Summary
Digital Realty Trust, Inc. (DLR) reported solid revenue growth for the six months ending June 30, 2015, with total operating revenues increasing to $826.9 million, up from $792.0 million in the prior year period. This growth was primarily driven by an increase in rental income and tenant reimbursements. The company continues to expand its global data center footprint, owning 132 properties, including those in joint ventures, with approximately 24.2 million rentable square feet. Despite a challenging economic environment with concerns around global market conditions and currency fluctuations, DLR maintained a strong occupancy rate of 93.5% across its portfolio. The company also demonstrated proactive capital management, including the sale of non-strategic assets for approximately $204 million, generating significant gains. DLR issued $500 million in new debt with a 3.950% interest rate due 2022 and repaid existing debt, resulting in a decrease in interest expense for the period. The company's debt-to-enterprise value ratio remained healthy at approximately 33%, indicating a well-managed leverage position. The ongoing development pipeline remains a key focus for future growth.
Financial Highlights
33 data points| Revenue | $420.30M |
| Operating Expenses | $313.24M |
| Operating Income | $107.05M |
| Interest Expense | $46.11M |
| Net Income | $135.51M |
| EPS (Basic) | $0.86 |
| EPS (Diluted) | $0.86 |
| Shares Outstanding (Basic) | 135.81M |
| Shares Outstanding (Diluted) | 136.50M |
Key Highlights
- 1Total operating revenues increased by $34.9 million to $826.9 million for the six months ended June 30, 2015, compared to the same period in 2014.
- 2The company maintained a strong portfolio occupancy rate of 93.5% as of June 30, 2015.
- 3DLR sold three properties (100 Quannapowitt, 3300 East Birch Street, and 833 Chestnut Street) generating approximately $204 million in net proceeds and a net gain of $94.5 million during the first six months of 2015.
- 4The company issued $500 million of 3.950% notes due 2022, demonstrating access to debt capital markets.
- 5Debt-to-total enterprise value ratio was approximately 33% as of June 30, 2015, indicating a conservative leverage profile.
- 6Interest expense decreased by $4.9 million to $91.6 million for the six months ended June 30, 2015, primarily due to debt redemptions.
- 7The company has a significant development pipeline with approximately 1.2 million square feet under active development and 1.3 million square feet held for future development.