DLR

Digital Realty Trust Inc

Finance/Real Estate, TMT, Credit


Presented:03/27/2023
Price:$94.00
Cap:$27.38B
Current Price:$161.21
Cap:$52.78B

Presented

Date03/27/2023
Price$94.00
Market Cap$27.38B
Ent Value$50.95B
P/E Ratio82.71x
Book Value$57.88
Div Yield5.19%
Shares O/S291.30M
Ave Daily Vol2,095,847
Short Int5.60%

Current

Price$161.21
Market Cap$52.78B
Digital Realty Trust, Inc. operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming. The company was founded on March 9, 2004, and is headquartered in Austin, TX.

Publicly traded companies mentioned herein: Digital Realty Trust, Inc (DLR)

Highlights

The presenter is short Digital Realty Trust, Inc (DLR), based on the belief that DLR is experiencing key macro headwinds affecting its ability to efficiently raise funds for capital expenditures and dividends. She notes DLR finds itself at a high point in leverage at 7X 2022 EBITDA, with a significant contractual capital expenditure commitment pipeline for 2023 and an unfavorable environment for raising equity, selling debt, or selling non-core assets. The presenter points out that DLR is a REIT and must payout 90% or more of its taxable profits to its shareholders in the form of dividends. Dividends, and a contractual capital expenditures pipeline of $3.5b over the next 18 months (with $2b expected in 2023 alone) cause an approximately $2b cash need in 2023 which must be funded by equity, debt, and/or asset sales.

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Idea Discussion

Commentor 1 - 2 weeks ago

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