Digital Realty Trust, Inc. (NYSE:DLR) NAREIT REITweek 2025 June 3, 2025 2:30 PM ET Company Participants Andrew P. Power - President, CEO & Director Conference Call Participants John Christopher Hodulik - UBS Investment Bank, Research Division John Christopher Hodulik Okay. I think we can get started. Thank you all for joining us. My name is John Hodulik. I'm the Communications Infrastructure Analyst for UBS. And I'm joined today by Andy Power, President and CEO of Digital Realty Trust. Andy, thanks for bein ...

Digital Realty Trust (DLR) 2025 Conference June 03, 2025 02:30 PM ET Speaker0 Thank you all for joining us. My name is John Hovlik. I'm the communications infrastructure analyst for UBS, and I'm joined today by Andy Power, the president and CEO of Digital Realty Trust. Andy, thanks for being here. Speaker1 Thanks for having me. Speaker0 So we've got thirty minutes for for q and a, I have a number of questions I'm I'm gonna go through here. We we we are also gonna leave time at the end to, take questions fro ...

ARLINGTON, VA, May 22, 2025 (GLOBE NEWSWIRE) -- Today, Summit Ridge Energy, the nation’s leading commercial solar company, announced a partnership with Digital Realty (NYSE: DLR) to purchase 5.1 megawatts (MW) of solar energy. With this purchase, Digital Realty – the largest global provider of cloud- and carrier-neutral data center solutions – will advance its sustainability objectives while delivering energy cost savings. This agreement includes both savings on energy costs and the purchase of renewable en ...

Core Viewpoint - Digital Realty (DLR) has experienced a significant stock price increase of 16.6% over the past three months, outperforming the industry average growth of 4.7% [1] Group 1: Market Demand and Growth Drivers - The growth in cloud computing, the Internet of Things, and Big Data is driving demand for data centers, benefiting companies like Digital Realty [2] - In Q1 2025, Digital Realty signed new leases totaling $242.3 million, with $172.1 million in leases greater than 1 megawatt [2] - The company has a high-quality, diversified customer base, primarily consisting of investment-grade tenants, ensuring stable revenue generation [3] Group 2: Strategic Expansion and Development - Digital Realty is expanding its presence in the Asia-Pacific region through a joint venture in Indonesia, which is expected to contribute to future revenue growth [4] - The company has a robust development pipeline, with 9.5 million square feet of space under active development and an additional 5.1 million square feet held for future development as of March 31, 2025 [5] Group 3: Financial Strength - Digital Realty maintains a solid balance sheet with $2.32 billion in cash and cash equivalents as of Q1 2025 [6] - The company's net debt-to-adjusted EBITDA ratio is 5.1X, and its fixed charge coverage is 4.9X, indicating strong financial health [6] - Digital Realty holds favorable credit ratings of BBB (Stable Outlook) from Fitch, S&P, and Baa2 (Stable Outlook) from Moody's, which facilitate access to the debt market [6]

Digital Realty (DLR) is well-positioned for growth with decent leasing activity amid robust demand for data centers, a diverse tenant roster, accretive buyouts, development efforts and balance sheet strength.In April 2025, DLR announced that it had launched Microsoft Azure ExpressRoute on its global data center platform, PlatformDIGITAL, in three additional locations — Atlanta, Brussels and Vienna — bringing the total to 15 locations. Customers will now be able to use Azure resources from their private IT i ...

Digital Realty (DLR) is poised to gain from its unmatched global footprint of data centers with growing digital transformation, cloud computing and the proliferation of artificial intelligence. A solid tenant base assures stable revenues. It also carries out strategic investments in land, infrastructure and acquisitions, which is encouraging. The company’s healthy balance sheet position is likely to aid its growth endeavors. However, competition in its industry and concentration of assets remain concerns.La ...

Core Insights - The article discusses the author's investment portfolio and insights into various stocks, aiming to provide a contrasting view for other investors [1]. Group 1 - The author holds long positions in TSM, GOOG, and AMZN through stock ownership, options, or other derivatives [2]. - The analysis is intended for informational purposes and emphasizes the importance of conducting personal research before investing [3]. - The article clarifies that past performance does not guarantee future results and that the views expressed may not reflect those of Seeking Alpha as a whole [4].

Financial Performance - Total operating revenues for the three months ended March 31, 2025, increased by approximately $76.5 million, reaching $1,407,637, compared to $1,331,143 in the same period in 2024, representing a 5.7% increase[193] - Stabilized rental and other services revenue increased by $30.9 million to $1,053,488, while non-stabilized rental and other services revenue rose by $38.7 million to $333,373, marking increases of 3.0% and 13.1% respectively[194] - Funds from Operations (FFO) for Q1 2025 was $570,716,000, an increase of 26.4% from $451,274,000 in Q1 2024[267] - GAAP Net Income Available to Common Stockholders decreased to $99,793,000 in Q1 2025 from $271,327,000 in Q1 2024, representing a decline of 63.3%[267] - Basic FFO per share increased to $1.67 in Q1 2025 from $1.42 in Q1 2024, reflecting a growth of 17.6%[267] Occupancy Rates - As of March 31, 2025, the consolidated portfolio occupancy rate was 82.4%, down from 82.9% as of December 31, 2024[172] - The occupancy rate for the North America region was 85.0%, slightly down from 85.5% in the previous quarter[172] - The Europe region's occupancy rate was 76.9%, down from 77.3% as of December 31, 2024[172] - The Asia Pacific region reported an occupancy rate of 81.8%, up from 81.2% in the previous quarter[172] Debt and Liquidity - The company targets a debt-to-Adjusted EBITDA ratio around 5.5x and a fixed charge coverage of greater than three times[168] - Outstanding consolidated indebtedness as of March 31, 2025, was $17.2 billion, with fixed-rate debt comprising 93.0% of total debt[249] - The effective interest rate as of March 31, 2025, was 2.65%, with fixed-rate debt having an effective interest rate of 2.59%[249] - The company expects to meet liquidity requirements with approximately $3.1 billion available under Global Revolving Credit Facilities as of April 28, 2025[242] - The ratio of debt to total enterprise value was approximately 25.4% as of March 31, 2025[249] Capital Expenditures and Investments - Expected capital expenditures for the remainder of 2025 are projected to be between $2.3 billion and $2.8 billion[8] - Current investment in construction projects as of March 31, 2025, totals $5,349,847, with future investments expected to reach $5,612,741[9] - Capital expenditures for the three months ended March 31, 2025, totaled $727.5 million, an increase of 20.2% from $604.9 million in the same period of 2024[237] - Net cash used in investing activities increased by $909.8 million, primarily due to higher spending on development projects and contributions to investments in unconsolidated entities[256] Joint Ventures and Partnerships - A joint venture was formed with Bersama Digital Infrastructure Asia to develop data centers in Indonesia, with a 50% interest acquired for approximately $94.7 million[170] - The joint venture with Mitsubishi Corporation involved a contribution value of approximately $261 million for two data centers, with Mitsubishi holding an 80% interest after additional capital contributions[244] Operating Expenses - Total operating expenses for the three months ended March 31, 2025, were $1,211,887, an increase of $30,111 or 2.5% compared to the same period in 2024[1] - Total property level operating expenses for the three months ended March 31, 2025, were $605,324, an increase of $12,535 or 2.1% from $592,789 in the same period in 2024[195] - Total stabilized utilities expenses decreased by approximately $10.7 million primarily due to lower power pricing in EMEA and APAC regions[196] - Total stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $11.2 million, driven by higher building operations and data center labor costs[199] - Total non-stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $3.0 million, primarily due to increased data center labor expenses[200] Cash Flow - Net cash provided by operating activities increased by $46.8 million, reaching $399.1 million in Q1 2025 compared to $352.3 million in Q1 2024[254] Market Outlook - The company aims for sustainable long-term growth in earnings and funds from operations per share and unit[165] - The company expects average aggregate rental rates on renewed data center leases for 2025 expirations to be positive compared to current rates, although future results cannot be assured[180] - The company anticipates that near-term single asset acquisitions will comprise a smaller percentage of growth due to lower capitalization rates driven by private institutional investors[240] Foreign Currency and Interest Rate Risk - The company is exposed to foreign currency exchange risk primarily with the Euro, Japanese yen, and British pound sterling, which may impact future costs and cash flows[273] - Interest rate sensitivity analysis indicated a potential increase of $3,000,000 in annual interest expense on variable rate debt following a 10% increase in interest rates[271] - The company utilizes interest rate swap agreements to mitigate exposure to interest rate movements, with fixed rate debt accounting for a significant portion of total debt[271]

Digital Realty Trust (DLR) reported first-quarter 2025 core funds from operations (FFO) per share of $1.77, beating the Zacks Consensus Estimate of $1.73. The FFO also increased 6% year over year.Results reflect steady leasing momentum with better rental rates amid rising demand. However, higher operating expenses undermined the performance to an extent. The company raised its 2025 core FFO guidance range.The company registered operating revenues of $1.41 billion in the first quarter, missing the Zacks Cons ...

Digital Realty Trust (DLR) Q1 2025 Earnings Call April 25, 2025 03:41 AM ET Company Participants Jordan Sadler - SVP, Public & Private IRAndrew Power - President & CFOMatt Mercier - Chief Financial OfficerJonathan Atkin - Managing DirectorRichard Choe - Vice PresidentAri Klein - Director - Equity ResearchGreg Wright - Chief Investment OfficerMatthew Niknam - Director, Equity ResearchChris Sharp - Chief Technology OfficerAlexander Waters - Vice President, Equity Research - Communications InfrastructureMichae ...