Summary
Digital Realty Trust, Inc. (DLR) reported its financial results for the third quarter and nine months ended September 30, 2020. The company experienced revenue growth driven by the Interxion combination, with total operating revenues increasing to $1.02 billion for the quarter and $2.84 billion for the nine months. This growth was partially offset by expiring leases in the stabilized portfolio and property dispositions. Operating expenses saw a significant increase primarily due to the Interxion combination, transaction and integration costs, and higher depreciation and amortization. The company actively managed its debt, completing several refinancing and redemption activities, including issuing new Euro-denominated notes and redeeming existing ones. Operationally, DLR's portfolio expanded to 284 data centers. While the company reported an increase in net cash provided by operating activities, investing activities showed a significant outflow, largely due to real estate acquisitions and development projects, partially offset by proceeds from property sales. Financing activities were robust, reflecting substantial debt and equity issuances to fund its strategic initiatives, including the significant Interxion acquisition. DLR's liquidity remains strong, supported by its revolving credit facilities and operating cash flows.
Financial Highlights
34 data points| Revenue | $1.02B |
| Operating Expenses | $880.26M |
| Operating Income | $144.40M |
| Interest Expense | $89.50M |
| Net Income | -$138K |
| EPS (Basic) | $-0.14 |
| EPS (Diluted) | $-0.14 |
| Shares Outstanding (Basic) | 270.21M |
| Shares Outstanding (Diluted) | 270.21M |
Key Highlights
- 1Total operating revenues increased to $1.02 billion for the third quarter and $2.84 billion for the nine months ended September 30, 2020.
- 2The Interxion combination, completed in March 2020, significantly contributed to revenue growth and portfolio expansion, adding substantial goodwill.
- 3Operating expenses increased significantly due to the Interxion integration, transaction costs, and higher depreciation and amortization.
- 4The company actively managed its debt during the period, issuing new Euro-denominated notes and redeeming existing debt, impacting interest expense and resulting in early extinguishment charges.
- 5Digital Realty's portfolio expanded to 284 data centers, with approximately 5.4 million square feet under active development and 2.4 million square feet held for development.
- 6Net cash provided by operating activities increased, while investing activities saw higher outflows primarily due to acquisitions and development, offset by property sales.
- 7Financing activities were strong, driven by equity issuances (ATM program and forward equity settlement) and debt issuances, supporting overall capital needs.