kvorak wrote: Finally... somebody agrees. The reason people can't answer this question objectively is because it's the WRONG QUESTION, lol. Well said.
Feb. 5, 2010 03:47 PM EST
|
 |
|
|
|
|
Comments
|
From the Wires
Digital Realty Trust, Inc. Reports Third Quarter 2008 Results
Company reports FFO per diluted share and unit of $0.69, up 35.3% from the third quarter 2007, raises 2008 FFO guidance and announces 2009 FFO guidance
By: PR Newswire
Nov. 5, 2008 07:00 AM
"We experienced a record volume of leases signed during the quarter for
our Turn-Key Datacenter(TM) and Powered Base Building(TM) products, including
Fortune 1000 corporate users, large Internet enterprises and international
system integrators seeking high quality, timely, and cost effective solutions
for their immediate datacenter requirements," commented Funds from operations ("FFO") was "The FFO of FFO is a supplemental non-GAAP financial measure used by the real estate industry to measure the operating performance of real estate companies. FFO should not be considered as a substitute for net income determined in accordance with U.S. GAAP as a measure of financial performance. A reconciliation from U.S. GAAP net income available to common stockholders to FFO and a definition of FFO are included as an attachment to this press release. Acquisitions and Leasing Activity As of The Company commenced leases during the quarter totaling approximately
351,000 square feet of space. This includes 190,000 square feet of Turn-Key
Datacenter(TM) space leased at an average annual GAAP rental rate of
approximately In addition, the Company signed leases during the quarter totaling
478,000 square feet of space. This includes 262,000 square feet of Turn-Key
Datacenter(TM) space leased at an average annual GAAP rental rate of
approximately Balance Sheet Update Total assets grew to approximately During the quarter, the Company closed three secured financings with
proceeds totaling up to approximately On On Lastly, on "Since the end of the second quarter of 2008 we were able to source and
close over 2008 Revised and 2009 Outlook FFO per diluted share and unit for the year ending
(Low - High)
Net income available to common
stockholders per diluted share $0.63 - 0.65
Add:
Real estate depreciation and
amortization as adjusted for
minority interest $1.95
Projected FFO per diluted share $2.58 - 2.60
FFO per diluted share and unit for the year ending
(Low - High)
Net income available to common
stockholders per diluted share $0.75 - 0.90
Add:
Real estate depreciation and
amortization as adjusted for
minority interest $2.00
Projected FFO per diluted share $2.75 - 2.90
For the balance of 2008 and the full year 2009, all capital expenditures
are assumed to be funded through available cash and borrowings under the
Company's revolving credit facility. As of
-- The commencement of leases for approximately 500,000 square feet to
570,000 square feet of Turn-Key Datacenter(TM) and Powered Base
Building(TM) space at an average annualized gross rent of $125 per
square foot;
-- The commencement of leases for 150,000 square feet to 165,000 square
feet of basic commercial space at an average annualized gross rent of
$21 per square foot;
-- Total capital expenditures of $275 - $325 million;
-- Total G&A of $47 million, which includes $0.5 million of acquisition
related costs previously capitalized, which now must be expensed under
new accounting rules commencing January 1, 2009; and
-- Additional non-cash interest expense of approximately $4.0 million due
to the adoption of FSP No. APB 14-1.
On Investor Conference Call Details Digital Realty Trust will host a conference call to discuss its 2008 third
quarter results today, About Digital Realty Trust, Inc. Digital Realty Trust, Inc. owns, acquires, redevelops, develops and
manages technology-related real estate. The Company is focused on providing
Turn-Key Datacenter(TM) and Powered Base Building(TM) datacenter solutions for
domestic and international tenants across a variety of industry verticals
ranging from information technology and internet enterprises, to manufacturing
and financial services. Digital Realty Trust's 74 properties, excluding one
property held as an investment in an unconsolidated joint venture, contain
applications and operations critical to the day-to-day operations of
technology industry tenants and corporate enterprise datacenter tenants.
Comprising approximately 12.9 million rentable square feet as of Safe Harbor Statement This press release contains forward-looking statements which are based on
current expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to differ
materially. Such forward looking statements include statements related to the
Company's expected future financial and other results, and the assumptions
underlying those expected results, for the years ending
Digital Realty Trust, Inc.
Consolidated Statements of Operations
(in thousands, except share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
Operating
Revenues:
Rental $102,449 $82,536 $293,161 $234,529
Tenant
reimbursements 29,882 22,104 77,367 54,414
Other 9,685 154 9,811 401
Total
operating
revenues 142,016 104,794 380,339 289,344
Operating Expenses:
Rental property
operating and
maintenance 39,784 30,539 107,744 75,643
Property taxes 8,689 7,859 25,335 22,741
Insurance 1,252 1,356 3,655 4,201
Depreciation and
amortization 46,520 35,345 125,227 96,576
General and
administrative 11,348 7,775 30,016 23,441
Other 891 495 1,480 811
Total operating
expenses 108,484 83,369 293,457 223,413
Operating
income 33,532 21,425 86,882 65,931
Other Income
(Expenses):
Equity in earnings
of unconsolidated
joint venture 178 (237) 509 524
Interest and other
income 453 621 1,515 1,666
Interest expense (15,094) (16,683) (44,007) (48,541)
Loss from early
extinguishment of
debt - - (182) -
Income from
continuing
operations
before minority
interests 19,069 5,126 44,717 19,580
Minority interests
in consolidated
joint ventures (196) - (246) -
Minority interests
in continuing
operations of
operating
partnership (688) 25 (1,348) (781)
Income from
continuing
operations 18,185 5,151 43,123 18,799
Income from
discontinued
operations before
gain on sale of
assets and
minority interests - (18) - 1,395
Gain on sale of
assets - - - 18,049
Minority interests
attributable to
discontinued
operations - 2 - (3,264)
Income (loss) from
discontinued
operations (1) - (16) - 16,180
Net income 18,185 5,135 43,123 34,979
Preferred stock
dividends (10,102) (5,359) (28,462) (13,971)
Net income
(loss)
available to
common
stockholders $8,083 $(224) $14,661 $21,008
Net income per
share available
to common
stockholders:
Basic $0.11 $- $0.22 $0.35
Diluted $0.11 $- $0.21 $0.34
Weighted average
shares
outstanding:
Basic 70,916,019 60,717,153 67,425,030 59,324,104
Diluted 73,338,871 60,717,153 69,440,812 61,365,281
(1) During 2007, we sold 100 Technology Center Drive (March 2007) and
4055 Valley View Lane (March 2007) We have presented all activity for
these properties in Income from discontinued operations for all
periods presented above. This will cause individual line items above
to differ from previously published information but does not effect
net income available to common stockholders.
Digital Realty Trust
Consolidated Balance Sheets
(in thousands)
September 30, 2008 December 31, 2007
ASSETS (unaudited)
Investments in real estate
Properties:
Land $321,104 $316,196
Acquired ground leases 2,743 2,790
Buildings and improvements 2,321,245 1,968,850
Tenant improvements 252,813 193,436
Investments in properties 2,897,905 2,481,272
Accumulated depreciation and
amortization (270,016) (188,099)
Net investments in properties 2,627,889 2,293,173
Investment in unconsolidated joint
venture 7,370 8,521
Net investments in real estate 2,635,259 2,301,694
Cash and cash equivalents 41,978 31,352
Accounts and other receivables, net 53,809 43,440
Deferred rent 88,909 64,639
Acquired above market leases, net 33,433 38,762
Acquired in place lease value and
deferred leasing costs, net 228,144 253,642
Deferred financing costs, net 17,781 17,610
Restricted cash 45,397 41,302
Other assets 14,175 17,023
Total Assets $3,158,885 $2,809,464
LIABILITIES AND STOCKHOLDERS'
EQUITY
Revolving credit facility $43,969 $299,731
Unsecured senior notes 25,000 -
Mortgage loans 1,042,249 895,507
Exchangeable senior debentures 172,500 172,500
Accounts payable and other accrued
liabilities 151,851 176,143
Accrued dividends and distributions - 22,345
Acquired below market leases, net 81,542 93,572
Security deposits and prepaid rents 30,999 27,839
Total Liabilities 1,548,110 1,687,637
Minority interests in consolidated
joint ventures 15,417 4,928
Minority interests in operating
partnership 67,983 72,983
Stockholders' Equity 1,527,375 1,043,916
Total Liabilities and Stockholders'
Equity $3,158,885 $2,809,464
Digital Realty Trust, Inc.Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO)
(in thousands, except per share and unit data)
(unaudited)
Three Months Ended Nine Months Ended
September June 30, September September September
30, 2008 2008 30, 2007 30, 2008 30, 2007
Net income available
to common
stockholders $8,083 $3,728 $(224) $14,661 $21,008
Adjustments:
Minority interests
in operating
partnership
including
discontinued
operations 688 366 (27) 1,348 4,045
Real estate
related
depreciation and
amortization (1) 46,331 39,393 35,216 124,702 96,567
Real estate related
depreciation and
amortization
related to
investment in
unconsolidated
joint
venture 859 872 969 2,625 3,015
Gain on sale of
assets - - - - (18,049)
FFO available to
common
stockholders and
unitholders (2) $55,961 $44,359 $35,934 $143,336 $106,586
Basic FFO per share
and unit $0.73 $0.61 $0.53 $1.94 $1.57
Diluted FFO per
share and
unit (2) $0.69 $0.59 $0.51 $1.86 $1.52
Weighted average
common stock and
units outstanding
Basic 76,953 72,354 67,995 73,839 67,957
Diluted (2) 91,209 86,366 69,937 86,634 69,998
(1) Real estate
depreciation
and
amortization
was computed
as follows:
Depreciation
and
amortization
per income
statement 46,520 39,570 35,345 125,227 96,576
Depreciation
and
amortization
of
discontinued
operations - - - - 379
Non real estate
depreciation (189) (177) (129) (525) (388)
$46,331 $39,393 $35,216 $124,702 $96,567
(2) At 9/30/08, we had 7,000,000 series C convertible preferred shares and
13,800,000 series D convertible preferred shares outstanding that were
convertible into 3,614,800 common shares and 8,217,900 common shares,
respectively. See below for calculations of diluted FFO available to
common stockholders and unitholders and weighted average common stock
and units outstanding.
Three Months Ended Nine Months Ended
September June 30, September September September
30, 2008 2008 30, 2007 30, 2008 30, 2007
FFO available to common
stockholders and
unitholders $55,961 $44,359 $35,934 $143,336 $106,586
Add: Series C convertible
preferred dividends 1,914 1,914 - 5,742 -
Add: Series D convertible
preferred dividends 4,744 4,744 - 12,386 -
FFO available to common
stockholders and
unitholders -- diluted $62,619 $51,017 $35,934 $161,464 $106,586
Weighted average common
stock and units
outstanding 76,953 72,354 67,995 73,839 67,957
Add: Effect of dilutive
securities (excluding
series C and D convertible
preferred stock) 2,423 2,179 1,942 2,016 2,041
Add: Effect of dilutive
series C convertible
preferred stock 3,615 3,615 - 3,615 -
Add: Effect of dilutive
series D convertible
preferred stock 8,218 8,218 - 7,164 -
Weighted average common
stock and units
outstanding -- diluted 91,209 86,366 69,937 86,634 69,998
Note Regarding Funds From Operations Digital Realty Trust calculates Funds from Operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT. FFO represents net income (loss) available to common stockholders and unitholders (computed in accordance with U.S. GAAP), excluding gains (or losses) from sales of property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. Digital Realty Trust also believes that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to such other REITs' FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of our performance.
For Additional Information:
A. William Stein Pamela Matthews
Chief Financial Officer and Investor/Analyst Information
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. +1 (415) 738-6500
+1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
|
SYS-CON Featured Whitepapers
Most Read This Week |
||||||||||||||||||||||||||||||||||||
|
|
| | | | | | | | |
|
|
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
| SYS-CON MEDIA: | | | | |
| SYS-CON EVENTS: | | | | | |
| INTERNATIONAL SITES: | | | | | | | | | | |
 |
Terms of Use & Our Privacy Statement  About Newsfeeds / Video Feeds |
| Copyright ©1994-2008 SYS-CON Publications, Inc. All Rights Reserved. All marks are trademarks of SYS-CON Media. |
| Reproduction in whole or in part in any form or medium without express written permission of SYS-CON Publications, Inc. is prohibited. |
.gif)
