Thursday, November 4, 2010

DuPont Fabros Revenue Up 16%- UPDATED

By David Gross

DuPont Fabros reported quarterly revenue yesterday of $60.3 million, up 16% y/y, with FFO per share rising from 29 cents to 37 cents.

Property operating costs rose just 2% in spite of the revenue gain, allowing net income to grow from $5.5 million to $15.3 million.   Additionally, the company's NOI, or Net Operating Income, margin is now 63%, close to the 65-70% range that is typical for other apartment, office, and data center REITs.   A year ago, it was just 52%.  

DFT's ACC6 Building Under Construction Nov 2010
Leasing activity at its primary Ashburn, VA campus continues to be much stronger than at its expansion site in Piscataway, NJ, with ACC5 Phase 2 now 75% leased, while NJ1 is just 22% leased.  Both buildings were placed into service this week.   The company's Ashburn tenant roster includes brand name websites like Yahoo, Rackspace, Facebook, and Match.com, while the financial services sector which dominates Northern New Jersey is new for the firm, and is already crowding into facilities owned by Equinix and Digital Realty in Weehawken, Secaucus, and Piscataway.

The stock is down 4% today, possibly because the company reduced its annual FFO guidance midpoint slightly, from $1.35 to $1.32, due to a one-time write off of unamortized interest charges on its ACC4 loan, which it paid off early.

The earnings release came out last night, but the call is today, dial-in information is available here.

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