The Associated Press July 23, 2010, 11:52AM ET

Digital Realty Trust's 2Q results rise 15 percent

Datacenter owner Digital Realty Trust Inc. said Friday its second-quarter results increased by 15 percent, missing Wall Street's expectations.

The real estate investment trust also lowered its full-year guidance to include adjustments for transaction and finance charges.

Funds from operations, or FFO, rose to $69.9 million, or 76 cents a share, during the quarter, from $60.8 million, or 71 cents a share, in the year-ago period.

On average, analysts polled by Thomson Reuters expected second-quarter FFO of 83 cents per share.

Funds from operations, or FFO, adds depreciation and amortization expenses, as well as other nonoperating items, back to net income. It's considered an important reading of operating performance for REITs.

Net income fell to $19.9 million from $21.2 million.

Quarterly revenue gained 27 percent to $197.5 million from $155 million in the previous year. Analysts were forecasting $197.9 million in revenue.

The company also downwardly revised its outlook. It expects FFO between $3.24 and $3.32 per share, compared with its previous estimate of $3.26 to $3.38 per share.

Analysts are forecasting 2010 FFO of $3.47 a share.

Shares of the company fell $2.87, or 4.6 percent, to $59.70 in midday trading.


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