Press release from PR Newswire
Digital Realty Announces Leasing Results For The Second Quarter Of 2012
Wednesday, July 18, 2012
Digital Realty Announces Leasing Results For The Second Quarter Of 201207:00 EDT Wednesday, July 18, 2012Lease signings increase in the second quarter totaling over $32.1 million of annualized GAAP rental revenueSAN FRANCISCO, July 18, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, today announced leasing results for the second quarter of 2012. The Company signed leases during the quarter ended June 30, 2012 totaling over $32.1 million of annualized GAAP rental revenue, including $1.1 million of colocation revenue. Leases signed totaled approximately 210,000 square feet, including approximately 189,000 square feet of Turn-Key Flex(SM) data center space leased at an average annual GAAP rental rate of $160.00 per square foot, approximately 5,000 square feet of Powered Base Building® space leased at an average annual GAAP rental rate of $32.00 per square foot, and 16,000 square feet of non-technical space leased at an average annual GAAP rental rate of $38.00 per square foot."U.S. lease signings and rental rates increased significantly during the second quarter from our seasonally low first quarter as we began to capture more of the demand we have been tracking across our markets," said Michael F. Foust, Chief Executive Officer of Digital Realty. "We have a good funnel of new prospects, including build-to-suit opportunities, heading into the second half of 2012. However, we expect the longer sales cycle to impact the timing of commencements in 2012 and plan to discuss this in further detail on our earnings call next week. In addition, we are ramping up our sales and engineering teams in a number of our major markets to further expand our reach."Of the total leases signed during the second quarter of 2012, over 181,000 square feet was for space located in the Company's U.S. portfolio. This includes approximately 161,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $149.00 per square foot, approximately 5,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $32.00 per square foot and over 11,000 square feet of non-technical space leased at an average annual GAAP rental rate of $36.00 per square foot. Leases signed during the second quarter of 2012 for space in the Company's Asia Pacific portfolio in Sydney and Singapore totaled over 28,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $221.00 per square foot and over 4,000 square feet of non-technical space leased at an average annual GAAP rental rate of $43.00 per square foot. For the quarter ended June 30, 2012, the Company commenced leases totaling approximately $30.4 million of annualized GAAP rental revenue, including approximately $1.7 million of colocation revenue. Commenced leases totaled approximately 209,000 square feet, including 158,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of approximately $163.00 per square foot, approximately 40,000 square feet of Build-to-Suit space leased at an average annual GAAP rental rate of approximately $62.00 per square foot, and 11,000 square feet of non-technical space leased at an average annual GAAP rental rate of approximately $35.00 per square foot. About Digital Realty Trust, Inc.Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center needs. Digital Realty's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty's 108 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 20.8 million square feet as of July 17, 2012, including 2.3 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 32 markets throughout Europe, North America, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at http://www.digitalrealty.com.Safe Harbor StatementThis 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, including statements related to rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, our prospects for new leasing and build-to-suit opportunities, and impact of the longer sales cycle on the timing of lease commencements in 2012. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. government's credit rating; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or redeveloped properties or business; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2011 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For Additional InformationA. William Stein Pamela M. Garibaldi Chief Financial Officer and Vice President, Investor Relations Chief Investment Officer and Corporate Marketing Digital Realty Trust, Inc. Digital Realty Trust, Inc. +1-415-738-6500 +1-415-738-6500SOURCE Digital Realty Trust, Inc.