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Real estate investment trust $DLR reported a drop in 2Q16 earnings due to last year's gain on sale of property. Net income fell to $27.95MM or $0.19 per share from $117.06MM or $0.86 per share last year. Operating revenue grew to $514.93MM from $420.3MM.
$DLR plans to buy fellow data center REIT $DFT in all-share transaction valued at about $7.6Bil. $DFT shareholders will get fixed exchange ratio of 0.545 $DLR shares per $DFT share. The deal is expected to close in 2H17. The combined organization is expected to provide most comprehensive product offering in data center sector.
$DLR reiterated its 2017 total revenue guidance of $2.2-2.3Bil. However, the company narrowed its EPS guidance to $1.55-1.65 from $1.60-1.75 and widened its FFO per share guidance to $5.85-5.95 from the earlier guidance of $5.80-5.95. Core FFO per share is now expected to be in the range of $5.95-6.10.
$DLR is on track with underwriting in the acquired EMEA portfolio and the overall team was fully integrated and finalized in 4Q16. In 2017, the company will focus on integration of systems and processes. $DLR is seeing good customer activity and is cross-selling products which it believes will provide revenue synergies.
$DLR's total bookings for 4Q16 were approx. $33MM of annualized GAAP revenue including a $7.5MM contribution from interconnection. The company signed new leases for space and power totaling $25MM of annualized GAAP rent, including a $7MM colocation contribution.
In 4Q16, $DLR launched Service Exchange which is an interconnection platform that facilitates direct, private and secure connections to multiple cloud service providers and telecommunication providers. $DLR went live in 43 facilities across 8 markets and is on track to roll out another 17 sites across 9 markets in 2017.
$DLR still expects 2017 total revenue of $2.2-2.3Bil, EPS of $1.60-1.75, FFO per share of $5.80-5.95, core FFO per share of $5.90-6.10 and adjusted FFO per share of $5.95-6.25. The company still predicts adjusted EBITDA margin of 57-59%, and G&A margin of 6-7% for 2017.
$DLR's funds from operations for 4Q16 rose to $255.4MM or $1.58 per share from $117.5MM or $0.79 per share in the previous year quarter. Core FFO per share increased to $1.43 from $1.38 in the prior year quarter, and adjusted FFO per share grew to $1.31 from $1.11.
$DLR swung to a 4Q16 profit from a loss last year, driven by lower costs and expenses as well as higher rental revenue. Net income was $96.14MM or $0.49 per share compared to a loss of $16.6MM or $0.28 per share last year. Operating revenue grew to $576.8MM from $500.4MM.
$DLR reported core FFO per share of $1.44 in 3Q16, up 9% on a reported basis and 11% on a constant currency basis. FY16 core FFO per share is expected to be in the range of $5.65-5.75 on a reported basis and $5.70-5.90 on a constant currency basis.
$DLR's 3Q16 total bookings were a little over $55MM of annualized GAAP revenue, including a $9MM contribution from interconnection. The company assigned new leases for space and power totaling $46MM of annualized GAAP rent, including an $8MM co-location contribution.
$DLR's funds from operations for 3Q16 rose to $199.5MM or $1.3631 per share from $177.85MM or $1.28 per share in the previous year quarter. Excluding certain items that do not represent core expenses or revenue streams, core FFO per share increased to $1.44 from $1.32 in the prior year quarter.
Real estate investment trust $DLR reported a jump in 3Q16 earnings driven by higher rental revenues as well as an increase in interconnection and other revenue. Net income grew to $222.4MM or $1.25 per share from $57.84MM or $0.28 per share last year. Operating revenue grew to $546.3MM from $436MM.
$DLR said that on its renewal leasing activity, it retained 85% of 2Q16 lease expirations and signed just under $60MM of renewals in addition to new leases signed. The average cash releasing spread was up a little less than 3% overall with a positive cash mark-to-market across all property types.