Upcoming AWS Coverage on Hudson Pacific Properties Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 14, 2017 / Active Wall St. announces its post-earnings coverage on DuPont Fabros Technology, Inc. (NYSE: DFT). The Company announced its fourth quarter and fiscal 2016 financial results on February 23, 2017. The owner, developer, operator, and manager of enterprise-class, carrier-neutral, large-scale, multi-tenant wholesale data center outperformed revenue expectations and met market's FFO estimates. Register with us now for your free membership at:
One of DuPont Fabros Technology's competitors within the REIT - Office space, Hudson Pacific Properties, Inc. (NYSE: HPP), reported on February 16, 2017, its financial results for Q4 ended December 31, 2016. AWS will be initiating a research report on Hudson Pacific Properties in the coming days.
Today, AWS is promoting its earnings coverage on DFT; touching on HPP. Get our free coverage by signing up to:
For the quarter-ended December 31, 2016, DuPont Fabros' revenues were $141.69 million, an increase of 22% over Q4 2015 revenue of $115.92 million. The increase in revenues was primarily due to new leases commencing and higher à la carte project revenue. The Company's revenue numbers surpassed analysts' consensus of $136 million. For FY16, DuPont Fabros' revenues increased 17% to $528.7 million versus FY15 revenue of $452.40 million. The increase in revenues was primarily due to new leases that commenced.
For the quarter ended December 31, 2016, DuPont Fabros' earnings were $0.44 per share compared to a loss of $1.23 per share in Q4 2015, which included an impairment charge recorded in 2015 of $1.52 per share for the NJ1 data center. Excluding this charge, earnings increased $0.15 per share on a y-o-y basis, which was primarily due to new leases that commenced in Q4 2015, and in 2016 and lower preferred stock dividends. For FY16, the Company's earnings were $1.67 per share compared to loss of $0.40 per share in FY15.
Both NAREIT FFO and normalized FFO for the Company were $0.75 per share in Q4 2016 compared to $0.61 per share for Q4 2015. NAREIT FFO and normalized FFO both increased $0.14 per share, or 23%, from the prior year quarter primarily due to increased operating income excluding depreciation of $0.19 per share. The Company's reported numbers matched market expectations. DuPont Fabros' normalized FFO for FY16 was $2.80 per share, up 14% compared to $2.46 per share for FY15.
DuPont Fabros' AFFO for Q4 2016 was $0.78 per share, surging 30% compared to $0.60 per share in the year ago comparable quarter. AFFO for the year ended December 31, 2016, was $2.82 per share compared to $2.64 per share in 2015. AFFO increased 7% from the prior year.
During Q4 2016, DuPont Fabros executed a pre-lease at Phase-I of ACC9 with a new customer totaling 2.88 MW and 18,000 CRSF with a lease term of 5.0 years. This lease is expected to commence in Q2 2017 upon the opening of ACC9 Phase-I. The Company also extended the term of one lease at VA3 totaling 1.30 MW and 13,696 CRSF. The lease term was extended by 2.0 years commencing July 01, 2017, and compared to the cash rental rate in effect when the extension was executed, cash base rent will increase 4.0% upon the expiration of the original lease term. GAAP base rent increased 5.8% immediately.
In FY16, DuPont Fabros executed 14 new leases, including one with a new customer, with a weighted average lease term of 12.2 years, totaling 50.93 MW and 267,662 CRSF, which are expected to generate approximately $63.3 million of annualized GAAP base rent revenue, which is equivalent to a GAAP rate of $104 per kW per month.
DuPont Fabros stated that the TOR1 Phase-I will be constructed with its new 4.0 design which will allow customers to customize power density and resiliency within their computer rooms. The Company noted that it is finishing out only 6.0 MW of the 18.0 MW of Phase-I, which is anticipated to be placed in service in Q4 2017. The remaining 12.0 MW of Phase-I will be available for customers to select customized configurations. DuPont Fabros have also commenced construction of the shell portion of ACC10, which will allow the Company to expedite delivery of this data center when demand warrants.
Balance Sheet and Liquidity
As of February 23, 2017, DuPont Fabros have $107.1 million in borrowings under its revolving credit facility, leaving $642.9 million available for additional borrowings.
In a separate press release on February 17, 2017, the Company's Board of Directors has declared cash dividends on shares of both its common and preferred stock for the first quarter of 2017. The Company will pay a $0.50 per common share dividend on April 17, 2017, to shareholders of record as of April 03, 2017; The Company will pay a $0.4140625 per share dividend on the 6.625% Series C Cumulative Redeemable Perpetual Preferred Stock on May 15, 2017, to shareholders of record as of May 01, 2017.
DuPont Fabros' GAAP earnings per share guidance for FY17 are in the range of $1.75 to $1.95 per share and for Q1 2017 is expected to be between $0.45 to $0.47 per share. The Company has established its FY17 Normalized FFO guidance range at $3.00 to $3.20 per share. The midpoint of its normalized FFO guidance range is $3.10 per share, which is $0.30 higher than the 2016 normalized FFO per share of $2.80; an increase of 11%.
On Monday, March 13, 2017, the stock closed the trading session at $47.67, slightly up 0.17% from its previous closing price of $47.59. A total volume of 900.47 thousand shares have exchanged hands, which was higher than the 3-month average volume of 804.82 thousand shares. DuPont Fabros Technology's stock price rallied 13.35% in the last three months, 13.60% in the past six months, and 32.68% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 8.51%. The stock has a dividend yield of 4.20% and currently has a market cap of $3.68 billion.
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