SAN FRANCISCO—Locally based Digital Realty Trust Inc. revealed the fourth quarter and full-year 2014 showing that revenues were $412 million for the fourth quarter of 2014, consistent with the previous quarter and an 8% increase over the same quarter last year. Revenues were $1.6 billion for the full-year 2014, a 9% increase over 2013.
"Demand for our data center solutions remains robust, as evidenced by new lease signings of $46 million in annualized GAAP rental revenue," says CEO and CFO Bill Stein.
"We made significant progress leasing up finished inventory during the fourth quarter, contributing to further improvement in our return on invested capital. The data center supply environment has largely rationalized, leading to a gradual recovery in landlord leasing economics."
And according to analyst Jonathan Peterson of MLV & Co., “DLR's income statement will face several headwinds in 2015: first, the strong US Dollar, which has a negative impact on international NOI, and second, DLR's plan to sell up to $400 million of properties. That said, DLR's capital recycling initiative should improve the quality of the overall portfolio and be a positive in the long run.”
In terms of capital deployment, Peterson says that “with DLR's stock price back at a premium to NAV, the company is set up to be an acquirer and consolidator in the sector—the recently announced acquisition of Interxion by Telecity in Europe, which has not closed, was discussed on the call, and management did not rule out the possibility of getting involved in a bid for Interxion.”
Highlights for the company's earnings include the following:
*Reported FFO per share of $1.40 in 4Q14, compared to $1.26 in 4Q13.
*Reported FFO of $5.04 for the full year of 2014, compared to $4.74 in 2013.
*Reported core FFO per share of $1.26 in 4Q14, compared to $1.26 in 4Q13.
*Reported core FFO of $4.96 for the full year of 2014, compared to $4.78 in 2013;
*Signed leases during 4Q14 expected to generate $46 million in annualized GAAP rental revenue, bringing the full-year 2014 total to $159 million;
*Improved portfolio occupancy 20 basis points sequentially to 93.2% in 4Q14, compared to 93.0% in 3Q14; and
*Reiterated 2015 core FFO per share outlook of $5.00 - $5.10.
GlobeSt.com previously reported the firm's preliminary results. To compare those numbers to these, click here.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
