Summary
Digital Realty Trust, Inc. (DLR) reported its second-quarter 2014 results, showcasing continued revenue growth driven by its extensive portfolio of data center properties and strategic expansion. The company demonstrated robust operational performance, with increasing rental and tenant reimbursement revenues primarily from new leasing and the stabilization of recently developed spaces. DLR's proactive approach to managing its portfolio, including strategic acquisitions and development of new data center facilities, underpins its growth trajectory. Financially, DLR maintained a strong balance sheet, supported by ongoing access to capital markets and credit facilities. The company's focus remains on maximizing long-term shareholder value through sustainable growth in earnings and funds from operations, while prudently managing its leverage. The report highlights DLR's commitment to its core business of investing in and developing technology-related real estate, capitalizing on the increasing demand for data center space globally.
Financial Highlights
31 data points| Revenue | $401.45M |
| Operating Expenses | $308.99M |
| Operating Income | $92.45M |
| Interest Expense | $49.15M |
| Net Income | $60.34M |
| EPS (Basic) | $0.31 |
| EPS (Diluted) | $0.31 |
| Shares Outstanding (Basic) | 133.80M |
| Shares Outstanding (Diluted) | 133.98M |
Key Highlights
- 1Total operating revenues increased by $37.9 million to $401.4 million for the three months ended June 30, 2014, compared to the same period in 2013, driven by growth in rental income and tenant reimbursements.
- 2The company's portfolio comprised 130 properties, including 13 in unconsolidated joint ventures, with approximately 24.5 million rentable square feet as of June 30, 2014.
- 3Occupancy rate for the portfolio was approximately 92.8% as of June 30, 2014, excluding space under active development and held for future development.
- 4Digital Realty Trust, Inc. successfully issued $353.4 million in net proceeds from Series H Cumulative Redeemable Preferred Stock and £300.0 million ($498.9 million) in 4.750% Guaranteed Notes due 2023.
- 5Capital expenditures for development programs during the six months ending December 31, 2014, were estimated to be between $425.0 million and $500.0 million.
- 6Same store rental revenues increased for both the three and six-month periods ending June 30, 2014, compared to 2013, reflecting successful new leasing and delivery of development space.
- 7The company's ratio of debt to total enterprise value was approximately 35% as of June 30, 2014, indicating a manageable leverage level.