Summary
Digital Realty Trust, Inc. (DLR) reported its first quarter 2015 financial results, showcasing continued portfolio growth and operational performance. The company owns and operates a significant portfolio of technology-related real estate, primarily data centers, with 130 properties totaling approximately 24.7 million rentable square feet as of March 31, 2015. DLR's strategy focuses on maximizing sustainable long-term growth in earnings and funds from operations per share, along with cash flow and returns to stockholders. Operationally, the company maintained a high occupancy rate of 92.1% across its portfolio, excluding space under development. DLR also reported successful property sales, including three properties generating approximately $161 million in proceeds and significant gains, as part of its capital recycling strategy. While the company faces some risks from global economic conditions, foreign currency fluctuations, and competition, its robust leasing activity, a strong debt-to-enterprise value ratio of approximately 32%, and ample liquidity under its credit facilities position it for continued operations and growth.
Financial Highlights
32 data points| Revenue | $406.61M |
| Operating Expenses | $257.29M |
| Operating Income | $149.32M |
| Interest Expense | $45.47M |
| Net Income | $120.18M |
| EPS (Basic) | $0.75 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 135.70M |
| Shares Outstanding (Diluted) | 136.13M |
Key Highlights
- 1As of March 31, 2015, Digital Realty Trust owned 130 properties, encompassing approximately 24.7 million rentable square feet, with 1.2 million square feet under active development.
- 2The company maintained a portfolio occupancy rate of 92.1%, excluding space under development and held for future development.
- 3DLR successfully executed its capital recycling strategy, selling three properties during the first quarter and April 2015, generating approximately $205 million in net proceeds and significant gains.
- 4Total operating revenues for the first quarter of 2015 increased by $16.0 million to $406.6 million compared to the same period in 2014.
- 5Operating expenses decreased by approximately $43.3 million primarily due to a significant decrease in general and administrative expenses, notably severance costs in the prior year, and a reduction in the fair value of contingent consideration.
- 6The company's debt-to-total enterprise value ratio stood at approximately 32% as of March 31, 2015, indicating a healthy leverage position.
- 7Availability under the global revolving credit facility was approximately $1.1 billion as of March 31, 2015, providing substantial liquidity.