Digital Realty 3Q FFO rises 23 percent

Funds from operations, the key financial measurement for real estate investment trusts like Digital Realty, increased to $62.6 million, or 69 cents per share, from $51 million, or 59 cents per share, in the year-ago period.

Revenue grew 36 percent to $142 million from $104.8 million. On average, analysts polled by Thomson Reuters expected FFO of 63 cents per share on revenue of $131.7 million

FFO, which adds such items as amortization and depreciation back to net income, is considered a key gauge of REIT strength because it gives a more accurate picture of cash performance.

Quarterly net income swung to a profit $8.1 million, or 11 cents per share, from a loss of $224,000 in the prior year.

The company also raised its FFO projections for 2008 to a range of $2.58 to $2.60 per share, from a prior view of $2.40 to $2.50 per share. For 2009, Digital Realty projected FFO of between $2.75 and $2.90 per share.

Wall Street analysts expect FFO of $2.45 per share in 2008, and $2.85 in 2009.

Shares fell 76 cents, or 2.2 percent, to $33.29 in afternoon trading.