SAN FRANCISCO, June 21, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, announced today it has completed the acquisition of 400 South Akard Street, known as The Databank Building, a data center facility totaling approximately 269,600 square feet located in Dallas, Texas.
"This highly strategic building features large floor-plates, high ceilings, and robust floor loading making it an attractive alternative for customers in the Dallas area looking for high quality data center space in the downtown Dallas market," said Michael Foust, Chief Executive Officer of Digital Realty. "With extensive network connectivity, including to our 2323 Bryan Street Internet Gateway, the 400 South Akard Street facility is an ideal complement to our Dallas portfolio."
"The property is currently 85% leased to eight tenants with approximately 85% of the base rental revenue stream secured by long term leases with two tenants through at least 2024," added Scott Peterson, Chief Acquisitions Officer of Digital Realty. "While there is an attractive value add opportunity in building out and leasing the balance of the available space in the building, we expect to achieve attractive returns based on our conservative underwriting, which assumes the property continues to operate at its current occupancy throughout the investment horizon."
The existing facility delivers approximately 11.7 megawatts of critical load, with the ability to expand to up to 18 megawatts. The property is located in the central business district of Dallas, approximately 1.5 miles from Digital Realty's 2323 Bryan Street property.
About Digital Realty
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 105 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 20.0 million square feet as of June 21, 2012, including 2.3 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 our acquisition of the Databank building in Dallas, Texas, expected returns, and the future development, including expansion load capacity, at the property. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade 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 businesses; 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 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. 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 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.