Digital Realty has Seoul as it posts 10% increase in sales

30 July 2021 | Antony Savvas

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Digital Realty has reported an annual 10% increase in revenues to $1.1 billion for the second quarter and announced the building of its second data centre in Seoul, South Korea.

Adjusted EBITDA was $603 million, an 8% increase over the same quarter last year.

The firm signed total bookings expected to generate $113 million of annualised GAAP rental revenue, including a $13 million contribution from interconnection.

Digital Realty chief executive officer Bill Stein said: “Bookings in the quarter reflect the continued adoption of PlatformDIGITAL, with strong new logo growth and balanced product sales. By investing to support our customers' growth around the world, we are widening our competitive moat which results in sustainable growth for our shareholders.”

In addition to new leases signed, Digital Realty also completed renewal leases representing $178 million of annualised GAAP rental revenue during the quarter.

In addition, the firm closed on the acquisition of a five-acre land parcel in Seoul, South Korea for approximately $66 million, and an 18.5-acre land parcel in Sydney, Australia for $65 million.

The two sites are expected to support the development of approximately 64MW and 97MW of IT load, respectively.

Digital Realty also closed on the sale of a vacant, 240,000 sq ft office and industrial property in Phoenix, Arizona for $19 million.

The company had around $13.9 billion of total debt outstanding as of 30 June 2021, comprised of $13.7 billion of unsecured debt and approximately $0.2 billion of secured debt.

The firm, on the same day it released its results, also provided more details on the aforementioned Seoul project (picture render above).

The land parcel is located at Gurae-dong, Gimpo City in north-west Seoul, approximately 23km from Digital Seoul 1, Digital Realty's first facility in South Korea - which is currently under construction and scheduled for delivery in the fourth quarter of 2021.

The second facility - Digital Seoul 2 - is expected to encompass 970,000 sq ft and be fully operational by the first half of 2023.

Mark Smith, managing director of APAC for Digital Realty, said: “South Korea is a leading player on the global digital stage and we expect the country's new 'Digital Deal' investments in 5G, big data and artificial intelligence to drive greater demand for highly connected centres of data exchange.”