Digital Realty Reports 21% Increase in Revenues in 2nd Quarter 2020

Digital Realty (NYSE: DLR), global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, has reported revenues for the second quarter of 2020 of $993 million. It’s a 21% increase from the previous quarter and a 24% increase from the same quarter last year.

Digital Realty delivered the second quarter of 2020 a net income of $76 million. The company reported an adjusted EBITDA of $559 million. This is a 16% increase from the previous quarter and a 17% increase over the same quarter last year.

“I’m incredibly proud of the way the Digital Realty team has come together during the difficult circumstances of the past several months to maintain steadfast support for our customers around the world, prioritizing health and safety while maintaining service levels,” said Digital Realty CEO A. William Stein. “We continued to seed investments to support our customers’ future growth across the Americas, APAC and EMEA, while delivering record current-period bookings, demonstrating the power of our global platform as well as the resiliency of our business. Looking ahead, we are well positioned to continue to deliver sustainable growth for customers, shareholders and employees, into the second half of 2020 and beyond.”

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Interxion

COVID-19

Throughout the COVID-19 global pandemic, Digital Realty’s colocation data centers around the world have remained fully operational in accordance with business continuity and pandemic response plans, prioritizing the health and safety of employees, customers and partners while ensuring service levels are maintained.

Construction activity has been somewhat delayed in a few markets due to government restrictions in certain locations and/or limited availability of labor. In some instances, these delays have impacted scheduled delivery dates.

Digital Realty stated it will monitor the situation closely and remain in frequent communication with customers, contractors and suppliers. They have been managing their supply chain proactively. The company believes they have acquired the vast majority of the equipment needed to complete our 2020 development activities. They also believe that they have ample liquidity to fund their business needs.

Investment Activities

“I’m incredibly proud of the way the Digital Realty team has come together during the difficult circumstances of the past several months to maintain steadfast support for our customers around the world, prioritizing health and safety while maintaining service levels,” said Digital Realty CEO A. William Stein.

During the second quarter of 2020, Interxion acquired a 3.6-acre land parcel in Madrid, Spain for approximately €33 million, or $37 million. Interxion is a European provider of carrier- and cloud-neutral colocation data center solutions and a Digital Realty company. The land parcel is less than one kilometer from Interxion’s existing campus in Madrid. Upon completion, the new facility is expected to support up to 34 megawatts of critical IT capacity and will encompass more than 375,000 square feet. Commencement of development will be subject to market demand, and delivery will be phased to meet future customer growth requirements.

Subsequent to quarter-end, Interxion acquired the freehold to the land under its Hanauer Landstraße campus in Frankfurt for €185 million, or approximately $209 million. The site includes nine Interxion data centers previously subject to leasehold agreements with approximately nine years of remaining lease term, along with Interxion’s German headquarters office as well as several buildings currently leased to other customers. Interxion now owns the freehold to all 15 data centers on its Frankfurt campus.

Separately, Interxion reached an agreement to acquire an expansion parcel within approximately one kilometer of the Hanauer Landstraße campus for €177 million, or approximately $200 million. The expansion parcel totals 107,000 square meters that will support the development of up to 180 megawatts of additional IT capacity and will be fully connected to the existing campus. The purchase is expected to close in two stages, with final transfer of ownership in early 2021.

Subsequent to quarter-end, Digital Realty closed on the sale of a property in Groningen, the Netherlands for €20 million, or $22 million. The property is expected to generate 2020 cash net operating income of approximately €1.3 million, or $1.5 million.