DuPont Fabros Technology, Inc. (DFT) Reports Strong 4Q

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DuPont Fabros Technology, Inc. (NYSE:DFT) reported strong numbers after revenue and earnings increased in 4Q. The company cited strong demand for its data center space during the quarter and anticipates brisk business in 2015. A $120 million buyback program has been approved for 2015.

New leases boost revenue

DuPont Fabros Technology, Inc. (NYSE:DFT) earned $0.28 a share for 4Q, above $0.18 a share earned in the like quarter a year earlier. On an adjusted basis, earnings for the latest quarter increased 14%. The company generated $108 million of revenue for the latest quarter, which was up 9%. New leases that commenced in the quarter supported revenue growth.

The company posted Normalized FFO of $0.58 a share, better than $0.57 a share a year earlier. Adjusted Normalized FFO was up 11%, primarily supported by the higher operating income generated in the quarter. DuPont Fabros Technology, Inc. (NYSE:DFT) disclosed that a favorable tax settlement at NJ1 added $0.01 a share to the operating income for 4Q.

Buyback and liquidity

The company said its stock repurchase program in 2014 allowed it to buy back shares worth $122.2 million. For 2015, the board approved $120 million for stock repurchase. Out of its $560 million in revolving credit facility, DuPont Fabros Technology, Inc. (NYSE:DFT) said it had $500 million as of the end of December 2014. However, it has drawn $35 million since the end of the year such that it currently has $465 million remaining under the credit facility.

DuPont Fabros Technology, Inc. (NYSE:DFT) anticipates $1.68 per share of annualized dividend for 2015, which the management said represents an estimated AFFO payout ratio of 67.2%. However, adjusting for certain impact, the company estimates AFFO payout ratio of 63.2%.

DuPont Fabros Technology paid out 4Q dividend of $0.42 a share, which was 20% above the dividend paid out in the previous quarter.

According to DuPont Fabros Technology, Inc. (NYSE:DFT)’s CEO, Hossein Fateh, there are strong indications that 2015 would be a good year for the company. Such indications include robust data center space releasing and renewal activities.

Full Release: here

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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