Digital Realty Trust(US:DLR)2021-08-05 16:00Portfolio and Occupancy - As of June 30, 2021, the consolidated portfolio was 84.7% leased, down from 86.3% as of December 31, 2020[165] - The average remaining lease term was approximately five years as of June 30, 2021[168] - The total portfolio consists of 291 data center buildings with a net rentable square footage of 35,812,908[166] - The occupancy rate for North America was 86.1%, Europe 76.5%, Asia Pacific 84.0%, and Africa 47.9% as of June 30, 2021[166] - The company has approximately 5.0 million square feet of available space in its portfolio, with 6.5% and 13.0% of net rentable square footage scheduled to expire during the six months ending December 31, 2021, and the year ending December 31, 2022, respectively[183] Revenue and Growth - Total operating revenues increased by approximately $100.2 million (10.1%) and $367.2 million (20.2%) for the three and six months ended June 30, 2021, respectively, compared to the same periods in 2020, primarily driven by growth in non-stabilized rental and other services revenue[187] - Non-stabilized rental and other services revenue increased by $94.1 million (24.4%) and $345.8 million (56.6%) for the three and six months ended June 30, 2021, respectively, largely due to the Interxion Combination[187] - Stabilized rental and other services revenue increased by $7.6 million (1.3%) and $23.8 million (2.0%) for the three and six months ended June 30, 2021, respectively, due to new leasing and renewals[187] - The company expects to achieve sustainable long-term growth in earnings and funds from operations per share and unit[159] - The company anticipates significant internal growth through the development of existing space and acquisition of new properties[160] Expenses and Operating Costs - Property level operating expenses increased by approximately $15.1 million (8.1%) and $42.1 million (11.4%) for the three and six months ended June 30, 2021, respectively, primarily related to higher utility consumption[190] - Total property level expenses increased by $50.6 million (13.3%) and $153.5 million (22.2%) for the three and six months ended June 30, 2021, respectively[191] - Total operating expenses for the six months ended June 30, 2021, were $1.805 billion, reflecting a 15.5% increase from $1.563 billion in the same period of 2020[193] - Total other operating expenses for the six months ended June 30, 2021, were $959.436 million, a 10.2% increase from $871.006 million in the same period of 2020[193] Capital Expenditures and Financing - The company expects to incur approximately $1.1 billion to $1.4 billion in capital expenditures for development programs during the six months ending December 31, 2021[215] - The company had open commitments related to construction contracts of approximately $1.5 billion as of June 30, 2021[214] - Total capital expenditures for the six months ended June 30, 2021, increased by approximately $217.5 million to $1,024.6 million, compared to $807.1 million for the same period in 2020[220] - Development projects accounted for approximately $945.9 million of capital expenditures, reflecting a 29% increase from the same period in 2020, primarily due to development activity at properties acquired in the Interxion Combination[222] - The company may require additional capital to finance its development activities, which may not be available on acceptable terms[182] Debt and Interest Rates - As of June 30, 2021, the company had approximately $14.0 billion of outstanding consolidated long-term debt, with a debt to total enterprise value ratio of approximately 24%[232] - The effective interest rate for fixed-rate debt, including hedged variable rate debt, was 2.40% as of June 30, 2021[232] - Approximately 90.1% of the company's total debt was fixed rate, while 9.9% was variable rate as of June 30, 2021[232] - The company utilized interest rate swap agreements to manage exposure to interest rate movements, with total fixed rate debt (including swaps) amounting to $12,649.7 million[254] Cash Flow and Investments - Net cash provided by operating activities increased to $849,922 thousand for the six months ended June 30, 2021, up from $712,370 thousand in the same period of 2020, representing a change of $137,552 thousand[238] - Net cash used in investing activities decreased by $120,170 thousand, primarily due to an increase in cash provided by proceeds from the sale of 11 data centers in Europe in March 2021[240] - Net cash used in financing activities increased by $680,176 thousand, attributed to a decrease in cash provided by proceeds from secured/unsecured debt and an increase in cash used for redemption of preferred stock and dividend payments[243] Income and Performance Metrics - Funds from Operations (FFO) available to common stockholders increased to $514,693 thousand for the three months ended June 30, 2021, compared to $414,533 thousand for the same period in 2020[250] - Basic FFO per share for the three months ended June 30, 2021, was $1.78, up from $1.50 in the same period of 2020[250] - Net income available to common stockholders for the three months ended June 30, 2021, was $127.4 million, compared to $53.7 million for the same period in 2020, representing a 137% increase[250] Foreign Operations and Currency Risk - Operating revenues from properties outside the United States for the six months ended June 30, 2021, were $806.3 million, representing 36.9% of total operating revenues, up from 29.6% in the same period of 2020[258] - The company had a net investment in properties outside the United States of $9.4 billion as of June 30, 2021, compared to $9.3 billion as of December 31, 2020[258] - The company is subject to foreign currency exchange risk, with primary exposures to the British pound, Euro, and Singapore dollar, impacting future costs and cash flows[256]