its liquidity. Despite potential economic headwinds and the capital-intensive nature of its business, DLR's strategic focus on technology-related real estate and its robust leasing pipeline position it for continued operational performance.

Financial Highlights

30 data points
Beta

Revenue

$358.37M

Net Income

$50.71M

14.2% Net Margin

EPS (Diluted)

$0.34

Total Assets

$8.97B

Cash & Equivalents

$42.13M

Free Cash Flow

$89.04M

Financial Statements
Beta
Revenue$358.37M
Operating Expenses$259.78M
Operating Income$98.59M
Interest Expense$48.08M
Net Income$50.71M
EPS (Basic)$0.34
EPS (Diluted)$0.34
Shares Outstanding (Basic)126.45M
Shares Outstanding (Diluted)126.74M

Key Highlights

  • 1Total operating revenues grew to $358.4 million for the first three months of 2013, a 26.6% increase from $283.1 million in the same period of 2012.
  • 2Net income for the quarter was $51.7 million, up from $49.3 million in the prior year's first quarter.
  • 3The company's portfolio expanded to 122 properties totaling 22.7 million rentable square feet, including 2.6 million square feet held for development.
  • 4DLR acquired 16 properties and developed four properties in the twelve months preceding March 31, 2013, contributing to revenue growth.
  • 5The debt-to-total enterprise value ratio stood at approximately 34% as of March 31, 2013, indicating controlled leverage.
  • 6Significant capital was raised through the issuance of £400 million in 4.250% Guaranteed Notes due 2025 and $241.5 million in Series G Cumulative Redeemable Preferred Stock.
  • 7Construction work in progress totaled $749.6 million, reflecting substantial ongoing development projects.

Frequently Asked Questions

Digital Realty Trust's total operating revenues increased by 26.6% from $283.1 million in the first quarter of 2012 to $358.4 million in the first quarter of 2013.

As of March 31, 2013, Digital Realty Trust maintained a debt-to-total enterprise value ratio of approximately 34%, indicating a controlled leverage strategy. The company also actively uses interest rate swaps to manage its exposure to interest rate fluctuations on its variable rate debt.

The company's growth strategy focuses on investing in and developing technology-related real estate, specifically data centers. They are actively acquiring new assets and developing existing space, as evidenced by the $749.6 million in construction work in progress and plans for future capital expenditures.

Yes, the report highlights several risks, including global economic and market conditions, dependence on significant tenants, increased interest rates and operating costs, competition, and potential decreases in demand for data center space due to technological changes or economic slowdowns. Investors should review the 'Factors Which May Influence Future Results of Operations' section for a comprehensive understanding.