Standard & Poor's Ratings Services' ratings on Digital Realty Trust Inc. and Digital Realty Trust L.P. (collectively, Digital) acknowledge the company's satisfactory business profile, given its good competitive position as a multimarket datacenter provider. We consider Digital's financial profile to be intermediate, based on moderate leverage, strong debt coverage measures, and management's willingness to issue equity to finance leverage-neutral growth to date. In our view, if tenant demand weakens in the near term, Digital's well-occupied portfolio of long-term leases subject to annual rent increases and a positive mark-to-market rent profile should cushion operating cash flow. However, we consider the high cost of fully equipped datacenter space which heightens the financial impact to a landlord from potential tenant and/or product obsolescence...
Companies mentioned in this report are:
- Digital Realty Trust Inc.
- Digital Realty Trust L.P.
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