Digital Realty Trust Inc.
) 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
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
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.
National Health Investors Inc.
Getty Realty Corp.
). All of these stocks carry a Zacks Rank #1 (Strong Buy).
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