Digital Realty Reports Strong Earnings For Q1

Digital Realty announced a 28 percent increase in funds from operations per share for Q1 of 2015.

Data center and colocation solutions provider Digital Realty announced Q1 earnings after market close May 5.

The company reported that funds from operations per share rose to $1.56 in the first quarter of 2015, compared to $1.22 in Q1 2014, an increase of 28 percent. Q1 revenues were $407 million, a one percent decline from Q4 2014 and a four percent increase over Q1 2014. Executives are hopeful that this positive trend will continue through 2015.

"Landlord leasing economics continue to improve, reflecting both robust demand for our data center solutions and a steadily shrinking supply of available inventory," said CEO A. William Stein. "As a result, we were able to achieve significant improvements in the lag between lease signing and commencement, straight-line rents and the returns realized on first quarter leasing transactions."

Digital Realty has over 130 locations globally. The earnings report came on the same day they announced the sale of a Philadelphia data center for $161 million. Earlier this year, the company sold a vacant former California data center and a Boston data center. Stein mentioned the company hired new senior management, including CFO, COO and CIO.

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