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]

Core Insights - Digital Realty Trust (DLR) reported first-quarter 2025 core funds from operations (FFO) per share of $1.77, exceeding the Zacks Consensus Estimate of $1.73, with a year-over-year increase of 6% [1] - The company raised its 2025 core FFO guidance range to $7.05-$7.15 from the previous range of $7.00-$7.10, with the Zacks Consensus Estimate of $7.06 falling within this range [12] Financial Performance - Operating revenues for the first quarter were $1.41 billion, slightly below the Zacks Consensus Estimate of $1.42 billion, but up 5.7% year-over-year [2] - Same-Capital cash net operating income (NOI) grew by 3.9% [2] - Total operating expenses increased by 2.5% year-over-year to $1.21 billion, driven by various operational costs [5] - Adjusted EBITDA for the quarter was $791.2 million, reflecting an 11.3% year-over-year increase [5] Leasing and Revenue Growth - Total bookings signed in the first quarter are expected to generate $242 million in annualized GAAP rental revenues, with significant contributions from various categories [3] - Renewal leases signed during the quarter accounted for $147 million in annualized cash rental revenues, with rental rates increasing by 5.6% on a cash basis and 7.1% on a GAAP basis [4] Portfolio Expansion - Digital Realty acquired three land parcels in Charlotte, NC, for a total of $36 million, enhancing its IT capacity significantly [6][7] - The company entered the Indonesian market through a 50-50 joint venture for $95 million, aiming to develop data centers in the region [8] - Following the quarter end, DLR acquired approximately 100 acres of land in the Atlanta metro area for $120 million, expected to support over 200 megawatts of IT capacity [9] Balance Sheet and Debt Management - As of March 31, 2025, DLR had cash and cash equivalents of $2.32 billion, down from $3.87 billion at the end of 2024 [10] - The company reported total debt of $17 billion, with a net debt-to-adjusted EBITDA ratio of 5.1X and a fixed charge coverage of 4.9X [10][11] Future Guidance - DLR projects total revenues between $5.825 billion and $5.925 billion, with adjusted EBITDA expected in the range of $505 million to $515 million [13] - The company anticipates rental rates on renewal leases to increase by 4-6% on a cash basis and 6-8% on a GAAP basis, with year-end portfolio occupancy expected to rise by 100-200 basis points [13]

Financial Data and Key Metrics Changes - The company reported strong overall leasing in Q1 2025 of $242 million, consistent with a record pace set in 2024, driving the backlog of booked not billed leases to a new record of $919 million [7][39] - Core FFO per share grew by 6.1% year over year, reaching $1.77 per share, with a constant currency basis reporting $1.79 per share [42][43] - Data center revenue increased by 7% year over year, and adjusted EBITDA rose by 11% year over year [44] Business Line Data and Key Metrics Changes - Leasing in the zero to one megawatt plus interconnection segment was $69 million, marking the second highest ever, while greater than one megawatt leasing totaled $172 million, largely driven by hyperscaler leasing in North America [12][38] - The backlog at the company's share totaled $919 million at quarter-end, a 7% increase above the prior record [39] - More than 85% of bookings included fixed rent escalators of at least 4% or were linked to CPI [39] Market Data and Key Metrics Changes - The company saw strong demand across all regions, with North America hyperscale bookings being the strongest [19][20] - Pricing for new data center leasing reached a new milestone at $244 per kilowatt per month, up 10% from the prior record [16] - The company increased its development pipeline by another 70 megawatts since year-end, totaling 814 megawatts, with 63% preleased [19] Company Strategy and Development Direction - The company continues to execute its full spectrum meeting place strategy, focusing on markets with robust and diverse demand, including enterprise service providers and cloud availability zones [9][63] - The formation of the first US hyperscale fund aims to support up to $10 billion of data center investments, enhancing returns and reducing reliance on any single capital source [28][30] - The company is expanding its global footprint, including new entries into markets like Indonesia and the launch of a new data center in Crete [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2025 growth targets, supported by a record backlog and a 40% increase in the 2026 backlog since the beginning of the year [10][39] - Despite market volatility and uncertainty, the company maintains a robust pipeline across both enterprise and hyperscale segments [60][61] - The company anticipates strong commencements in the next two quarters, providing momentum into the end of the year and beyond [40] Other Important Information - The company achieved 100% renewable energy coverage for operations in Singapore and continues to expand its portfolio of green data centers [33][34] - The company reported a weighted average interest rate of 2.6% on its debt, with 93% of its net debt being fixed rate [51] Q&A Session Summary Question: Outlook on leasing environment given recent hyperscaler demand trends - Management noted a strong start to the year with robust pipelines in both enterprise and hyperscale segments, despite recent market volatility [60][61] Question: Impact of pricing and tariffs on development costs - Management indicated a modest impact of less than 5% on potential build costs due to supply chain management and proactive ordering [70][72] Question: Insights on land acquisitions in Atlanta and Charlotte - Management highlighted the strategic importance of these markets, noting existing connectivity and the presence of major cloud providers [78][80] Question: Changes in CapEx investment plans among hyperscale customers - Management emphasized the diversity of demand and noted that while some customers may slow down, others are pushing forward with their plans [88][90] Question: Current backlog status and leasing activity - Management confirmed a record backlog of signed but not commenced contracts, with strong activity expected to continue [112][114] Question: Pricing strength for new leases - Management attributed pricing strength to robust demand from traditional enterprise IT, digital transformation, and AI training, particularly in the US [129][130]

Financial Data and Key Metrics Changes - The company reported strong overall leasing in Q1 2025 of $242 million, consistent with a record pace set in 2024, driving the backlog of booked not billed leases to a new record of $919 million [7][39] - Core FFO per share grew by 6.1% year over year, reaching $1.77 per share, with a constant currency basis reporting $1.79 per share [42][43] - Data center revenue increased by 7% year over year, and adjusted EBITDA rose by 11% year over year [44] Business Line Data and Key Metrics Changes - Leasing in the zero to one megawatt plus interconnection segment was $69 million, marking the second highest ever, while greater than one megawatt leasing totaled $172 million, largely driven by hyperscaler leasing in North America [12][38] - The backlog at the company's share totaled $919 million at quarter-end, a 7% increase above the prior record [39] Market Data and Key Metrics Changes - The company saw strong demand across all regions, with North America being the strongest for hyperscale bookings [19][20] - Pricing for new data center leasing reached $244 per kilowatt per month, up 10% from the prior record, reflecting strength within the greater than one megawatt category [16] Company Strategy and Development Direction - The company continues to evolve its funding model, having formed its first US hyperscale fund, which is expected to support approximately $10 billion of hyperscale data center investment [28][30] - The company is focusing on markets with robust and diverse demand, particularly in enterprise service providers and cloud availability zones, while also addressing the needs of hyperscale customers [62][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2025 growth targets, supported by a record backlog and a 40% increase in the 2026 backlog since the beginning of the year [10][39] - Despite market volatility and uncertainty, the company maintains a robust pipeline across both enterprise and hyperscale segments [60][61] Other Important Information - The company opened a new 16 megawatt data center powered by 100% renewable sources, continuing its leadership in sustainable building practices [31][32] - The company has reached 100% renewable energy coverage for operations in Singapore and has installed solar on its facilities [33] Q&A Session Summary Question: Outlook on leasing environment given recent hyperscaler demand trends - Management noted a strong start to the year with robust pipelines in both enterprise and hyperscale segments, despite recent market volatility [60][61] Question: Impact of pricing and tariffs on development costs - Management indicated a modest impact of less than 5% on potential build costs due to supply chain management and proactive ordering of components [70][72] Question: Insights on land acquisitions in Atlanta and Charlotte - Management highlighted the strategic importance of these markets, noting existing connectivity and the presence of major cloud providers [78][80] Question: Changes in CapEx investment plans among hyperscale customers - Management emphasized the diversity of demand among hyperscalers and noted that while some customers may slow down, others are pushing forward [88][90] Question: Current backlog status and leasing activity - Management confirmed a record backlog of signed but not commenced contracts, with strong activity expected to continue into Q2 and Q3 [112][114] Question: Pricing strength for new leases - Management attributed pricing strength to robust demand from traditional enterprise IT, digital transformation, and AI training, particularly in the US [129][130]

Core Insights - Digital Realty Trust (DLR) reported $1.41 billion in revenue for Q1 2025, a year-over-year increase of 5.8% [1] - The earnings per share (EPS) for the same period was $1.77, compared to $0.82 a year ago, indicating significant growth [1] - The revenue fell short of the Zacks Consensus Estimate by 1.03%, while the EPS exceeded the estimate by 2.31% [1] Revenue Breakdown - Rental revenues were reported at $960.53 million, compared to the estimated $972.32 million, reflecting a year-over-year increase of 7.4% [4] - Tenant reimbursements for utilities totaled $271.19 million, slightly below the estimated $280.74 million, showing a decrease of 1.9% year-over-year [4] - Other tenant reimbursements reached $42.18 million, surpassing the estimated $39.89 million, marking a 9.7% increase from the previous year [4] - Total tenant reimbursements (utilities + other) were $313.37 million, below the average estimate of $320.63 million, with a year-over-year change of -0.5% [4] - Fee income was reported at $20.64 million, exceeding the estimated $17.32 million, representing a substantial increase of 58.7% year-over-year [4] - Other revenues were only $0.13 million, significantly lower than the estimated $0.68 million, indicating an 84.6% decrease from the previous year [4] - Interconnection and other revenues were $112.97 million, slightly below the estimated $115.10 million, with a year-over-year increase of 4.5% [4] Stock Performance - Digital Realty Trust shares have returned +1.5% over the past month, contrasting with the Zacks S&P 500 composite's -5.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Digital Realty Trust (DLR) reported quarterly funds from operations (FFO) of $1.77 per share, exceeding the Zacks Consensus Estimate of $1.73 per share, and showing an increase from $1.67 per share a year ago [1] Financial Performance - The company achieved revenues of $1.41 billion for the quarter ended March 2025, which was 1.03% below the Zacks Consensus Estimate, compared to $1.33 billion in the same quarter last year [2] - Over the last four quarters, Digital Realty Trust has surpassed consensus FFO estimates three times, but has not beaten consensus revenue estimates during this period [2] Stock Performance - Digital Realty Trust shares have declined approximately 14.5% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The current consensus FFO estimate for the upcoming quarter is $1.75 on revenues of $1.45 billion, and for the current fiscal year, it is $7.06 on revenues of $5.87 billion [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which Digital Realty Trust belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which could impact Digital Realty Trust's stock performance [5]

1Q25 FINANCIAL RESULTS April 24, 2025 Global. Connected. Sustainable. The meeting place for companies, technologies and data Executing on Key Strategic Priorities Positioned for Long-Term Sustainable Growth 5,000+ Customers 228,000+ 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 & Integ ...

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Corporate Profile](index=3&type=section&id=Corporate%20Profile) Digital Realty Trust, Inc. operates as a global provider of data center, colocation, and interconnection solutions, with a portfolio of 308 data centers and additional space under development - Digital Realty owns, acquires, develops, and operates **308 data centers globally**, including **78 held in unconsolidated joint ventures**, totaling approximately **41.8 million square feet**[4](index=4&type=chunk) - The company's portfolio includes an additional **9.5 million square feet** under active development and **5.1 million square feet** held for future development[4](index=4&type=chunk) [Investor Relations & Analyst Coverage](index=3&type=section&id=Investor%20Relations%20%26%20Analyst%20Coverage) The company provides contact information for investor relations and lists numerous financial institutions offering analyst coverage, indicating broad market interest and transparency - Investor Relations contact information is available via their website, and the company is covered by analysts from over **20 financial institutions** including Bank of America Merrill Lynch, Barclays, Citigroup, Deutsche Bank, Goldman Sachs, J.P. Morgan, and Wells Fargo[6](index=6&type=chunk)[7](index=7&type=chunk) [Upcoming Conference Schedule](index=3&type=section&id=Upcoming%20Conference%20Schedule) Digital Realty has scheduled participation in several investor conferences in May and June 2025, with webcasts available for these events | Date | Conference Name | Location | | :------------ | :-------------------------------- | :------------- | | May 5-7, 2025 | Wells Fargo Real Estate Securities | Charleston, SC | | May 13, 2025 | BMO North America Real Estate | New York, NY | | June 3-4, 2025| NAREIT REITweek | New York, NY | | June 10, 2025 | Mizuho Technology Conference | New York, NY | [Stock Listing & Credit Ratings](index=5&type=section&id=Stock%20Listing%20%26%20Credit%20Ratings) Digital Realty's common stock and preferred stocks are listed on the NYSE. The company maintains investment-grade credit ratings with a stable outlook from Standard & Poor's, Moody's, and Fitch | Stock Type | Symbol | | :--------------------- | :------- | | Common Stock | DLR | | Series J Preferred Stock | DLRPRJ | | Series K Preferred Stock | DLRPRK | | Series L Preferred Stock | DLRPRL | | Rating Agency | Corporate Credit Rating | Preferred Stock | | :---------------- | :---------------------- | :-------------- | | Standard & Poor's | BBB (Stable Outlook) | BB+ | | Moody's | Baa2 (Stable Outlook) | Baa3 | | Fitch | BBB (Stable Outlook) | BB+ | [Common Stock Price Performance](index=5&type=section&id=Common%20Stock%20Price%20Performance) Digital Realty's common stock (DLR) experienced fluctuations in price during the first quarter of 2025, with a closing price of **$143.29** at quarter-end, down from **$177.33** in the prior quarter. The indicated annualized dividend per common share remained stable at **$4.88** | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :-------------------------------------- | :--------- | :--------- | :--------- | | High price | $187.74 | $198.00 | $154.18 | | Low price | $139.27 | $155.16 | $130.00 | | Closing price, end of quarter | $143.29 | $177.33 | $144.04 | | Average daily trading volume (1) | 2,529 | 1,911 | 2,108 | | Indicated dividend per common share (2) | $4.88 | $4.88 | $4.88 | | Closing annual dividend yield, end of quarter | 3.4% | 2.8% | 3.4% | | Shares and units outstanding, end of quarter (1) (3) | 343,092 | 342,772 | 319,009 | | Closing market value of shares and units outstanding (4) | $49,161,653| $60,783,759| $45,950,001| [Key Quarterly Financial Data](index=6&type=section&id=Key%20Quarterly%20Financial%20Data) [Selected Financial and Operating Data](index=6&type=section&id=Selected%20Financial%20and%20Operating%20Data) The company reported a decrease in total operating revenues quarter-over-quarter but an increase year-over-year, alongside a significant increase in Adjusted EBITDA. FFO and Core FFO per diluted share also showed positive growth. Occupancy remained stable at **84.0%** | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :---------------------------------------- | :----------- | :----------- | :----------- | | **Shares and Units at End of Quarter** | | | | | Total Shares and Units | 343,092 | 342,772 | 319,009 | | **Enterprise Value** | | | | | Total Enterprise Value | $66,932,932 | $78,253,136 | $63,725,341 | | Total debt / total enterprise value | 25.4% | 21.4% | 26.7% | | **Selected Operating Data** | | | | | Total operating revenues | $1,407,637 | $1,435,862 | $1,331,143 | | Total operating expenses | $1,211,887 | $1,291,540 | $1,181,776 | | Net income | $106,395 | $185,688 | $287,837 | | **Financial Ratios** | | | | | Adjusted EBITDA | $791,156 | $751,276 | $710,556 | | Net Debt-to-Adjusted EBITDA | 5.1x | 4.8x | 6.1x | | Interest coverage ratio | 5.3x | 4.5x | 4.3x | | Fixed charge coverage ratio | 4.9x | 4.2x | 4.0x | | **Profitability Measures** | | | | | Net income / (loss) per common share - diluted | $0.27 | $0.51 | $0.82 | | Funds from operations (FFO) / diluted share and unit | $1.67 | $1.61 | $1.41 | | Core funds from operations (Core FFO) / diluted share and unit | $1.77 | $1.73 | $1.67 | | Adjusted funds from operations (AFFO) / diluted share and unit | $1.78 | $1.36 | $1.68 | | Dividends per share and common unit | $1.22 | $1.22 | $1.22 | | **Portfolio Statistics** | | | | | Data Centers | 308 | 308 | 309 | | Net rentable square feet, excluding development space | 41,778 | 41,326 | 39,839 | | Occupancy at end of quarter | 84.0% | 84.1% | 82.1% | | Weighted average remaining lease term (years) | 4.9 | 4.8 | 4.5 | [Definitions and Notes](index=7&type=section&id=Definitions%20and%20Notes) This section provides detailed definitions and calculation methodologies for key financial metrics such as EBITDA, Adjusted EBITDA, FFO, Core FFO, and AFFO, along with explanations for various ratios and portfolio statistics, ensuring clarity on non-GAAP measures - EBITDA is defined as earnings before interest expense, loss on debt extinguishment and modifications, tax expense, and depreciation and amortization[17](index=17&type=chunk) - Adjusted EBITDA includes adjustments for unconsolidated joint venture depreciation & amortization, interest and tax expense, severance, transaction and integration expenses, gains/losses on sale, impairment provisions, and other non-core items[17](index=17&type=chunk) - FFO and Core FFO are presented in accordance with Nareit standards, with Core FFO further excluding certain non-core revenue and expense streams. AFFO assesses the ability to fund dividend and distribution requirements[17](index=17&type=chunk) [Earnings Release & Highlights](index=8&type=section&id=Earnings%20Release%20%26%20Highlights) [First Quarter 2025 Financial Highlights](index=8&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Digital Realty reported Q1 2025 revenues of **$1.4 billion**, a **6% increase year-over-year**, with Adjusted EBITDA growing **11% year-over-year** to **$791 million**. Core FFO per share increased to **$1.77**, driven by robust demand and strong leasing activity - Revenues for Q1 2025 were **$1.4 billion**, a **2% decrease QoQ** but a **6% increase YoY**[21](index=21&type=chunk) - Net income available to common stockholders was **$100 million**, or **$0.27 per share**, compared to **$0.82 per share** in Q1 2024[21](index=21&type=chunk) - Adjusted EBITDA reached **$791 million**, up **5% QoQ** and **11% YoY**[22](index=22&type=chunk) - Core FFO per share was **$1.77**, an increase from **$1.73 QoQ** and **$1.67 YoY**[23](index=23&type=chunk) [Leasing Activity](index=8&type=section&id=Leasing%20Activity) Digital Realty achieved strong leasing activity in Q1 2025, signing new leases expected to generate **$242 million** in annualized GAAP rental revenue. The backlog of signed-but-not-commenced leases reached a record **$919 million**, and renewal leases saw a **5.6% cash basis rate increase** - Total bookings in Q1 2025 are expected to generate **$242 million** of annualized GAAP rental revenue[24](index=24&type=chunk) - The backlog of signed-but-not-commenced leases reached a record **$919 million** of annualized GAAP base rent[25](index=25&type=chunk)[27](index=27&type=chunk) - Rental rates on renewal leases increased by **5.6% on a cash basis** and **7.1% on a GAAP basis**[26](index=26&type=chunk)[27](index=27&type=chunk) | Region | 0-1 MW Annualized GAAP Base Rent | > 1 MW Annualized GAAP Base Rent | Interconnection Annualized GAAP Base Rent | Total Annualized GAAP Base Rent | | :---------- | :------------------------------- | :------------------------------- | :---------------------------------------- | :------------------------------ | | Americas | $23,219 | $163,390 | N/A | $187,916 | | EMEA | $24,906 | $3,626 | N/A | $28,630 | | Asia Pacific| $5,997 | $5,113 | N/A | $11,110 | | **All Regions** | **$54,122** | **$172,129** | **$14,649** | **$242,305** | [Investment Activity](index=9&type=section&id=Investment%20Activity) Digital Realty expanded its development pipeline through land acquisitions in Charlotte and Atlanta, and launched its U.S. Hyperscale Data Center Fund, raising over **$1.7 billion** in equity commitments. The company also entered the Indonesian market via a joint venture - Acquired a **48-acre parcel for $20 million** and two adjacent parcels for **$16 million** in Charlotte, North Carolina, expanding potential IT capacity to **400 megawatts**[30](index=30&type=chunk) - Formed the U.S. Hyperscale Data Center Fund, raising over **$1.7 billion** in equity commitments, targeting **$2.5 billion** for operating hyperscale data centers and development sites across leading U.S. markets[31](index=31&type=chunk) - Entered the Indonesia market with a **50% stake** in Digital Realty Bersama for **$95 million**, acquiring a connected campus with two data centers in Jakarta, including CGK11 with expected capacity up to **32 megawatts**[32](index=32&type=chunk) - Subsequent to quarter-end, acquired approximately **100 acres of land** in the Atlanta metro area for **$120 million**, expected to support over **200 megawatts** of IT capacity[33](index=33&type=chunk) [Balance Sheet & Financing](index=9&type=section&id=Balance%20Sheet%20%26%20Financing) As of March 31, 2025, Digital Realty had **$17.0 billion** in total debt, with a net debt-to-Adjusted EBITDA ratio of **5.1x** and a fixed charge coverage of **4.9x**. The company completed financing transactions including issuing **€850 million** in notes and repaying **£400 million** in senior notes - Total debt outstanding was approximately **$17.0 billion** as of March 31, 2025, comprising **$16.2 billion of unsecured debt** and **$0.8 billion of secured debt**[35](index=35&type=chunk) - Key financial ratios at quarter-end were: Net debt-to-Adjusted EBITDA of **5.1x**, debt-plus-preferred-to-total enterprise value of **26.6%**, and fixed charge coverage of **4.9x**[35](index=35&type=chunk) - Issued **€850 million of 3.875% notes** due 2035 for net proceeds of approximately **€841 million ($867 million)** in January[37](index=37&type=chunk) - Repaid **£400 million ($501 million) of 4.25% senior notes** in January[37](index=37&type=chunk) [2025 Outlook](index=11&type=section&id=2025%20Outlook) [Outlook Summary](index=11&type=section&id=Outlook%20Summary) Digital Realty raised its 2025 Core FFO per share outlook to **$7.05 - $7.15**, reflecting an increase from the previous guidance. The company also updated its total revenue and Adjusted EBITDA outlooks, while maintaining expectations for rental rate increases and same-capital cash NOI growth - Raised 2025 Core FFO per share outlook to **$7.05 - $7.15** (from **$7.00 - $7.10**)[38](index=38&type=chunk)[39](index=39&type=chunk) - Maintained 2025 Constant-Currency Core FFO per share outlook at **$7.05 - $7.15**[38](index=38&type=chunk)[39](index=39&type=chunk) | Metric | As of February 13, 2025 | As of April 24, 2025 | | :------------------------------------ | :---------------------- | :------------------- | | Total revenue | $5.800 - $5.900 billion | $5.825 - $5.925 billion | | Adjusted EBITDA | $3.100 - $3.200 billion | $3.125 - $3.225 billion | | Rental rates on renewal leases (Cash basis) | 4.0% - 6.0% | 4.0% - 6.0% | | Rental rates on renewal leases (GAAP basis) | 6.0% - 8.0% | 6.0% - 8.0% | | Year-end portfolio occupancy | +100 - 200 bps | +100 - 200 bps | | "Same-Capital" cash NOI growth (2) | 3.5% - 4.5% | 3.5% - 4.5% | | Development CapEx (Net of Partner Contributions) (3) | $3,000 - $3,500 million | $3,000 - $3,500 million | | Long-term debt issuance pricing | 5.0% - 5.5% | 4.0% - 5.5% | | Net income per diluted share | $2.10 - $2.20 | $2.15 - $2.25 | | Funds From Operations / share (NAREIT-Defined) | $6.60 - $6.70 | $6.65 - $6.75 | | Core Funds From Operations / share | $7.00 - $7.10 | $7.05 - $7.15 | [Consolidated Quarterly Statements of Operations](index=13&type=section&id=Consolidated%20Quarterly%20Statements%20of%20Operations) [Quarterly Operating Results](index=13&type=section&id=Quarterly%20Operating%20Results) Digital Realty's Q1 2025 operating revenues were **$1.408 billion**, a slight decrease from the previous quarter but an increase from Q1 2024. Net income available to common stockholders was **$99.793 million**, resulting in diluted EPS of **$0.27** | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :---------------------------------------- | :----------- | :----------- | :----------- | | Rental revenues | $960,526 | $958,892 | $894,409 | | Tenant reimbursements - Utilities | $271,189 | $302,664 | $276,357 | | Interconnection & other | $112,969 | $112,360 | $108,071 | | Total Operating Revenues | $1,407,637 | $1,435,862 | $1,331,143 | | Utilities | $313,385 | $337,534 | $324,571 | | Rental property operating | $238,600 | $273,104 | $224,369 | | Depreciation & amortization | $443,009 | $455,355 | $431,102 | | General & administration | $121,112 | $124,470 | $114,419 | | Total Operating Expenses | $1,211,887 | $1,291,540 | $1,181,776 | | Operating Income | $195,750 | $144,322 | $149,367 | | Net Income | $106,395 | $185,688 | $287,837 | | Net Income / (Loss) Available to Common Stockholders | $99,793 | $179,388 | $271,327 | | Net income / (loss) per share - diluted | $0.27 | $0.51 | $0.82 | [Funds From Operations and Core Funds From Operations](index=14&type=section&id=Funds%20From%20Operations%20and%20Core%20Funds%20From%20Operations) [Reconciliation of Net Income to Funds From Operations (FFO)](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Funds%20From%20Operations%20(FFO)) Digital Realty's Funds From Operations (FFO) for Q1 2025 increased to **$570.7 million**, or **$1.67 per diluted share**, up from **$1.41 per diluted share** in Q1 2024, primarily due to adjustments for real estate related depreciation and gains/losses on real estate transactions | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :---------------------------------------- | :----------- | :----------- | :----------- | | Net Income / (Loss) Available to Common Stockholders | $99,793 | $179,388 | $271,327 | | Real estate related depreciation & amortization (1) | $432,652 | $445,462 | $420,591 | | Unconsolidated JV real estate related depreciation & amortization | $55,861 | $49,463 | $47,877 | | (Gain) / loss on real estate transactions | ($1,111) | ($137,047) | ($286,704) | | Funds From Operations | $570,715 | $544,616 | $451,273 | | Funds From Operations per share - diluted (2) (3) | $1.67 | $1.61 | $1.41 | [Reconciliation of FFO to Core FFO](index=14&type=section&id=Reconciliation%20of%20FFO%20to%20Core%20FFO) Core FFO for Q1 2025 was **$608.4 million**, or **$1.77 per diluted share**, showing an increase from both the prior quarter and the same quarter last year. This reflects adjustments for non-core revenue, transaction expenses, and other non-recurring items | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :---------------------------------------- | :----------- | :----------- | :----------- | | Funds From Operations | $570,715 | $544,616 | $451,273 | | Other non-core revenue adjustments (4) | ($1,925) | $4,537 | $3,525 | | Transaction and integration expenses | $39,902 | $11,797 | $31,839 | | (Gain) / Loss on FX and derivatives revaluation | ($2,064) | $7,127 | $33,602 | | Core Funds From Operations | $608,354 | $586,816 | $532,153 | | Core Funds From Operations per share - diluted (2) | $1.77 | $1.73 | $1.67 | [Adjusted Funds From Operations (AFFO)](index=15&type=section&id=Adjusted%20Funds%20From%20Operations%20(AFFO)) [Reconciliation of Core FFO to AFFO](index=15&type=section&id=Reconciliation%20of%20Core%20FFO%20to%20AFFO) Digital Realty's Adjusted Funds From Operations (AFFO) for Q1 2025 was **$610.1 million**, or **$1.78 per diluted share**, an increase from the prior quarter's **$1.36**. The diluted AFFO payout ratio improved to **68.6%** from **89.5%** in Q4 2024 | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :---------------------------------------- | :----------- | :----------- | :----------- | | Core FFO available to common stockholders and unitholders | $608,354 | $586,816 | $532,153 | | Non-real estate depreciation | $10,356 | $9,894 | $10,511 | | Non-cash stock-based compensation expense | $16,700 | $13,386 | $12,592 | | Straight-line rental revenue | ($9,692) | ($18,242) | $9,976 | | Recurring capital expenditures (1) | ($35,305) | ($130,245) | ($47,676) | | AFFO available to common stockholders and unitholders (2) | $610,108 | $463,682 | $535,073 | | AFFO per share - diluted (3) | $1.78 | $1.36 | $1.68 | | Dividends per share and common unit | $1.22 | $1.22 | $1.22 | | Diluted AFFO Payout Ratio | 68.6% | 89.5% | 72.8% | [Balance Sheet Information](index=16&type=section&id=Balance%20Sheet%20Information) [Consolidated Balance Sheets](index=16&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Digital Realty reported total assets of **$45.08 billion**, a slight decrease from the previous quarter. Total liabilities stood at **$21.90 billion**, and total equity was **$21.72 billion** | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :---------------------------------------- | :----------- | :----------- | :----------- | | **Assets** | | | | | Investments in Real Estate | $32,990,319 | $32,762,112 | $31,733,877 | | Net Investments in Real Estate | $26,836,631 | $26,760,582 | $26,123,605 | | Cash and cash equivalents | $2,321,885 | $3,870,891 | $1,193,784 | | Goodwill | $9,174,165 | $8,929,431 | $9,105,026 | | Assets held for sale and contribution | $953,236 | — | $287,064 | | Total Assets | $45,080,562 | $45,283,616 | $42,633,089 | | **Liabilities and Equity** | | | | | Unsecured senior notes, net of discount | $14,744,063 | $13,962,852 | $13,190,202 | | Total Liabilities | $21,902,406 | $22,107,836 | $21,792,866 | | Total Stockholders' Equity | $21,295,598 | $21,340,397 | $19,019,850 | | Total Equity | $21,718,834 | $21,742,595 | $19,489,487 | | Total Liabilities and Equity | $45,080,562 | $45,283,616 | $42,633,089 | [Components of Net Asset Value (NAV)](index=17&type=section&id=Components%20of%20Net%20Asset%20Value%20(NAV)) The company's annualized total consolidated cash NOI was **$3.15 billion**, with an additional **$280.8 million** from unconsolidated joint ventures. Total other assets amounted to **$8.36 billion**, while total liabilities were **$23.14 billion**, including preferred stock and JV debt | Metric | 31-Mar-25 | | :---------------------------------------- | :----------- | | Total Consolidated Cash NOI, Annualized | $3,151,534 | | Digital Realty's Pro Rata Share of Unconsolidated Joint Venture Cash NOI (3) (6) | $280,820 | | Development and Management Fees (net), Annualized | $82,571 | | Pre-stabilized inventory, at cost (7) | $231,885 | | Land held for development | $69,089 | | Development CIP (8) | $4,973,266 | | Cash and cash equivalents | $2,321,885 | | Total Other Assets | $8,359,012 | | Global unsecured revolving credit facilities | $1,121,628 | | Unsecured senior notes | $14,849,815 | | Preferred stock | $755,000 | | Digital Realty's share of unconsolidated JV debt | $1,697,287 | | Total Liabilities | $23,138,462 | [Debt Analysis](index=18&type=section&id=Debt%20Analysis) [Debt Maturities](index=18&type=section&id=Debt%20Maturities) Digital Realty's debt maturity schedule shows significant amounts maturing in **2025 ($703 million)** and **2026 ($1.59 billion)**, with a weighted average interest rate of **2.647%** and a weighted average term to initial maturity of **4.4 years** | Debt Type | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | | :---------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Global Unsecured Revolving Credit Facilities | — | — | — | — | — | $1,121,628 | $1,096,931 | | Unsecured Term Loans | — | — | $405,600 | — | — | — | $404,335 | | Senior Notes | $703,040 | $1,473,694 | $1,169,622 | $2,090,800 | $2,807,449 | $6,605,210 | $14,744,063 | | Secured Debt | $49,067 | $605 | $232,319 | $364,014 | $9,278 | $44,126 | $695,355 | | Other Debt | — | $5,915 | $4,505 | $1,065 | $5,108 | — | $16,593 | | Mandatorily Redeemable Preferred Shares (Teraco) | — | $62,764 | — | — | — | — | $59,002 | | **Total Debt** | **$703,645** | **$1,591,439** | **$1,812,046** | **$2,455,879** | **$2,821,836** | **$7,770,964** | **$17,155,809** | | Weighted Average Interest Rate | 2.600% | 0.633% | 3.062% | 4.362% | 2.307% | 2.324% | 2.647% | | Summary Weighted Average Term to Initial Maturity | | | | | | | 4.4 Years | [Debt Analysis and Covenant Compliance](index=19&type=section&id=Debt%20Analysis%20and%20Covenant%20Compliance) Digital Realty demonstrates strong compliance with its debt covenants, with actual ratios well within required limits. The total outstanding debt to total assets ratio was **33%** (Global Unsecured Credit Facilities) against a requirement of less than **60%**, and the fixed charge coverage ratio was **4.5x** against a requirement of greater than **1.50x** | Debt Covenant Ratios | Required (Global Unsecured Credit Facilities) | Actual (Global Unsecured Credit Facilities) | | :---------------------------------------- | :-------------------------------------------- | :------------------------------------------ | | Total outstanding debt / total assets | Less than 60% (5) | 33% | | Secured debt / total assets | Less than 40% (7) | 3% | | Consolidated EBITDA / interest expense | N/A | N/A | | Fixed charge coverage | Greater than 1.50x | 4.5x | - The company's total unencumbered assets to unsecured debt ratio was **251%** for most Unsecured Senior Notes and **275%** for specific notes, significantly exceeding the 'Greater than **150%**' requirement[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [Internal Growth & Portfolio Performance](index=20&type=section&id=Internal%20Growth%20%26%20Portfolio%20Performance) [Same-Capital Operating Trend Summary](index=20&type=section&id=Same-Capital%20Operating%20Trend%20Summary) Digital Realty's stabilized portfolio showed positive internal growth in Q1 2025, with total revenue increasing **3.0% YoY** and Net Operating Income (NOI) growing **4.7% YoY**. Cash NOI also saw a **3.9% YoY increase**, while occupancy remained stable at **82.7%** | Metric | 31-Mar-25 | 31-Mar-24 | % Change YoY | | :---------------------------------------- | :----------- | :----------- | :----------- | | Rental revenues | $719,355 | $689,987 | 4.3% | | Total Revenue | $1,053,488 | $1,022,582 | 3.0% | | Total Expenses | $470,409 | $465,874 | 1.0% | | Net Operating Income (2) | $583,079 | $556,708 | 4.7% | | Cash Net Operating Income (3) | $583,454 | $561,403 | 3.9% | | Constant Currency Cash Net Operating Income | $589,194 | $561,403 | 5.0% | | Stabilized Portfolio occupancy at period end (5) | 82.7% | 82.4% | 0.3% | [Summary of Leasing Activity - New](index=21&type=section&id=Summary%20of%20Leasing%20Activity%20-%20New) New leasing activity in Q1 2025 generated **$227.7 million** in annualized GAAP rent across **752 thousand net rentable square feet (NRSF)** and **77.3 megawatts**. The weighted average lease term for new leases was **10.4 years**, with >1 MW leases having a significantly longer term | Metric | 0-1 MW (1Q25) | > 1 MW (1Q25) | Total (1Q25) | | :---------------------------------------- | :------------ | :------------ | :----------- | | Annualized GAAP Rent (in thousands) | $54,122 | $172,129 | $227,655 | | Kilowatt leased | 15,502 | 61,801 | 77,303 | | NRSF (in thousands) | 186 | 542 | 752 | | Weighted Average Lease Term (years) | 3.8 | 12.6 | 10.4 | | GAAP rent per Kilowatt | $291 | $232 | $244 | | GAAP rent per NRSF | $290 | $318 | $303 | [Summary of Leasing Activity - Renewals](index=22&type=section&id=Summary%20of%20Leasing%20Activity%20-%20Renewals) Digital Realty renewed leases representing **39,715 kilowatts** and **798 thousand NRSF** in Q1 2025. Rental rates on renewed leases increased by **5.6% on a cash basis** and **7.1% on a GAAP basis**. The overall retention ratio was **70.3%**, with churn at **1.5%** | Metric | 0-1 MW (1Q25) | > 1 MW (1Q25) | Total (1Q25) | | :---------------------------------------- | :------------ | :------------ | :----------- | | Leases renewed (Kilowatt) | 37,215 | 2,500 | 39,715 | | Leases renewed (NRSF in thousands) | 499 | 26 | 798 | | Weighted Term (years) | 1.2 | 3.0 | 2.2 | | % Change Cash Rent Per NRSF | 3.8% | 4.6% | 5.6% | | % Change GAAP Rent Per NRSF | 4.1% | 11.2% | 7.1% | | Retention ratio (5) | 75.4% | 21.0% | 70.3% | | Churn (6) | 2.5% | 0.7% | 1.5% | [Lease Expirations - By Size](index=23&type=section&id=Lease%20Expirations%20-%20By%20Size) The report details lease expirations by size category and year, showing that **19.3%** of total annualized rent is set to expire in **2025**, primarily from 0-1 MW leases. The total annualized rent from expiring leases is **$3.81 billion** | Year | Annualized Rent (in thousands) | % of Total Annualized Rent | | :---------- | :----------------------------- | :------------------------- | | Month to Month | $68,208 | 1.8% | | 2025 | $734,635 | 19.3% | | 2026 | $636,127 | 16.7% | | 2027 | $420,012 | 11.0% | | 2028 | $299,863 | 7.9% | | 2029 | $387,337 | 10.2% | | 2030 | $291,163 | 7.6% | | 2031 | $175,309 | 4.6% | | 2032 | $137,102 | 3.6% | | 2033 | $104,138 | 2.7% | | 2034 | $175,064 | 4.6% | | Thereafter | $377,683 | 9.9% | | **Total / Wtd. Avg.** | **$3,806,641** | **100.0%** | [Top 20 Customers by Annualized Rent](index=24&type=section&id=Top%2020%20Customers%20by%20Annualized%20Rent) Digital Realty's top 20 customers account for **50.9%** of annualized recurring revenue, totaling **$2.16 billion**. The largest customer, a Fortune 50 Software Company, contributes **11.7%** of revenue with a weighted average remaining lease term of **8.8 years** | Customer | Number of Locations | Annualized Recurring Revenue (1) | % of Annualized Recurring Revenue | Weighted Average Remaining Lease Term in Years | | :-------------------------------- | :------------------ | :------------------------------- | :-------------------------------- | :--------------------------------------------- | | Fortune 50 Software Company | 73 | $500,501 | 11.7% | 8.8 | | Oracle Corporation | 43 | $280,104 | 6.6% | 9.4 | | Social Content Platform | 30 | $233,027 | 5.5% | 3.5 | | Global Cloud Provider | 64 | $201,038 | 4.7% | 4.6 | | IBM | 36 | $114,227 | 2.7% | 2.8 | | Equinix | 16 | $92,218 | 2.2% | 5.4 | | LinkedIn Corporation | 7 | $84,500 | 2.0% | 3.4 | | Fortune 25 Investment Grade-Rated Company | 29 | $67,330 | 1.6% | 1.7 | | Meta Platforms, Inc. | 48 | $66,034 | 1.5% | 3.4 | | Social Media Platform | 4 | $63,631 | 1.5% | 6.1 | | Specialized Cloud Provider | 3 | $58,770 | 1.4% | 4.4 | | Fortune 25 Tech Company | 54 | $55,496 | 1.3% | 3.1 | | Lumen Technologies, Inc. | 130 | $54,196 | 1.3% | 8.3 | | AT&T | 77 | $49,122 | 1.2% | 2.5 | | Comcast Corporation | 43 | $45,949 | 1.1% | 3.3 | | Fortune 500 SaaS Provider | 9 | $41,652 | 1.0% | 2.6 | | JPMorgan Chase & Co. | 19 | $40,643 | 1.0% | 3.2 | | Rackspace | 25 | $38,558 | 0.9% | 8.6 | | Morgan Stanley | 13 | $37,740 | 0.9% | 4.2 | | Zayo | 121 | $36,202 | 0.8% | 1.5 | | **Total / Weighted Average** | | **$2,160,938** | **50.9%** | **6.0** | [Occupancy Analysis](index=25&type=section&id=Occupancy%20Analysis) Digital Realty's total portfolio occupancy stood at **84.0%** as of March 31, 2025, with significant variations across metropolitan areas and regions. North America reported **85.0%** occupancy, EMEA **77.8%**, and Asia Pacific **81.8%**. The company has substantial space under active and future development | Metropolitan Area | Net Rentable Square Feet (1) | Space Under Active Development (2) | Space Held for Development (3) | Annualized Rent (4) | Occupancy (5) (31-Mar-25) | White Space IT Load (6) | Data Center Count | | :-------------------------- | :--------------------------- | :--------------------------------- | :----------------------------- | :------------------ | :------------------------ | :---------------------- | :------------------ | | **North America Total/Weighted Average** | **20,000** | **2,779** | **1,025** | **$2,034,333** | **85.0%** | **1,155.3** | **101** | | Northern Virginia | 5,334 | 1,609 | 254 | $652,278 | 93.7% | 478.5 | 18 | | Chicago | 2,262 | 553 | 48 | $232,255 | 92.9% | 81.0 | 7 | | New York | 1,640 | — | 100 | $211,732 | 75.1% | 64.7 | 11 | | **EMEA Total/Weighted Average** | **10,851** | **4,037** | **738** | **$1,446,141** | **77.8%** | **769.1** | **118** | | London | 1,402 | 23 | 76 | $237,568 | 63.8% | 98.9 | 13 | | Frankfurt | 1,829 | 1,343 | — | $226,939 | 83.7% | 117.4 | 24 | | Amsterdam | 1,332 | 222 | 92 | $189,063 | 86.2% | 116.3 | 13 | | **Asia Pacific Total/Weighted Average** | **1,577** | **66** | **289** | **$274,786** | **81.8%** | **123.9** | **11** | | Singapore | 793 | — | 97 | $213,413 | 90.5% | 72.1 | 3 | | **Portfolio Total/Weighted Average** | **41,778** | **9,463** | **5,062** | **$4,685,166** | **84.0%** | **2,765.0** | **308** | [External Growth & Development](index=26&type=section&id=External%20Growth%20%26%20Development) [Development Lifecycle](index=26&type=section&id=Development%20Lifecycle) Digital Realty has substantial development capacity, with **3,000 MW of land** and **470 MW of shell capacity** globally. Data center construction projects total **814 MW**, with **63% leased** and an average stabilized yield of **12.5%**. The Americas region leads in total expected investment | Region | Land (MW) | Shell (MW) | Data Center Construction (MW) | % Leased | Average Yields | | :-------- | :-------- | :--------- | :---------------------------- | :------- | :------------- | | Americas | 1,900 | 210 | 499 | 79% | 13.9% | | EMEA | 870 | 200 | 249 | 32% | 11.3% | | APAC | 230 | 60 | 65 | 61% | 9.8% | | **Total** | **3,000** | **470** | **814** | **63%** | **12.5%** | - Total expected investment for data center construction (100% share) is **$9.34 billion**, with Digital Realty's share at **$6.97 billion**[98](index=98&type=chunk) [Construction Projects in Progress](index=27&type=section&id=Construction%20Projects%20in%20Progress) As of March 31, 2025, Digital Realty's total land held and development construction in progress (CIP) amounted to **$14.997 billion** (100% share), with **$7.122 billion** already invested. Data center construction represents the largest component, with **$3.674 billion** in current investment | Construction Projects in Progress | Current Investment (100% Share) | Future Investment (100% Share) | Total Investment (100% Share) | | :-------------------------------- | :------------------------------ | :----------------------------- | :---------------------------- | | Future Development Capacity | $2,992,474 | $2,037,362 | $5,029,836 | | Data Center Construction | $3,673,621 | $5,666,085 | $9,339,706 | | Equipment Pool & Other Inventory | $216,089 | — | $216,089 | | Campus, Tenant Improvements & Other | $239,564 | $171,892 | $411,456 | | **Total Land Held and Development CIP** | **$7,121,748** | **$7,875,339** | **$14,997,087** | | Total Land Held and Construction in Progress | $7,169,086 | $7,925,720 | $15,094,806 | - Digital Realty's share of total land held and construction in progress is **$12.155 billion**, with **$5.993 billion** in current investment[103](index=103&type=chunk) [Historical Capital Expenditures and Investments in Real Estate](index=28&type=section&id=Historical%20Capital%20Expenditures%20and%20Investments%20in%20Real%20Estate) Total direct capital expenditures for Q1 2025 were **$727.5 million**, primarily driven by development spending of **$686.6 million**. Recurring capital expenditures were **$35.3 million**, a significant decrease from the previous quarter | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :---------------------------------------- | :----------- | :----------- | :----------- | | **Non-Recurring Capital Expenditures** | | | | | Development (2) | $686,622 | $528,356 | $549,522 | | Enhancements and Other Non-Recurring | $5,588 | $13,384 | $7,738 | | Total Non-Recurring Capital Expenditures | $692,210 | $541,740 | $557,260 | | **Recurring Capital Expenditures (3)** | **$35,305** | **$130,245** | **$47,676** | | Total Direct Capital Expenditures | $727,515 | $671,985 | $604,936 | | Capitalized Interest | $30,095 | $34,442 | $28,522 | | Capitalized Overhead | $29,693 | $28,983 | $25,857 | | Total Indirect Capital Expenditures | $59,788 | $63,425 | $54,379 | | Total Improvements to and Advances for Investment in Real Estate | $787,303 | $735,410 | $659,315 | [Acquisitions / Dispositions / Joint Ventures](index=29&type=section&id=Acquisitions%20%2F%20Dispositions%20%2F%20Joint%20Ventures) In Q1 2025, Digital Realty completed acquisitions totaling **$130.8 million**, including land parcels in Charlotte, NC, and a **50% interest** in a joint venture for two data centers in Jakarta, Indonesia. No dispositions or joint venture contributions were closed during the quarter | Acquisition Property | Property Type | Metropolitan Area | Date Acquired | Purchase Price (1) | | :------------------------ | :---------------- | :---------------- | :------------ | :----------------- | | Moores Chapel Road | Land | Charlotte, NC | 2/18/2025 | $20,000 | | CGK10 & CGK11 (5) | Land and Buildings| Jakarta, Indonesia| 3/13/2025 | $94,731 | | 712 E 5th St & 725 E Trade St | Land | Charlotte, NC | 3/26/2025 | $16,100 | | **Total** | | | | **$130,831** | - The acquisition of CGK10 & CGK11 in Jakarta, Indonesia, represents a **50% interest** in a joint venture for approximately **$95 million**[118](index=118&type=chunk) [Unconsolidated Joint Ventures](index=30&type=section&id=Unconsolidated%20Joint%20Ventures) Digital Realty's unconsolidated joint ventures reported total assets of **$13.3 billion** and total liabilities of **$6.74 billion** as of March 31, 2025. For Q1 2025, these JVs generated **$357.2 million** in total revenues and **$199.4 million** in Net Operating Income (NOI). Digital Realty's pro rata share of JV Cash NOI was **$70.2 million** | Metric | 31-Mar-25 (Total at JV's 100% Share) | | :---------------------------------------- | :----------------------------------- | | Gross cost of operating real estate | $11,216,480 | | Total Assets | $13,295,902 | | Debt | $4,863,726 | | Other liabilities | $1,880,782 | | Equity / (deficit) | $6,551,394 | | Total Liabilities and Equity | $13,295,902 | | Digital Realty's Pro Rata Share of Unconsolidated JV Debt | $1,697,287 | | Total revenues | $357,237 | | Operating expenses | ($157,877) | | Net Operating Income (NOI) | $199,360 | | Cash Net Operating Income (NOI) | $189,210 | | Digital Realty's Pro Rata Share of Unconsolidated JV Cash NOI | $70,205 | | Digital Realty's Pro Rata Share of Core FFO (5) | $41,804 | [Additional Information & Non-GAAP Measures](index=31&type=section&id=Additional%20Information%20%26%20Non-GAAP%20Measures) [Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios](index=31&type=section&id=Reconciliation%20of%20Earnings%20Before%20Interest,%20Taxes,%20Depreciation%20%26%20Amortization%20and%20Financial%20Ratios) Digital Realty's EBITDA for Q1 2025 was **$658.4 million**, and Adjusted EBITDA was **$791.2 million**, reflecting various non-core adjustments. Key financial ratios include an interest coverage ratio of **5.3x** and a Net Debt-to-Adjusted EBITDA of **5.1x** | Metric | 31-Mar-25 | 31-Dec-24 | 31-Mar-24 | | :---------------------------------------- | :----------- | :----------- | :----------- | | Net Income / (Loss) Available to Common Stockholders | $99,793 | $179,388 | $271,327 | | Interest | $98,464 | $104,742 | $109,535 | | Depreciation & amortization | $443,009 | $455,355 | $431,102 | | EBITDA | $658,400 | $746,578 | $835,446 | | Unconsolidated JV real estate related depreciation & amortization | $55,861 | $49,463 | $47,877 | | Transaction and integration expenses | $39,902 | $11,797 | $31,839 | | (Gain) / loss on sale of investments | ($1,111) | ($144,885) | ($277,787) | | Adjusted EBITDA | $791,156 | $751,276 | $710,556 | | Interest coverage ratio (5) | 5.3x | 4.5x | 4.3x | | Fixed charge coverage ratio (7) | 4.9x | 4.2x | 4.1x | | Net Debt-to-Adjusted EBITDA (13) | 5.1x | 4.8x | 6.1x | [Management Statements on Non-GAAP Measures](index=32&type=section&id=Management%20Statements%20on%20Non-GAAP%20Measures) This section provides comprehensive definitions and discussions of non-GAAP financial measures used by Digital Realty, including FFO, Core FFO, AFFO, EBITDA, Adjusted EBITDA, NOI, and Cash NOI. It clarifies their utility as supplemental performance indicators while acknowledging their limitations compared to GAAP measures - FFO is a non-GAAP measure that excludes real estate related depreciation and amortization and gains/losses from property dispositions, providing insight into occupancy rates, rental rates, and operating costs[130](index=130&type=chunk) - Core FFO further adjusts FFO by excluding certain non-core revenue and expense streams, such as transaction and integration expenses, and FX revaluation gains/losses, to reflect core business operating performance[131](index=131&type=chunk) - AFFO is presented to assess the company's ability to fund dividend and distribution requirements from operating activities, adjusting Core FFO for non-real estate depreciation, non-cash compensation, straight-line rents, and recurring capital expenditures[132](index=132&type=chunk) - EBITDA and Adjusted EBITDA are used to view performance without the impact of non-cash depreciation/amortization or the cost of debt, with Adjusted EBITDA including further adjustments for unconsolidated JV items and non-core adjustments[133](index=133&type=chunk) - NOI and Cash NOI measure property operating performance, with Cash NOI adjusting for straight-line rents and above/below-market rent amortization[136](index=136&type=chunk) [Forward-Looking Statements](index=34&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, highlighting that the document contains forward-looking statements based on current expectations and assumptions. It emphasizes that actual results may differ materially due to various risks and uncertainties, including economic conditions, competition, operational challenges, and regulatory changes, and disclaims any obligation to update these statements - The document contains forward-looking statements based on current expectations, forecasts, and assumptions, which involve risks and uncertainties that could cause actual outcomes and results to differ materially[143](index=143&type=chunk) - Key risks include reduced demand for data centers, decreased rental rates, increased competition, infrastructure suitability issues, development delays, global economic conditions, supply chain disruptions, inflation, customer dependence, geopolitical instability, and regulatory changes[145](index=145&type=chunk) - The company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events, or otherwise[144](index=144&type=chunk)

Core Insights - Digital Realty has announced new Microsoft Azure ExpressRoute peering locations in Atlanta, Brussels, and Vienna, enhancing dedicated connections from private IT infrastructure to Azure services [1][2] - This expansion adds to Digital Realty's existing 12 Azure ExpressRoute cloud on-ramps, bringing the total to 15 locations globally [3] - The Azure ExpressRoute service provides low-latency and secure connections to Azure resources, keeping customer traffic on Microsoft's global network and away from the public internet [4] Group 1 - The new locations in Atlanta, Brussels, and Vienna are part of a broader strategy to enhance Digital Realty's global relationship with Microsoft [2][5] - Digital Realty's PlatformDIGITAL® serves as a physical meeting place for customers to establish direct connections to Azure, facilitating hybrid IT solutions [5][7] - The collaboration aims to provide enterprise-grade connectivity for customers to architect and deploy hybrid solutions with a consistent global experience [5][6] Group 2 - Digital Realty operates over 300 facilities in more than 50 metropolitan areas across 25+ countries, positioning itself as a key player in the data center and interconnection solutions market [8] - The company emphasizes its role in addressing Data Gravity challenges and supporting emerging technologies like AI through its comprehensive service offerings [8]