DLR Gives 2014 Outlook, Q4 Lease Details - Analyst Blog

By Zacks Equity Research,

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Digital Realty Trust Inc. ( DLR ) provided an updated outlook for 2014 and disclosed its preliminary leasing results for fourth-quarter 2013. The company expects core funds from operations (FFO) per share to be in the range of $4.75-$4.90 per share in 2014. Notably, this range matches the Zacks Consensus Estimate for 2014 FFO per share of $4.90.

Furthermore, during fourth-quarter 2013, Digital Realty inked new leases aggregating more than $50 million of GAAP rental revenue on an annual basis, bringing the full year 2013 tally to over $160 million. Notably, both the quarterly and yearly leasing volumes data represents the highest ever registered till date in Digital Realty's history.

As a result, following the announcement, the shares of this niche real estate investment trust (REIT) moved north 0.26% during the regular trading session on Tuesday.

As a matter of fact, Digital Realty had earlier stated its preliminary expectation for 2014 FFO per share growth on (Oct 29) and projected it to increase in the mid-single digits, with $4.60 per share as the base figure. This is based on projected incremental revenue growth of $20-$30 million and operating margin in the range of 25-75 basis points.

Digital Realty operates data centers and digital storage facilities, which are primarily used by telecommunication companies to maintain their Internet presence or augment their data networks. As of Sep 30, 2013, the company had 130 properties, spanning approximately 23.8 million square feet, located in 33 markets across North America, Europe, Asia and Australia.

Digital Realty is scheduled to release its fourth-quarter and full-year 2013 results on Feb 24, 2014, after the closing bell. The Zacks Consensus Estimate for the company's fourth-quarter FFO is currently pegged at $1.15 per share, reflecting a year-over-year decline of 0.93%.

Digital Realty currently has a Zacks Rank #4 (Sell). However, some better-ranked REIT-Equity Trust-Other stocks include W. P. Carey Inc. ( WPC ), National Health Investors Inc. ( NHI ) and Getty Realty Corp. ( GTY ). All of these stocks carry a Zacks Rank #1 (Strong Buy).

DIGITAL RLTY TR (DLR): Free Stock Analysis Report

GETTY REALTY CP (GTY): Free Stock Analysis Report

NATL HEALTH INV (NHI): Free Stock Analysis Report

WP CAREY INC (WPC): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: DLR , GTY , NHI , WPC

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