“Our formula for long-term value creation is a global connected sustainable framework. We advanced each of these three pillars during the fourth quarter.” That is according to William Stein, CEO of Digital Realty Trust Inc., on the firm’s Q4 earnings call.
According to Stein, the REIT extended its global footprint with its entry into Latin America—in December, it closed the acquisition of Ascenty, the leading data center platform in the rapidly growing Brazilian market shown here on page three of our presentation.
Ascenty owns a high-quality portfolio of purpose built world class data centers as well as a proprietary fiber network and is run by a best in class management team. “Over 90% of the revenue is generated from investment grade or equivalent customers and over 75% of contractual cash rent is denominated in U.S. dollars. This transaction represents a highly strategic extension of our global platform offers a compelling growth opportunity and will be accretive to our long-term growth.”
The company’s top priority is deepening connections with its customers, he explained. “We are also focused on strengthening connections across our organization. We made several important investments in our human capital during the fourth quarter most notably including the appointment of Greg Wright as Chief Investment Officer and Corey Dyer as Executive Vice President of Global Sales and Marketing.”
He added that the company “took several significant steps towards further extending our sustainability leadership over the past few months highlighted here on page four. In November, we received NAREIT’s data center Leader in the Light Award for the second consecutive year. We are the first and so far the only data center REIT to receive NAREITs leader in the light award for sustainable real estate practices.”
In December, the company earned the U.S. EPA’s Energy Star certification for superior energy performance in 24 data centers in 2018. “We also entered in an agreement with Salt River Project to source solar energy to power a portion of the load for our Arizona data center portfolio. In January we issued the first ever data center in Green Euro bond.”
And finally, a few weeks ago, the company revealed a long-term renewable power purchase agreement to secure 80 megawatts of solar power on behalf of Facebook to support their renewable energy goals. “We are committed to managing our environmental impact in optimizing our use of energy and natural resources because we believe it’s the right thing to do and because it matters to our customers.”
As for market fundamentals, demand remains robust across the Asia Pacific region, driven by local as well as global hyper scale users, he says. “In Japan, we recently announced a multi-megawatt multi-year agreement with a leading global cloud service provider to anchor the latest facility on our Osaka Connected campus scheduled for delivery the middle of this year.”