Digital Realty: We're Still Buying

Digital Realty Trust has been an active buyer of data center properties in recent months. That's a trend that's likely to continue, according to company executives, who discussed their plans with analysts Thursday in its quarterly earnings call.

"We continue to pursue several attractive acquisition opportunities, including stabilized properties and properties suitable for redevelopment in markets where we are full or close to full and demand is strong," said CEO Michael Foust.

In late 2009 Digital Realty went on a buying spree as it acquired leased data centers in Silicon Valley, Boston and Virginia as part of an initiative to buy additional income properties, which generate revenue through rent from existing tenants.

With nearly $800 million in cash, the world's largest data center developer is continuing to shop. In the stabilized properties category, Foust said Digital Realty (DLR) was looking at "a domestic portfolio" as well as several buildings that are not actively being market for sale. On the redevelopment front, Foust said the company is particularly interested in opportunities in Silicon Valley and Paris.

Digital Realty is also pursuing several build-to-suit data center opportunities in the U.S. and Europe. "We think these will be attractive drivers for growth in 2011 and 2012," said Foust.