Data center REIT Digital Realty (NYSE: DLR) reported revenues for the second quarter of 2021 of US$1.1 billion, unchanged from the previous quarter and a 10% increase from the same quarter last year.

The company delivered second-quarter of 2021 net income of $126 million, and net income available to common stockholders of $127 million, or $0.45 per diluted share, compared to $1.32 per diluted share in the previous quarter and $0.20 per diluted share in the same quarter last year.

Digital Realty generated second quarter of 2021 Adjusted EBITDA of $603 million, a 2% decrease from the previous quarter and an 8% increase over the same quarter last year.

The company reported second-quarter of 2021 funds from operations of $515 million, or $1.78 per share, compared to $1.49 per share in the previous quarter and $1.49 per share in the same quarter last year.

Excluding certain items that do not represent core expenses or revenue streams (but including a $0.12 non-cash charge related to the higher corporate tax rate in the UK), Digital Realty delivered second-quarter of 2021 core FFO per share of $1.54, an 8% decrease from $1.67 per share in the previous quarter, and unchanged from $1.54 per share in the same quarter last year.

During the second quarter of 2021, Digital Realty closed on the acquisition of a five-acre land parcel in Seoul, South Korea for approximately $66 million, or $13.5 million per acre, and an 18.5-acre land parcel in Sydney, Australia for $65 million, or approximately $3.5 million per acre. 

The two sites are expected to support the development of approximately 64 megawatts and 97 megawatts of IT load, respectively.  Commencement of development on these land parcels will be subject to market demand, and delivery will be phased to meet future growth requirements.

Separately, Digital Realty also closed on the sale of a vacant, 240,000-square foot office and industrial property in Phoenix, AZ during the second quarter of 2021 for $19 million, or approximately $79 per square foot.

Digital Realty Chief Executive Officer A. William Stein, said: “Digital Realty’s global platform, strong customer relationships, and a healthy demand environment for data centre services drove solid second-quarter financial results. 

“Bookings in the quarter reflect the continued adoption of PlatformDIGITAL with strong new logo growth and balanced product sales.  By investing to support our customers’ growth around the world, we are widening our competitive moat which results in sustainable growth for our shareholders.”

Digital Realty had approximately $13.9 billion of total debt outstanding as of June 30, 2021, comprised of $13.7 billion of unsecured debt and approximately $0.2 billion of secured debt.  At the end of the second quarter of 2021, net debt-to-Adjusted EBITDA was 6.0x, debt plus-preferred-to-total enterprise value was 25.2% and fixed charge coverage was 5.4x.

As the company also updated its 2021 outlook, it also shared its latest statement on the Covid-19 pandemic saying that the firm is closely monitoring the impact of the COVID-19 pandemic on global business and operations, including the impact on customers, suppliers and business partners. 

“Digital Realty data centres have been deemed essential operations, allowing critical personnel to remain in place and to continue to provide services and support for our customers,” it reads. 

“To date, all our facilities have remained fully operational and continue to operate in accordance with our business continuity and pandemic response plans. While we have not experienced any significant disruptions from the COVID-19 pandemic to date, we cannot predict the impact the COVID-19 pandemic will have on our future financial condition, results of operations and cash flows due to numerous uncertainties.” 

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