Digital Realty Trust's Powered Base Building Option Remains Solution of Choice for Large Managed Services and Cloud Hosting Providers
SAN FRANCISCO,April 25, 2011/PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a global wholesale datacenter provider, today announced leasing results for the first quarter of 2011.
The Company signed leases during the quarter ended March 31, 2011 totaling approximately 320,000 square feet of space. This includes over 57,000 square feet of Turn-Key Datacenter® space leased at an average annual GAAP rental rate of $177.00 per square foot, approximately 186,000 square feet of Powered Base Building® space leased at an average annual GAAP rental rate of $23.00 per square foot, and approximately 42,000 square feet of non-technical space leased at an average annual GAAP rental rate of $25.00 per square foot. Also included in leases signed during the quarter were datacenter master leases at two Midwest properties with separate managed services/colocation providers. These datacenter master leases will assume the management of approximately 34,000 square feet of colocation space at an average annual GAAP rental rate of $84.00, which was previously managed by Digital Realty Trust.
"We continued to see strong demand for our Powered Base Building solution from the managed services and cloud computing providers that support the corporate enterprise market," said Michael F. Foust, Chief Executive Officer of Digital Realty Trust. "Our flexible Turn-Key Datacenter solution also saw strong demand with leases signed during the quarter with enterprise customers from industry sectors ranging from hospitality and healthcare to online marketing, financial services and managed services. We expect leases signed during the first quarter to contribute approximately $19.0 million in annualized GAAP revenue, including colocation space."
Of the leases signed during the first quarter of 2011, the Company's European portfolio totaled approx 63,000 square feet. This includes approximately 28,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate $212.00 per square foot, approximately 33,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $25.00 per square foot and 1,000 square feet of non-technical space leased at an average annual GAAP rental rate of $67.00 per square foot.
For the quarter ended March 31, 2011, the Company commenced leases totaling approximately 221,000 square feet of space. This includes approximately 97,000 square feet of Turn-Key Datacenter®space leased at an average annual GAAP rental rate of $196.00 per square foot, and approximately 120,000 square feet of non-technical space leased at an average annual GAAP rental rate of $23.00 per square foot. Also included were datacenter master leases, described above, which commenced during the quarter totaling approximately 4,400 square feet at an average annual GAAP rental rate of $77.00 per square foot.
The Company's Turn-Key Datacenters provide state-of-the-art environments for supporting mission critical infrastructure, with advanced cooling, power, redundancy, and sustainability features to ensure that critical applications are available while optimizing energy efficiency. Digital Realty Trust's Turn-Key Datacenters are scalable from hundreds of kilowatts of IT load to megawatts of IT load and are located in markets throughout North America, Europe and Singapore. Digital Realty Trust's Powered Base Buildings are improved shell facilities designed for customers that seek to build out and operate a data center using their own personnel. Each of these "building within a building" facilities is pre-qualified with power, planning permissions, and fiber connectivity, enabling customers to immediately begin data center construction. In addition, each Powered Base Building is designed to meet the two leading green building standards, LEED in the U.S. and BREEAM in Europe.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. enables customers to deliver critical business applications by providing secure, reliable and cost effective datacenter facilities. Digital Realty Trust'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 Trust's 96 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 16.8 million square feet as of March 10, 2011, including 2.2 million square feet of space held for redevelopment. Digital Realty Trust's portfolio is located in 28 markets throughout Europe, North America and Singapore. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.
Safe Harbor Statement
This 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, leasing demand, momentum and growth and the factors which will drive leasing demand, momentum and growth. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions; 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; 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 United States Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2010. 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.
Turn-Key Datacenter, Powered Base Building and POD Architecture are registered trademarks of Digital Realty Trust.
For Additional Information:
A. William Stein
Pamela A. Matthews
Chief Financial Officer and
Vice President, Investor Relations and
Chief Investment Officer
Digital Realty Trust, Inc.
Digital Realty Trust, Inc.
+1 (415) 738-6500
+1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.