DuPont Fabros Technology lowers guidance

AP News
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Posted: Dec 11, 2009 3:54 PM

Real estate investment trust DuPont Fabros Technology Inc. lowered its outlook Friday for the fourth quarter and the full year due to costs related to interest rate swaps and debt.

The company said it now expects to have funds from operations of between zero and 3 cents per share. In November, DuPont Fabros Technology forecast quarterly funds from operations of between 24 cents to 30 cents per share.

For all of 2009, the company expects between 83 cents and 86 cents of earnings. Previously guidance was $1.09 per share to $1.12 per share.

DuPont Fabros Technology also said Friday that it will pay a 2009 dividend of 8 cents per share. In 2010, the company expects to pay a dividend of 8 cents per share each quarter.

The company said the lowered results were related to the $550 million debt offering made by a subsidiary and the use of proceeds from a previous $150 million loan. A decision to terminate an interest swap agreement will result on the company making a $14 million payment to the swap counterparty.

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Company shares rose 30 cents, or 1.7 percent, to $17.07 in late trading.