Digital Realty Trust has exceeded analysts’ expectation in its third quarter results with revenues of $412 million, a 3% increase over the previous quarter and a 9% increase over the same quarter last year.
The firm, the world’s largest data centre Real Estate Investment Trust (REIT) provides data centre and collocation space solutions, reported Funds from operations (FFO) at $169 million, or $1.22 per share, compared to $1.20 per share in the second quarter of 2014 and $1.10 per share in the third quarter of 2013.
Net income for the third quarter of 2014 was $130 million, and net income available to common stockholders was $109 million, or $0.80 per diluted share, compared to $0.31 per diluted share in the second quarter of 2014 and $1.06 per diluted share in the third quarter of 2013.
Interim CEO Bill Stein said: "We maintained consistent leasing momentum during the third quarter, with new lease signings totaling $31 million of annualized GAAP rental revenue.
"We also realized another consistent contribution from our mid-market segment, with new leases signed during the third quarter expected to generate $5 million of annualized GAAP rental revenue. Pricing has firmed across products and regions, and net effective leasing economics continue to improve, driven by steady absorption of excess supply at the sector level, along with company-specific changes to our sales compensation program and tighter underwriting discipline."