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