NYSE:DLR.PRJ

Stock Analysis Report

Executive Summary

Digital Realty supports the data center, colocation and interconnection strategies of customers across the Americas, EMEA and APAC, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products.


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Digital Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DLR.PRJ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

DLR.PRJ

-4.7%

US REITs

-7.6%

US Market


1 Year Return

9.1%

DLR.PRJ

11.6%

US REITs

10.2%

US Market

Return vs Industry: DLR.PRJ underperformed the US REITs industry which returned 12.8% over the past year.

Return vs Market: DLR.PRJ underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

DLR.PRJIndustryMarket
7 Day-3.3%-4.7%-7.6%
30 Day-2.7%-1.5%-4.5%
90 Day1.4%0.9%-0.6%
1 Year15.0%9.1%16.1%11.6%12.5%10.2%
3 Yearn/a31.7%15.3%37.1%28.3%
5 Yearn/a52.7%21.3%60.8%43.2%

Price Volatility Vs. Market

How volatile is Digital Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Digital Realty Trust undervalued compared to its fair value and its price relative to the market?

31.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLR.PRJ ($25.68) is trading below our estimate of fair value ($36.3)

Significantly Below Fair Value: DLR.PRJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DLR.PRJ is poor value based on its PE Ratio (56.4x) compared to the REITs industry average (36.3x).

PE vs Market: DLR.PRJ is poor value based on its PE Ratio (56.4x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: DLR.PRJ is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: DLR.PRJ is overvalued based on its PB Ratio (3.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Digital Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLR.PRJ's forecast earnings growth (10.5% per year) is above the savings rate (1.7%).

Earnings vs Market: DLR.PRJ's earnings (10.5% per year) are forecast to grow slower than the US market (13.2% per year).

High Growth Earnings: DLR.PRJ's earnings are forecast to grow, but not significantly.

Revenue vs Market: DLR.PRJ's revenue (6.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DLR.PRJ's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLR.PRJ's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Digital Realty Trust performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLR.PRJ has a large one-off gain of $287.2M impacting its December 31 2019 financial results.

Growing Profit Margin: DLR.PRJ's current net profit margins (15.3%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: DLR.PRJ's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: DLR.PRJ's earnings growth over the past year (97.3%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: DLR.PRJ earnings growth over the past year (97.3%) exceeded the REITs industry 5.9%.


Return on Equity

High ROE: DLR.PRJ's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Digital Realty Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DLR.PRJ has a high level of physical assets or inventory.

Debt Coverage by Assets: DLR.PRJ's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: DLR.PRJ's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DLR.PRJ has a sufficient allowance for bad loans.

Low Risk Liabilities: DLR.PRJ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DLR.PRJ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DLR.PRJ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DLR.PRJ has an appropriate level of bad loans.


Next Steps

Dividend

What is Digital Realty Trust's current dividend yield, its reliability and sustainability?

3.31%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%4.0%industryaverage3.7%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: DLR.PRJ's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: DLR.PRJ's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: DLR.PRJ's dividends per share have been stable in the past 10 years.

Growing Dividend: DLR.PRJ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.5%), DLR.PRJ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DLR.PRJ's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Bill Stein (65yo)

5.9yrs

Tenure

US$12,502,063

Compensation

Mr. Arthur William Stein, also known as Bill, J.D., has been the Chief Executive Officer at Digital Realty Trust Inc. since November 2014. Mr. Stein also served as the Chief Financial Officer of Digital Re ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD12.50M) is about average for companies of similar size in the US market ($USD10.82M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arthur Stein
CEO & Director5.9yrsUS$12.50m0.000040% $11.6k
Andrew Power
Chief Financial Officer4.8yrsUS$5.03mno data
Erich Sanchack
Executive Vice President of Operations2yrsUS$3.68m0.00027% $78.5k
Christopher Sharp
Chief Technology Officer4.5yrsUS$3.49m0.00017% $49.4k
Joshua Mills
Executive VP14.8yrsUS$2.27m0.0020% $578.6k
Gregory Wright
Chief Investment Officer1.1yrsno datano data
Edward Sham
Chief Accounting Officer3.8yrsno data0.0021% $604.8k
Matt Mercier
Senior Vice President of Finance13.5yrsno datano data
Edward Diver
Chief Information Officer1.4yrsno datano data
John Stewart
Senior Vice President of Investor Relations0yrsno datano data

4.5yrs

Average Tenure

49yo

Average Age

Experienced Management: DLR.PRJ's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arthur Stein
CEO & Director5.9yrsUS$12.50m0.000040% $11.6k
Laurence Chapman
Independent Chairman of the Board2.8yrsUS$394.87k0.030% $8.8m
Dennis Singleton
Independent Director0yrsUS$259.93k0.0052% $1.5m
Michael Coke
Independent Director2.4yrsUS$283.66k0.0048% $1.4m
Afshin Mohebbi
Independent Director3.5yrsUS$259.93kno data
Kevin Kennedy
Independent Director6.9yrsUS$259.93kno data
William LaPerch
Independent Director6.9yrsUS$254.93k0.00096% $279.1k
Mark Patterson
Independent Director3.6yrsUS$259.93k0.0024% $689.1k
Mary Preusse
Independent Director2.8yrsUS$254.57kno data
VeraLinn Jamieson
Independent Director0.08yrsno datano data

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: DLR.PRJ's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Digital Realty Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Digital Realty Trust, Inc.
  • Ticker: DLR.PRJ
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$29.078b
  • Market Cap: US$27.236b
  • Shares outstanding: 217.74m
  • Website: https://www.digitalrealty.com

Number of Employees


Location

  • Digital Realty Trust, Inc.
  • Four Embarcadero Center
  • Suite 3200
  • San Francisco
  • California
  • 94111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLRNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2004
FQIDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2004
0I9FLSE (London Stock Exchange)YesCommon StockGBUSDOct 2004
FQIETLX (Eurotlx)YesCommon StockITEUROct 2004
DLR.PRGNYSE (New York Stock Exchange)PFD SER G 5.875%USUSDApr 2013
DLR.PRINYSE (New York Stock Exchange)6.35% PFD I CUMUSUSDAug 2015
DLR.PRJNYSE (New York Stock Exchange)5.250% PFD SER JUSUSDAug 2017
DLR.PRCNYSE (New York Stock Exchange)6.625% PFD SER CUSUSDSep 2017
DLR.PRKNYSE (New York Stock Exchange)5.850 PFD SR KUSUSDMar 2019
DLR.PRLNYSE (New York Stock Exchange)5.2 PFD SER LUSUSDOct 2019
D1LR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Digital Realty supports the data center, colocation and interconnection strategies of customers across the Americas, EMEA and APAC, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:14
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.