Digital Realty Trust, Inc.(NYSE: DLR) in the fourth quarter 2016 ended 31st December has reported the adjusted funds from operations (FFO) per share of $1.43, which is in line with the analysts’ estimates for the adjusted earnings per share of $1.43. But, the company had reported the adjusted revenue of $486.9 million in the fourth quarter 2016, missing the analysts’ estimates for revenue of $541.8 million.
During the fourth quarter of 2016, Digital Realty has pre-paid $108 million of secured debt. Subsequent to year-end, DLR retired the $50 million Series E Prudential Unsecured Senior Notes at maturity in January 2017. Moreover, as of year-end, 2.375 million shares remained subject to the forward sales agreement originally entered into during the second quarter of 2016. The remainder of the forward sales agreement is expected to settle no later than May 19th, 2017.
Meanwhile, in the Q4 2016 Digital Realty has signed the total bookings representing $33 million of annualized GAAP rental revenue, including a $7 million contribution from interconnection. DLR has also signed renewal leases representing $47 million of annualized GAAP rental revenue during the Q4 quarter. The rental rates on renewal leases signed during the fourth quarter of 2016 rolled up 3.5% on a cash basis and up 5.4% on a GAAP basis.
IN 2016, Digital Realty has closed the previously announced acquisition of a portfolio of eight high-quality, carrier-neutral data centers in Europe in a transaction valued at $874 million (based on the exchange rate at the date of announcement). In addition, Digital Realty has also acquired four land parcels in Ashburn, VA, Franklin Park, IL and Garland, TX for a total purchase price of $48 million in 2016. Separately DLR has also completed the sale of six assets in various markets during 2016 for total net proceeds of $360 million.
Digital Realty expects the full-year 2017 funds from operations per share in the range of $5.90 to $6.10. The total revenue is expected to be in the range of $2.2 – $2.3 billion for 2017 and the expected adjusted EBITDA margin is 57.0% – 59.0%. The 2017 G&A margin is expected to be in the range of 6.0% – 7.0%.
DLR stock has risen 1.9% this morning leading to a total increase of over 31.7% in the last one year (as of 10:32AM EST; Source: Google Finance).