SAN FRANCISCO, Jan. 31, 2013 /PRNewswire/ –Digital Realty Trust, Inc. (NYSE:DLR, news, filings), a leading global provider of data center solutions, today announced leasing results for the fourth quarter and full year 2012.
“The high volume of commencements in the fourth quarter of 2012 drove our strongest annual performance to date for lease commencements. Furthermore, we are encouraged by the continued leasing momentum from January 2013 lease signings that add $18 million in annualized GAAP revenue to our backlog,” said Michael F. Foust, Chief Executive Officer of Digital Realty. “Markets that experienced the highest level of activity during the year included New York Metro, Houston, Dallas, Phoenix, Northern Virginia, Singapore and London. In addition, average annualized GAAP rental rates for new Turn-Key Flex leases signed in the fourth quarter were up on a global basis as well as in North America compared to the prior four quarters. We believe this represents stable pricing for our data center solutions across the majority of our global markets.”
For the quarter ended December 31, 2012, the Company commenced leases totaling approximately $52.3 million of annualized GAAP rental revenue, including over $3.9 million of colocation revenue. Commenced leases totaled over 384,000 square feet, including 248,000 square feet of Turn-Key FlexSM space leased at an average annual GAAP rental rate of approximately $179.00 per square foot, approximately 65,000 square feet of Custom Solutions (formerly referred to as Build-to-Suit) space leased at an average annual GAAP rental rate of over $39.00 per square foot, 9,000 square feet of Powered Base Building® space at an average annual GAAP rental rate of approximately $38.00 per square foot, and over 63,000 square feet of non-technical space leased at an average annual GAAP rental rate of over $17.00 per square foot.
For the twelve months ended December 31, 2012, the Company commenced leases totaling over $134.9 million of annualized GAAP rental revenue, including nearly $8.4 million of colocation revenue. Commenced leases totaled approximately 997,000 square feet of space, including nearly 611,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $168.00 per square foot, nearly 190,000 square feet of Custom Solutions space leased at an average annual GAAP rental rate of $80.00 per square foot, over 108,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $65.00 per square foot, and over 88,000 square feet of non-technical space leased at an average annual GAAP rental rate of $21.00 per square foot.
The Company signed leases during the quarter ended December 31, 2012 totaling nearly $28.8 million in annualized GAAP rental revenue, including $3.9 million of colocation revenue. Leases signed totaled over 247,000 square feet, including approximately 120,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $183.00 per square foot, over 16,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $51.00 per square foot, and over 111,000 square feet of non-technical space leased at an average annual GAAP rental rate of $20.00 per square foot.
Of the total leases signed during the fourth quarter of 2012, approximately 217,000 square feet was for space located in the Company’s U.S. portfolio, excluding colocation space. This includes approximately 90,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $177.00 per square foot, approximately 16,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $51.00 per square foot and nearly 111,000 square feet of non-technical space leased at an average annual GAAP rental rate of $19.00 per square foot.
Leases signed during the fourth quarter of 2012 for space in the Company’s European portfolio totaled over 11,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $158.00 per square foot.
Leases signed during the fourth quarter of 2012 for space in the Company’s Asia Pacific portfolio totaled approximately 19,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $227.00 per square foot and 260 square feet of non-technical space leased at an average annual GAAP rental rate of $83.00 per square foot.
For the twelve months ended December 31, 2012, the Company signed leases totaling over $105.7 million in annualized GAAP rental revenue, including nearly $7.3 million in colocation revenue. Leases signed totaled over 849,000 square feet, including over 538,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $162.00 per square foot, approximately 87,000 square feet of Custom Solutions space leased at an average annual GAAP rental rate of $65.00 per square foot, over 68,000 square feet of Power Based Building space leased at an average annual GAAP rental rate of $33.00 per square foot, and over 156,000 square feet of non-technical space leased at an average annual GAAP rental rate of $22.00 per square foot.
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 116 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 21.6 million square feet as of December 31, 2012, including 2.1 million square feet of space held for redevelopment. Digital Realty’s portfolio is located in 32 markets throughout Europe, North America, Asia 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 rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, and leasing demand and pricing stability across our global markets. 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 Reports on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 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 | Corporate Marketing |
| Digital Realty Trust, Inc. | Digital Realty Trust, Inc. |
| +1 (415) 738-6500 | +1 (415) 738-6500 |
SOURCE Digital Realty Trust, Inc.
PR Archives: Latest, By Company, By Date