Jefferies Comments On Digital Realty Trust Investor Day

Digital Realty Trust DLR dominant market position in the wholesale data center space gives it a major competitive advanatge vs. peers in regards to taking full advantage of strong fundamentals in the data center real estate market, which is poised to continue to see positive demand/supply fundamentals for the next five years. 2011 FFO/sh guidance of $3.70-$3.90 was reaffirmed. Some investors were clearly expecting a raise and were somewhat disappointed about this. Management, however, made it a point to stress that they have beaten guidance in five of the last six years. Jefferies remain at $3.87, above $3.80 guidance mid-point and consensus of $3.82 due to the fact that: mgmt guidance assumes flat mark-to-market on any outstanding lease expirations in 2011, when MTM has been in the mid double digits for 2011 expirations that have already been addressed. Jefferies has a Buy rating and $67 PT on DLR DLR closed Thursday at $52.88