Key Takeaways DLR posted Q2 core FFO of $1.87, up 13.3% year over year and above the consensus estimate of $1.74.Q2 revenues rose 10.1% to $1.49B, driven by strong leasing, higher rental rates and solid demand.DLR raised 2025 FFO guidance to $7.15-$7.25 and secured $3B+ in new commitments to its U.S. hyperscale fund.Digital Realty Trust (DLR) reported second-quarter 2025 core funds from operations (FFO) per share of $1.87, beating the Zacks Consensus Estimate of $1.74. FFO also increased 13.3% year over yea ...

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Digital Realty Trust (DLR) came out with quarterly funds from operations (FFO) of $1.87 per share, beating the Zacks Consensus Estimate of $1.74 per share. This compares to FFO of $1.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +7.47%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.73 per share when it actually produced FFO of $1.77, delivering a surprise of +2.31%.Over the last fou ...

Digital Realty Trust (DLR) Q2 2025 Earnings Call July 24, 2025 05:00 PM ET Company ParticipantsJordan Sadler - SVP - Public & Private IRAndrew Power - President, CEO & DirectorMatt Mercier - CFOJon Petersen - MD & Head - US REIT TeamColin McLean - Chief Revenue OfficerChris Sharp - Chief Technology OfficerMichael Funk - SVPRichard Choe - VP & Executive DirectorFrank Louthan - Managing DirectorMichael Elias - DirectorGreg Wright - CIOAri Klein - Director - Equity ResearchIrvin Liu - Vice PresidentDavid Guari ...

Digital Realty Trust (DLR) Q2 2025 Earnings Call July 24, 2025 05:00 PM ET Speaker0Good afternoon, and welcome to the Digital Realty Second Quarter twenty twenty five Earnings Call. Please note this event is being recorded. During today's presentation, all parties will be in a listen only mode. Following the presentation, we will conduct a question and answer session. Callers will be limited to one question and we will aim to conclude at the top of the hour.I would now like to turn the call over to Jordan S ...

The meeting place for companies, technologies and data Executing on Key Strategic Priorities Positioned for Long-Term Sustainable Growth 5,000+ Customers 229,000+ Cross Connects 50+ Metros 300+ Data Centers Capacity Host What You Need, How You Need Coverage Deploy Where You Need Connectivity Connect How You Need to Whom You Need Control Implement and Operate the Way You Need Strengthen Our Customer Value Proposition 1 2 3 Innovate & Integrate for Our Customers Diversify and Bolster Capital Sources 11% Y/Y G ...

Overview [Corporate Information](index=3&type=section&id=Corporate%20Information) Digital Realty operates a global portfolio of 310 data centers and holds investment-grade credit ratings from major agencies - Digital Realty owns, acquires, develops, and operates **310 data centers globally**, with a portfolio of approximately **42.5 million square feet**, serving a diverse customer base across various industries[7](index=7&type=chunk) Credit Ratings as of Q2 2025 | Agency | Rating | Outlook | | :--- | :--- | :--- | | Standard & Poor's | BBB | Stable | | Moody's | Baa2 | Stable | | Fitch | BBB | Stable | Common Stock (DLR) Performance - Q2 2025 | Metric | Value | | :--- | :--- | | Closing Price (30-Jun-25) | $174.33 | | High Price (Q2 2025) | $178.85 | | Low Price (Q2 2025) | $129.95 | | Indicated Annual Dividend | $4.88 | | Closing Annual Dividend Yield | 2.8% | [Key Quarterly Financial Data](index=6&type=section&id=Key%20Quarterly%20Financial%20Data) The company reported strong Q2 2025 results with $1.49 billion in revenue, significant net income, and improved Core FFO per share Key Financial Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Operating Revenues | $1,493.2M | $1,356.7M | | Net Income | $1,046.9M | $74.7M | | Core FFO per Share | $1.87 | $1.65 | | Adjusted EBITDA | $823.3M | $726.9M | Enterprise Value and Leverage (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Total Enterprise Value | $79,637.6M | | Total Debt | $18,452.1M | | Total Debt / Total Enterprise Value | 23.2% | | Net Debt-to-Adjusted EBITDA | 5.1x | Portfolio Statistics (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Data Centers | 310 | | Net Rentable Square Feet | 42,529k | | Occupancy at End of Quarter | 84.8% | | Space Under Active Development | 9,848k sqft | | Weighted Avg. Remaining Lease Term | 5.1 years | Consolidated Statements of Operations [Earnings Release](index=8&type=section&id=Earnings%20Release) Q2 2025 featured strong revenue and EBITDA growth, record bookings, positive renewal spreads, and an increased full-year outlook Q2 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $1.49B | $1.36B (approx) | +10% | | Adjusted EBITDA | $823M | $727M (approx) | +13% | | Net Income per Share | $2.94 | $0.20 | +1370% | | Core FFO per Share | $1.87 | $1.65 | +13.3% | - Signed total bookings expected to generate **$135 million of annualized GAAP rental revenue** at Digital Realty's share, including a record **$90 million** from the 0-1 megawatt plus interconnection category[27](index=27&type=chunk)[30](index=30&type=chunk) - Rental rates on renewal leases signed during the quarter increased by **7.3% on a cash basis** and **9.9% on a GAAP basis**[29](index=29&type=chunk) - Acquired land parcels in Atlanta, Dallas, and Chicago to support future development of over **700 megawatts** and raised over **$3 billion** for its U.S. Hyperscale Data Center Fund[34](index=34&type=chunk)[35](index=35&type=chunk) [2025 Outlook](index=12&type=section&id=2025%20Outlook) The company raised its full-year 2025 guidance for revenue, Adjusted EBITDA, and Core FFO per share, reflecting strong performance Updated 2025 Full-Year Outlook (as of July 24, 2025) | Metric | Previous Outlook (Apr 24) | Current Outlook (Jul 24) | | :--- | :--- | :--- | | Total Revenue | $5.825 - $5.925B | $5.925 - $6.025B | | Adjusted EBITDA | $3.125 - $3.225B | $3.200 - $3.300B | | Core FFO per Share | $7.05 - $7.15 | $7.15 - $7.25 | | Constant-Currency Core FFO / Share | $7.05 - $7.15 | $7.10 - $7.20 | | Renewal Rental Rates (GAAP) | 6.0% - 8.0% | 7.0% - 8.0% | [Consolidated Quarterly Statements of Operations](index=14&type=section&id=Consolidated%20Quarterly%20Statements%20of%20Operations) Q2 2025 operating revenues reached $1.49 billion, with a substantial net income of $1.05 billion driven by gains on asset sales Q2 2025 vs. Q2 2024 Statement of Operations Highlights | Line Item (in thousands) | Three Months Ended 30-Jun-25 | Three Months Ended 30-Jun-24 | | :--- | :--- | :--- | | Total Operating Revenues | $1,493,150 | $1,356,749 | | Operating Income | $211,697 | $9,889 | | Gain / (loss) on sale of investments | $931,830 | $173,709 | | Net Income | $1,046,946 | $74,668 | | Net Income Available to Common Stockholders | $1,021,975 | $70,039 | | Net income / (loss) per share - diluted | $2.94 | $0.20 | [Funds From Operations and Core Funds From Operations](index=15&type=section&id=Funds%20From%20Operations%20and%20Core%20Funds%20From%20Operations) Core FFO per share grew to $1.87 in Q2 2025, up from $1.65 in the prior-year period, indicating strong core business growth FFO and Core FFO per Diluted Share (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Funds From Operations (FFO) | $1.75 | $1.57 | | Core Funds From Operations (Core FFO) | $1.87 | $1.65 | [Adjusted Funds From Operations (AFFO)](index=16&type=section&id=Adjusted%20Funds%20From%20Operations%20(AFFO)) AFFO per diluted share was $1.68 for Q2 2025, with a corresponding diluted AFFO payout ratio of 72.8% AFFO Performance and Payout Ratio (Q2 2025) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | AFFO per diluted share | $1.68 | $1.78 | $1.56 | | Dividends per share | $1.22 | $1.22 | $1.22 | | Diluted AFFO Payout Ratio | 72.8% | 68.6% | 78.1% | Balance Sheet Information [Consolidated Balance Sheets](index=17&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $48.7 billion as of June 30, 2025, supported by a strong cash position and increased investments in real estate Consolidated Balance Sheet Highlights (in billions) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net Investments in Real Estate | $29.3 | $26.3 | | Cash and cash equivalents | $3.6 | $2.3 | | **Total Assets** | **$48.7** | **$43.6** | | Total Debt (net) | $18.5 | $16.3 | | **Total Liabilities** | **$23.9** | **$21.2** | | **Total Equity** | **$23.4** | **$21.0** | [Components of Net Asset Value (NAV)](index=18&type=section&id=Components%20of%20Net%20Asset%20Value%20(NAV)) The company's NAV is supported by over $3.3 billion in annualized cash NOI and significant assets in development and cash Key Components of Net Asset Value (in thousands) | Component | Value | | :--- | :--- | | **Assets** | | | Total Consolidated Cash NOI, Annualized | $3,071,438 | | Digital Realty's Pro Rata Share of Unconsolidated Entities Cash NOI | $313,235 | | Development CIP | $5,080,701 | | Cash and cash equivalents | $3,554,126 | | **Liabilities** | | | Total Debt (Unsecured + Secured) | $18,603,387 | | Preferred stock | $755,000 | | Digital Realty's share of unconsolidated entities debt | $2,044,648 | [Debt Maturities](index=19&type=section&id=Debt%20Maturities) The company maintains a well-staggered debt maturity profile of $18.6 billion with a weighted average maturity of 4.6 years Total Debt Maturities by Year (in thousands) | Year | Amount Maturing | | :--- | :--- | | 2025 | $766,574 | | 2026 | $1,729,991 | | 2027 | $1,871,457 | | 2028 | $2,518,438 | | 2029 | $2,888,792 | | Thereafter | $8,828,135 | - Total debt outstanding is **$18.6 billion** with a weighted average maturity of **4.6 years**[72](index=72&type=chunk) [Debt Analysis and Covenant Compliance](index=20&type=section&id=Debt%20Analysis%20and%20Covenant%20Compliance) The company remained in full compliance with all debt covenants, demonstrating strong financial health and significant headroom Debt Covenant Compliance (as of June 30, 2025) | Covenant Ratio | Required | Actual (Senior Notes) | Actual (Credit Facilities) | | :--- | :--- | :--- | :--- | | Total outstanding debt / total assets | < 60% | 44% | 33% | | Secured debt / total assets | < 40% | 5% | 4% | | Fixed charge coverage | > 1.50x | N/A | 4.6x | Internal Growth [Same-Capital Operating Trend Summary](index=21&type=section&id=Same-Capital%20Operating%20Trend%20Summary) The Same-Capital portfolio showed solid internal growth, with a 6.1% increase in NOI and a 4.4% increase in Cash NOI year-over-year Same-Capital Performance (Q2 2025 vs Q2 2024) | Metric | % Change (YoY) | | :--- | :--- | | Total Revenue | +4.9% | | Net Operating Income (NOI) | +6.1% | | Cash Net Operating Income (Cash NOI) | +4.4% | | Constant Currency Cash NOI | +1.8% | [Summary of Leasing Activity - Signed](index=22&type=section&id=Summary%20of%20Leasing%20Activity%20-%20Signed) The company signed new leases in Q2 2025 expected to generate $118.0 million in annualized GAAP rent, driven by the 0-1 MW segment New Leasing Activity - Q2 2025 | Category | Annualized GAAP Rent (in thousands) | Kilowatts Leased | NRSF Leased (in thousands) | | :--- | :--- | :--- | :--- | | 0-1 MW | $72,517 | 21,727 | 240 | | > 1 MW | $45,038 | 23,290 | 152 | | **Total** | **$117,974** | **45,017** | **401** | [Summary of Leasing Activity - Renewed](index=23&type=section&id=Summary%20of%20Leasing%20Activity%20-%20Renewed) Lease renewals in Q2 2025 featured strong positive rent re-leasing spreads of 7.3% on a cash basis and a high retention ratio Lease Renewal Rent Change - Q2 2025 | Rent Basis | % Change (Total Portfolio) | | :--- | :--- | | Cash Rent | +7.3% | | GAAP Rent | +9.9% | - The company achieved a **retention ratio of 82.2%** (by square feet) and a low **churn rate of 1.0%** for the quarter[88](index=88&type=chunk) [Lease Expirations - By Size](index=24&type=section&id=Lease%20Expirations%20-%20By%20Size) The lease expiration schedule is well-distributed, with 13.0% of annualized rent expiring in the remainder of 2025 and 19.8% in 2026 Upcoming Lease Expirations (% of Total Annualized Rent) | Year | % of Annualized Rent Expiring | | :--- | :--- | | 2025 (remainder) | 13.0% | | 2026 | 19.8% | | 2027 | 11.2% | | 2028 | 8.3% | | 2029 | 10.2% | [Top 20 Customers by Annualized Rent](index=26&type=section&id=Top%2020%20Customers%20by%20Annualized%20Rent) Revenue is concentrated, with the top 20 customers accounting for 50.8% of annualized rent and providing stable, long-term cash flows - The top 20 customers account for **50.8% of annualized recurring revenue**, with a weighted average remaining lease term of **6.0 years**[96](index=96&type=chunk) Top 3 Customers by Annualized Rent | Rank | Customer | % of Annualized Recurring Revenue | | :--- | :--- | :--- | | 1 | Fortune 50 Software Company | 11.7% | | 2 | Oracle Corporation | 8.2% | | 3 | Social Content Platform | 5.3% | [Occupancy Analysis](index=27&type=section&id=Occupancy%20Analysis) Total portfolio occupancy increased to 84.8% in Q2 2025, with North America leading at 84.7% for its consolidated portfolio Portfolio Occupancy by Region (as of June 30, 2025) | Region | Occupancy % | | :--- | :--- | | North America (Consolidated) | 84.7% | | EMEA (Consolidated) | 79.2% | | Asia Pacific (Consolidated) | 81.4% | | **Total Portfolio** | **84.8%** | - Total portfolio occupancy increased to **84.8%** from 84.0% in the prior quarter[102](index=102&type=chunk) External Growth [Development Lifecycle](index=28&type=section&id=Development%20Lifecycle) The company has a substantial $8.9 billion development pipeline that is 61% pre-leased and expected to yield 12.2% Development Pipeline Summary (100% Share) | Region | IT Capacity (MW) | Total Expected Investment | % Leased | Estimated Yield | | :--- | :--- | :--- | :--- | :--- | | Americas | 464 | $5,305.4M | 78% | 13.5% | | EMEA | 216 | $3,066.0M | 26% | 11.3% | | APAC | 53 | $548.5M | 52% | 9.6% | | **Total** | **734** | **$8,919.9M** | **61%** | **12.2%** | [Construction Projects in Progress (CIP)](index=29&type=section&id=Construction%20Projects%20in%20Progress%20(CIP)) Total construction in progress and land held for development represents a total expected investment of $16.0 billion Construction in Progress Summary (100% Share, in millions) | Category | Current Investment | Future Investment | Total Investment | | :--- | :--- | :--- | :--- | | Future Development Capacity | $3,522.1 | $2,747.6 | $6,269.7 | | Data Center Construction | $3,515.7 | $5,404.2 | $8,919.9 | | **Total Land Held and Development CIP** | **$7,614.9** | **$8,299.8** | **$15,914.7** | [Historical Capital Expenditures and Investments in Real Estate](index=30&type=section&id=Historical%20Capital%20Expenditures%20and%20Investments%20in%20Real%20Estate) Total real estate investments in Q2 2025 were $704.3 million, primarily driven by $575.4 million in non-recurring capital expenditures Capital Expenditures - Q2 2025 (in thousands) | Category | Amount | | :--- | :--- | | Non-Recurring Capital Expenditures (Development, etc.) | $575,402 | | Recurring Capital Expenditures | $62,083 | | Indirect Capital Expenditures (Interest, Overhead) | $66,838 | | **Total Improvements to and Investments in Real Estate** | **$704,323** | [Acquisitions / Dispositions / Joint Ventures](index=31&type=section&id=Acquisitions%20%2F%20Dispositions%20%2F%20Joint%20Ventures) Q2 2025 activities included strategic land acquisitions for future growth and significant asset contributions to a joint venture - Acquired land in **Atlanta, GA ($120M)**, **Dallas, TX ($11M)**, and **Chicago, IL ($5.7M)** for future development[118](index=118&type=chunk) - Contributed assets to the U.S. Hyperscale Data Center Fund with a contribution price of **$1.6 billion**[120](index=120&type=chunk) [Unconsolidated Entities](index=32&type=section&id=Unconsolidated%20Entities) Unconsolidated joint ventures generated $227.2 million in NOI for Q2 2025, contributing significantly to the company's earnings Digital Realty's Pro Rata Share from Unconsolidated Entities (Q2 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Share of Debt | $2,044,648 | | Share of Net Operating Income (NOI) | $85,494 | | Share of Cash NOI | $78,309 | | Share of Core FFO | $52,184 | | Fee Income Earned | $22,409 | Additional Information [Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios](index=33&type=section&id=Reconciliation%20of%20Earnings%20Before%20Interest%2C%20Taxes%2C%20Depreciation%20%26%20Amortization%20and%20Financial%20Ratios) The company's key credit metrics, including a Net Debt-to-Adjusted EBITDA ratio of 5.1x, reflect a strong and stable financial profile Key Financial Ratios (as of June 30, 2025) | Ratio | Value | | :--- | :--- | | Net Debt-to-Adjusted EBITDA | 5.1x | | Interest coverage ratio | 5.0x | | Fixed charge coverage ratio | 4.7x | | Debt-plus-preferred-stock-to-total-enterprise-value | 24.1% | [Management Statements on Non-GAAP Measures](index=34&type=section&id=Management%20Statements%20on%20Non-GAAP%20Measures) This section defines non-GAAP measures like FFO and EBITDA, explaining their use as supplemental performance evaluation tools [Forward-Looking Statements](index=37&type=section&id=Forward-Looking%20Statements) This section provides a safe harbor statement, outlining potential risks and uncertainties that could affect future results

DALLAS, July 24, 2025 /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 second quarter of 2025. All per share results are presented on a fully diluted basis.Highlights Reported net income available to common stockholders of $2.94 per share in 2Q25, compared to $0.20 in 2Q24 Reported FFO per share of $1.75 in 2Q25, compared to $1.57 in 2Q24 Reported Core FFO pe ...

And let's do some final trades, gentlemen, if we could. Kevin Simpson, you are first. >> I'm going to go with Honeywell.The stock is off 5% after solid earnings. They beat topline, bottom line, raise guidance. This is a sum of the part story.>> What doesn't the market like. >> There's nothing not to like. Scott, buy the stock.>> Okay. Uh, who's Digital Realy. >> Uh, that's me.>> Why. >> Uh, earnings tonight. Last time they reported nearly a billion dollars worth of backlog contracts they're scrambling to fu ...

Customers Can Leverage Oracle Solution Centers to Test, Validate, and Deploy Data-Driven Hybrid IT and AI Solutions Faster and at Scale on PlatformDIGITAL® Globally DALLAS, Texas, July 24, 2025 /PRNewswire/ -- Digital Realty (NYSE: DLR), a global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, today announced that it is working with Oracle to help organizations accelerate hybrid IT and AI adoption. Through Oracle Cloud Solution Centers, a program that includes ...