Digital Realty Trust, Inc. Tops Estimates; Raises Outlook (DLR)

Digital Realty Trust, Inc. Tops Estimates; Raises Outlook (DLR)


Digital Realty Trust, Inc. (DLR) reported its third quarter results after Tuesday’s closing bell, surprising the Street with strong numbers.

DLR’s Earnings in Brief

  • The company reported FFO of $1.22, beating analyst expectations of $1.21.
  • Revenues came in at $412 million, marking a 3% increase from the previous quarter and a 12% increase YoY.
  • Signed leases during the quarter are expected to generate $31 million in annual revenue moving forward.
  • The company raise its FY2014 guidance to FFO of $4.90 – $4.95 versus the expected $4.87.

CEO Commentary

CEO and CFO Bill Stein had the following comments: “We maintained consistent leasing momentum during the third quarter, with new lease signings totaling $31 million of annualized GAAP rental revenue. We also realized another consistent contribution from our mid-market segment, with new leases signed during the third quarter expected to generate $5 million of annualized GAAP rental revenue.  Pricing has firmed across products and regions, and net effective leasing economics continue to improve, driven by steady absorption of excess supply at the sector level, along with company-specific changes to our sales compensation program and tighter underwriting discipline.”

DLR’s Dividend

DLR made no mention of its dividend in its earnings report. The stock paid its most recent dividend on September 30th and we expect it to announce its next payout in the coming weeks.

Stock Performance

DLR’s stock was up 21 cents, or 0.31%, in after hours trading.

DLR Dividend Snapshot

As of market close on October 28, 2014

PFE dividend yield annual payout payout ratio dividend growth

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The Bottom Line

Digital Realty Trust, Inc. (DLR) is recommended at this time, holding a DARS™ Rating of 3.6 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.