Digital Realty Trust Announces Third Quarter 2010 Leasing Results and Recent Capital Markets Activities

Oct 11, 2010, 08:30 ET from Digital Realty Trust, Inc.

SAN FRANCISCO, Oct. 11 /PRNewswire-FirstCall/ -- Digital Realty Trust, Inc. (NYSE: DLR), the world's largest wholesale datacenter provider, today announced leasing results for the third quarter of 2010 and updated its recent capital markets activities.  

For the quarter ended September 30, 2010, the Company commenced leases totaling approximately 229,000 square feet of space. This includes approximately 146,000 square feet of Turn-Key Datacenter® space leased at an average annual GAAP rental rate of $148.00 per square foot, approximately 65,000 square feet of Powered Base Building® space leased at an average annual GAAP rental rate of $31.00 per square foot, and approximately 18,000 square feet of non-technical space leased at an average annual GAAP rental rate of $25.00 per square foot.

For the nine months ended September 30, 2010, the Company commenced leases totaling approximately 509,000 square feet of space.  This includes approximately 320,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of $143.00 per square foot, approximately 90,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $32.00 per square foot, and approximately 99,000 square feet of non-technical space leased at an average annual GAAP rental rate of $25.00 per square foot.

The Company signed leases during the quarter ended September 30, 2010 totaling over 147,000 square feet of space. This includes approximately 138,000 square feet of Turn-Key Datacenter® space leased at an average annual GAAP rental rate of $198.00 per square foot and over 9,000 square feet of non-technical space leased at an average annual GAAP rental rate of $28.00 per square foot.

For the nine months ended September 30, 2010, the Company signed leases totaling over 682,000 square feet of space.  This includes approximately 430,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of $169.00 per square foot, approximately 145,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $54.00 per square foot, and over 107,000 square feet of non-technical space leased at an average annual GAAP rental rate of $25.00 per square foot.

"After 2008's third quarter, these results represent the second highest third quarter for leases signed for our Turn-Key Datacenter product, reflecting strong demand from a variety of industry verticals.  As important, we continued to see very favorable pricing in all of our key markets," commented Michael F. Foust, Chief Executive Officer of Digital Realty Trust.  "Leases signed during the quarter with new and existing customers included colocation and managed service providers, IT enterprise, financial services and healthcare firms," he added.

Updating the Company's recent capital markets activity, A. William Stein, Chief Financial Officer and Chief Investment Officer said, "Under our At The Market equity distribution program since our second quarter earnings call on July 23, 2010 through October 5, 2010, the Company generated net proceeds of approximately $129.5 million from the issuance of approximately 2,166,000 shares at an average price of $60.72 per share.  This brings the total net proceeds generated under the At The Market equity distribution program year-to-date through October 5, 2010 to $197.0 million."  The proceeds have been used to repay borrowings under the Company's revolving credit facility, to acquire additional properties, to fund development and redevelopment opportunities and for general corporate purposes.

During the three months ended September 30, 2010, the Company exchanged approximately $25.2 million of its 4.125% exchangeable senior debentures due 2026 for a combination of cash and shares of its common stock.  As of September 30, 2010, the Company exchanged approximately $62.5 million of the 2026 Debentures for a combination of cash and shares of its common stock.  The remaining $110.0 million face amount of the 2026 Debentures remains outstanding under the original terms.

Digital Realty Trust's Turn-Key Datacenter facilities provide state-of-the-art environments for supporting mission critical infrastructure, with advanced cooling, power, redundancy, and sustainability features to ensure that critical applications are available while optimizing energy efficiency. Digital Realty Trust's Turn-Key Datacenters are scalable from hundreds of kilowatts of IT load to megawatts of IT load and are located in markets throughout North America and Europe. Each Turn-Key Datacenter facility is physically secure and features a state-of-the-art power and cooling architecture that has been optimized for green operation. Every Turn-Key Datacenter is built using the Company's proprietary POD Architecture® and uses metered power to ensure that clients pay only for the power that they use.

About Digital Realty Trust, Inc.

Digital Realty Trust owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter® and Powered Base Building® datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and internet enterprises, to manufacturing and financial services. Digital Realty Trust's 95 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 16.7 million square feet as of August 30, 2010, including 2.1 million square feet of space held for redevelopment, Digital Realty Trust's portfolio is located in 27 markets throughout Europe and North America. Digital Realty Trust calculates occupancy and leased square footage for some of its properties based on factors in addition to contractually leased square feet, including available power, required support space and common area. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.

Safe Harbor Statement

This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to rent from leases that have been signed but have not yet commenced, and leasing demand and growth. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; our failure to repay debt when due or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of datacenter space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in real estate and zoning laws and increases in real property tax rates.  For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the United States Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009 and the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010.  The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Turn-Key Datacenter, Powered Base Building and POD Architecture are registered trademarks of Digital Realty Trust.

For Additional Information:

A. William Stein

Pamela A. Matthews

Chief Financial Officer and

Director of Investor Relations

Chief Investment Officer

Digital Realty Trust, Inc.

Digital Realty Trust, Inc.

+1 (415) 738-6500

+1 (415) 738-6500

SOURCE Digital Realty Trust, Inc.



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