(WEB HOST INDUSTRY REVIEW) — Corporate and Internet gateway data center facility owner and manager Digital Realty Trust (www.digitalrealtytrust.com) has seen a 4.2 percent increase in funds from operations on a diluted basis from the previous quarter, reaching $74.7 million in the third quarter of 2009, according to the financial results for the third quarter of 2009.
According to its Thursday announcement, DRT also reported total operating revenues of $163.2 million in the third quarter of 2009, ending September 30, 2009, up 5.3 percent from $155.0 million in the second quarter of 2009 and up 14.9 percent from $142.0 million in the third quarter of 2008. Also, DRT’s third quarter net income of $23.9 million was up 12.7 percent from its second quarter results and up 29.9 percent from $18.4 million in the third quarter of 2008.
“There were no material non-recurring items impacting FFO or net income in the quarters ended September 30 and June 30, 2009,” Digital Realty Trust chief financial officer and chief investment officer A. William Stein stated. “For the quarter ended September 30, 2008, the FFO of $0.68 per diluted share and unit included additional FFO from certain significant items that do not represent ongoing revenue streams (primarily lease termination fees). After adjusting for these items, FFO would have been $0.62 per diluted share and unit. This represents an FFO increase of 19.4 percent over the same period last year after adjusting for these items.”
DRT has been steadily expanding its data center space in the third quarter. In September, DRT acquired a controlling interest in a joint venture redevelopment project, the Digital Realty Trust Datacenter Park – Dallas, consisting of seven buildings totaling approximately 796,000 square feet. The 69-acre property also contains several developable land sites and a private substation with 40 MW of immediate availability, which is expandable up to 125 MW. Additionally, DRT acquired a 42,000-square-foot data center located in Sunnyvale, California, and the remaining non-controlling ownership interest in a 42,000-square-foot property located in Santa Clara, California from its joint venture partner.
“We are pleased to report another strong performance in the third quarter,” Digital Realty Trust chief executive officer Michael F. Foust said in a statement. “Our strong balance sheet, leading global market position in the wholesale data center space and unmatched technical expertise continue to provide us with opportunities to expand our business. We expect income producing acquisitions will take a larger role in our investment strategy, contributing external earnings growth to complement internal growth from our ongoing development and leasing activities.”
For the third quarter, DRT commenced leases totaling approximately 101,000 square feet of space, including approximately 90,000 square feet of “Turn-Key Datacenter” space leased at an average annual rental rate of $187.00 per square foot and approximately 11,000 square feet of non-technical space leased at an average annual rate of $25.00 per square foot.
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