SAN FRANCISCO ( TheStreet) -- Digital Realty Trust ( DLR) shares rebounded Friday morning after the
real estate investment trust said Thursday it expanded into the Singapore market.
Quarterly FFO was negatively impacted by acquisition-related expenses, the redemption of Digital Realty's 8.5% Series A preferred stock, and by charges related to exchanges of its 2026
debentures. Net income was $23.6 million, or 11 cents per share, down 1.3% from $23.9 million, or 16 cents per share, in the year-earlier period. Total operating revenue was $237.5 million, up 45.5% year-over-year from $163.2 million The REIT forecast FFO per share for fiscal 2010 to be in a range between $3.28 and $3.30, which would represent growth as high as 12.6% over fiscal 2009. Adjusted FFO for the year is projected to be between $3.40 and $3.42. Analysts expected Digital Realty Trust to report FFO of $3.31 for fiscal 2010. Elsewhere in the REIT sector, shares of Senior Housing Properties Trust ( SNH) traded on heavier-than-normal volume Friday morning. The senior living properties holder saw nearly 900,000 shares change hands in the first 15 minutes of trading Friday morning, compared with their average daily volume of 1.1 million. Late Thursday, Senior Housing announced a secondary public offering of 12.5 million common shares of beneficial interest at a price of $20.50 per share. The offering's settlement is expected to occur on Dec. 15. Senior Housing expects to use the net proceeds to repay amounts outstanding under its revolving credit facility and for general business purposes, including funding acquisitions. The underwriters have been granted a 30-day option to purchase up to an additional 1.9 million shares to cover over-allotments, if any.
Alexandria Real Estate Equities ( ARE), which last week
raised its quarterly cash dividend by 10 cents, or 28.6%, to 45 cents per share, saw its shares bid up 0.4% in the first minutes of trading Friday. >>10 Top Dividend Stocks Increasing Payouts Analysts from JPMorgan issued an overweight rating and $76 price target on Alexandria Real Estate shares Thursday. The analysts also raised their 2011 and 2012 earnings estimates to $4.60 and $4.79, respectively, citing the REIT's forecast for $100 million in net acquisitions in 2011 and assuming 7% to 8% rent spreads on renewal leases. JPMorgan had previously estimated a 5% rent spread on renewal leases. Earlier this week, Alexandria Real Estate offered initial 2011 FFO guidance of $4.58 to $4.68 per share. "At the midpoint, this is 8 cents ahead of our estimate and in line with the Bloomberg consensus," JP Morgan noted. "Recall that when we upgraded ARE last month, we noted that one of the key risks to our thesis was that our 2011 estimate was below the Bloomberg consensus." -- Written by Miriam Marcus Reimer in New York. >To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to http://twitter.com/miriamsmarket. >To submit a news tip, send an email to: email@example.com.
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