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Digital Realty Trust (DLR) Provides Upbeat Guidance for 2017

Zacks Equity Research

Digital Realty Trust, Inc. DLR, the San Francisco, CA-based real estate investment trust (“REIT”) has announced its initial 2017 outlook. The company anticipates 2017 core funds from operations (“FFO”) per share to be in the range of $5.90–$6.10, indicating year-over-year growth of more than 5% from the midpoint of the 2016 figure. Secular positive trend in demand is responsible for this robust growth assumption.

In 2017, foreign currency conversion related headwind is likely to range between 1–3%.  In fact, on a constant-currency basis, FFO per share growth is anticipated to be around 7% year over year.  Continuous progress made by Digital Realty Trust in expanding EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin as well as solid execution of its strategies are behind this positive outlook.

Shares of Digital Realty Trust outperformed the Zacks categorized REIT and Equity Trust - Other industry, over the past one year. During the same time span, shares of the company grew 38.2%, whereas the industry gained 11.4%.

Digital Realty Trust currently carries a Zacks Rank # 3 (Hold). Over the past 60 days, estimates for 2016 declined 0.2% to $5.71 per share.

Some better-ranked stocks in the real estate space include AGNC Investment Corp. AGNC, Seritage Growth Properties SRG and Brandywine Realty Trust BDN. All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

AGNC Investment’s 2016 estimates have moved up 2.6% to $2.36 per share, over the past 60 days.

Seritage Growths’ 2016 estimates have moved up 0.9% to $2.34 per share, over the past 60 days.

Brandywine Realty’s 2016 estimates have remained unchanged at $1.29 per share, over the past 60 days.

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