Digital Realty Trusts Reports Year-to-Date and Third Quarter 2009 Leasing Activity
SAN FRANCISCO, Oct. 22 /PRNewswire-FirstCall/ -- Digital Realty Trust, Inc. (NYSE: DLR), the world's largest wholesale datacenter provider, today announced its year-to-date and third quarter 2009 leasing results reflecting strong incremental revenue growth for the Company.
For the quarter ended September 30, 2009, the Company commenced leases totaling approximately 101,000 square feet of space. This includes approximately 90,000 square feet of Turn-Key Datacenter( )® space leased at an average annual GAAP rental rate of $187.00 per square foot and approximately 11,000 square feet of non-technical space leased at an average annual GAAP rental rate of $25.00 per square foot.
Year-to-date as of September 30, 2009, the Company commenced leases totaling approximately 666,000 square feet of space. This includes approximately 317,000 square feet of Turn-Key Datacenter® space leased at an average annual GAAP rental rate of $178.00 per square foot, 174,000 square feet of Powered Base Building® space at an average annual GAAP rental rate of approximately $62.00 per square foot, and 176,000 square feet of non-technical space at an average annual GAAP rental rate of approximately $16.00 per square foot.
For the quarter ended September 30, 2009, the Company signed leases totaling approximately 93,000 square feet of space. This includes approximately 67,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of $192.00 per square foot, approximately 5,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $30.00 per square foot, and 22,000 square feet of non-technical space leased at an average annual GAAP rental rate of $22.00 per square foot.
Year-to-date as of September 30, 2009, the Company signed leases totaling approximately 278,000 square feet of space. This includes approximately 216,000 square feet of Turn-Key Datacenter( )space leased at an average annual GAAP rental rate of $176.00 per square foot, approximately 5,000 square feet of Powered Base Building space at an average annual GAAP rental rate of $32.00 per square foot, and approximately 57,000 square feet of non-technical space leased at an average annual GAAP rental rate of $20.00 per square foot.
"The continued demand for our Turn-Key Datacenter product has produced strong leasing results in the third quarter. On a year-to-date basis, the leases that have commenced will contribute approximately $54.1 million of incremental revenue recognized in 2009," commented Michael Foust, Chief Executive Officer of Digital Realty Trust. "Including the backlog of leases signed that are scheduled to commence in the fourth quarter of 2009, we are on track to meet our leasing estimates for the year."
About Digital Realty Trust, Inc.
Digital Realty Trust owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter® and Powered Base Building® datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and internet enterprises, to manufacturing and financial services. Digital Realty Trust's 77 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 13.8 million square feet as of September 28, 2009, including 1.9 million square feet of space held for redevelopment, Digital Realty Trust's portfolio is located in 27 markets throughout Europe and North America. 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 incremental revenue to be realized in 2009 from commenced leases and meeting 2009 leasing estimates. These risks and uncertainties include the impact of a slowing economy in the United States and Europe, including the turmoil in the financial and credit markets; the downturn of 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; decreases in real estate valuations and resulting impairment charges; our dependence upon significant tenants; bankruptcy or insolvency of one or more major tenants 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 for refinancing current debt obligations, undertaking or completing redevelopment, completing acquisitions or other purposes; increased interest rates and operating costs; our failure to repay debt when due or our breach of covenants or other terms contained in our loan documents; financial market fluctuations; changes in foreign currency exchange rates; our ability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of certain of these 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; inability to successfully redevelop 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 public 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; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; 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, 2008 and the Company's quarterly reports on Form 10-Q for the quarters ended March 31 and June 30, 2009. 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 A. Matthews
Chief Financial Officer and Director of Investor Relations
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. +1 415-738-6500
+1 415-738-6500
SOURCE Digital Realty Trust, Inc.