DLR Q3 2019 Earnings
Reported Oct 29, 2019 at 5:09 PM ET · SEC Source
Q3 19 EPS
$1.67
BEAT +475.86%
Est. $0.29
Q3 19 Revenue
$806.5M
MISS 0.82%
Est. $813.2M
vs S&P Since Q3 19
-41.0%
TRAILING MARKET
DLR +96.0% vs S&P +136.9%
Market Reaction
Did DLR Beat Earnings? Q3 2019 Results
Digital Realty Trust delivered a sharply mixed third quarter for 2019, posting core FFO per share of $1.67 against a consensus estimate of just $0.29, a beat of 475.86%, while revenue of $806.47 million came in slightly below the $813.15 million esti… Read more Digital Realty Trust delivered a sharply mixed third quarter for 2019, posting core FFO per share of $1.67 against a consensus estimate of just $0.29, a beat of 475.86%, while revenue of $806.47 million came in slightly below the $813.15 million estimate despite rising 4.9% year-over-year. The headline EPS strength was anchored by robust leasing momentum, including $69.00 million in annualized GAAP rental revenue from new bookings, the third-best quarter in that metric in company history, and a record 64 new logos signed during the period. A major strategic catalyst was the definitive agreement with Mapletree Investments to sell ten data center assets for roughly $557.00 million and form a joint venture on three Ashburn, Virginia facilities valued at approximately $1.00 billion, with Digital Realty retaining a 20% stake. The company trimmed its full-year 2019 core FFO guidance to $6.55 to $6.65 per share, from $6.60 to $6.70, citing the expected early November closing of that transaction. Competitors have noted the deal's European strategic logic, though its broader global competitive impact remains a subject of debate.
Key Takeaways
- • 5% year-over-year revenue growth driven by organic leasing activity
- • Record 64 new logos signed during Q3 2019
- • Third-best bookings quarter in company history at $69 million annualized GAAP rental revenue
- • Renewal rental rate roll-ups of 7.2% on a cash basis and 10.1% on a GAAP basis
- • Strong interconnection revenue growth of 3.4% year-over-year in same-capital pool
- • FX represented approximately 75 basis points drag on reported results
DLR YoY Financials
Q3 2019 vs Q3 2018, source: SEC Filings
DLR Revenue by Segment
With YoY comparisons, source: SEC Filings
“In the third quarter, we signed total bookings expected to generate $69 million of annualized GAAP rental revenue, including an $8 million contribution from interconnection. We continued to execute well, with record new logos and the third-best bookings in the company's history, close on the heels of our second-highest in the prior quarter. We also made progress on key strategic priorities, extending our global footprint, expanding our sustainability initiatives and optimizing the portfolio while advancing our private capital program and further strengthening our balance sheet. Looking ahead, we are confident that our global, multi-product platform will continue to deliver sustainable growth for all stakeholders.”
— A. William Stein, Q3 2019 Earnings Press Release
DLR Earnings Trends
DLR vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
DLR EPS Trend
Earnings per share: estimate vs actual
DLR Revenue Trend
Quarterly revenue: estimate vs actual
DLR Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.45 | $0.46 | +2.93% | $1.64B | +2.13% |
| Q4 19 BEAT FY | $0.73 | $1.50 | +105.48% | $787.5M | -7.77% |
| FY Full Year | $1.26 | $2.37 | +88.10% | $3.21B | -2.03% |
| Q3 19 BEAT | $0.29 | $1.67 | +475.86% | $806.5M | -0.82% |
| Q2 19 BEAT | $0.27 | $1.64 | +507.41% | $800.8M | -0.85% |