Financial Data and Key Metrics - Utilities expenses decreased by 5% sequentially due to joint venture contributions and seasonal impacts [1] - Operating expenses increased in Q4 due to seasonally elevated maintenance spending [1] - Property taxes returned to normalized levels after a one-time reassessment in Q3 [1] - Total portfolio occupancy slipped to 81.7% in Q4 2023 but is expected to improve by 100-200 basis points by the end of 2024 [14] - Cash NOI growth for the full year was 7.5%, with 6.5% on a constant currency basis [75] - Core FFO for Q4 was $1.63 per share, and $6.59 for the full year, within the guidance range [68] - Cash re-leasing spreads increased by 8.2% on a cash basis in Q4, setting a high watermark for the year [67] - Total revenue grew by 11% year-over-year, despite the impact of stabilized JV contributions and noncore asset sales [98] - Adjusted EBITDA increased by 9% year-over-year in Q4 [119] Business Line Performance - The company added 9,000 new cross-connects in 2023, indicating growth in connected data communities [8] - Leasing remained strong, especially in the 0 to 1 megawatt plus interconnection segment, with 134 new logos added in Q4, bringing the total for 2023 to over 500 [30] - Interconnection revenue was $106 million in Q4, up 9% year-over-year [87] - The company delivered over 230 megawatts of new capacity globally in 2023 [75] - The backlog of signed leases increased to a record $495 million at the end of Q4, with two-thirds expected to commence in 2024 [61] Market Performance - Northern Virginia remains a key market, with over 100 megawatts available for lease in Loudon County and nearly 200 megawatts in Manassas [18] - The company is in active negotiations for substantially all of its capacity in Loudon County [18] - Demand is strong across major markets, including Northern Virginia, Santa Clara, New Jersey, Paris, Frankfurt, Singapore, and Seoul [84] - The company has over 900 megawatts of buildable capacity at DigitalDose, with potential access to power by 2026 [35] Strategic Direction and Industry Competition - The company strengthened its balance sheet in 2023 by developing private capital partnerships and diversifying capital sources [4] - The company is focused on supporting hyperscale and AI workloads, with high-density colo capability deployed across 32 markets [51] - The company is prioritizing locations that enhance Platform Digital connectivity and connected campus communities [32] - The company is leveraging its global platform to meet the accelerating needs of its growing customer base, particularly in AI, cloud, and enterprise digital transformation [41] Management Commentary on Operating Environment and Future Outlook - Management highlighted 2023 as the year of AI's arrival in the data center industry, driving unprecedented demand [15] - The company expects normalized growth of 7% in revenue and 10% in EBITDA for 2024 [12] - Management anticipates a favorable pricing environment and positive renewal spreads in 2024, driven by strong market demand [31] - The company expects to benefit from the active management of its existing 500-megawatt portfolio in key markets [35] - Management is optimistic about the long-term growth potential, particularly with the AI wave of demand [41] Other Important Information - The company completed significant transactions in Q4, including joint ventures and asset sales, reducing leverage by 1.3 turns from the Q1 peak [28] - The company raised $1.2 billion of equity under its ATM program since the end of September 2023 [26] - The company announced nearly $8 billion of new development joint ventures in Q4 and completed over $1 billion of equity issuance under its ATM program [45] - The company expects to recycle $1.25 billion of capital in 2024 through noncore asset sales and stabilized joint ventures [100] Q&A Summary Question: Hyperscale demand and pricing outlook [11] - The company sees strong hyperscale demand, with AI driving incremental demand. Pricing is favorable due to supply constraints, and the company expects continued positive mark-to-market opportunities [64] Question: Leverage and dividend outlook [21] - The company aims to reduce leverage to 5.5 times and expects to grow the dividend as AFFO and cash flow grow [78][131] Question: AI demand and workload trends [40] - The company sees strong demand for both training and inference workloads, with AI embedded in many existing customer solutions [105] Question: Capital expenditure and development spend [52] - The company expects to spend over $3.5 billion in total CapEx in 2024, a 15% increase from 2023 [53] Question: Lease renewal spreads and pricing assumptions [137] - The company assumes current market pricing for renewals, with 0 to 1 megawatt leases influenced by inflation and greater than 1 megawatt leases influenced by expiring rates [69] Question: Enterprise sales cycle and macro pressures [116] - The company has not seen significant macro pressures in its enterprise business, with strong engagement and new logo growth [128] Question: Mix between 0 to 1 and greater than 1 megawatt leasing [125] - The company expects the mix to fluctuate but remains focused on both segments, with a strong value proposition in each [39]

Digital Realty Trust (DLR) reported $1.37 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 11.1%. EPS of $1.63 for the same period compares to -$0.02 a year ago.The reported revenue represents a surprise of -2.02% over the Zacks Consensus Estimate of $1.4 billion. With the consensus EPS estimate being $1.64, the EPS surprise was -0.61%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Digital Realty Trust (DLR) came out with quarterly funds from operations (FFO) of $1.63 per share, missing the Zacks Consensus Estimate of $1.64 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 -0.61%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.62 per share when it actually produced FFO of $1.62, delivering no surprise.Over the last four quarter ...

gorodenkoff/iStock via Getty Images Summary Digital Realty Trust (NYSE:DLR / DLR.PR.L / NYSE:DLR.PR.K / DLR.PR.J) is a REIT that specializes in data center ("DC"), colocation, and interconnection solutions. Founded in 2004 and headquartered in Austin, Texas, the company has grown to become one of the largest global providers in the DC space. Its portfolio includes DCs and colocation facilities across North America, Europe, and Asia, catering to a diverse clientele that includes domestic and internationa ...

Analysts on Wall Street project that Digital Realty Trust (DLR) will announce quarterly earnings of $1.64 per share in its forthcoming report, representing a decline of 0.6% year over year. Revenues are projected to reach $1.4 billion, increasing 13.4% from the same quarter last year.Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial fo ...

Key PointsAI-driven demand for data center capacity continues to build and shows little signs of abating. Investing in REITs can be an interesting, not to mention lucrative, way of gaining exposure to the industry. Two REIT stocks, in particular, are set to continue outperforming the broader market this year. 5 stocks we like better than Digital Realty TrustIf there’s one industry that’s set to outgrow pretty much all others in the coming years, it’s data centers. At the start of last year, McKinsey said th ...

AUSTIN, Texas, Jan. 25, 2024 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today the tax treatment of its 2023 dividends for common stock and preferred stock.  The information below has been prepared using the best available information to date.  Digital Realty's federal income tax return for the year ended December 31, 2023 has not yet been filed.  Please note that federal tax laws affect ...

ServiceFabric™ Now Includes 70 Members Providing Over 100 Services, Building on PlatformDIGITAL®'s Connected Data Communities AUSTIN, Texas, Jan. 22, 2024 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, today announced the continued momentum of ServiceFabric™, its service orchestration platform that seamlessly interconnects workflow participants, applications, clouds and ecosystems on PlatformDIGITAL ...

Digital Realty’s (DLR) portfolio of data centers globally is well-positioned to benefit from the growing reliance on technology and an acceleration in digital transformation strategies by enterprises.High growth in cloud computing, the Internet of Things and big data and the elevated demand for third-party IT infrastructure are spurring the demand for data center infrastructure. Growth in the artificial intelligence, autonomous vehicles and virtual/augmented reality markets is anticipated to be robust in th ...

Digital Realty Trust (DLR 1.17%) went from being one of short-seller Jim Chanos' largest short positions to one of the top performers in the real estate sector. In this video, I argue why I think it could still go up from here, while Fool.com contributor Tyler Crowe presents his bear argument.*Stock prices used were the afternoon prices of Jan. 12, 2024. The video was published on Jan. 14, 2024. ...