Digital Realty (NYSE: DLR) shares currently have a dividend yield of 4.40%. Digital Realty Trust, Inc., a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. The company has a P/E ratio of 48.34. The average volume for Digital Realty has been 1,443,500 shares per day over the past 30 days. Digital Realty has a market cap of $9.2 billion and is part of the real estate industry. Shares are up 5.8% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Digital Realty as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations, compelling growth in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 16.5%. Since the same quarter one year prior, revenues rose by 29.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry average. The net income increased by 19.4% when compared to the same quarter one year prior, going from $45.72 million to $54.57 million.
- Net operating cash flow has significantly increased by 54.24% to $186.41 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 38.55%.
- DIGITAL REALTY TRUST INC has improved earnings per share by 5.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, DIGITAL REALTY TRUST INC increased its bottom line by earning $1.47 versus $1.31 in the prior year. For the next year, the market is expecting a contraction of 0.7% in earnings ($1.46 versus $1.47).
- You can view the full Digital Realty Ratings Report.
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