Story image

Digital Realty pulls in $515 million revenue, $6.1 billion in debt

01 Aug 16

Digital Realty has announced its second quarter 2016 results, pocketing a healthy $515 million in revenue. The company provides data center, colocation and interconnection solutions to global customers.

The $515 million in total revenue was a small increase of 2% from the previous quarter, but a 23% increase from Q2 2015. The revenue comprises $51 million in net income, $28 million of which was available to common stockholders at $0.19 per diluted share - down from $0.27 in Q1 2016 and $0.87 in Q2 2015.

The company's funds from operations after fully diluted represent $204 million, equating to $1.36 per share. In terms of FFO per share, the company expects to raise it from $5.65 to $5.75.

The company expects to increase GAAP revenue with the signing of new and renewal leases, including one turn-key flex facility in the Asia Pacific region, with a base rent of $324,000 across its 14,193 square-foot space.

"In the second quarter, we signed new leases representing $15 million of annualized GAAP rental revenue, including a $6 million contribution from colocation," says Digital Realty CEO A. William Stein. 

The company's renewal leases represent $60 million of GAAP revenue, and other data center resources such as interconnection brought in $8 million of annualized revenue bookings.

The company has $6.1 billion in debt on its books, $5.9 billion of which is unsecured debt and $0.2 billion is secured.

Digital Realty recently opened its new APAC data center in Singapore, called Digital Loyang Way. The center covers177,000 square feet and supports 13.2 megawatts of IT load. 

Digital Realty is also experimenting with wind-powered data centers in a commitment to continuing the green data center trend. 

Data centre cybersecurity actions that most people overlook
Schneider’s Steven Carlini discusses ways to improve data centre cybersecurity that most people don’t think of until it’s too late.
Alibaba Cloud showcases commitment to Hong Kong
The company’s service capability in Hong Kong has doubled since it established its first data centre in the city in 2014.
5 tips to reduce data centre transceiver costs
Keysight Technologies' Nicole Faubert shares her advice on how organisations can significantly reduce test time and cost of next-generation transceivers.
The new world of edge data centre management
Schneider Electric’s Kim Povlsen debates whether the data centre as we know it today will soon cease to exist.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
SUSE partners with Intel and SAP to accelerate IT transformation
SUSE announced support for Intel Optane DC persistent memory with SAP HANA.
Inspur uses L11 rack level integration to deploy 10,000 nodes in 8 hours
Inspur recently delivered a shipment of rack scale servers of more than 10,000 nodes to the Baidu Beijing Shunyi data center within 8 hours.
How HCI helps enterprises stay on top of data regulations
Increasing data protection requirements will supposedly drive the demand for Hyper-Converged Infrastructure solutions across the globe.