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Turnkey data center provider Digital Realty Trust reported strong results for the third quarter, highlighted by yearly and quarterly revenue and income growth and acquisitions of large new properties in Dallas and Silicon Valley.
The company’s total operating revenues in the quarter stood at $163.2 million or about 5.3 percent up from previous quarter’s $155 million. The figure was 14.9 percent higher than revenue San Francisco, Calif.-based DRT reported in the third quarter of last year.
DRT reported a net income of $23.9 million ($0.16 earnings per share) during the third quarter – up 12.7 percent from $21.2 million in the second quarter of 2009 and up 29.9 percent in the third quarter of 2008.
“Our strong balance sheet, leading global market position in the wholesale datacenter space and unmatched technical expertise continue to provide us with opportunities to expand our business,” DRT CEO Michael Foust said in a statement. “We expect income-producing acquisitions will take a larger role in our investment strategy, contributing external earnings growth to complement internal growth from our ongoing development and leasing activities.”
The announcement came one week after DRT announced that it had commenced leases on about 90,000 square feet of turnkey data center space during the quarter and signed leases on 67,000 square feet more.
The quarter’s most significant expansion of the company’s portfolio was its acquisition of a controlling interest in a joint venture redevelopment project in September. The 69-acre Dallas, Texas, property – formerly known as Collins Technology Park – consists of seven buildings. Their size ranges from 15,000 square feet to 250,000 square feet, totaling 796,000 square feet, according to a DRT statement.
The property includes several “developable land sites” and its own 40-MW substation, expandable to 125 MW. It has been renamed into Digital Realty Trust Datacenter Park.
DRT also bought one new property during the quarter and a non-controlling interest in another during the quarter in California’s Silicon Valley. The new fully-owned property is a 42,000-square-foot operating data center at 444 Toyama Dr. in Sunnyvale. The facility is fully leased.
The other property is also 42,000 square feet. It is located at 1525 Comstock St. in Santa Clara and DRT bought the interest from its joint venture partner.
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Keywords: Digital Realty Trust, DRT, turnkey data center, wholesale data center, data center lease, quarterly earnings | | 
