Summary
Digital Realty Trust, Inc. (DLR) reported its third-quarter results for the period ending September 29, 2017. The company completed a significant merger with DuPont Fabros Technology, Inc. (DFT) in September 2017, which is expected to expand its data center portfolio. Total operating revenues for the nine months ended September 30, 2017, increased by approximately 10.3% year-over-year to $1.73 billion, driven by growth in rental income and tenant reimbursements, particularly from recently acquired properties. The company's portfolio as of September 30, 2017, comprised 159 properties, a notable increase from the previous year, reflecting the DFT acquisition. Occupancy remained strong at 90.8% for operating properties (excluding space under development). While the company experienced increased operating expenses, largely due to the DFT merger and ongoing development activities, it also saw an increase in net cash provided by operating activities, demonstrating its operational resilience. DLR's financial condition remains robust, with a debt-to-enterprise value ratio of approximately 24% as of September 30, 2017, indicating a prudent approach to leverage.
Financial Highlights
32 data points| Revenue | $609.92M |
| Operating Expenses | $543.77M |
| Operating Income | $66.16M |
| Interest Expense | $71.62M |
| Net Income | $12.44M |
| EPS (Basic) | $-0.02 |
| EPS (Diluted) | $-0.02 |
| Shares Outstanding (Basic) | 170.19M |
| Shares Outstanding (Diluted) | 170.19M |
Key Highlights
- 1Completed the significant merger with DuPont Fabros Technology, Inc. (DFT) in September 2017, expanding the company's data center footprint.
- 2Total operating revenues for the nine months ended September 30, 2017, increased by 10.3% to $1.73 billion compared to the prior year period.
- 3The company's portfolio grew to 159 properties as of September 30, 2017, up from 144 properties in the prior year, largely due to the DFT acquisition.
- 4Portfolio occupancy remained strong at 90.8% as of September 30, 2017, excluding space under development, indicating healthy demand for its facilities.
- 5Net cash provided by operating activities increased by approximately 8.7% for the nine months ended September 30, 2017, compared to the same period in 2016.
- 6The debt-to-total enterprise value ratio was approximately 24% as of September 30, 2017, suggesting a conservative leverage position.
- 7Transaction and integration expenses increased significantly due to merger-related costs, impacting short-term profitability but are expected to be offset by long-term synergies.