SAN FRANCISCO, April 19, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, today announced leasing results for the first quarter 2012.
The Company signed leases during the quarter ended March 31, 2012 totaling over $18.2 million of annualized GAAP rental revenue, including over $1.0 million of colocation revenue. Leases signed totaled over 148,000 square feet, consisting of approximately 94,000 square feet of Turn-Key Datacenter® space leased at an average annual GAAP rental rate of $163.00 per square foot, approximately 47,000 square feet of Powered Base Building® space leased at an average annual GAAP rental rate of $26.00 per square foot, and over 7,000 square feet of non-technical space leased at an average annual GAAP rental rate of $27.00 per square foot.
"Our first quarter results are in line with our expectations. Markets that experienced the highest level of activity during the quarter included Dallas, San Francisco, Northern Virginia, Los Angeles, Boston, Phoenix, London, Singapore and Hong Kong – in line with our capital deployment and development activity," said Michael F. Foust, Chief Executive Officer of Digital Realty. "Lease signings tend to be cyclical and these results are consistent, on average, with previous first quarters in terms of aggregate annualized GAAP rental revenue. Furthermore, our pipeline of prospects is very strong across our major markets throughout the U.S., Europe and Asia Pacific."
Of the total leases signed during the first quarter 2012, over 124,000 square feet was for space located in the Company's U.S. portfolio. This includes approximately 71,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of $136.00 per square foot, approximately 47,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $26.00 per square foot, and over 6,000 square feet of non-technical space leased at an average annual GAAP rental rate of $20.00 per square foot.
Leases signed during the first quarter of 2012 for space in the Company's European portfolio totaled approximately 8,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of $237.00 per square foot and over 500 square feet of non-technical space leased at an average annual GAAP rental rate of $70.00 per square foot.
Leases signed during the first quarter of 2012 for space in the Company's Asia Pacific portfolio totaled over 15,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of $251.00 per square foot and 500 square feet of non-technical space leased at an average annual GAAP rental rate of $81.00 per square foot.
For the quarter ended March 31, 2012, the Company commenced leases totaling over $25.8 million of annualized GAAP rental revenue, including approximately $1.9 million of colocation revenue. Commenced leases totaled approximately 160,000 square feet, consisting of over 99,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of approximately $177.00 per square foot, approximately 53,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of approximately $108.00 per square foot, and over 7,000 square feet of non-technical space leased at an average annual GAAP rental rate of approximately $25.00 per square foot.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center needs. Digital Realty'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's 102 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 19.1 million square feet as of February 27, 2012, including 2.4 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 31 markets throughout Europe, North America, Singapore and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at http://www.digitalrealty.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, our pipeline of prospects, and leasing demand across multiple geographic markets. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions including the downgrading of the U.S. government's credit rating; 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 or business; 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 U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2011. 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.
For Additional Information:
A. William Stein
Pamela M. Garibaldi
Chief Financial Officer and
Vice President, Investor Relations
Chief Investment Officer
and Corporate Marketing
Digital Realty Trust, Inc.
Digital Realty Trust, Inc.
+1 (415) 738-6500
+1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.