Digital Realty reports slight revenue drop in Q1 2017
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Digital Realty’s first-quarter yearly revenue dropped 5% to $551 million this year, but the company says it’s in good shape - especially when compared to last year.
The company’s signed total bookings during the first quarter will generate $50 million of annualized revenue, including a $9 million contribution from interconnection.
Overall, the company has $6.2 of total outstanding debt, most of which is unsecured.
"We achieved healthy volume in each of our global regions and across product types during the first quarter," comments Digital Realty CEO, A. William Stein.
The company has raised its 2017 core FFO per share outlook $5.90 - $6.10 to $5.95 - $6.10 and "constant-currency" core FFO per share outlook from $5.95 - $6.25 to $6.00 - $6.25.
The company also invested in land and renewal leases which provided extra funding.
"We signed total bookings representing $50 million of annualized GAAP rental revenue, including a $9 million contribution from interconnection. We are encouraged by the favorable intermediate-term outlook, given healthy market fundamentals, a supportive macro environment and secular demand tailwinds,” William Stein says.
The company’s existing renewal leases account for $46 million of annualized GAAP revenue in the quarter.
The company has also hiked rental rates on those leases, giving the company an extra 3.1% on a cash basis.
The company purchased a seven-acre patch of land in Osaka, Japan, for $13.6 million, which will be used to develop 25 megawatts of critical power.
The company expects to maintain its total revenue between $2.2-2.3 billion overall.
Digital Realty recently achieved its seventh consecutive year of ‘five nines’ of uptime with 99.999% availability throughout 2016.
"We are thrilled to have reached this important milestone, which reflects our steadfast commitment to developing and delivering the world's most dependable data center solutions," said A. William Stein, Digital Realty's CEO at the time.