Business Context and Reporting Period
Digital Realty Trust, Inc. filed this Form 8-K on September 19, 2006, to report a restatement of historical financial data. The filing addresses the reclassification of the property located at 7979 East Tufts Avenue, which was classified as held for sale in June 2006 and sold on July 12, 2006. In compliance with SFAS No. 144, the company is revising its consolidated financial statements for the years ended December 31, 2005, 2004, and 2003 to reflect the results of this property as discontinued operations.
Key Financial Metrics
The filing provides specific financial data solely for the discontinued operations of the 7979 East Tufts Avenue property. It does not provide updated consolidated revenue, profit, cash flow, or debt metrics for the entire company, other than the impact of this specific reclassification.
| Year Ended Dec 31 | 2005 | 2004 | 2003 |
|---|---|---|---|
| Total Revenues (Discontinued) | $6,104 | $7,147 | $1,455 |
| Total Expenses (Discontinued) | $7,091 | $8,473 | $1,401 |
| (Loss) Income from Discontinued Operations | $(987) | $(1,326) | $54 |
Note: All figures are in thousands.
Material Changes Versus Prior Period
The material change reported is a retrospective reclassification of financial results for the years 2003, 2004, and 2005. The results of operations for the 7979 East Tufts Avenue property have been moved from continuing operations to discontinued operations. This adjustment impacts the consolidated statements of operations, selected financial data, and management's discussion and analysis previously filed in the Form 10-K for the year ended December 31, 2005.
Guidance, Outlook, and Risks
This filing does not contain new guidance, forward-looking outlook, or management commentary regarding future performance. The document strictly addresses the accounting adjustment required by SFAS No. 144. No new risks or contingencies are disclosed beyond the completed sale of the property and the resulting accounting reclassification.
Investor Verification Checklist
- Verify the revised consolidated financial statements filed as Exhibit 99.1 to this 8-K.
- Review the updated Selected Financial Data (Exhibit 99.2) and Management's Discussion and Analysis (Exhibit 99.3) to ensure the discontinued operations are correctly excluded from continuing operations metrics.
- Confirm that the loss from discontinued operations for 2005 and 2004 is properly segregated from the company's core operating results.