SAN FRANCISCO ( TheStreet) -- Digital Realty Trust ( DLR) said rental revenue more than doubled last year.

Digital Realty, a real estate investment trust , booked record 2010 annual leasing performance in terms of square footage and total contract value of $1.2 billion, the company said, representing a 160% increase over results in 2009.

Investors bid shares sharply higher in morning activity but the stock pared gains ninety minutes into the session, trading 0.1% lower at $51.70. Shares traded between $51.54 and $52.33 so far in Monday's session. It's relatively flat year-to-date but 5% higher year-over-year.

Digital Realty a San Francisco-based REIT engaged in the business of owning, acquiring, developing, redeveloping and managing technology-related real estate. Digital Realty's primary property holdings are datacenters, digital storage facilities which are used by companies to maintain their internet presence or beef up their data networks. Datacenters are expensive to build and maintain, and as such supply is relatively inelastic.

"Our fourth quarter lease signings reflect strong demand for both our Turn-Key Datacenter and Powered Base Building products across multiple industry verticals in the U.S. as well as Europe," said CEO Michael F. Foust. "Rental rates, particularly for our Turn-Key Datacenter space, vary from market to market, impacting quarterly results. Markets where we saw the strongest pricing for Turn-Key Datacenter space during the year were Santa Clara and New York Metro, which is reflected in our second and third quarter 2010 lease signings."

He added that "enterprise demand is driven by the consistent growth of applications in corporate IT departments as well as growth in providers of co-location and managed services."

Nearly 8% of Digital Realty's signed leases last year where U.S.-based, with the remainder based in its European portfolio.

In December Digital Realty reported plans to expand into the Singapore market as well.

The REIT said it completed the acquisition of a new 360,500 square foot data center facility in Singapore's International Business Park in the Jurong East area.

By comparison, the company signed leases in 2010 totaling 478,000 square feet of space. As of Dec. 9, Digital Realty's properties comprised around 16.8 million square feet, including 2.3 million square feet of space held for redevelopment.

The newly acquired Singapore building reportedly offers 4.5 mega watts of IT capacity on each of its six floors, enabling support for dedicated occupants or shared customer environments.

In November Jefferies analysts initiated coverage of DLR with a buy rating and $67 price target. In the same month RBC Capital Markets analysts reiterated an outperform rating on the stock but lowered their price target by $6 to $66.

-- Written by Miriam Marcus Reimer in New York.

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