Summary
Digital Realty Trust, Inc. (DLR) reported strong revenue growth in the second quarter of 2017, with total operating revenues increasing by $51.1 million, or 9.9%, year-over-year to $566.0 million. This growth was driven by acquisitions, particularly the European Portfolio Acquisition, and new leasing activity across its portfolio. The company continues to expand its global data center footprint, with 145 properties totaling 26.4 million rentable square feet as of June 30, 2017. Despite increased operating expenses, largely due to acquisitions and development activities, the company maintained a solid financial position with a debt-to-enterprise value ratio of approximately 25%. DLR's strategic focus on data center development and acquisition positions it well to capitalize on the growing demand for digital infrastructure. Key financial highlights include a 12.5% increase in net cash provided by operating activities for the first six months of 2017 compared to the prior year, reaching $519.3 million. The company's liquidity remains strong, supported by its global revolving credit facility and a substantial amount of available capital. DLR continues its commitment to shareholders, maintaining its REIT status by distributing a significant portion of its taxable income. The company is also progressing with its merger with DuPont Fabros Technology, Inc. (DFT), which is expected to further enhance its scale and capabilities.
Financial Highlights
32 data points| Revenue | $565.99M |
| Operating Expenses | $435.33M |
| Operating Income | $130.66M |
| Interest Expense | $57.58M |
| Net Income | $78.65M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 160.83M |
| Shares Outstanding (Diluted) | 161.78M |
Key Highlights
- 1Total operating revenues increased by 9.9% year-over-year to $566.0 million for the quarter, driven by acquisitions and leasing activity.
- 2The company's portfolio expanded to 145 properties, totaling 26.4 million rentable square feet as of June 30, 2017.
- 3Net cash provided by operating activities increased by 12.5% for the first six months of 2017, reaching $519.3 million.
- 4The debt-to-total enterprise value ratio remained conservative at approximately 25% as of June 30, 2017.
- 5Significant capital expenditures of $431.7 million were made in the first half of 2017, primarily for development projects, reflecting investment in future growth.
- 6Digital Realty is actively pursuing a merger with DuPont Fabros Technology (DFT), aiming to enhance its market position.
- 7Occupancy remained strong at 89.1% for the leased portfolio, excluding space under development, with an average remaining lease term of approximately five years.