AUSTIN, Texas, April 2, 2024 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, today announced that it has been selected to host one of the world's most powerful AI supercomputers at an AI-ready data center in Copenhagen, Denmark. This collaboration, spearheaded by the Novo Nordisk Foundation and the Export and Investment Fund of Denmark (EIFO), will grant researchers from Denmark's public and private ...

AUSTIN, Texas, April 1, 2024 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today that it will release financial results for the first quarter of 2024 after the market closes on Thursday, May 2, 2024. The company will host a conference call to discuss these results at 5:00 p.m. ET / 4:00 p.m. CT on Thursday, May 2, 2024. To participate in the live call, investors are invited to dial +1 (8 ...

Picking stocks can be fun. It can also be stressful. The bigger a stock's potential gain is forecast to be, the more volatile that ticker seems to be. It's a treacherous dynamic simply because it's all too easy to bail out of a falling stock at the worst possible time -- that is, right before a rebound.If this reality is agonizingly familiar to you, there's a solution: Swap out at least some of your stocks for real estate investment trusts (REITs). Not only do these dividend-oriented investments ebb and flo ...

Prologis (PLD 0.34%) stock trades about 25% below its three-year high-water mark. Digital Realty (DLR 0.50%) trades about 15% below its three-year peak. But when concerns about interest rate increases were more top of mind in late 2022 and 2023, these two dividend stocks were trading down more than 40% from their highs.Value-focused investors will probably see this situation and think they missed out. However, another stock market sell-off would likely bring renewed opportunity.There's almost always a secon ...

The infrastructure supporting data holds significant importance in our digital landscape. Among the key players in this domain are data center real estate investment trusts (REITs), entities specializing in owning and managing income-generating data center properties. Often unseen yet pivotal, these facilities serve as the backbone of our digital infrastructure, facilitating the storage, processing, and management of vast amounts of digital information and services. In this article, we’ll introduce you to o ...

In a strategic move to bolster its presence in the Dallas metro area's burgeoning data center market, Digital Realty (DLR) , the global leader in cloud and carrier-neutral data center solutions, has joined forces with Mitsubishi Corporation. The collaboration marks a significant milestone in both companies’ expansion strategy, aiming to capitalize on the ever-growing demand for data infrastructure.Reflecting positive sentiments, shares of DLR rose 2.1% during Monday’s regular trading session, though the gai ...

Digital Realty Trust, Inc. (NYSE:DLR) Citi's 2024 Global Property CEO Conference March 4, 2024 9:35 AM ET Company Participants Andy Power - President & CEO Matt Mercier - CFO Jordan Sadler - Head, Public & Private Capital Relations Conference Call Participants Nick Joseph - Citi Mike Rollins - Citi Nick Joseph Welcome to Citi's 2024 Global Property CEO Conference. I'm Nick Cho Joseph, joined by Mike Rollins with Citi Research. And we are pleased to have with us Digital and CEO, Andy Power. This session is f ...

Mitsubishi Acquires 65% Equity Interest in Two Data Centers Currently Under Construction in the Dallas Metro Area, with Up to 48 Megawatts of Potential IT Load AUSTIN, Texas, March 4, 2024 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, and Mitsubishi Corporation, announced the formation of a new joint venture to support the development of two data centers in the Dallas metro area, which are 100% pre ...

Debt and Interest Rate Exposure - Total outstanding debt as of December 31, 2023 was $17.54 billion, with fixed rate debt (including interest rate swaps) at $14.96 billion and variable rate debt at $2.58 billion[460] - A 10% increase in interest rates would increase the fair value of interest rate swaps by $4.1 million, while a 10% decrease would decrease the fair value by $4.2 million[461] - A 10% increase in interest rates would increase annual interest expense on variable rate debt not subject to swaps by $11.1 million, while a 10% decrease would decrease annual interest expense by $11.1 million[461] - A 10% decrease in interest rates would increase the fair value of fixed rate debt by $2.39 billion, while a 10% increase would decrease the fair value by $2.84 billion[461] Revenue and Receivables - Rental and other services revenue for 2023 was $5.4 billion, with deferred rent and accounts receivable at $624 million and $653 million respectively as of December 31, 2023[480] - Rental and other services revenue for the year ended December 31, 2023 was $5.4 billion, with deferred rent, net and accounts receivable - trade, net at $624 million and $653 million, respectively[498] - Rental and other services revenue grew to $5,430,173 thousand in 2023, up from $4,662,683 thousand in 2022, a 16.5% increase[506] - Rental and other services revenue grew to $5.430 billion in 2023, up from $4.663 billion in 2022, a 16.5% increase[526] Currency and Hedging - The company's primary currency exposures are to the Euro, Japanese yen, British pound sterling, Singapore dollar, South African rand and Brazilian real[462] - The company uses cross-currency interest rate swaps to hedge currency exposure associated with net investment in foreign subsidiaries[462] - Digital Intrepid Holding B.V. has notes denominated in Swiss francs with a total outstanding principal balance of 545 million CHF designated as non-derivative hedges[585] - Cross-currency interest rate swap agreements synthetically swap U.S. dollar-denominated fixed rate debt for foreign currency-denominated fixed rate debt[587] Internal Controls and Audits - Management concluded that internal control over financial reporting was effective as of December 31, 2023 based on COSO framework criteria[467][471] - The independent auditor expressed an unqualified opinion on the effectiveness of internal control over financial reporting as of December 31, 2023[484] - The evaluation of probability of collection for Scale and Hyperscale lease payments was identified as a critical audit matter due to significant judgment required[481] Financial Position and Assets - Total assets increased to $44.11 billion as of December 31, 2023, up from $41.48 billion in 2022[504] - Investments in properties, net rose to $24.24 billion in 2023 from $23.77 billion in 2022[504] - Cash and cash equivalents surged to $1.63 billion in 2023, compared to $141.77 million in 2022[504] - Accounts and other receivables, net increased to $1.28 billion in 2023 from $969.29 million in 2022[504] - Unsecured senior notes, net of discount, grew to $13.42 billion in 2023 from $13.12 billion in 2022[504] - Total liabilities increased to $23.12 billion in 2023 from $21.86 billion in 2022[504] - Total stockholders' equity rose to $19.12 billion in 2023 from $17.58 billion in 2022[504] - Additional paid-in capital increased to $24.40 billion in 2023 from $22.14 billion in 2022[504] - Accumulated dividends in excess of earnings decreased to -$5.26 billion in 2023 from -$4.70 billion in 2022[504] - Total assets increased to $44.11 billion in 2023 from $41.48 billion in 2022[523] - Total liabilities increased to $23.12 billion in 2023 from $21.86 billion in 2022[523] - Redeemable noncontrolling interests decreased to $1.39 billion in 2023 from $1.51 billion in 2022[523] - Accumulated other comprehensive loss increased to $772.7 million in 2023 from $613.4 million in 2022[523] - Cash, cash equivalents, and restricted cash at the end of 2023 were $1.64 billion, up from $150.7 million in 2022[520] - Total partners' capital increased to $19.56 billion in 2023 from $18.00 billion in 2022[523] - Total capital increased from $18,107.465 million in 2022 to $19,601.507 million in 2023, reflecting growth in the company's financial position[537] - Total capital as of December 31, 2021, was $18.477 billion, with common units amounting to $17.447 billion[531] Income and Expenses - Total operating revenues increased to $5,477,061 thousand in 2023, up from $4,691,834 thousand in 2022, representing a 16.7% year-over-year growth[506] - Net income attributable to Digital Realty Trust, Inc. rose significantly to $948,838 thousand in 2023, compared to $377,684 thousand in 2022, a 151% increase[506] - Operating expenses increased to $4,952,600 thousand in 2023, up from $4,101,866 thousand in 2022, a 20.7% rise[506] - Comprehensive income attributable to Digital Realty Trust, Inc. was $792,055 thousand in 2023, a significant improvement from a loss of $44,234 thousand in 2022[508] - Foreign currency translation adjustments resulted in a loss of $209,973 thousand in 2023, compared to a loss of $377,873 thousand in 2022[508] - Gain on disposition of properties, net, surged to $900,531 thousand in 2023, up from $176,754 thousand in 2022, a 409% increase[506] - Interest expense increased to $437,741 thousand in 2023, up from $299,132 thousand in 2022, a 46.3% rise[506] - Weighted average common shares outstanding (diluted) increased to 309,065 thousand in 2023, up from 297,919 thousand in 2022[506] - Net income for 2023 was $950.3 million, compared to $380.3 million in 2022 and $1.75 billion in 2021[520] - Total operating revenues increased to $5.477 billion in 2023, up from $4.692 billion in 2022, representing a 16.7% growth[526] - Net income attributable to Digital Realty Trust, L.P. rose to $969.5 million in 2023, compared to $385.8 million in 2022, a 151.2% increase[526] - Operating expenses increased to $4.953 billion in 2023, up from $4.102 billion in 2022, a 20.7% rise[526] - Gain on disposition of properties, net, surged to $900.5 million in 2023, compared to $176.8 million in 2022, a 409.4% increase[526] - Comprehensive income attributable to Digital Realty Trust, L.P. was $809.1 million in 2023, a significant recovery from a loss of $46.2 million in 2022[528] - Foreign currency translation adjustments resulted in a loss of $210.0 million in 2023, improving from a loss of $377.9 million in 2022[528] - Weighted average common units outstanding (diluted) increased to 315.1 million in 2023, up from 303.7 million in 2022[526] - Net income per unit available to common unitholders (diluted) rose to $3.01 in 2023, compared to $1.12 in 2022[526] - Net income (loss) for 2023 was $967.930 million, a significant increase from $384.978 million in 2022[537] - Net income for 2023 was $950.3 million, a significant increase from $380.3 million in 2022[540] Cash Flows and Investments - Cash flows from operating activities were $1.63 billion in 2023, slightly lower than $1.66 billion in 2022[520] - Investments in real estate improvements totaled $3.53 billion in 2023, up from $2.64 billion in 2022[520] - Proceeds from issuance of common stock, net, were $2.21 billion in 2023, compared to $928.4 million in 2022[520] - Net cash provided by operating activities in 2023 was $1.63 billion, slightly lower than $1.66 billion in 2022[540] - Cash used in investing activities decreased to $1.12 billion in 2023 from $4.70 billion in 2022, primarily due to reduced business acquisitions and real estate investments[540] - Cash provided by financing activities in 2023 was $963.5 million, a decrease from $2.97 billion in 2022, driven by lower proceeds from credit facilities and secured/unsecured debt[540] - The company's cash, cash equivalents, and restricted cash at the end of 2023 stood at $1.64 billion, up from $150.7 million at the end of 2022[540] Acquisitions and Joint Ventures - The company completed the acquisition of a 61.1% indirect controlling interest in Teraco for a total purchase price of $1.7 billion in cash, funded by the Global Revolving Credit Facility and partial settlement of forward equity sale agreements[617] - The acquisition of Teraco added South Africa to the company's existing markets in Kenya, Mozambique, and Nigeria, enhancing strategic connectivity across Africa[618] - The company recorded $1.6 billion in goodwill from the Teraco acquisition, reflecting the strategic benefits of cross-connects, cloud on-ramps, and access to subsea cables[618] - The company entered into a put/call agreement with the owners of the remaining Teraco interest, allowing them to sell or buy the interest starting in 2026 and 2028, respectively[621] - The company and Blackstone Inc. announced a $7 billion joint venture to develop four hyperscale data center campuses across Frankfurt, Paris, and Northern Virginia[636] - In 2023, the company formed joint ventures with GI Partners, TPG Real Estate, and Realty Income, receiving gross proceeds of $0.7 billion, $1.4 billion, and $148 million respectively, while retaining 20-35% interests in the ventures[649][650][651] Real Estate and Asset Sales - Real estate assets held for sale as of December 31, 2023, had an aggregate carrying value of $478.5 million in total assets and $39.0 million in total liabilities[637] - The company contributed 10 operating data center properties to Digital Core REIT with a fair value of approximately $1.4 billion, receiving $919 million in cash and a 39.4% equity interest in Digital Core REIT[640][641] - The company recognized a gain on sale of assets of approximately $1.0 billion from the Digital Core REIT transaction[643] - The company sold non-core assets in 2023 for gross proceeds of approximately $341 million, resulting in a net gain of $87 million[653] - The company sold a non-core building in Dallas in 2022 for net proceeds of approximately $203 million, resulting in a net gain of $174 million[654] - The company sold a European portfolio of 11 data centers in 2021 for total consideration of approximately $680 million, recording a gain of $332 million[655] Leasing and Rent - The company's operating lease revenue for 2024 is projected to be $2.9 billion, with total minimum lease payments due under operating leases amounting to $13.2 billion[626] - Rent expense related to operating leases was $153.2 million for the year ended December 31, 2023, compared to $144.0 million in 2022[627] - The weighted average remaining lease term for operating leases and finance leases was 13 years and 14 years, respectively, as of December 31, 2023[628] Accounting and Financial Reporting - The company's primary functional currencies include the Euro, Japanese yen, British pound sterling, Singapore dollar, South African rand, and Brazilian real[549] - For asset acquisitions, transaction costs are included in the total costs and allocated pro-rata to the carrying value of the assets and liabilities acquired[552] - The fair value of acquired real estate is determined using market data, replacement costs, and income approach methodologies[555] - In-place lease value is amortized over the remaining initial terms of the respective leases, reflecting the benefits of existing tenants[556] - Customer relationship value is determined using the multi-period excess earnings method, considering factors like projected revenue growth, historical lease renewals, and discount rates[557] - Deferred leasing costs capitalized were approximately $43.1 million, $51.8 million, and $42.8 million for the years ended December 31, 2023, 2022, and 2021, respectively[572] - Amortization expense on leasing costs was approximately $76.8 million, $79.2 million, and $83.4 million for the years ended December 31, 2023, 2022, and 2021, respectively[572] - The fair value of acquired debt is recognized based on contractual future cash flows discounted using borrowing spreads and market interest rates[557] - The company utilizes fair value measurements on a recurring basis for marketable equity securities, share-based compensation awards, derivative instruments, and outstanding debt[560] - Investments in unconsolidated entities are accounted for using the equity method, reflecting the company's proportionate share of net earnings/losses and other adjustments[562] - The company evaluates goodwill for impairment annually, comparing the reporting unit's carrying value to its fair value based on quoted market prices[576] - Derivative instruments, such as interest rate swaps, are used to manage interest rate and foreign currency exposures, with fair value determined using Level 2 inputs[579] - The company capitalizes development costs during the land development and construction periods of qualifying projects, including costs for land, buildings, and interest[571] - The fair value of rental properties is estimated using a discounted cash flow analysis, supplemented by outside broker opinions of value in certain cases[575] - Interest rate derivatives are presented on a gross basis with no impact from netting arrangements as of December 31, 2023, due to no derivatives in liability positions[583] - The company had no outstanding derivative foreign currency contracts as of December 31, 2023[584] - Digital Realty Trust, Inc. is treated as a REIT and generally not required to pay U.S. federal corporate income tax if taxable income is distributed to stockholders[589] - The company recognizes current and deferred income taxes for its taxable REIT subsidiaries in various jurisdictions[590] - Revenue recognized under ASC 606 was less than 10% of total rental and other services revenue for the years ended December 31, 2023, 2022, and 2021[604] - The company adopted ASU 2021-08 on January 1, 2023, with no material impact on consolidated financial statements[612] - FASB issued ASU 2023-07 in November 2023, effective for fiscal years beginning after December 15, 2024, with enhanced segment expense disclosures[613] - FASB issued ASU 2023-09 in December 2023, effective for fiscal years beginning after December 15, 2024, requiring greater disaggregation of income tax disclosures[614] Unconsolidated Entities and Investments - The company's investments in unconsolidated entities totaled $2.3 billion as of December 31, 2023, with significant holdings in Americas ($1.36 billion) and APAC ($570 million)[656] Distributions and Equity - Distributions to partners decreased slightly from $1,544.156 million in 2023 compared to $1,474.864 million in 2022[537] - Common units issued under equity plans increased from 291,148,222 units in 2022 to 311,607,580 units in 2023[537] - Limited partner common units increased from 6,288,669 units in 2022 to 6,448,987 units in 2023[537] - Share-based compensation amortization decreased from $92.461 million in 2022 to $88.518 million in 2023[537] - Contributions from noncontrolling interests decreased from $46.277 million in 2022 to $4.345 million in 2023[537] - Other comprehensive income (loss) improved from $(431.978) million in 2022 to $(157.198) million in 2023[537] Business Overview - Digital Realty Trust operates as a REIT and is a global provider of data center solutions across various industries[542]

Digital Realty Trust (DLR) reported fourth-quarter 2023 core funds from operations (FFO) per share of $1.63, missed the Zacks Consensus Estimate by a penny.Shares of Digital Realty were down 4.72% in after-hours trading session on Feb 15 at the NYSE. Results were primarily affected by lower-than-anticipated revenues. While Digital Realty experienced growth in operating revenues on the back of healthy leasing activity, rising operating expenses acted as a dampener in the quarter. DLR provided a mixed outlook ...