Digital Realty

Digital Realty reports $1bn third quarter 2020 revenue

30 October 2020 | Abigail Opiah

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Digital Realty (NYSE: DLR) has announced its financial results for the third quarter of 2020.

The company reported revenues for the third quarter of 2020 of $1.0 billion, a 3% increase from the previous quarter and a 27% increase from the same quarter last year. 

Digital Realty generated third quarter of 2020 Adjusted EBITDA of $568 million, a 2% increase from the previous quarter and a 17% increase over the same quarter last year.

In the third quarter, Digital Realty signed total bookings expected to generate $89 million of annualised GAAP rental revenue, including a $14 million contribution from interconnection. 

"We delivered solid third-quarter results, driven by consistent execution and growth across the business," said Digital Realty Chief Executive Officer A. William Stein. 

"Our new logo growth and heightened deal velocity reflect the power of our global platform and the resiliency of our business. 

“As we close out the year, we remain focused on delivering for our customers, maintaining our momentum, and investing in our global platform to support long-term growth." 

The company reported third-quarter of 2020 funds from operations of $336 million, or $1.19 per share, compared to $1.49 per share in the previous quarter and $1.59 per share in the same quarter last year. 

In addition to new leases signed, Digital Realty also signed renewal leases representing $161 million of annualised GAAP rental revenue during the quarter.

Company developments

During the third quarter of 2020, Digital Realty closed on the previously announced acquisition of the freehold to the land under its Hanauer Landstraße campus in Frankfurt for €185 million ($217 million). 

The site includes nine Interxion data centres previously subject to leasehold agreements with approximately nine years of the remaining lease term. Interxion now owns the freehold to all 15 data centres on its Frankfurt campus. 

During the third quarter of 2020, Digital Realty acquired Altus IT, a carrier-neutral data centre provider in Croatia, for approximately €11 million ($13 million).

The company also closed on the previously announced sale of a property in Groningen, the Netherlands for €20 million ($23 million).