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DLR Reports Q2-18

|About: Digital Realty Trust, Inc. (DLR)

At this point in time, I am not giving DLR any demerits for how it is increasing its FFO/share. It is so nice to see noticeable and consistent FFO growth - that one should be sufficiently pleased with that. But . . . Revenue per share is not rising. (Most data center REITs have significant increases in revenue per share.) Core FFO/share is rising due to the "CFFO/sh to Rev/sh" ratio is rising. Debt issued 10 years ago (during the credit crisis) was expensive. Much of that debt is maturing. While current interest rates are rising, the spreads between expiring debt and current debt is offsetting that. The total debt expense to total debt ratio is falling.

My spreadsheet for Digital Realty Trust (DLR)

DLR Digital Realty Q2-18 Q1-18 Q4-17 Q3-17 Q2-17 Q1-17 Q4-16 Q3-16 Q2-16 Q1-16 Q4-15 Q3-15
Core FFO 357,031 349,652 333,290 263,758 253,335 247,932 232,171 218,413 212,587 212,626 205,937 183,093
Core FFO/share 1.66 1.63 1.55 1.51 1.54 1.52 1.43 1.44 1.42 1.42 1.38 1.32
AFFO 332,066 328,543 290,252 237,961 233,313 221,583 211,984 206,844 199,984 191,844 165,654 157,721
AFFO/share 1.55 1.53 1.35 1.37 1.42 1.36 1.31 1.36 1.33 1.28 1.11 1.13
Core FFO Guidance 6.60 6.55 6.53 6.05 6.03 6.03 6.00 5.70 5.70 5.60 5.53 5.15
LTM Core FFO 6.35 6.23 6.12 6.00 5.93 5.81 5.71 5.66 5.54 5.42 5.27 5.15
LTM AFFO 5.80 5.67 5.50 5.46 5.45 5.36 5.28 5.08 4.85 4.57 4.34 4.15
Share Count 214,895 214,803 206,185 174,170 164,027 162,600 162,060 151,765 150,211 149,915 149,100 139,192
Revenue 754,919 744,368 731,445 609,925 585,989 550,569 576,787 546,293 514,934 504,199 500,443 435,989
Rev/share 3.51 3.46 3.55 3.50 3.57 3.39 3.56 3.60 3.43 3.36 3.36 3.13
CFFO/sh to Rev/sh 47.3% 47.1% 43.7% 43.1% 43.1% 44.8% 40.2% 40.0% 41.4% 42.3% 41.1% 42.2%
Rev/Investments 17.20% 17.5% 17.3% 14.6% 19.2% 18.6% 20.0% 19.0% 18.8% 18.1% 18.3% 17.1%
Investments 17,555 17,361 16,916 16,429 12,182 11,869 11,558 11,512 10,981 11,103 10,915 10,177
Credit Facility 467 952 551 138 563 564 199 153 88 678 960 683
Term Loans 1,377 1,428 1,420 1,433 1,520 1,506 1,482 1,522 1,546 1,566 924 937
Senior Notes 7,156 6,661 6,571 6,806 4,351 4,128 4,154 4,238 4,253 3,663 3,713 2,795
Mortgages 106 106 107 107 3 3 3 112 249 250 303 305
Debt from Pref 1,248 1,250 1,250 1,249 837 1,013 1,013 1,013 1,013 1,013 1,013 1,013
Total Debt 10,354 11,647 9,899 9,733 7,274 7,214 6,851 7,048 7,149 7,170 6,913 5,733
Debt/share 48.18 54.22 48.01 55.88 44.35 44.37 42.27 46.44 47.59 47.83 46.36 41.19
Interest Exp 78,810 76,985 73,989 71,621 57,582 55,450 56,226 63,084 59,909 57,261 61,717 48,138
Preferred Exp 20,329 20,329 20,329 16,575 14,505 17,393 17,393 21,530 22,424 22,424 24,056 18,456
Total Debt Exp 99,139 97,314 94,318 88,196 72,087 72,843 73,619 84,614 82,333 79,685 85,773 66,594
Debt Exp/Debt 3.83% 3.34% 3.81% 3.62% 3.96% 4.04% 4.30% 4.80% 4.61% 4.45% 4.96% 4.65%
CFFO/Investments 8.14% 8.05% 7.87% 6.42% 8.32% 8.36% 8.03% 7.59% 7.74% 7.66% 7.55% 7.20%
Rpt Debt/EBITDA 5.2x 5.3x 5.2x 6.0x 5.1x 4.9x 4.8x 5.1x 5.2x 5.3x 5.2x 4.8x
Rpt Fixed Charge Coverage 4.3x 4.3x 4.2x 3.9x 4.3x 4.2x 3.9x 3.4x 3.9x 3.3x 4.6x 3.3x

On 6-14-18 DLR sold $650 million of 4.45% notes due 2028. 

On 8-02-17 DLR sold $350 million of 2.750% notes due 2023 and $1.0 billion of 3.700% notes due 2027.

On 8-02-17 DLR sold $200 million of 5.25% Series J Cumulative Redeemable Preferred Stock
Historical Core FFO: Q2-15 1.30 Q1-15 1.27 Q4-14 1.26
Historical AFFO: Q2-15 1.05 Q1-15 1.05 Q4-14 0.92
DLR has a BBB rating from S&P and Fitch and Baa2 from Moody's - Preferred Stocks DLRPRC, DLRPRG, DLRPRH, DLRPRH, DLRPRI & DLRPRJ are rated BB+

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.