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Digital Realty Trust, Inc. (DLR)

  • Today, 8:02 AM
    • DuPont Fabros (NYSE:DFT) is lower by 1.9% premarket after Goldman starts it with a Sell rating and $29 price target on concern about customer concentration, repricing risk, and limited visibility into future growth.
    • Digital Realty (NYSE:DLR) and Equinix (NASDAQ:EQIX) are started at Neutral, and QTS Realty (NYSE:QTS) rates a Buy.
  • Wed, Mar. 18, 3:28 PM
    • The Fed earlier cuts its forecasts for GDP growth, inflation, and the pace of rate hikes. Alongside, it also lowered NAIRU - the level at which unemployment threatens accelerating inflation.
    • The 10-year Treasury yield is lower by 13 basis points to 1.92% following the news, sending the board averages to near-1.5% gains, but the strongest names are the equity REITs.
    • IYR +2.3%
    • National Retail Properties (NNN +3%), Spirit Realty (SRC +3.1%), Senior Housing Properties (SNH +2.1%), Healthcare Trust of America (HTA +2.9%), Equity Commonwealth (EQC +2.7%), Gramercy Property (GPT +3.2%), Post Properties (PPS +3.9%), Aimco (AIV +2.6%), Kimco (KIM +2.8%), DDR Corp (DDR +2.4%), Public Storage (PSA +2%), Government Properties (GOV +1.9%), First Potomac Realty (FPO +3%), Digital Realty Trust (DLR +1.5%), Sunstone Hotel (SHO +2%), Liberty Property (LPT +2.4%), American Campus (ACC +2.5%)
    • Previously: Day's biggest news: Fed sharply cuts "normal" unemployment rate (March 18)
    • Previously: FOMC drops "patient," but sends dovish signal (March 18)
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  • Fri, Mar. 6, 10:31 AM
    • Equity REITs are facing some competition as the 10-year Treasury yield has popped all the way to 2.24% (up 11 bps on the session) following the strong jobs report which saw 295K jobs added in February and the unemployment rate dropping to 5.5%.
    • Checking short-term interest rate futures, they're falling (meaning higher rates), but still not pricing in a rate hike until late summer.
    • The iShares U.S. Real Estate ETF (IYR -2.3%).
    • Realty Income (O -3.7%), National Retail Properties (NNN -3.9%), Agree Realty (ADC -3.1%), Omega Heathcare (OHI -4.5%), Health Care REIT (HCN -3.5%), Ventas(VTR -3.7%), HCP (HCP -3.6%), Medical Properties (MPW -4%), Healthcare Trust (HTA -4%), AvalonBay (AVB -2.7%), Essex Property (ESS -2.3%), Simon Property (SPG -2.3%), General Growth (GGP -2.2%), Kimco (KIM -2.9%), Inland Real Estate (IRC -2.9%), DDR (DDR -2.7%), Federal Realty Investment (FRT -2.6%), Public Storage (PSA -2%), Sovran Self Storage (SSS -2.7%), Boston Properties (BXP -2.8%), First Potomac (FPO -3.2%), Digital Realty Trust (DLR -1.9%), Hospitality Properties (HT -2.1%), Ashford (AHT -2.7%), STAG Industrial (STAG -3%), American Campus (ACC -2.9%).
    • Previously: Dollar and Treasury yields spike after strong jobs print (March 6)
  • Mon, Mar. 2, 10:26 AM
    • Stifel Financial buys the February dip in Digital Realty Trust (DLR +1.7%), upgrading to Buy from Hold.
    • The stock fell about 8% in February as REITs in general gave back some 2015 gains as interest rates popped higher during the month.
    | Comment!
  • Thu, Feb. 19, 10:44 AM
    • SVP of Portfolio Management David Caron will be stepping down, effective March 13, and the Portfolio Management division will become part of DLR's Investment group led by CIO Scott Peterson, effective immediately.
    • CEO Stein: "I am confident that under Scott's leadership, our portfolio management responsibilities will be even better aligned with our long-term investment strategy."
    • Source: Press Release
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  • Thu, Feb. 12, 4:21 PM
    • Digital Realty Trust (NYSE:DLR): Q4 FFO of $1.26 beats by $0.02.
    • Revenue of $412.21M (+8.2% Y/Y) misses by $1.92M.
    • Press Release
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  • Wed, Feb. 11, 5:35 PM
  • Tue, Feb. 10, 7:52 AM
    • Bullish on the data center names in general, analyst Stephen Douglas says CoreSite Realty (NYSE:COR) still has plenty of upside after a big move thanks to conservative Street estimates for 2015, an attractive valuation relative to the broader REIT sector, and the company's strategic value in a sector where M&A will be a continuing theme.
    • He upgrades to Buy from Neutral, with price target lifted to $48 from $40.
    • Douglas also reiterates his positive view on other sector names - QTS Realty Trust (NYSE:QTS), Digital Realty Trust (NYSE:DLR), and CyrusOne (NASDAQ:CONE).
    | Comment!
  • Thu, Feb. 5, 1:06 PM
    • Fans of the sector in general thanks to rising rents, quick lease-up of development projects, and firm yields, MLV's Jon Petersen and Jay Hanna are particularly bullish on smaller-cap players who can increase FFO at an above-average rate. Their top picks are thus: CoreSite Realty (COR +1.2%) and QTS Realty (QTS +1.9%).
    • CoreSite, says the duo, has the best-located portfolio in their coverage universe (Equinix - EQIX - is better, but they don't cover it), and thus should trade at the lowest cap rate.
    • "Management at QTS has a knack for finding infrastructure-rich properties, for a fraction of the initial development cost, that are ideal for data-center conversion," says the team. The company can about double its leasable square feet just by building out already-completed shells.
    • Rated at Hold are: CyrusOne (CONE +1%), Digital Realty (DLR +0.4%), and DuPont Fabros (DFT -9%).
    • Dupont Fabros is tumbling today following Q4 results in which the company took a charge and guided conservatively for 2015 thanks to a tenant which has stopped paying rent.
    | 1 Comment
  • Thu, Jan. 29, 6:31 PM
    • Digital Realty (NYSE:DLR) CTO Jim Smith and operations SVP David Schirmacher will be switching roles, effective March 1.
    • Smith will still be known as DLR's CTO, but will now "lead the Portfolio Operations Group, which includes global property operations, technical operations, customer service, security and data center services functions."
    • Schirmacher will now be the company's SVP of design and construction, making him "responsible for overseeing data center development." He'll also "continue to oversee the development and ongoing implementation of EnVision, Digital Realty's data center infrastructure management solution."
    • News of the shakeup comes ahead of DLR's Feb. 12 Q4 report. Preliminary numbers were issued on Jan. 5.
  • Mon, Jan. 12, 9:46 AM
    • Two apartment players get upgrades to Buy from Neutral: AvalonBay (AVB +0.9%) and Mid-America Apartment Communities (MAA +1%). Also getting an upgrade to Buy thanks to its NYC exposure is SL Green Realty (SLG +1%).
    • Downgraded to Underperform from Hold are Government Properties Trust (GOV -0.9%) and Digital Realty Trust (DLR -0.1%).
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  • Mon, Jan. 5, 7:28 AM
    • Q4 leasing activity represents over $45M of annualized GAAP rental revenue, bringing the full-year total for 2014 to over $155M.
    • 2015 core FFO per share is guided to $5.00-$5.10, up 1-4% over 2014's expected $4.90-$4.95.
    • Full Q4 and full-year results will be released on Feb. 12 with a conference call that same day.
    • Source: Press Release
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  • Nov. 24, 2014, 8:38 AM
    • Stein has been serving as CEO of Digital Realty Trust (NYSE:DLR) on an interim basis since March, and prior to that had been CFO and CIO for ten years. He'll remain CFO while the company searches for a successor.
    • DLR had severely underperformed prior to previous CEO Michael Foust being shown the door in March, and is ahead by 35% since Stein took over.
    • Source: Press Release
    | 1 Comment
  • Nov. 5, 2014, 7:21 AM
    • Digital Realty Trust (NYSE:DLR) declares $0.83/share quarterly dividend, in line with previous.
    • Forward yield 4.90%
    • Payable Jan 15; for shareholders of record Dec. 15; ex-div Dec. 11.
    | Comment!
  • Nov. 3, 2014, 11:49 AM
    • Citing valuation, Cantor has downgraded Digital Realty (DLR -1.4%) to Sell. The firm's $57.50 target is unchanged.
    • DLR posted a Q3 beat and slightly hiked its full-year FFO guidance last Tuesday. Shares are up 44% YTD, and trade for 20x 2015E FFO after factoring net debt.
  • Oct. 30, 2014, 11:17 AM
    • In addition to posting mixed Q3 results, Equinix (NASDAQ:EQIX) is guiding for Q4 revenue of $627M-$631M, below a $642M consensus.
    • However, the data center owner reported a 3.4K Q/Q increase in net billable cabinets for Q3, a record figure and (as noted on the CC) 70% above Equinix's 4-quarter average. Total billable cabinets stand at 96.1K - 44.9K in North America, 32.2K in Europe, 19K in Asia-Pac.
    • Likewise, cross-connects rose by 5.7K to 141.2K, and exchange ports by 143 to 2,557. Total customers rose by 60 to 4,700, with the termination rate falling to 1.9% from 2.7% in Q2 and 2.5% a year ago.
    • Gross margin was 68%, flat Q/Q and Y/Y. Adjusted EBITDA margin was 46% vs. 45% in Q2 and 46% a year ago. $43M was spent on buybacks. Equinix ended Q3 with $501M in cash, and $4B in debt.
    • Equinix is guiding for full-year adjusted discretionary free cash flow of $590M-$620M, and adjusted funds from operations (AFFO) of greater than $745M. REIT approval is still expected by year's end.
    • Several data center colocation, Web hosting, and interconnection services firms are also higher on a day the Nasdaq is down 0.5%. RAX +1.5%. INAP +3.5%. DLR +1.3%. CONE +1.4%.
    • Q3 results, PR, slides (.pdf), datasheet (.pdf)
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Company Description
Digital Realty Trust Inc is a real estate investment trust. It is engaged in the business of owning, acquiring, developing, redeveloping and managing technology-related real estate.
Sector: Financial
Country: United States