AUSTIN,
Texas, May 2, 2024 /PRNewswire/ --
Digital Realty (NYSE: DLR), the largest global
provider of cloud- and carrier-neutral data center, colocation, and
interconnection solutions, announced today financial results for
the first quarter of 2024. All per share results are presented on a
fully diluted basis.
Highlights
- Reported net income available to common stockholders of
$0.82 per share in 1Q24, compared to
$0.20 in 1Q23
- Reported FFO per share of $1.41
in 1Q24, compared to $1.60 in
1Q23
- Reported Core FFO per share of $1.67 in 1Q24, compared to $1.66 in 1Q23
- Reported "Same-Capital" cash NOI growth of 4.7% in 1Q24
- Reported rental rate increases on renewal leases of 11.8% on a
cash basis in 1Q24
- Signed total bookings during 1Q24 that are expected to generate
$252 million of annualized GAAP
rental revenue, including a $40
million contribution from the 0–1 megawatt category and
$13 million contribution from
interconnection
- Maintained 2024 Core FFO per share outlook of $6.60 - $6.75
Financial Results
Digital Realty reported revenues of $1.3
billion in the first quarter of 2024, a 3% decrease from the
previous quarter and an 1% decrease from the same quarter last
year.
The company delivered net income of $288
million in the first quarter of 2024, and net income
available to common stockholders of $271
million, or $0.82 per diluted
share, compared to $0.08 per diluted
share in the previous quarter and $0.20 per diluted share in the same quarter last
year.
Digital Realty generated Adjusted EBITDA of $711 million in the first quarter of 2024, a 2%
increase from the previous quarter and 6% increase over the same
quarter last year.
The company reported Funds From Operations (FFO) of $451 million in the first quarter of 2024, or
$1.41 per share, compared to
$1.53 per share in the previous
quarter and $1.60 per share in the
same quarter last year.
Excluding certain items that do not represent core expenses or
revenue streams, Digital Realty delivered Core FFO per share of
$1.67 in the first quarter of 2024,
compared to $1.63 per share in the
previous quarter and $1.66 per share
in the same quarter last year. Digital Realty delivered
Constant-Currency Core FFO per share of $1.67 for the first quarter of 2024.
"Digital Realty saw accelerating demand in the first quarter,
executing on a number of multifaceted AI-oriented opportunities,
while continuing to support hybrid multi-cloud requirements. Strong
demand supported a new leasing record, driven by large footprint
deals," said Digital Realty President & Chief Executive Officer
Andy Power. "In support of this
demand, we sourced over $1 billion of
fresh capital through asset sales and joint ventures, further
reducing our reported leverage while positioning the company to
meet our customers' growing needs."
Leasing Activity
In the first quarter, Digital Realty signed total bookings that
are expected to generate $252 million
of annualized GAAP rental revenue, including a $40 million contribution from the 0–1 megawatt
category and a $13 million
contribution from interconnection.
The weighted-average lag between new leases signed during the
first quarter of 2024 and the contractual commencement date was 7
months.
In addition to new leases signed, Digital Realty also signed
renewal leases representing $248
million of annualized cash rental revenue during the
quarter. Rental rates on renewal leases signed during the first
quarter of 2024 increased 11.8% on a cash basis and 13.0% on a GAAP
basis.
New leases signed during the first quarter of 2024 are
summarized by region and product as follows:
|
|
Annualized GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Rent
|
|
Square Feet
|
|
GAAP Base Rent
|
|
|
|
GAAP Base Rent
|
|
Americas
|
|
(in thousands)
|
|
(in thousands)
|
|
per Square Foot
|
|
Megawatts
|
|
per Kilowatt
|
|
0-1 MW
|
|
|
$19,050
|
|
67
|
|
|
$283
|
|
6.5
|
|
|
$243
|
|
> 1
MW
|
|
|
175,200
|
|
636
|
|
|
275
|
|
84.0
|
|
|
174
|
|
Other
(1)
|
|
|
495
|
|
10
|
|
|
51
|
|
—
|
|
|
—
|
|
Total
|
|
|
$194,746
|
|
713
|
|
|
$273
|
|
90.5
|
|
|
$179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0-1 MW
|
|
|
$14,754
|
|
60
|
|
|
$246
|
|
5.5
|
|
|
$224
|
|
> 1
MW
|
|
|
23,020
|
|
112
|
|
|
206
|
|
13.7
|
|
|
140
|
|
Other
(1)
|
|
|
72
|
|
1
|
|
|
117
|
|
—
|
|
|
—
|
|
Total
|
|
|
$37,846
|
|
173
|
|
|
$219
|
|
19.2
|
|
|
$164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0-1 MW
|
|
|
$6,192
|
|
18
|
|
|
$343
|
|
1.5
|
|
|
$333
|
|
> 1
MW
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
Other
(1)
|
|
|
159
|
|
3
|
|
|
56
|
|
—
|
|
|
—
|
|
Total
|
|
|
$6,351
|
|
21
|
|
|
$304
|
|
1.5
|
|
|
$333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Regions
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0-1 MW
|
|
|
$39,996
|
|
145
|
|
|
$275
|
|
13.6
|
|
|
$246
|
|
> 1
MW
|
|
|
198,220
|
|
748
|
|
|
265
|
|
97.7
|
|
|
169
|
|
Other
(1)
|
|
|
726
|
|
13
|
|
|
55
|
|
—
|
|
|
—
|
|
Total
|
|
|
$238,942
|
|
907
|
|
|
$264
|
|
111.2
|
|
|
$178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interconnection
|
|
|
$13,240
|
|
N/A
|
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
|
$252,182
|
|
907
|
|
|
$264
|
|
111.2
|
|
|
$178
|
|
|
|
Note: Totals may
not foot due to rounding differences.
|
|
(1)
|
Other includes Powered
Base Building® shell capacity as well as storage and office
space within fully improved data center facilities.
|
|
(2)
|
Based on quarterly
average exchange rates during the three months ended March 31,
2024.
|
Investment Activity
As previously disclosed, in the first quarter, Digital Realty
successfully resolved its relationship with Cyxtera, with the
closing of a series of transactions with Brookfield Infrastructure
Partners L.P., Cyxtera Technologies and Digital Core REIT. Digital
Realty received $277 million for its
interest in four data centers and redeployed $55 million to buy out Cyxtera's leases in
Digital Realty's Frankfurt and
Singapore data centers. Digital
Realty also exercised its option to purchase a data center outside
of London, UK, which is expected
to close in the second quarter.
Also previously disclosed, in January, Digital Realty and
Blackstone Inc. established the first phase of their $7 billion hyperscale data center development
joint venture, which includes campuses in Paris and Northern
Virginia. The second phase is scheduled to close later this
year, upon obtaining the required approvals.
As announced in early March, Digital Realty and Mitsubishi
Corporation established a joint venture to support the development
of two build-to-suit data centers in the Dallas metro area. The two data centers
commenced construction in the fourth quarter of 2022 and can
deliver up to 48 megawatts of IT load. Mitsubishi initially
invested approximately $200 million
to acquire a 65% equity interest in the venture, while Digital
Realty maintains a 35% interest. Each partner will fund its pro
rata share of the remaining development costs for the two
facilities, which are slated for initial completion and
commencement in late 2024.
Additionally, as previously disclosed, during the quarter,
Digital Realty closed on the purchase of approximately 19 acres of
land in Paris, France for
approximately €70 million or $76
million. The parcel of land, which was previously leased to
Digital Realty, is currently under development to support up to 77
megawatts of IT load.
During the quarter, Digital Realty closed on the sale of 19
acres of vacant land in Sydney,
Australia for approximately AU$96 million or $63 million.
Digital Realty also received approximately $92 million of proceeds during the first quarter,
pursuant to an agreement to grant land easements for the use of
substations on its Digital Dulles campus.
During the first quarter, MC Digital Realty closed on the
acquisition of five acres of land in Osaka, Japan which could support the
development of up to 18 megawatts of IT load, for approximately
JPY1 billion or $7 million.
Subsequent to quarter end, Digital Realty and GI Partners
expanded their existing joint venture in Chicago, with the sale to GI Partners of a 75%
interest in a stabilized hyperscale data center that is situated on
the same campus as two stabilized hyperscale data centers that were
previously contributed to a joint venture with GI Partners in
July 2023. Digital Realty received
approximately $388 million of gross
proceeds and will maintain a 25% interest in the joint venture.
Based on annualized in‐place cash NOI as of March 31, 2024, adjusted for a customary vacancy
allowance, the transaction values the facility at a 6.5% cap rate.
As previously disclosed, in January, GI Partners executed its
option to increase its stake from 65% to 80% in the two original
stabilized hyperscale data centers within the Chicago joint venture.
Subsequent to quarter end, Digital Realty closed on the sale to
Digital Core REIT (SGX: DCRU) of an additional 24.9% interest in a
data center facility located in Frankfurt, Germany for €117 million, or
approximately $129 million. The
transaction valued the Frankfurt
facility at €470 million, or approximately $517 million (at 100% share). Digital Core REIT
has an option to acquire up to an 89.9% total ownership interest in
the facility.
Balance Sheet
Digital Realty had approximately $17.0
billion of total debt outstanding as of March 31, 2024, comprised of $16.4 billion of unsecured debt and approximately
$0.6 billion of secured debt and
other. At the end of the first quarter of 2024, net
debt-to-Adjusted EBITDA was 6.1x, debt-plus-preferred-to-total
enterprise value was 27.9% and fixed charge coverage was 4.0x. Pro
forma for the completion of the second phase of the Blackstone development joint ventures
announced in December 2023, as well
as the expansion of the joint venture with GI Partners and the sale
of an interest in an asset to Digital Core REIT subsequent to
quarter end, net debt-to-Adjusted EBITDA was 5.8x.
As previously disclosed, in January, Digital Realty sold 0.6
million shares of its common stock at a weighted average price of
$133.43 per share for net proceeds of
approximately $84 million.
Subsequent to quarter end, the company repaid €600 million
($647 million) aggregate principal
amount of its 2.625% notes.
2024 Outlook
Digital Realty maintained its 2024 Core FFO per share and
Constant-Currency Core FFO per share outlook of $6.60 - $6.75. The
assumptions underlying the outlook are summarized in the following
table.
|
|
As of
|
|
As of
|
|
|
Top-Line and Cost
Structure
|
|
February 15, 2024
|
|
May 2, 2024
|
|
|
Total
revenue
|
|
$5.550 - $5.650
billion
|
|
$5.550 - $5.650
billion
|
|
|
Net non-cash rent
adjustments (1)
|
|
($35 - $40
million)
|
|
($35 - $40
million)
|
|
|
Adjusted
EBITDA
|
|
$2.800 - $2.900
billion
|
|
$2.800 - $2.900
billion
|
|
|
G&A
|
|
$450 - $460
million
|
|
$450 - $460
million
|
|
|
|
|
|
|
|
|
Internal Growth
|
|
|
|
|
|
|
Rental rates on
renewal leases
|
|
|
|
|
|
|
Cash
basis
|
|
4.0% - 6.0%
|
|
5.0% - 7.0%
|
|
|
GAAP
basis
|
|
6.0% - 8.0%
|
|
7.0% - 9.0%
|
|
|
Year-end
portfolio occupancy
|
|
+100 - 200
bps
|
|
+100 - 200
bps
|
|
|
"Same-Capital"
cash NOI growth (2)
|
|
2.0% - 3.0%
|
|
2.5% - 3.5%
|
|
|
|
|
|
|
|
|
Foreign Exchange
Rates
|
|
|
|
|
|
|
U.S. Dollar /
Pound Sterling
|
|
$1.25 -
$1.30
|
|
$1.25 -
$1.30
|
|
|
U.S. Dollar /
Euro
|
|
$1.05 -
$1.10
|
|
$1.05 -
$1.10
|
|
|
|
|
|
|
|
|
External Growth
|
|
|
|
|
|
|
Dispositions /
Joint Venture Capital
|
|
|
|
|
|
|
Dollar
volume
|
|
$1,000 - $1,500
million
|
|
$1,000 - $1,500
million
|
|
|
Cap
rate
|
|
6.0% - 8.0%
|
|
6.0% - 8.0%
|
|
|
Development
|
|
|
|
|
|
|
CapEx (Net of
Partner Contributions) (3)
|
|
$2,000 - $2,500
million
|
|
$2,000 - $2,500
million
|
|
|
Average
stabilized yields
|
|
10.0%+
|
|
10.0%+
|
|
|
Enhancements and
other non-recurring CapEx (4)
|
|
$15 - $20
million
|
|
$15 - $20
million
|
|
|
Recurring CapEx +
capitalized leasing costs (5)
|
|
$260 - $275
million
|
|
$260 - $275
million
|
|
|
|
|
|
|
|
|
Balance Sheet
|
|
|
|
|
|
|
Long-term debt
issuance
|
|
|
|
|
|
|
Dollar
amount
|
|
$0 - $1,000
million
|
|
$0 - $1,000
million
|
|
|
Pricing
|
|
5.0% - 5.5%
|
|
5.0% - 5.5%
|
|
|
Timing
|
|
Mid-Year
|
|
Mid-Year
|
|
|
|
|
|
|
|
|
Net income per diluted
share
|
|
$1.80 - $1.95
|
|
$1.80 - $1.95
|
|
|
Real estate
depreciation and (gain) / loss on sale
|
|
$4.40 -
$4.40
|
|
$4.40 -
$4.40
|
|
|
Funds From Operations / share
(NAREIT-Defined)
|
|
$6.20 - $6.35
|
|
$6.20 - $6.35
|
|
|
Non-core expenses
and revenue streams
|
|
$0.40 -
$0.40
|
|
$0.40 -
$0.40
|
|
|
Core Funds From Operations /
share
|
|
$6.60 - $6.75
|
|
$6.60 - $6.75
|
|
|
Foreign currency
translation adjustments
|
|
$0.00 -
$0.00
|
|
$0.00 -
$0.00
|
|
|
Constant-Currency Core Funds From Operations /
share
|
|
$6.60 - $6.75
|
|
$6.60 - $6.75
|
|
|
|
|
(1)
|
Net non-cash rent
adjustments represent the sum of straight-line rental revenue and
straight-line rental expense, as well as the amortization of above-
and below-market leases (i.e., ASC 805
adjustments).
|
|
(2)
|
The
"Same-Capital" pool includes properties owned as of December
31, 2022 with less than 5% of total rentable square feet under
development. It excludes properties that were undergoing, or
were expected to undergo, development activities in 2023-2024,
properties classified as held for sale, and properties sold or
contributed to joint ventures for all periods presented.
|
|
(3)
|
Excludes land
acquisitions and includes Digital Realty's share of JV
contributions. Figure is net of JV partner
contributions.
|
|
(4)
|
Other non-recurring
CapEx represents costs incurred to enhance the capacity or
marketability of operating properties, such as network fiber
initiatives and software development costs.
|
|
(5)
|
Recurring CapEx
represents non-incremental improvements required to maintain
current revenues, including second-generation tenant improvements
and leasing commissions.
|
|
|
Note: The Company does
not provide a reconciliation for non-GAAP estimates on a
forward-looking basis, where it is unable to provide a meaningful
or accurate calculation or estimation of reconciling items and the
information is not available without unreasonable effort. Please
see Non-GAAP Financial Measures in this document for further
discussion.
|
Non-GAAP Financial Measures
This document contains non-GAAP financial measures, including
FFO, Core FFO, Adjusted FFO, Net Operating Income (NOI),
"Same-Capital" Cash NOI and Adjusted EBITDA. A reconciliation from
U.S. GAAP net income available to common stockholders to FFO, a
reconciliation from FFO to Core FFO, a reconciliation from Core FFO
to Adjusted FFO, reconciliation from NOI to Cash NOI, and
definitions of FFO, Core FFO, Adjusted FFO, NOI and "Same-Capital"
Cash NOI are included as an attachment to this document. A
reconciliation from U.S. GAAP net income available to common
stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA
and definitions of net debt-to-Adjusted EBITDA,
debt-plus-preferred-to-total enterprise value, cash NOI, and fixed
charge coverage ratio are included as an attachment to this
document.
The Company does not provide a reconciliation for non-GAAP
estimates on a forward-looking basis, where it is unable to provide
a meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and/or amount of various items that would impact net income
attributable to common stockholders per diluted share, which is the
most directly comparable forward-looking GAAP financial measure.
This includes, for example, external growth factors, such as
dispositions, and balance sheet items such as debt issuances, that
have not yet occurred, are out of the Company's control and/or
cannot be reasonably predicted. For the same reasons, the Company
is unable to address the probable significance of the unavailable
information. Forward-looking non-GAAP financial measures provided
without the most directly comparable GAAP financial measures may
vary materially from the corresponding GAAP financial measures.
Investor Conference Call
Prior to Digital Realty's investor conference call at
5:00 p.m. ET / 4:00 p.m. CT on May 2,
2024, a presentation will be posted to the Investors section
of the company's website at https://investor.digitalrealty.com. The
presentation is designed to accompany the discussion of the
company's first quarter 2024 financial results and operating
performance. The conference call will feature President & Chief
Executive Officer Andy Power and
Chief Financial Officer Matt
Mercier.
To participate in the live call, investors are invited to dial
+1 (888) 317-6003 (for domestic callers) or +1 (412) 317-6061 (for
international callers) and reference the conference ID# 1322262 at
least five minutes prior to start time. A live webcast of the call
will be available via the Investors section of Digital Realty's
website at https://investor.digitalrealty.com.
Telephone and webcast replays will be available after the call
until June 2, 2024. The telephone
replay can be accessed by dialing +1 (877) 344-7529 (for domestic
callers) or +1 (412) 317-0088 (for international callers) and
providing the conference ID# 7673278. The webcast replay can be
accessed on Digital Realty's website.
About Digital Realty
Digital Realty brings companies and data together by delivering
the full spectrum of data center, colocation, and interconnection
solutions. PlatformDIGITAL®, the company's global data center
platform, provides customers with a secure data meeting place and a
proven Pervasive Datacenter Architecture (PDx®) solution
methodology for powering innovation and efficiently managing Data
Gravity challenges. Digital Realty gives its customers access to
the connected data communities that matter to them with a global
data center footprint of 300+ facilities in 50+ metros across 25+
countries on six continents. To learn more about Digital Realty,
please visit digitalrealty.com or follow us on
LinkedIn and X.
Contact Information
Matt Mercier
Chief Financial Officer
Digital Realty
(737) 281-0101
Jordan Sadler / Jim Huseby
Investor Relations
Digital Realty
(737) 281-0101
|
Consolidated Quarterly Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2024
|
|
Unaudited and in Thousands, Except Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
31-Mar-24
|
|
|
31-Dec-23
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
Rental
revenues
|
|
|
$894,409
|
|
|
$885,694
|
|
|
$886,960
|
|
|
$869,298
|
|
|
$870,975
|
|
Tenant reimbursements -
Utilities
|
|
|
276,357
|
|
|
316,634
|
|
|
335,477
|
|
|
330,416
|
|
|
317,148
|
|
Tenant reimbursements -
Other
|
|
|
38,434
|
|
|
46,418
|
|
|
64,876
|
|
|
46,192
|
|
|
40,150
|
|
Interconnection &
other
|
|
|
108,071
|
|
|
106,413
|
|
|
107,305
|
|
|
104,521
|
|
|
101,695
|
|
Fee income
|
|
|
13,010
|
|
|
14,330
|
|
|
7,819
|
|
|
14,908
|
|
|
7,868
|
|
Other
|
|
|
862
|
|
|
144
|
|
|
—
|
|
|
932
|
|
|
887
|
|
Total Operating Revenues
|
|
|
$1,331,143
|
|
|
$1,369,633
|
|
|
$1,402,437
|
|
|
$1,366,267
|
|
|
$1,338,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilities
|
|
|
$324,571
|
|
|
$366,083
|
|
|
$384,455
|
|
|
$374,934
|
|
|
$346,364
|
|
Rental property
operating
|
|
|
224,369
|
|
|
237,118
|
|
|
223,089
|
|
|
224,762
|
|
|
224,861
|
|
Property
taxes
|
|
|
41,156
|
|
|
40,161
|
|
|
72,279
|
|
|
46,718
|
|
|
40,424
|
|
Insurance
|
|
|
2,694
|
|
|
3,794
|
|
|
4,289
|
|
|
4,385
|
|
|
4,355
|
|
Depreciation &
amortization
|
|
|
431,102
|
|
|
420,475
|
|
|
420,613
|
|
|
432,573
|
|
|
421,198
|
|
General &
administration
|
|
|
114,419
|
|
|
109,235
|
|
|
108,039
|
|
|
105,964
|
|
|
107,766
|
|
Severance, equity
acceleration and legal expenses
|
|
|
791
|
|
|
7,565
|
|
|
2,682
|
|
|
3,652
|
|
|
4,155
|
|
Transaction and
integration expenses
|
|
|
31,839
|
|
|
40,226
|
|
|
14,465
|
|
|
17,764
|
|
|
12,267
|
|
Provision for
impairment
|
|
|
—
|
|
|
5,363
|
|
|
113,000
|
|
|
—
|
|
|
—
|
|
Other
expenses
|
|
|
10,836
|
|
|
5,580
|
|
|
1,295
|
|
|
655
|
|
|
—
|
|
Total Operating Expenses
|
|
|
$1,181,776
|
|
|
$1,235,598
|
|
|
$1,344,206
|
|
|
$1,211,407
|
|
|
$1,161,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
$149,367
|
|
|
$134,035
|
|
|
$58,231
|
|
|
$154,860
|
|
|
$177,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings /
(loss) of unconsolidated joint ventures
|
|
|
(16,008)
|
|
|
(29,955)
|
|
|
(19,793)
|
|
|
5,059
|
|
|
14,897
|
|
Gain / (loss) on sale
of investments
|
|
|
277,787
|
|
|
(103)
|
|
|
810,688
|
|
|
89,946
|
|
|
—
|
|
Interest and other
income / (expense), net
|
|
|
9,709
|
|
|
50,269
|
|
|
24,812
|
|
|
(6,930)
|
|
|
280
|
|
Interest
(expense)
|
|
|
(109,535)
|
|
|
(113,638)
|
|
|
(110,767)
|
|
|
(111,116)
|
|
|
(102,220)
|
|
Income tax benefit /
(expense)
|
|
|
(22,413)
|
|
|
(20,724)
|
|
|
(17,228)
|
|
|
(16,173)
|
|
|
(21,454)
|
|
Loss from early
extinguishment of debt
|
|
|
(1,070)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net Income
|
|
|
$287,837
|
|
|
$19,884
|
|
|
$745,941
|
|
|
$115,647
|
|
|
$68,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss)
attributable to noncontrolling interests
|
|
|
(6,329)
|
|
|
8,419
|
|
|
(12,320)
|
|
|
2,538
|
|
|
(111)
|
|
Net Income Attributable to Digital Realty Trust,
Inc.
|
|
|
$281,508
|
|
|
$28,304
|
|
|
$733,621
|
|
|
$118,185
|
|
|
$68,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
|
(10,181)
|
|
|
(10,181)
|
|
|
(10,181)
|
|
|
(10,181)
|
|
|
(10,181)
|
|
Net Income / (Loss) Available to Common
Stockholders
|
|
|
$271,327
|
|
|
$18,122
|
|
|
$723,440
|
|
|
$108,003
|
|
|
$58,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding - basic
|
|
|
312,292
|
|
|
305,781
|
|
|
301,827
|
|
|
295,390
|
|
|
291,219
|
|
Weighted-average shares
outstanding - diluted
|
|
|
320,798
|
|
|
314,995
|
|
|
311,341
|
|
|
306,819
|
|
|
303,065
|
|
Weighted-average fully
diluted shares and units
|
|
|
326,975
|
|
|
321,173
|
|
|
317,539
|
|
|
313,021
|
|
|
309,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss) per
share - basic
|
|
|
$0.87
|
|
|
$0.06
|
|
|
$2.40
|
|
|
$0.37
|
|
|
$0.20
|
|
Net income / (loss) per
share - diluted
|
|
|
$0.82
|
|
|
$0.08
|
|
|
$2.34
|
|
|
$0.35
|
|
|
$0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations and Core Funds From
Operations
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2024
|
|
Unaudited and in Thousands, Except Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Reconciliation of Net Income to Funds From Operations
(FFO)
|
|
|
31-Mar-24
|
|
|
31-Dec-23
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income / (Loss) Available to Common
Stockholders
|
|
|
$271,327
|
|
|
$18,122
|
|
|
$723,440
|
|
|
$108,003
|
|
|
$58,547
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest in operating partnership
|
|
|
6,200
|
|
|
410
|
|
|
16,300
|
|
|
2,500
|
|
|
1,500
|
|
Real estate related
depreciation & amortization (1)
|
|
|
420,591
|
|
|
410,167
|
|
|
410,836
|
|
|
424,044
|
|
|
412,192
|
|
Reconciling items
related to non-controlling interests
|
|
|
(8,017)
|
|
|
(15,377)
|
|
|
(14,569)
|
|
|
(14,144)
|
|
|
(13,388)
|
|
Unconsolidated JV real
estate related depreciation & amortization
|
|
|
47,877
|
|
|
64,833
|
|
|
43,215
|
|
|
35,386
|
|
|
33,719
|
|
(Gain) / loss on real
estate transactions
|
|
|
(286,704)
|
|
|
103
|
|
|
(810,688)
|
|
|
(89,946)
|
|
|
(7,825)
|
|
Provision for
impairment
|
|
|
—
|
|
|
5,363
|
|
|
113,000
|
|
|
—
|
|
|
—
|
|
Funds From Operations
|
|
|
$451,273
|
|
|
$483,621
|
|
|
$481,535
|
|
|
$465,844
|
|
|
$484,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
and units outstanding - basic
|
|
|
318,469
|
|
|
311,960
|
|
|
308,024
|
|
|
301,593
|
|
|
297,180
|
|
Weighted-average shares
and units outstanding - diluted (2) (3)
|
|
|
326,975
|
|
|
321,173
|
|
|
317,539
|
|
|
313,021
|
|
|
309,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations per share -
basic
|
|
|
$1.42
|
|
|
$1.55
|
|
|
$1.56
|
|
|
$1.54
|
|
|
$1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations per share - diluted (2)
(3)
|
|
|
$1.41
|
|
|
$1.53
|
|
|
$1.55
|
|
|
$1.52
|
|
|
$1.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Reconciliation of FFO to Core
FFO
|
|
|
31-Mar-24
|
|
|
31-Dec-23
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations
|
|
|
$451,273
|
|
|
$483,621
|
|
|
$481,535
|
|
|
$465,844
|
|
|
$484,745
|
|
Other non-core revenue
adjustments
|
|
|
3,525
|
|
|
(146)
|
|
|
(27)
|
|
|
27,454
|
|
|
(887)
|
|
Transaction and
integration expenses
|
|
|
31,839
|
|
|
40,226
|
|
|
14,465
|
|
|
17,764
|
|
|
12,267
|
|
Loss from early
extinguishment of debt
|
|
|
1,070
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Severance, equity
acceleration and legal expenses (4)
|
|
|
791
|
|
|
7,565
|
|
|
2,682
|
|
|
3,652
|
|
|
4,155
|
|
(Gain) / Loss on FX
revaluation
|
|
|
33,602
|
|
|
(24,804)
|
|
|
451
|
|
|
(7,868)
|
|
|
(6,778)
|
|
Other non-core expense
adjustments
|
|
|
10,052
|
|
|
1,956
|
|
|
1,295
|
|
|
655
|
|
|
—
|
|
Core Funds From Operations
|
|
|
$532,153
|
|
|
$508,417
|
|
|
$500,402
|
|
|
$507,501
|
|
|
$493,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
and units outstanding - diluted (2) (3)
|
|
|
319,138
|
|
|
312,356
|
|
|
308,539
|
|
|
301,806
|
|
|
297,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Funds From Operations per share - diluted
(2)
|
|
|
$1.67
|
|
|
$1.63
|
|
|
$1.62
|
|
|
$1.68
|
|
|
$1.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Real
Estate Related Depreciation & Amortization
|
|
|
Three Months Ended
|
|
|
|
|
31-Mar-24
|
|
|
31-Dec-23
|
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation &
amortization per income statement
|
|
|
|
$431,102
|
|
|
$420,475
|
|
|
|
$420,613
|
|
|
$432,573
|
|
|
$421,198
|
|
Non-real estate
depreciation
|
|
|
|
(10,511)
|
|
|
(10,308)
|
|
|
|
(9,777)
|
|
|
(8,529)
|
|
|
(9,006)
|
|
Real Estate Related Depreciation &
Amortization
|
|
|
|
$420,591
|
|
|
$410,167
|
|
|
|
$410,836
|
|
|
$424,044
|
|
|
$412,192
|
|
|
|
(2)
|
Certain of Teraco's
minority indirect shareholders have the right to put their shares
in an upstream parent company of Teraco to Digital Realty in
exchange for cash or the equivalent value of shares of Digital
Realty common stock, or a combination thereof. US GAAP requires
Digital Realty to assume the put right is settled in shares for
purposes of calculating diluted EPS. This same approach was
utilized to calculate FFO/share. The potential future dilutive
impact associated with this put right will be excluded from Core
FFO and AFFO until settlement occurs – causing diluted share count
to be higher for FFO than for Core FFO and AFFO. When calculating
diluted FFO, Teraco related minority interest is added back to the
FFO numerator as the denominator assumes all shares have been put
back to Digital Realty.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
31-Mar-24
|
|
|
31-Dec-23
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
Teraco noncontrolling
share of FFO
|
|
|
$9,768
|
|
|
$7,135
|
|
|
$11,537
|
|
|
$9,645
|
|
|
$11,069
|
|
Teraco related minority
interest
|
|
|
$9,768
|
|
|
$7,135
|
|
|
$11,537
|
|
|
$9,645
|
|
|
$11,069
|
|
|
|
(3)
|
For all periods
presented, we have excluded the effect of dilutive series J, series
K and series L preferred stock, as applicable, that may be
converted into common stock upon the occurrence of specified change
in control transactions as described in the articles supplementary
governing the series J, series K and series L preferred stock, as
applicable, which we consider highly improbable. See above for
calculations of FFO and the share count detail section that follows
the reconciliation of Core FFO to AFFO for calculations of weighted
average common stock and units outstanding. For definitions and
discussion of FFO and Core FFO, see the Definitions
section.
|
|
(4)
|
Relates to severance
and other charges related to the departure of company executives
and integration-related severance.
|
|
Adjusted Funds From Operations
(AFFO)
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2024
|
|
Unaudited and in Thousands, Except Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Reconciliation of Core FFO to
AFFO
|
|
|
31-Mar-24
|
|
|
31-Dec-23
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO available to common stockholders and
unitholders
|
|
|
$532,153
|
|
|
$508,417
|
|
|
$500,402
|
|
|
$507,501
|
|
|
$493,500
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-real estate
depreciation
|
|
|
10,511
|
|
|
10,308
|
|
|
9,777
|
|
|
8,529
|
|
|
9,006
|
|
Amortization of
deferred financing costs
|
|
|
5,576
|
|
|
5,744
|
|
|
5,776
|
|
|
5,984
|
|
|
4,072
|
|
Amortization of debt
discount/premium
|
|
|
1,832
|
|
|
973
|
|
|
1,360
|
|
|
1,339
|
|
|
1,301
|
|
Non-cash stock-based
compensation expense
|
|
|
12,592
|
|
|
9,226
|
|
|
14,062
|
|
|
13,893
|
|
|
13,056
|
|
Straight-line rental
revenue
|
|
|
9,976
|
|
|
(21,992)
|
|
|
(14,080)
|
|
|
(16,151)
|
|
|
(16,194)
|
|
Straight-line rental
expense
|
|
|
1,111
|
|
|
(4,999)
|
|
|
1,427
|
|
|
520
|
|
|
(515)
|
|
Above- and below-market
rent amortization
|
|
|
(854)
|
|
|
(856)
|
|
|
(1,127)
|
|
|
(1,195)
|
|
|
(1,226)
|
|
Deferred tax (benefit)
/ expense
|
|
|
(3,437)
|
|
|
33,448
|
|
|
(8,539)
|
|
|
1,339
|
|
|
(9,795)
|
|
Leasing compensation
& internal lease commissions
|
|
|
13,291
|
|
|
9,848
|
|
|
12,515
|
|
|
11,611
|
|
|
11,067
|
|
Recurring capital
expenditures (1)
|
|
|
(47,676)
|
|
|
(142,808)
|
|
|
(90,251)
|
|
|
(53,498)
|
|
|
(40,465)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO available to common stockholders and unitholders
(2)
|
|
|
$535,073
|
|
|
$407,306
|
|
|
$431,322
|
|
|
$479,873
|
|
|
$463,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
and units outstanding - basic
|
|
|
318,469
|
|
|
311,960
|
|
|
308,024
|
|
|
301,593
|
|
|
297,180
|
|
Weighted-average shares
and units outstanding - diluted (3)
|
|
|
319,138
|
|
|
312,356
|
|
|
308,539
|
|
|
301,806
|
|
|
297,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per share - diluted
(3)
|
|
|
$1.68
|
|
|
$1.30
|
|
|
$1.40
|
|
|
$1.59
|
|
|
$1.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share and common unit
|
|
|
$1.22
|
|
|
$1.22
|
|
|
$1.22
|
|
|
$1.22
|
|
|
$1.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted AFFO Payout Ratio
|
|
|
72.8 %
|
|
|
93.6 %
|
|
|
87.3 %
|
|
|
76.7 %
|
|
|
78.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Share Count Detail
|
|
|
31-Mar-24
|
|
|
31-Dec-23
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Stock and Units
Outstanding
|
|
|
318,469
|
|
|
311,960
|
|
|
308,024
|
|
|
301,593
|
|
|
297,180
|
|
Add: Effect of dilutive
securities
|
|
|
669
|
|
|
396
|
|
|
515
|
|
|
213
|
|
|
202
|
|
Weighted Avg. Common Stock and Units Outstanding -
diluted
|
|
|
319,138
|
|
|
312,356
|
|
|
308,539
|
|
|
301,806
|
|
|
297,382
|
|
|
|
(1)
|
Recurring capital
expenditures represent non-incremental building improvements
required to maintain current revenues, including second-generation
tenant improvements and external leasing commissions. Recurring
capital expenditures do not include acquisition costs contemplated
when underwriting the purchase of a building, costs which are
incurred to bring a building up to Digital Realty's operating
standards, or internal leasing commissions.
|
|
(2)
|
For a definition and
discussion of AFFO, see the Definitions section. For a
reconciliation of net income available to common stockholders to
FFO and Core FFO, see above.
|
|
(3)
|
For all periods
presented, we have excluded the effect of dilutive series J, series
K and series L preferred stock, as applicable, that may be
converted into common stock upon the occurrence of specified change
in control transactions as described in the articles supplementary
governing the series J, series K and series L preferred stock,
as applicable, which we consider highly improbable. See above for
calculations of FFO and for calculations of weighted average common
stock and units outstanding.
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2024
|
|
Unaudited and in Thousands, Except Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-Mar-24
|
|
31-Dec-23
|
|
30-Sep-23
|
|
30-Jun-23
|
|
31-Mar-23
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
|
|
$27,122,796
|
|
|
$27,306,369
|
|
|
$25,887,031
|
|
|
$27,087,769
|
|
|
$27,052,022
|
|
Construction in
progress
|
|
4,496,840
|
|
|
4,635,215
|
|
|
5,020,464
|
|
|
4,635,939
|
|
|
4,563,578
|
|
Land held for future
development
|
|
114,240
|
|
|
118,190
|
|
|
179,959
|
|
|
193,936
|
|
|
194,564
|
|
Investments in Real Estate
|
|
$31,733,877
|
|
|
$32,059,773
|
|
|
$31,087,453
|
|
|
$31,917,644
|
|
|
$31,810,164
|
|
Accumulated
depreciation and amortization
|
|
(7,976,093)
|
|
|
(7,823,685)
|
|
|
(7,489,193)
|
|
|
(7,739,462)
|
|
|
(7,600,559)
|
|
Net Investments in Properties
|
|
$23,757,784
|
|
|
$24,236,089
|
|
|
$23,598,260
|
|
|
$24,178,182
|
|
|
$24,209,605
|
|
Investment in
unconsolidated joint ventures
|
|
2,365,821
|
|
|
2,295,889
|
|
|
2,180,313
|
|
|
2,040,452
|
|
|
1,995,576
|
|
Net Investments in Real Estate
|
|
$26,123,605
|
|
|
$26,531,977
|
|
|
$25,778,573
|
|
|
$26,218,634
|
|
|
$26,205,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets, net
|
|
$1,233,410
|
|
|
$1,414,256
|
|
|
$1,274,410
|
|
|
$1,291,233
|
|
|
$1,317,293
|
|
Cash and cash
equivalents
|
|
1,193,784
|
|
|
1,625,495
|
|
|
1,062,050
|
|
|
124,519
|
|
|
131,406
|
|
Accounts and other
receivables, net (1)
|
|
1,217,276
|
|
|
1,278,110
|
|
|
1,325,725
|
|
|
1,158,383
|
|
|
1,070,066
|
|
Deferred rent,
net
|
|
611,670
|
|
|
624,427
|
|
|
586,418
|
|
|
613,796
|
|
|
627,700
|
|
Goodwill
|
|
9,105,026
|
|
|
9,239,871
|
|
|
8,998,074
|
|
|
9,148,603
|
|
|
9,199,636
|
|
Customer relationship
value, deferred leasing costs & other intangibles,
net
|
|
2,359,380
|
|
|
2,500,237
|
|
|
2,506,198
|
|
|
2,825,596
|
|
|
3,015,291
|
|
Assets held for
sale
|
|
|
287,064
|
|
|
478,503
|
|
|
—
|
|
|
593,892
|
|
|
—
|
|
Other assets
|
|
501,875
|
|
|
420,382
|
|
|
401,068
|
|
|
414,078
|
|
|
386,495
|
|
Total Assets
|
|
$42,633,089
|
|
|
$44,113,257
|
|
|
$41,932,515
|
|
|
$42,388,735
|
|
|
$41,953,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global unsecured
revolving credit facilities, net
|
|
$1,901,126
|
|
|
$1,812,287
|
|
|
$1,698,780
|
|
|
$2,242,258
|
|
|
$2,514,202
|
|
Unsecured term loans,
net
|
|
1,303,263
|
|
|
1,560,305
|
|
|
1,524,663
|
|
|
1,548,780
|
|
|
1,542,275
|
|
Unsecured senior notes,
net of discount
|
|
13,190,202
|
|
|
13,422,342
|
|
|
13,072,102
|
|
|
13,383,819
|
|
|
13,258,079
|
|
Secured and other debt,
net of discount
|
|
625,750
|
|
|
630,973
|
|
|
574,231
|
|
|
554,594
|
|
|
560,955
|
|
Operating lease
liabilities
|
|
1,357,751
|
|
|
1,542,094
|
|
|
1,404,510
|
|
|
1,420,239
|
|
|
1,443,994
|
|
Accounts payable and
other accrued liabilities
|
|
1,870,344
|
|
|
2,168,983
|
|
|
2,147,103
|
|
|
2,214,820
|
|
|
1,923,819
|
|
Deferred tax
liabilities, net
|
|
1,121,224
|
|
|
1,151,096
|
|
|
1,088,724
|
|
|
1,128,961
|
|
|
1,164,276
|
|
Accrued dividends and
distributions
|
|
—
|
|
|
387,988
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Security deposits and
prepaid rents
|
|
413,225
|
|
|
401,867
|
|
|
385,521
|
|
|
417,693
|
|
|
392,021
|
|
Obligations associated
with assets held for sale
|
|
|
9,981
|
|
|
39,001
|
|
|
—
|
|
|
4,990
|
|
|
—
|
|
Total Liabilities
|
|
$21,792,866
|
|
|
$23,116,936
|
|
|
$21,895,634
|
|
|
$22,916,155
|
|
|
$22,799,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
1,350,736
|
|
|
1,394,814
|
|
|
1,360,308
|
|
|
1,367,422
|
|
|
1,448,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock:
$0.01 par value per share, 110,000 shares authorized:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series J Cumulative
Redeemable Preferred Stock (2)
|
|
$193,540
|
|
|
$193,540
|
|
|
$193,540
|
|
|
$193,540
|
|
|
$193,540
|
|
Series K Cumulative
Redeemable Preferred Stock (3)
|
|
203,264
|
|
|
203,264
|
|
|
203,264
|
|
|
203,264
|
|
|
203,264
|
|
Series L Cumulative
Redeemable Preferred Stock (4)
|
|
334,886
|
|
|
334,886
|
|
|
334,886
|
|
|
334,886
|
|
|
334,886
|
|
Common Stock: $0.01 par
value per share, 392,000 shares authorized
(5)
|
|
3,097
|
|
|
3,088
|
|
|
3,002
|
|
|
2,967
|
|
|
2,888
|
|
Additional paid-in
capital
|
|
24,508,683
|
|
|
24,396,797
|
|
|
23,239,088
|
|
|
22,882,200
|
|
|
22,126,379
|
|
Dividends in excess of
earnings
|
|
(5,373,529)
|
|
|
(5,262,648)
|
|
|
(4,900,757)
|
|
|
(5,253,915)
|
|
|
(4,995,982)
|
|
Accumulated other
comprehensive (loss), net
|
|
(850,091)
|
|
|
(751,393)
|
|
|
(882,996)
|
|
|
(741,484)
|
|
|
(652,486)
|
|
Total Stockholders' Equity
|
|
$19,019,850
|
|
|
$19,117,535
|
|
|
$18,190,026
|
|
|
$17,621,456
|
|
|
$17,212,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interest
in operating partnership
|
|
$438,422
|
|
|
$438,081
|
|
|
$441,366
|
|
|
$436,099
|
|
|
$444,843
|
|
Noncontrolling interest
in consolidated joint ventures
|
|
31,215
|
|
|
45,892
|
|
|
45,182
|
|
|
47,603
|
|
|
47,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Noncontrolling Interests
|
|
$469,637
|
|
|
$483,972
|
|
|
$486,547
|
|
|
$483,702
|
|
|
$492,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
$19,489,487
|
|
|
$19,601,507
|
|
|
$18,676,573
|
|
|
$18,105,158
|
|
|
$17,704,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
$42,633,089
|
|
|
$44,113,257
|
|
|
$41,932,515
|
|
|
$42,388,735
|
|
|
$41,953,068
|
|
|
|
(1)
|
Net of allowance for
doubtful accounts of $43,873 and $36,240 as of March 31, 2024 and
March 31, 2023, respectively.
|
|
(2)
|
Series J
Cumulative Redeemable Preferred Stock, 5.250%, $200,000 liquidation
preference ($25.00 per share), 8,000 shares issued and outstanding
as of March 31, 2024 and March 31, 2023.
|
|
(3)
|
Series K
Cumulative Redeemable Preferred Stock, 5.850%, $210,000 liquidation
preference ($25.00 per share), 8,400 shares issued and outstanding
as of March 31, 2024 and March 31, 2023.
|
|
(4)
|
Series L
Cumulative Redeemable Preferred Stock, 5.200%, $345,000 liquidation
preference ($25.00 per share), 13,800 shares issued and outstanding
as of March 31, 2024 and March 31, 2023.
|
|
(5)
|
Common Stock: 312,421
and 291,299 shares issued and outstanding as of March 31, 2024 and
March 31, 2023, respectively.
|
|
Reconciliation of Earnings Before Interest, Taxes,
Depreciation & Amortization and Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2024
|
|
Unaudited and Dollars in
Thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Reconciliation of Earnings Before Interest, Taxes,
Depreciation & Amortization (EBITDA)
(1)
|
|
|
31-Mar-24
|
|
|
31-Dec-23
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income / (Loss) Available to Common
Stockholders
|
|
|
$271,327
|
|
|
$18,122
|
|
|
$723,440
|
|
|
$108,003
|
|
|
$58,547
|
|
Interest
|
|
|
109,535
|
|
|
113,638
|
|
|
110,767
|
|
|
111,116
|
|
|
102,220
|
|
Loss from early
extinguishment of debt
|
|
|
1,070
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income tax expense
(benefit)
|
|
|
22,413
|
|
|
20,724
|
|
|
17,228
|
|
|
16,173
|
|
|
21,454
|
|
Depreciation &
amortization
|
|
|
431,102
|
|
|
420,475
|
|
|
420,613
|
|
|
432,573
|
|
|
421,198
|
|
EBITDA
|
|
|
$835,446
|
|
|
$572,958
|
|
|
$1,272,048
|
|
|
$667,866
|
|
|
$603,420
|
|
Unconsolidated JV real
estate related depreciation & amortization
|
|
|
47,877
|
|
|
64,833
|
|
|
43,214
|
|
|
35,386
|
|
|
33,719
|
|
Unconsolidated JV
interest expense and tax expense
|
|
|
34,271
|
|
|
42,140
|
|
|
27,000
|
|
|
32,105
|
|
|
18,556
|
|
Severance, equity
acceleration and legal expenses
|
|
|
791
|
|
|
7,565
|
|
|
2,682
|
|
|
3,652
|
|
|
4,155
|
|
Transaction and
integration expenses
|
|
|
31,839
|
|
|
40,226
|
|
|
14,465
|
|
|
17,764
|
|
|
12,267
|
|
(Gain) / loss on sale
of investments
|
|
|
(277,787)
|
|
|
103
|
|
|
(810,688)
|
|
|
(89,946)
|
|
|
—
|
|
Provision for
impairment
|
|
|
—
|
|
|
5,363
|
|
|
113,000
|
|
|
—
|
|
|
—
|
|
Other non-core
adjustments, net
|
|
|
21,608
|
|
|
(35,439)
|
|
|
1,719
|
|
|
22,132
|
|
|
(14,604)
|
|
Non-controlling
interests
|
|
|
6,329
|
|
|
(8,419)
|
|
|
12,320
|
|
|
(2,538)
|
|
|
111
|
|
Preferred stock
dividends
|
|
|
10,181
|
|
|
10,181
|
|
|
10,181
|
|
|
10,181
|
|
|
10,181
|
|
Adjusted EBITDA
|
|
|
$710,556
|
|
|
$699,509
|
|
|
$685,943
|
|
|
$696,604
|
|
|
$667,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
For definitions and
discussion of EBITDA and Adjusted EBITDA, see the Definitions
section
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Financial Ratios
|
|
|
|
31-Mar-24
|
|
|
|
31-Dec-23
|
|
|
30-Sep-23
|
|
|
30-Jun-23
|
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP interest
expense
|
|
|
|
$109,535
|
|
|
|
$113,638
|
|
|
$110,767
|
|
|
$111,116
|
|
|
$102,220
|
|
|
Capitalized
interest
|
|
|
|
28,522
|
|
|
|
33,032
|
|
|
29,130
|
|
|
27,883
|
|
|
26,771
|
|
|
Change in accrued
interest and other non-cash amounts
|
|
|
|
55,421
|
|
|
|
(66,013)
|
|
|
44,183
|
|
|
(60,612)
|
|
|
38,137
|
|
|
Cash Interest Expense
(2)
|
|
|
|
$193,479
|
|
|
|
$80,657
|
|
|
$184,081
|
|
|
$78,387
|
|
|
$167,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
|
|
|
10,181
|
|
|
|
10,181
|
|
|
10,181
|
|
|
10,181
|
|
|
10,181
|
|
|
Total Fixed Charges
(3)
|
|
|
|
$148,239
|
|
|
|
$156,851
|
|
|
$150,079
|
|
|
$149,181
|
|
|
$139,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest coverage ratio
(4)
|
|
|
|
4.3x
|
|
|
|
4.0x
|
|
|
4.3x
|
|
|
4.5x
|
|
|
4.7x
|
|
|
Cash interest coverage
ratio (5)
|
|
|
|
3.2x
|
|
|
|
6.4x
|
|
|
3.4x
|
|
|
7.4x
|
|
|
3.7x
|
|
|
Fixed charge coverage
ratio (6)
|
|
|
|
4.0x
|
|
|
|
3.8x
|
|
|
4.1x
|
|
|
4.2x
|
|
|
4.4x
|
|
|
Cash fixed charge
coverage ratio (7)
|
|
|
|
3.1x
|
|
|
|
5.8x
|
|
|
3.2x
|
|
|
6.6x
|
|
|
3.5x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt to total
enterprise value (8)(9)
|
|
|
|
26.7 %
|
|
|
|
28.6 %
|
|
|
30.6 %
|
|
|
33.3 %
|
|
|
37.3 %
|
|
|
Debt-plus-preferred-stock-to-total-enterprise-value
(9)(10)
|
|
|
|
27.9 %
|
|
|
|
29.8 %
|
|
|
32.0 %
|
|
|
34.7 %
|
|
|
38.9 %
|
|
|
Pre-tax income to
interest expense (11)
|
|
|
|
3.6x
|
|
|
|
1.2x
|
|
|
7.7x
|
|
|
2.0x
|
|
|
1.7x
|
|
|
Net Debt-to-Adjusted
EBITDA (12)
|
|
|
|
6.1x
|
|
|
|
6.2x
|
|
|
6.3x
|
|
|
6.8x
|
|
|
7.1x
|
|
|
|
|
(2)
|
Cash interest expense
is interest expense less amortization of debt discount and deferred
financing fees and includes interest that we capitalized. We
consider cash interest expense to be a useful measure of interest
as it excludes non-cash-based interest expense.
|
|
(3)
|
Fixed charges consist
of GAAP interest expense, capitalized interest, and preferred stock
dividends.
|
|
(4)
|
Adjusted EBITDA divided
by GAAP interest expense plus capitalized interest (including our
pro rata share of unconsolidated joint venture interest
expense).
|
|
(5)
|
Adjusted EBITDA divided
by cash interest expense (including our pro rata share of
unconsolidated joint venture interest expense).
|
|
(6)
|
Adjusted EBITDA divided
by fixed charges (including our pro rata share of unconsolidated
joint venture fixed charges).
|
|
(7)
|
Adjusted EBITDA divided
by the sum of cash interest expense and preferred stock dividends
(including our pro rata share of unconsolidated joint venture cash
fixed charges).
|
|
(8)
|
Total debt divided by
market value of common equity plus debt plus preferred
stock.
|
|
(9)
|
Total enterprise value
defined as market value of common equity plus debt plus preferred
stock.
|
|
(10)
|
Same as (8), except
numerator includes preferred stock.
|
|
(11)
|
Calculated as net
income plus interest expense divided by GAAP interest
expense.
|
|
(12)
|
Calculated as total
debt at balance sheet carrying value, plus capital lease
obligations, plus Digital Realty's pro rata share of unconsolidated
joint venture debt, less cash and cash equivalents (including
Digital Realty's pro rata share of unconsolidated joint venture
cash) divided by the product of Adjusted EBITDA (including Digital
Realty's pro rata share of unconsolidated joint venture EBITDA),
multiplied by four.
|
Definitions
Funds From Operations (FFO):
We calculate funds from
operations, or FFO, in accordance with the standards established by
the National Association of Real Estate Investment Trusts (Nareit)
in the Nareit Funds From Operations White Paper - 2018 Restatement.
FFO is a non-GAAP financial measure and represents net income
(loss) (computed in accordance with GAAP), excluding gain (loss)
from the disposition of real estate assets, provision for
impairment, real estate related depreciation and amortization
(excluding amortization of deferred financing costs), our share of
unconsolidated JV real estate related depreciation &
amortization, net income attributable to non-controlling interests
in operating partnership and, depreciation related to
non-controlling interests. Management uses FFO as a supplemental
performance measure because, in excluding real estate related
depreciation and amortization and gains and losses from property
dispositions and after adjustments for unconsolidated partnerships
and joint ventures, it provides a performance measure that, when
compared year over year, captures trends in occupancy rates, rental
rates and operating costs. We also believe that, as a widely
recognized measure of the performance of REITs, FFO will be used by
investors as a basis to compare our operating performance with that
of other REITs. However, because FFO excludes depreciation and
amortization and captures neither the changes in the value of our
data centers that result from use or market conditions, nor the
level of capital expenditures and capitalized leasing commissions
necessary to maintain the operating performance of our data
centers, all of which have real economic effect and could
materially impact our financial condition and results from
operations, the utility of FFO as a measure of our performance is
limited. Other REITs may not calculate FFO in accordance with the
Nareit definition and, accordingly, our FFO may not be comparable
to other REITs' FFO. FFO should be considered only as a supplement
to net income computed in accordance with GAAP as a measure of our
performance.
Core Funds from Operations (Core FFO):
We
present core funds from operations, or Core FFO, as a
supplemental operating measure because, in excluding certain items
that do not reflect core revenue or expense streams, it provides a
performance measure that, when compared year over year,
captures trends in our core business operating performance. We
calculate Core FFO by adding to or subtracting from FFO (i) other
non-core revenue adjustments, (ii) transaction and integration
expenses, (iii) loss from early extinguishment of debt, (iv)
gain on / issuance costs associated with redeemed preferred
stock, (v) severance, equity acceleration and legal expenses,
(vi) gain/loss on FX revaluation, and (vii) other
non-core expense adjustments. Because certain of these adjustments
have a real economic impact on our financial condition and results
from operations, the utility of Core FFO as a measure of our
performance is limited. Other REITs may calculate Core FFO
differently than we do and accordingly, our Core FFO may not be
comparable to other REITs' Core FFO. Core FFO should be considered
only as a supplement to net income computed in accordance with GAAP
as a measure of our performance.
Adjusted Funds from Operations (AFFO):
We
present adjusted funds from operations, or AFFO, as a
supplemental operating measure because, when compared year
over year, it assesses our ability to fund dividend and
distribution requirements from our operating activities. We also
believe that, as a widely recognized measure of the operations of
REITs, AFFO will be used by investors as a basis to assess our
ability to fund dividend payments in comparison to other REITs,
including on a per share and unit basis. We calculate AFFO by
adding to or subtracting from Core FFO (i) non-real estate
depreciation, (ii) amortization of deferred financing costs,
(iii) amortization of debt discount/premium,
(iv) non-cash stock-based compensation expense,
(v) straight-line rental revenue, (vi) straight-line
rental expense, (vii) above- and below-market rent
amortization, (viii) deferred tax expense / (benefit),
(ix) leasing compensation and internal lease commissions, and
(x) recurring capital expenditures. Other REITs may calculate
AFFO differently than we do and, accordingly, our AFFO may not be
comparable to other REITs' AFFO. AFFO should be considered only as
a supplement to net income computed in accordance with GAAP as a
measure of our performance.
EBITDA and Adjusted EBITDA:
We believe that
earnings before interest, loss from early extinguishment of debt,
income taxes, and depreciation and amortization, or EBITDA, and
Adjusted EBITDA (as defined below), are useful supplemental
performance measures because they allow investors to view our
performance without the impact of non-cash depreciation and
amortization or the cost of debt and, with respect to Adjusted
EBITDA, (i) unconsolidated joint venture real estate related
depreciation & amortization, (ii) unconsolidated joint venture
interest expense and tax, (iii) severance, equity acceleration and
legal expenses, (iv) transaction and integration expenses, (v) gain
(loss) on sale / deconsolidation, (vi) provision for impairment,
(vii) other non-core adjustments, net, (viii) non-controlling
interests, (ix) preferred stock dividends, and (x) issuance costs
associated with redeemed preferred stock. Adjusted EBITDA is EBITDA
excluding (i) unconsolidated joint venture real estate related
depreciation & amortization, (ii) unconsolidated joint
venture interest expense and tax, (iii) severance, equity
acceleration and legal expenses, (iv) transaction and integration
expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision
for impairment, (vii) other non-core adjustments, net, (vii)
non-controlling interests, (ix) preferred stock dividends, and (x)
gain on / issuance costs associated with redeemed preferred stock.
In addition, we believe EBITDA and Adjusted EBITDA are frequently
used by securities analysts, investors, and other interested
parties in the evaluation of REITs. Because EBITDA and Adjusted
EBITDA are calculated before recurring cash charges including
interest expense and income taxes, exclude capitalized costs, such
as leasing commissions, and are not adjusted for capital
expenditures or other recurring cash requirements of our business,
their utility as a measure of our performance is limited. Other
REITs may calculate EBITDA and Adjusted EBITDA differently than we
do and, accordingly, our EBITDA and Adjusted EBITDA may not be
comparable to other REITs' EBITDA and Adjusted EBITDA. Accordingly,
EBITDA and Adjusted EBITDA should be considered only as supplements
to net income computed in accordance with GAAP as a measure of our
financial performance.
Net Operating Income (NOI) and Cash NOI:
Net
operating income, or NOI, represents rental revenue, tenant
reimbursement revenue and interconnection revenue less utilities
expense, rental property operating expenses, property taxes and
insurance expenses (as reflected in the statement of operations).
NOI is commonly used by stockholders, company management and
industry analysts as a measurement of operating performance of the
company's rental portfolio. Cash NOI is NOI less straight-line
rents and above- and below-market rent amortization. Cash NOI is
commonly used by stockholders, company management and industry
analysts as a measure of property operating performance on a cash
basis. Same-Capital Cash NOI represents buildings owned as of
December 31, 2022 of the prior year
with less than 5% of total rentable square feet under development
and excludes buildings that were undergoing, or were expected to
undergo, development activities in 2023-2024, buildings classified
as held for sale, and buildings sold or contributed to joint
ventures for all periods presented (prior period numbers adjusted
to reflect current same-capital pool). However, because NOI and
cash NOI exclude depreciation and amortization and capture neither
the changes in the value of our data centers that result from use
or market conditions, nor the level of capital expenditures and
capitalized leasing commissions necessary to maintain the operating
performance of our data centers, all of which have real economic
effect and could materially impact our results from operations, the
utility of NOI and cash NOI as measures of our performance is
limited. Other REITs may calculate NOI and cash NOI differently
than we do and, accordingly, our NOI and cash NOI may not be
comparable to other REITs' NOI and cash NOI. NOI and cash NOI
should be considered only as supplements to net income computed in
accordance with GAAP as measures of our performance.
Additional Definitions
Net debt-to-Adjusted EBITDA ratio is calculated as total debt at
balance sheet carrying value, plus capital lease obligations, plus
Digital Realty's pro rata share of unconsolidated joint venture
debt, less cash and cash equivalents (including Digital Realty's
pro rata share of unconsolidated joint venture cash) divided by the
product of Adjusted EBITDA (including Digital Realty's pro rata
share of unconsolidated joint venture EBITDA), multiplied by
four.
Debt-plus-preferred-to-total enterprise value is total debt plus
preferred stock divided by total debt plus the liquidation value of
preferred stock and the market value of outstanding Digital Realty
Trust, Inc. common stock and Digital Realty Trust, L.P.
units, assuming the redemption of Digital Realty Trust, L.P.
units for shares of Digital Realty Trust, Inc. common
stock.
Fixed charge coverage ratio is Adjusted EBITDA divided by the
sum of GAAP interest expense, capitalized interest and preferred
stock dividends. For the quarter ended March
31, 2024, GAAP interest expense was $110 million,
capitalized interest was $29 million
and preferred stock dividends was $10
million.
|
Reconciliation of Net Operating Income
(NOI)
|
|
Three Months Ended
|
|
(in thousands)
|
|
31-Mar-24
|
|
31-Dec-23
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$149,367
|
|
|
$134,035
|
|
|
$177,335
|
|
|
|
|
|
|
|
|
|
|
|
Fee
income
|
|
|
(13,010)
|
|
|
(14,330)
|
|
|
(7,868)
|
|
Other
income
|
|
|
(862)
|
|
|
(144)
|
|
|
(887)
|
|
Depreciation and
amortization
|
|
|
431,102
|
|
|
420,475
|
|
|
421,198
|
|
General and
administrative
|
|
|
114,419
|
|
|
109,235
|
|
|
107,766
|
|
Severance, equity
acceleration and legal expenses
|
|
|
791
|
|
|
7,565
|
|
|
4,155
|
|
Transaction
expenses
|
|
|
31,839
|
|
|
40,226
|
|
|
12,267
|
|
Provision for
impairment
|
|
|
—
|
|
|
5,363
|
|
|
—
|
|
Other
expenses
|
|
|
10,836
|
|
|
5,580
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
|
|
|
$724,482
|
|
|
$708,003
|
|
|
$713,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Net Operating Income (Cash
NOI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
|
|
|
$724,482
|
|
|
$708,003
|
|
|
$713,965
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line
rental revenue
|
|
|
(2,522)
|
|
|
(22,085)
|
|
|
(16,327)
|
|
Straight-line
rental expense
|
|
|
1,369
|
|
|
(4,745)
|
|
|
(510)
|
|
Above- and
below-market rent amortization
|
|
|
(854)
|
|
|
(856)
|
|
|
(1,226)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Net Operating Income
|
|
|
$722,474
|
|
|
$680,317
|
|
|
$695,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Currency CFFO
Reconciliation
|
|
Three Months Ended
|
|
(in thousands, except per share
data)
|
|
31-Mar-24
|
|
|
|
31-Mar-23
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO (1)
|
|
|
$532,153
|
|
|
|
|
|
$493,500
|
|
Core FFO impact
of holding '23 Exchange Rates Constant (2)
|
|
|
1,119
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Constant Currency Core FFO
|
|
|
$533,272
|
|
|
|
|
|
$493,500
|
|
Weighted-average
shares and units outstanding - diluted
|
|
|
319,138
|
|
|
|
|
|
297,382
|
|
Constant Currency CFFO Per
Share
|
|
|
$1.67
|
|
|
|
|
|
$1.66
|
|
|
|
1)
|
As reconciled to net
income above.
|
|
2)
|
Adjustment calculated
by holding currency translation rates for 2024 constant with
average currency translation rates that were applicable to the same
periods in 2023.
|
This document contains forward-looking statements within the
meaning of the federal securities laws, which are based on current
expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to
differ materially. Such forward-looking statements include
statements relating to: our economic outlook, our expected
investment and expansion activity, anticipated continued demand for
our products and service, our liquidity, our joint ventures, supply
and demand for data center and colocation space, our acquisition
and disposition activity, pricing and net effective leasing
economics, market dynamics and data center fundamentals, our
strategic priorities, our product offerings, available inventory,
rent from leases that have been signed but have not yet commenced
and other contracted rent to be received in future periods, rental
rates on future leases, lag between signing and commencement, cap
rates and yields, investment activity, the company's FFO, Core FFO,
constant currency Core FFO, adjusted FFO, and net income, 2024
outlook and underlying assumptions, information related to trends,
our strategy and plans, leasing expectations, weighted average
lease terms, the exercise of lease extensions, lease expirations,
debt maturities, annualized rent at expiration of leases, the
effect new leases and increases in rental rates will have on our
rental revenue, our credit ratings, construction and development
activity and plans, projected construction costs, estimated yields
on investment, expected occupancy, expected square footage and IT
load capacity upon completion of development projects, backlog NOI,
NAV components, and other forward-looking financial data. Such
statements are based on management's beliefs and assumptions made
based on information currently available to management. Such
statements are subject to risks, uncertainties and assumptions and
are not guarantees of future performance and may be affected by
known and unknown risks, trends, uncertainties, and factors that
are beyond our control. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
anticipated, estimated, or projected. Some of the risks and
uncertainties that may cause our actual results, performance, or
achievements to differ materially from those expressed or implied
by forward-looking statements include, among others, the
following:
- reduced demand for data centers or decreases in information
technology spending;
- decreased rental rates, increased operating costs, or increased
vacancy rates;
- increased competition or available supply of data center
space;
- the suitability of our data centers and data center
infrastructure, delays or disruptions in connectivity or
availability of power, or failures or breaches of our physical and
information security infrastructure or services;
- our dependence upon significant customers, bankruptcy or
insolvency of a major customer or a significant number of smaller
customers, or defaults on or non-renewal of leases by
customers;
- our ability to attract and retain customers;
- breaches of our obligations or restrictions under our contracts
with our customers;
- our inability to successfully develop and lease new properties
and development space, and delays or unexpected costs in
development of properties;
- the impact of current global and local economic, credit and
market conditions;
- our inability to retain data center space that we lease or
sublease from third parties;
- global supply chain or procurement disruptions, or increased
supply chain costs;
- information security and data privacy breaches;
- difficulty managing an international business and acquiring or
operating properties in foreign jurisdictions and unfamiliar
metropolitan areas;
- our failure to realize the intended benefits from, or
disruptions to our plans and operations or unknown or contingent
liabilities related to, our recent acquisitions;
- our failure to successfully integrate and operate acquired or
developed properties or businesses;
- difficulties in identifying properties to acquire and
completing acquisitions;
- risks related to joint venture investments, including as a
result of our lack of control of such investments;
- risks associated with using debt to fund our business
activities, including re-financing and interest rate risks, our
failure to repay debt when due, adverse changes in our credit
ratings or our breach of covenants or other terms contained in our
loan facilities and agreements;
- our failure to obtain necessary debt and equity financing, and
our dependence on external sources of capital;
- financial market fluctuations and changes in foreign currency
exchange rates;
- adverse economic or real estate developments in our industry or
the industry sectors that we sell to, including risks relating to
decreasing real estate valuations and impairment charges and
goodwill and other intangible asset impairment charges;
- our inability to manage our growth effectively;
- losses in excess of our insurance coverage;
- our inability to attract and retain talent;
- impact on our operations and on the operations of our
customers, suppliers, and business partners during a pandemic, such
as COVID-19;
- the expected operating performance of anticipated near-term
acquisitions and descriptions relating to these expectations;
- environmental liabilities, risks related to natural disasters
and our inability to achieve our sustainability goals;
- our inability to comply with rules and regulations applicable
to our company;
- Digital Realty Trust, Inc.'s failure to maintain its status as
a REIT for federal income tax purposes;
- Digital Realty Trust, L.P.'s failure to qualify as a
partnership for federal income tax purposes;
- restrictions on our ability to engage in certain business
activities;
- changes in local, state, federal and international laws, and
regulations, including related to taxation, real estate, and zoning
laws, and increases in real property tax rates; and
- the impact of any financial, accounting, legal or regulatory
issues or litigation that may affect us.
The risks included here are not exhaustive, and additional
factors could adversely affect our business and financial
performance. Several additional material risks are discussed in our
annual report on Form 10‑K for the year ended December 31, 2023, and other filings with the
U.S. Securities and Exchange Commission. Those risks continue to be
relevant to our performance and financial condition. Moreover, we
operate in a competitive and rapidly changing environment. New risk
factors emerge from time to time and it is not possible for
management to predict all such risk factors, nor can it assess the
impact of all such risk factors on the business or the extent to
which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements. We expressly disclaim any
responsibility to update forward-looking statements, whether as a
result of new information, future events or otherwise. Digital
Realty, Digital Realty Trust, the Digital Realty logo, Interxion,
Turn-Key Flex, Powered Base Building, ServiceFabric, AnyScale Colo,
Pervasive Data Center Architecture, PlatformDIGITAL, PDx, Data
Gravity Index and Data Gravity Index DGx are registered trademarks
and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All
other names, trademarks and service marks are the property of their
respective owners.
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SOURCE Digital Realty