Digital Realty Trust

DLR Q4 2019 Earnings

Reported Feb 13, 2020 at 4:54 PM ET · SEC Source

Q4 19 EPS

$1.50

BEAT +105.48%

Est. $0.73

Q4 19 Revenue

$787.5M

MISS 7.77%

Est. $853.8M

vs S&P Since Q4 19

-17.8%

TRAILING MARKET

DLR +95.7% vs S&P +113.5%

Full Year 2019 Results

FY 19 EPS

$2.37

BEAT +88.10%

Est. $1.26

FY 19 Revenue

$3.21B

MISS 2.03%

Est. $3.28B

Market Reaction

Did DLR Beat Earnings? Q4 2019 Results

Digital Realty Trust delivered a sharply mixed fourth-quarter 2019 report, posting earnings that far exceeded Wall Street expectations while revenue came in light of forecasts. The data center REIT earned $1.50 per diluted share against a consensus e… Read more Digital Realty Trust delivered a sharply mixed fourth-quarter 2019 report, posting earnings that far exceeded Wall Street expectations while revenue came in light of forecasts. The data center REIT earned $1.50 per diluted share against a consensus estimate of $0.73, a beat of 105.48%, though the figure was heavily influenced by a one-time gain tied to the Mapletree joint venture transaction, in which Mapletree acquired an 80% stake in three hyperscale facilities in Ashburn, Virginia, valued at approximately $1.00 billion. Revenue of $787.46 million grew 1.2% year-over-year but missed the $853.83 million consensus by 7.77%, weighed down in part by ongoing asset recycling activity and a 2% sequential decline. Core FFO per share of $1.62 reflected the portfolio's transitional posture. Looking ahead, Digital Realty carries roughly $90.00 million in annualized GAAP base rent from signed but uncommenced leases, and its pending combination with InterXion remains on track, with shareholder votes scheduled for February 27, 2020.

Key Takeaways

  • Four consecutive quarters of growth in new signings with $69 million annualized GAAP rental revenue booked in Q4
  • 215 new logos signed in 2019
  • $7 million interconnection contribution to Q4 bookings
  • Gain on sale/deconsolidation of $267.7 million from Mapletree joint venture transaction
  • Signed renewal leases representing $117 million of annualized GAAP rental revenue in Q4
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DLR YoY Financials

Q4 2019 vs Q4 2018, source: SEC Filings

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DLR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 19 Q1 26

“In the fourth quarter, we signed total bookings expected to generate $69 million of annualized GAAP rental revenue, including a $7 million contribution from interconnection. We made significant progress towards a number of key strategic priorities. We continued to enhance our customer offerings with the launch of PlatformDIGITAL™, a first-of-its-kind global data center platform, and we continued to extend our global footprint with an agreement to combine with Interxion. We also executed on our private capital initiative with the closing of our joint venture with Mapletree, and we further strengthened the balance sheet with the issuance of low-cost debt and preferred equity capital. Looking ahead to 2020 and beyond, we are confident that Digital Realty's global, full-product platform will continue to deliver sustainable growth for all stakeholders.”

— A. William Stein, Q4 2019 Earnings Press Release