Digital Realty announced May 5 the sale of a Philadelphia data center for $161 million to a health care-oriented real estate investment trust. The sale is the third this year for Digital Realty. The building was originally bought by the company in 2005. This sale is expected to generate cash net operating income of around $9.3 million this year.
The sale indicates a potential shift in thinking for the company. Where originally Digital Realty sought to capitalize on larger-space leases, it is now making partnerships that provide services like managed hosting, cloud or cloud connectivity, while getting rid of what it considers nonessential properties like the Philadelphia data center. Other properties sold this year include a vacant former California data center and a Boston data center. Digital Realty expects to sell six more properties this year.
Digital Realty announced Q2 earnings May 5, reporting an EPS of $1.27, which beat analysts' estimate of $1.25. The reported EPS for Q2 of last year was $1.22. Q1 earnings were $1.26 per share, according to data Digital Realty released Feb. 12.
Brought to you by WiredRE, the nation's leading cloud, colocation, and data center advisory firm.