Digital Realty Keeps Cruising
Portfolio Management 101 • 13 Comments
Portfolio Management 101 • 13 Comments
How Networking Helps Digital Realty Distance Itself From The Competition
Portfolio Management 101 • 26 Comments
Portfolio Management 101 • 26 Comments
Yesterday, 6:33 PM
- Digital Realty Trust (DLR +2.2%) is flat in after-hours trading following a Q2 earnings report where revenue and funds from operations beat expectations.
- EPS came to $0.24 vs. consensus for $0.26. Adjusted EBITDA of $296.9M was up 20% Y/Y (up 1% sequentially) and beat an expected $291.9M.
- Core FFO of $1.42 was up 9.2% Y/Y.
- DLR signed leases expected to generate $15M in annual rental revenue (GAAP basis), including a $6M contribution from co-location.
- The company also boosted its full-year outlook for core FFO/share, to $5.65-$5.75 from a previous $5.55-$5.65. Consensus expectation are for $5.65.
- Press Release
Tue, Jul. 5, 4:54 PM
- Digital Realty (DLR +2.1%) has completed an $874M acquisition of eight European data centers from Equinix (EQIX -0.2%).
- That deal is part of a divestment that Equinix undertook as a condition requested by the European Commission, tied to Equinix's purchase of TelecityGroup.
- Equinix also entered a deal with Digital Realty to pay €189.75M for Digital Realty's opearting business in St. Denis, Paris, including real estate and data center there.
- Digital Realty's purchase comes at a multiple of about 13 times the portfolio's expected 2016 EBITDA. It includes five properties in London, two in Amsterdam and one in Frankfurt, and provides about 6.9 megawatts of fully installed power and 62,700 net sellable square feet.
Mon, May 16, 7:16 AM
- The company agrees to buy eight European (5 in London, 2 in Amsterdam, one in Frankfurt) data centers from Equinix (NASDAQ:EQIX) for $874M. The purchase price represents a multiple of about 13x expected full-year 2016 EBITDA.
- As part of the deal, Equinix gets an option to buy a Paris facility of DLR's for $125M.
- The purchase is expected to close in H2.
- Source: Press Release
- In conjunction with the acquisition, Digital Realty launches a secondary offering of 11.5M shares.
- DLR is higher by 3.1% in light premarket action.
Fri, May 13, 6:36 PM
- Digital Realty Trust (NYSE:DLR) is up 3.6% after hours on news that it's joining the S&P 500 Index.
- With Charter Communications set to close on Time Warner Cable in a few days, Digital Realty will replace TWC in the 500.
- Digital Realty will be added to the Specialized REITs sub-index.
- Now read Digital Realty Trust: An Income And Total Return REIT »
Fri, May 13, 5:38 PM
Thu, Feb. 4, 8:17 PM
- Digital Realty Trust (DLR +0.6%) has named Cindy Fiedelman its chief human resources officer.
- Fiedelman came in on in interim basis in September, replacing the retiring executive, Ellen Jacobs. She had previously served as VP of People and Diversity at American Airlines, and has held similar positions at Avaya, Sun Microsystems and Comcast.
- She'll be responsible for talent management, leadership development, and compensation and benefits programs, as well as human resources integration efforts related to mergers and acquisitions.
- Shares are up 5.2% after hours.
Thu, Jan. 28, 3:12 PM
- InterXion (NYSE:INXN) has jumped 3.4% in the last few minutes on chatter from Dealreporter about Digital Realty Trust (DLR +3.2%) considering an offer.
- The European data-center player was set to be acquired for $2.2B by Telecity (OTCPK:TLEIY) last spring, before Equinix's own deal for Telecity blew up that deal.
- In November, InterXion expanded its data-center phases in four northern European cities.
- Previously: InterXion expanding data centers in four northern Europe cities (Nov. 03 2015)
- Previously: In merger's wake, InterXion confirms end to its Telecity agreement (May. 29 2015)
- Previously: Telecity's InterXion buy in doubt amid Equinix's $3.5B deal talk (May. 07 2015)
Wed, Jan. 13, 3:50 PM
- JPMorgan sees a long-term path for growth in data center REITs, with an early-stage transition progressing in infrastructure outsourcing, and it's leaning toward faster-growing firms.
- That means CyrusOne (CONE -4.2%) gets its top kudos, though it saves some praise for Digital Realty Trust (DLR -0.5%) and QTS Realty Trust (QTS -1.7%).
- "Digital Realty on January 4 issued solid 2016 guidance and we look for even better growth guidance from CyrusOne and QTS Realty Trust when they report in February," the firm said.
- Digital Realty may grow more slowly due to its size, and substantial wholesale revenue. "We like Digital Realty for its scale, stability and dividend, but the company's lower growth outlook, in our view, justifies a lower multiple for the company," JPMorgan says. "We look for low- to mid-double-digit growth rates in revenue, EBITDA, FFO and AFFO for CyrusOne and QTS in 2016 on a standalone basis."
- The firm maintains Overweight ratings on CyrusOne and QTS.
Sep. 3, 2015, 9:51 AM| Sep. 3, 2015, 9:51 AM
Aug. 24, 2015, 5:26 PM
- Digital Realty Trust (DLR -4.6%) has closed its public offering of 10M shares of a 6.35% redeemable preferred stock, for gross proceeds of $250M.
- Underwriters got an overallotment option to purchase up to 1.5M additional shares. The company will put the proceeds toward its $1.9B deal to acquire private peer Telx.
- Digital Realty had previously priced a 10.5M-share secondary of common stock to help fund the deal.
- DLR shares are down 8.1% since it announced its deal for Telx, and down 4.1% (thanks to today's 4.6% drop) since pricing the redeemable preferred stock secondary on Aug. 13.
Jul. 15, 2015, 9:12 AM
- Digital Realty Trust (NYSE:DLR) is trading down 0.4% premarket as it's priced a 10.5M-share secondary offering at $68.00, part of the funding for a $1.9B acquisition of private peer Telx.
- Shares closed yesterday at $68.95. The offering is expected to close on Monday.
- Underwriters have an option on another 1.575M shares. The company's entered into forward sale agreements with underwriters Bank of America, Morgan Staney and Citigroup to do the deal.
- Previously: Digital Realty up 1.1% in wake of Telx deal (Jul. 14 2015)
Jul. 14, 2015, 3:24 PM
- After coming out of the gate down this morning, Digital Realty Trust (NYSE:DLR) is up 1.1% with the market following confirmation of its $1.89B deal for privately held Telx.
- DLR expects the purchase to be accretive to 2016 earnings. The deal should close later this year, roughly doubling Digital Realty's footprint in co-location services.
- The deal had been leaked yesterday via an inadvertent release by Fitch of its ratings update which considered the deal had been announced.
- Evercore's Jonathan Schildkraut argues a "strong strategic rationale" for the merger, which he values at 17.1x 2014 EBITDA and 16.3x EBITDA for the past 12 months.
- Financing for the deal comes via a $1.85B unsecured bridge loan and the sale of 10.5M shares (for roughly $700M).
Jul. 13, 2015, 5:45 PM
- Fitch has retracted a report it issued today affirming ratings on Digital Realty Trust (DLR -1%) as the report referred to an "announced acquisition of Telx" -- though DLR has made no statement on any deal.
- Fitch said it was an inadvertent release. Before retraction, though, it referred to a key assumption in its ratings review being "$700M of common equity issuance via a forward sale agreement" in addition to $1.2B in other financing.
- Digital Realty was reported to be pursuing Telx last month in a $2B deal, and the leak suggests that deal may be in the final stages if not essentially complete (and contain a stock offering as part).
- Previously: Digital Realty pursuing $2B deal to buy Telx Group (Jun. 10 2015)
Jun. 12, 2015, 11:32 AM
- Digital Realty Trust (NYSE:DLR) is up another 1.7% today as REITWeek brings more analyst upgrades, from Cowen & Co. and Canaccord Genuity.
- Earlier, Macquarie had upgraded the stock and raised its price target.
- Cowen & Co. upgraded it to Outperform from Neutral, and raised its price target to $73 from $70. Colby Synesael points to conversations with management showing "major transformation is starting to take shape that should result in a more dynamic/higher growth company that in our view is deserving of a higher multiple."
- "M&A also appears likely albeit not necessarily imminent and would accelerate this transformation," Synesael adds.
- Canaccord upgraded the stock to Buy, from Hold, and raised its price target to $77 from $72.
- DLR is trading today at $66.33.
Jun. 10, 2015, 1:28 PM
- Digital Realty Trust (NYSE:DLR) is pursuing a $2B bid to acquire peer Telx Group, Reuters reports.
- A deal for the data-center company would be one of many recent acquisitions in the sector, but the biggest since Equinix announced an agreement to buy Telecity Group for $3.6B.
- Telx owns 20 data centers, including three in New York City, and is owned by ABRY Partners and Berkshire Partners. A deal would help to diversify Digital Realty's business, which is primarily focused on wholesale colocation (renting space to data-center operators) whereas Telx can add retail colocation (data-center firms renting cabinets, racks and cages to data customers).
- Meanwhile, Digital Realty received an upgrade from Macquarie to Outperform, with a raised price target of $63. Shares are up 1.9% today to $65.08.
Apr. 9, 2015, 3:24 PM
- A weak 30-year bond auction has long-term Treasury yields on the move higher, with the 10-year up five basis points to 1.96%. One also can't help but notice a recent uptick in capital raising among the equity REITs.
- Realty Income (O -2.2%), Agree Realty (ADC -2.2%), Omega Healthcare (OHI -4%), Medical Properties Trust (MPW -2.5%), W.P. Carey (WPC -2.2%), Duke Realty (DRE -2.5%), Essex Property (ESS -2.9%), Aimco (AIV -3%), Simon Property (SPG -2.4%), Kimco (KIM -2.9%), Inland Real Estate (IRC -3%), DDR Corp (DDR -2.3%), Sovran Self Storage (SSS -2.2%), Washington Real Estate (WRE -4%), Digital Realty Trust (DLR -2%), Hospitality Properties (HPT -2.6%), Ashford Hospitality (AHT -2.4%), Stag Industrial (STAG -4.6%), American Campus (ACC -2.3%).
- ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI, FREL
- Previously: Treasury yields on the rise after weak 30-year auction (April 9)
Digital Realty Trust, Inc. operates as a real estate investment trust. It owns, acquires, develops and manages technology-related real estate. The company conducts its business and owns its assets through Digital Realty Trust L.P. Its solutions includes: Turn-Key Datacenters, Digital Consulting... More
Industry: REIT - Industrial
Country: United States
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