In order to expand its Australian footprints,
Digital Realty Trust Inc. (
recently acquired an established data center in Macquarie Park,
New South Wales for AU$11.75 million. The inclusion of this
high-quality data centre facility to its portfolio added a new
global blue-chip tenant to Digital Realty's customer base.
Positioned in 23-25 Waterloo Road, the 7500 square-meter acquired
property is fully operational and fully occupied by Fujitsu
Australia. The data center facility comprises 750mm raised
floors and HVAC temperature-control systems with separate cooling
Macquarie Park is a major business centre in Australia as well as
the state of New South Wales. Industry-leading companies, such as
Microsoft Corporation (
Johnson & Johnson (
Oracle Corporation (
Sony Corporation (
, have significant presence in the city.
The property marks the second data centre of Digital Realty in
New South Wales region. The first one - 1-23 Templar Rd - is
situated in Erskine Park, within the Western Sydney Employment
Hub. The building houses four Digital Realty Turn-Key Flex
solution data centers. The company's Turn-Key Flex solution is a
modular approach to safely deliver enterprise quality data centre
space to fulfill customers' just-in-time requirements. The
property comprises 5.7MW of power and an N+1 free air cooling
architecture. It also marked
Rackspace Hosting, Inc.
- a premier provider of cloud computing services - debut in
Digital Realty made a couple of acquisitions worldwide in the
last quarter of 2012, expanding its footprint in international
market along with strengthening its traditional U.S. base.
Earlier in October 2012, the company unveiled two new facilities
at Digital Chessington data center in South West London, bringing
on board 2,880 KW Turn-Key Flex data center space available for
lease. In late November last year, Digital Realty completed the
acquisition of a sprawling redevelopment property, spanning about
271,000 square feet, over 34.31 acres of land in Totowa, New
With rising demand for digital storage facilities in the recent
years, Digital Realty has benefited greatly through negotiation
of favorable lease terms and maintenance of strong occupancy
rates. The long-term lease agreement insulates the company from
short-term volatility and unfavorable market swing experienced
during the recession. These factors, in turn, have enabled
Digital Realty to pay steady dividends to its shareholders.
Digital Realty is expected to release its fourth-quarter 2012
results on February 15, 2013. The Zacks Consensus Estimate for
the company's fourth quarter FFO (fund from operations) is
currently pegged at $1.15 per share.
The Earnings ESP (Expected Surprise Prediction), the percentage
difference between the most accurate estimate and the Zacks
Consensus Estimate, for Digital Realty is 1.74%. This combined
with its Zacks Rank #3 reflects that the company will beat the
Zacks Consensus Estimate in the fourth quarter.
We presently have a long-term 'Neutral' recommendation for
Note: FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.
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