Digital Realty Trust saw funds from operations of $132.5 million in the first quarter of 2012 and net income rose to $49m.

In a conference call CEO Mike Foust said the company would ramp up its colocation business for companies with smaller space requirements by offering 'space, power and warm hands.'

“We have space available that we think we can add value by leasing to people with smaller requirements. It is an asset driven strategy. Total gross revenues [from colocation) is $55m and we’d like to see that double over three to four years. It is a good margin business. The colo space is space we are managing and leasing ourselves,” said Foust.

He said  DRT was not seeing as much demand in Europe as US and Asia but added: “In markets like London and Amsterdam we ‘ll see continued good demand. London pretty robust, we seing 32MW of potential demand and even in Paris requirements at different stages of purchasing of 12-13MW.

DRT is looking for a another project in Amsterdam “as we’re fully leased in that market.”

Brazil is an intriguing option but DRT had nothing concrete to announce though the company said there may be activity in that market this year, said Foust

The real estate investment trust pointed to Q1 highlights including a $750m five year loan, the acquisition of a data center and office campus in suburban Dallas, consisting of eight buildings totaling approximately 819,000 square feet and 39 acres of developable land for approximately $123.0 million, announced a joint venture partnership with Savvis to acquire a 165,000-square-foot (15,247-square-meter) property in Hong Kong expected to close in the second quarter of 2012, signed leases during the first quarter of 2012, including leases signed for colocation space, expected to generate approximately $18.2 million in annualized GAAP rental revenue and  commenced leases during the first quarter of 2012, including leases commenced for colocation space totaling over $25.8 million of annualized GAAP rental revenue.

Net income for the first quarter of 2012 was $49.3 million, compared to $47.2 millionfor the fourth quarter of 2011 and $39.0 million for the first quarter of 2011.  Net income available to common stockholders in the first quarter of 2012 was $39.2 million, or $0.36 per share, compared to $36.0 million, or $0.34 per share, in the fourth quarter of 2011, and $31.0 million, or $0.33 per share, in the first quarter of 2011. 

The Company reported total operating revenues of $283.1 million in the first quarter of 2012, up 12.9% from $250.7 million in the first quarter of 2011, and up 4.6% from$270.6 million in the fourth quarter of 2011.

"With now over seven years of industry leading performance as a data center REIT, we are very pleased to report another quarter of solid results," said Foust.  "These results are primarily driven by our unique value proposition, consisting of our suite of customer-driven solutions, financial strength and data center expertise, global footprint and supply chain management.  As our portfolio expands in both domestic and international markets, we believe that these unique attributes will continue to serve our customers and shareholders alike."