Summary
Digital Realty Trust, Inc. (DLR) reported its financial and operational results for the quarter ending March 31, 2014. The company continues its strategy of investing in and developing technology-related real estate, primarily data centers, to drive long-term growth in earnings and cash flow. The portfolio consists of 131 properties, with significant square footage under development. Despite a slight decrease in net income compared to the prior year, revenues showed growth, driven by new leasing and property acquisitions. The company's balance sheet remains solid, with a manageable debt-to-enterprise value ratio, supported by strong liquidity from its operating partnership's cash flow and credit facilities.
Financial Highlights
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Financial Statements
Beta
| Revenue | $390.59M |
| Operating Expenses | $300.58M |
| Operating Income | $90.01M |
| Interest Expense | $47.37M |
| Net Income | $45.91M |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 128.54M |
| Shares Outstanding (Diluted) | 129.14M |
Key Highlights
- 1Total operating revenues increased to $390.6 million for the three months ended March 31, 2014, up from $358.4 million in the same period of 2013.
- 2The company owned 131 properties, including 13 in unconsolidated joint ventures, with approximately 24.5 million rentable square feet.
- 3As of March 31, 2014, the overall portfolio occupancy rate was 92.1%, excluding space under active or future development.
- 4The company's debt-to-total enterprise value ratio was approximately 38% as of March 31, 2014, indicating a conservative leverage position.
- 5Net cash provided by operating activities increased significantly to $116.4 million for the three months ended March 31, 2014, compared to $89.0 million in the prior year period.
- 6Capital expenditures for development projects decreased to $185.6 million from $201.5 million in the prior year period, reflecting a shift in development phasing.
- 7The company raised approximately $353.2 million in net proceeds from the issuance of Series H Cumulative Redeemable Preferred Stock in March 2014.
Frequently Asked Questions
Digital Realty Trust reported a 9% increase in total operating revenues, reaching $390.6 million for the quarter ended March 31, 2014, compared to $358.4 million in the same period of 2013. This growth was driven by increased rental income from new leasing and property acquisitions.
As of March 31, 2014, Digital Realty's portfolio was approximately 92.1% leased, excluding development space. The company had about 1.3 million square feet under active development and 1.4 million square feet held for future development, indicating continued investment in expanding its data center capacity.
The company maintained a conservative financial position with a debt-to-total enterprise value ratio of approximately 38% as of March 31, 2014. They also successfully raised capital through preferred stock offerings and are supported by a strong liquidity position from their operating partnership's cash flow and credit facilities.
Key risks include global economic and market conditions, dependence on significant tenants, competition in the data center market, interest rate fluctuations, and potential increases in operating expenses, particularly related to utilities and climate change legislation.