SAN FRANCISCO, Jan 04, 2010 /PRNewswire-FirstCall via COMTEX/ — Digital Realty Trust, Inc. (NYSE:DLR, news, filings), the world’s largest wholesale datacenter provider, announced today that it acquired two fully leased datacenter properties and a 10.73 acre site in Northern Virginia. The first property, 45901 & 45845 Nokes Boulevard, is located in Sterling, Virginia, totals approximately 167,000 rentable square feet and is fully leased to a leading managed service provider. The second property, 21561 & 21571 Beaumeade Circle, is located in Ashburn, Virginia, totals over 164,000 rentable square feet and is fully leased to one of the world’s largest communications companies. Adjacent to the Beaumeade Circle property is the 10.73 acre land parcel, which is capable of supporting up to 140,000 square feet of new datacenter development. The transaction closed on December 18, 2009, and the total purchase price for the properties was $63.3 million.
“We are continuing to execute on our strategy to grow FFO by investing in income producing facilities at attractive risk-adjusted returns in top tier markets with this acquisition,” commented Scott Peterson, Senior Vice President of Acquisitions for Digital Realty Trust. “The buildings are strategically located near our existing Northern Virginia facilities and are leased to existing DLR customers. This further expands our footprint in this key datacenter market to approximately 1.2 million rentable square feet. The addition of the land parcel can also serve to accommodate future growth.”
“This transaction brings total acquisitions of income producing properties to $197.7 million for 2009, near the high end of our acquisitions guidance for the year,” stated A. William Stein, Chief Financial Officer and Chief Investment Officer for Digital Realty Trust. “We also expect the average cash cap rate to be within the cap rate guidance that was provided.”
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter(R) and Powered Base Building(R) 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 81 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 14.4 million rentable square feet as of January 4, 2010, including 1.9 million square feet of space held for redevelopment, Digital Realty Trust’s portfolio is located in 27 markets throughout North America and Europe. For additional information, please visit Digital Realty Trust’s website at http://www.digitalrealtytrust.com.
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. These risks and uncertainties include the impact of the current deterioration in the global economy; future income, expenses, including property taxes, and capital expenditures for the properties being acquired being consistent with our due diligence and underwriting expectations; bankruptcy or insolvency of one or more tenants at the properties being acquired; the downturn of economic conditions in our geographic markets, including the markets where the properties being acquired are located; 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; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing for refinancing; 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; our ability to manage our growth effectively; our failure to successfully operate acquired or redeveloped properties; 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, 2009, June 30, 2009 and September 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
Chief Financial Officer and
Chief Investment Officer
Digital Realty Trust, Inc.
+1 (415) 738-6500
Director of Investor Relations
Digital Realty Trust, Inc.
+1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.