AUSTIN, Texas, Jan. 3, 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 fourth quarter of 2023 after the market closes on Thursday, February 15, 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, February 15, 2024.  To participate in the live call, investors are invited ...

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Financial Performance - Total operating revenues for the nine months ended September 30, 2023, increased by $648.7 million, or 18.8%, compared to the same period in 2022, reaching $4,107.4 million[183]. - Stabilized rental and other services revenue increased by $391.2 million, or 14.7%, for the nine months ended September 30, 2023, compared to the same period in 2022[184]. - Non-stabilized rental and other services revenue increased by $246.5 million, or 31.5%, for the nine months ended September 30, 2023, compared to the same period in 2022[184]. - Total property level operating expenses for the nine months ended September 30, 2023, increased by $470.9 million, or 31.8%, compared to the same period in 2022, totaling $1,950.9 million[185]. - Gain on disposition of properties increased by approximately $636.7 million and $723.9 million for the three and nine months ended September 30, 2023, respectively[194]. - Funds from operations (FFO) available to common stockholders for the nine months ended September 30, 2023, was $1,432,117 thousand, compared to $1,379,668 thousand in 2022[251]. - Basic FFO per share for the nine months ended September 30, 2023, was $4.74, unchanged from the previous year[251]. Debt and Financing - The company targets a debt-to-Adjusted EBITDA ratio of 5.5x and aims for a fixed charge coverage of greater than three times[163]. - As of September 30, 2023, total outstanding debt was $16,987.7 million, with fixed rate debt comprising 85.5% of the total[234]. - The effective interest rate for total debt was 2.89%, with fixed rate debt at 2.54% and variable rate debt at 4.99%[234]. - The ratio of debt to total enterprise value was approximately 31% as of September 30, 2023[234]. - The weighted average term to initial maturity of the debt was approximately 4.3 years[235]. - As of September 30, 2023, the pro-rata share of secured debt of unconsolidated entities was approximately $1,463.2 million[236]. - A 10% increase in interest rates would lead to an increase in annual interest expense of $10.6 million on variable rate debt not subject to swaps[257]. - A 10% decrease in interest rates would increase the fair value of fixed rate debt by $2,294.6 million, while a 10% increase would decrease it by $2,719.4 million[257]. Asset Management and Operations - The company completed the sale of three non-core assets for gross proceeds of approximately $340 million, resulting in a net gain of approximately $85 million[165]. - A joint venture with GI Partners was formed, resulting in gross proceeds of approximately $0.7 billion and a gain on disposition of approximately $238 million[165]. - Another joint venture with TPG Real Estate generated approximately $1.3 billion in gross proceeds and a gain on disposition of approximately $577 million[165]. - The company continues to manage day-to-day operations of the assets in joint ventures while retaining significant ownership interests[165]. - The total portfolio consists of 312 buildings with a net rentable square footage of 39,542 thousand square feet and an overall occupancy rate of 82.8%[167]. - As of September 30, 2023, the average remaining lease term was approximately five years[169]. - The company expects average aggregate rental rates on renewed data center leases for 2023 expirations to be positive compared to current rates[172]. Capital Expenditures and Investments - The company expects to incur approximately $0.6 billion to $0.8 billion in capital expenditures for development programs during the three months ending December 31, 2023[215]. - Total capital expenditures for the nine months ended September 30, 2023, were $2,311.4 million, compared to $1,647.2 million for the same period in 2022, representing a year-over-year increase of approximately 40.3%[219]. - The company had open commitments related to construction contracts of approximately $2.6 billion as of September 30, 2023[214]. - The company expects to deliver 8.7 million square feet of Turn Key Flex® and Powered Base Building® product within 12 months[218]. Cash Flow and Liquidity - As of September 30, 2023, the company had $1,062.1 million in cash and cash equivalents, excluding $10.4 million of restricted cash[213]. - Net cash provided by operating activities for the nine months ended September 30, 2023, was $1,202,964 thousand, a decrease of $30,489 thousand compared to the same period in 2022[239]. - Net cash used in investing activities decreased by $3,629,228 thousand, primarily due to an increase in cash provided by proceeds from the sale of real estate amounting to $2,266,689 thousand[241]. Risk Management - The company is exposed to foreign currency exchange risks primarily related to the Euro, Japanese yen, British pound sterling, Singapore dollar, and South African rand[258]. - The company mitigates currency fluctuation risks by financing investments in local currencies and utilizing cross-currency interest rate swaps[258]. - The company maintains a strategy to manage market risks associated with interest rates and foreign currency fluctuations[267]. Corporate Governance - There have been no changes in the company's internal control over financial reporting that materially affected its effectiveness during the most recent fiscal quarter[261]. - The company's disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level by its CEO and CFO[260]. - The company does not use derivatives for trading or speculative purposes, focusing instead on contracts with major financial institutions[267].

Digital Realty Trust, Inc. (NYSE:DLR) Q3 2023 Earnings Conference Call October 26, 2023 5:00 PM ET Company Participants Jordan Sadler - SVP-Public and Private IR Andrew Power - President and CEO Matthew Mercier - CFO Gregory Wright - Chief Investment Officer Christopher Sharp - Chief Technology Officer Colin McLean - Chief Revenue Officer Conference Call Participants Jonathan Atkin - RBC Capital Markets David Barden - Bank of America Michael Elias - TD Cowen David Guarino - Green Street Eric Luebchow - Well ...

Company and Industry Overview * **Company**: Digital Realty Trust, Inc. (NYSE: DLR) * **Industry**: Data Center and Cloud Infrastructure * **Event**: RBC Global Communications Infrastructure Conference, September 27, 2023 Key Highlights and Trends * **Positive Outlook for 2023**: Digital Realty experienced a strong start to 2023, driven by positive fundamentals such as improved pricing power, solid demand growth, and constrained supply in various markets. * **AI Demand**: The rise of AI has further accelerated demand, particularly from larger cloud-related customers. * **Occupancy and Development**: The company aims to improve occupancy rates in its existing portfolio while developing 375 megawatts of new capacity, with a strong pre-leasing track record. * **Deleveraging Efforts**: Digital Realty has made significant progress in deleveraging its balance sheet, reducing its leverage ratio from 7x to 6.3x on a pro forma basis. * **Development Joint Ventures**: The company is exploring development joint ventures to manage capital spend and leverage, particularly in high-growth markets. * **Global Expansion**: Digital Realty is actively expanding its global footprint, with a focus on regions such as North America, EMEA, and APAC. * **Supply Chain and Power Constraints**: The company acknowledges the challenges posed by supply chain disruptions and power constraints in certain markets, but maintains a strong position in key locations. Core FFO per Share * **Deleveraging Efforts**: The company's deleveraging efforts, including asset sales and joint ventures, are expected to offset the positive fundamentals and lead to long-term stabilized growth. * **Interest Rate Risk**: The company is monitoring interest rate risk and its impact on future periods. * **Property Taxes and Power Prices**: Other external factors, such as property taxes and power prices, are also being monitored. Development Joint Ventures * **Hyperscale Development Joint Ventures**: The company is exploring hyperscale development joint ventures, initially targeting a $750 million investment. * **Geographic Focus**: These joint ventures are expected to be geographically diverse, with the potential for expansion over time. AI Demand * **North America-Oriented**: The majority of AI demand is currently focused in North America, with growing interest in EMEA and APAC. * **Data Sovereignty**: Some AI workloads may require deployment within data sovereign regions, particularly in EMEA and other country-oriented markets. Other Key Points * **Non-Core Asset Sales**: The company has successfully sold non-core assets and stabilized joint ventures, generating significant capital. * **Recycling Capital**: Digital Realty plans to continue recycling capital and diversifying its capital sources. * **Supply Chain and Power Constraints**: The company is actively managing supply chain and power constraints, particularly in power-constrained markets. * **Renewable Energy**: The company is exploring opportunities to incorporate renewable energy into its portfolio.

Financial Performance - Total operating revenues for the six months ended June 30, 2023, increased by approximately $438.3 million, or 19.3%, compared to the same period in 2022, reaching $2,704.99 million[166]. - Stabilized rental and other services revenue increased by $231.9 million, or 12.5%, for the six months ended June 30, 2023, compared to the same period in 2022[167]. - Non-stabilized rental and other services revenue increased by $195.4 million, or 48.7%, for the six months ended June 30, 2023, primarily driven by the completion of the global development pipeline and the Teraco acquisition[167]. - GAAP net income available to common stockholders for the six months ended June 30, 2023, was $166,548 thousand, compared to $116,346 thousand in 2022, reflecting an increase of $50,202 thousand[234]. - Funds from operations (FFO) available to common stockholders and unitholders for the six months ended June 30, 2023, was $950,586 thousand, compared to $917,362 thousand in 2022, indicating a year-over-year increase of $33,224 thousand[234]. - Basic FFO per share for the six months ended June 30, 2023, was $3.17, slightly up from $3.16 in 2022[234]. Occupancy Rates - As of June 30, 2023, the consolidated portfolio occupancy rate was 81.7%, down from 83.5% as of December 31, 2022[149]. - The North America data center portfolio had an occupancy rate of 84.6% as of June 30, 2023, compared to 86.3% at the end of 2022[149]. - The Europe data center portfolio occupancy rate decreased to 77.1% from 79.3% over the same period[149]. - The Asia Pacific region maintained an occupancy rate of 77.1%, up from 75.9%[149]. Debt and Financing - The company has a target debt-to-Adjusted EBITDA ratio of 5.5x and aims for a fixed charge coverage of greater than three times[145]. - The company's total outstanding debt as of June 30, 2023, was $17,856.3 million, with fixed-rate debt comprising 83.2% of the total[218]. - The effective interest rate for total debt as of June 30, 2023, was 2.86%[218]. - The company had approximately $2.2 billion of borrowings available under its Global Revolving Credit Facilities, which provide for borrowings up to $3.9 billion[209][210]. - The company anticipates that the dollar value of acquisitions for the year ending December 31, 2023, will depend on factors such as customer demand and availability of capital[207]. - The company’s consolidated debt included $2,787.8 million in variable rate debt subject to interest rate swaps, which helps mitigate interest rate exposure[239]. Capital Expenditures - The company expects to incur approximately $1.1 billion to $1.3 billion in capital expenditures for development programs during the six months ending December 31, 2023[197]. - Total capital expenditures for the six months ended June 30, 2023, were $1,266,554,000, compared to $996,215,000 for the same period in 2022, representing a year-over-year increase of approximately 27%[201]. Operating Expenses - Total property level operating expenses for the six months ended June 30, 2023, increased by $308.4 million, or 32.2%, compared to the same period in 2022, totaling $1,266.8 million[170]. - Total utilities expenses for the six months ended June 30, 2023, increased by approximately $172.7 million, or 55.2%, compared to the same period in 2022, primarily due to increased utility consumption and higher rates[171]. - Total other operating expenses increased by 12.9% to $560.6 million for the three months ended June 30, 2023, and by 11.0% to $1.11 billion for the six months ended June 30, 2023, compared to the same periods in 2022[178]. Joint Ventures and Asset Sales - A 100% interest in a non-core data center property in Dallas, Texas was sold for gross proceeds of approximately $151 million, resulting in a net gain of approximately $90 million[147]. - The company formed a joint venture with GI Partners, receiving approximately $743 million in gross proceeds from the contribution of data centers[213]. - A joint venture with TPG Real Estate was formed, resulting in approximately $1.3 billion in gross proceeds from the contribution of data centers[215]. Cash Flow - Net cash provided by operating activities increased to $814,114 thousand in the first half of 2023, up from $783,578 thousand in 2022, representing a change of $30,536 thousand[223]. - Net cash used in investing activities decreased by $148,826 thousand, primarily due to a $301,633 thousand increase in cash used for improvements to investments in real estate and a $150,771 thousand increase in cash provided by proceeds from the sale of real estate[225]. - Net cash provided by financing activities decreased by $148,759 thousand, largely due to a $1,010,673 thousand decrease in cash provided by short-term borrowings and a $319,266 thousand decrease in cash provided by proceeds from secured/unsecured debt[226]. Internal Controls and Risk Management - The company has no changes in internal control over financial reporting that materially affected its operations during the most recent fiscal quarter[244]. - The effectiveness of the company's disclosure controls and procedures was confirmed by the CEO and CFO at a reasonable assurance level[243]. - The company utilizes cross-currency interest rate swaps to hedge currency exposure associated with its net investment in foreign subsidiaries[241]. - The company does not use derivatives for trading or speculative purposes, focusing instead on risk management[238].

Financial Data and Key Metrics Changes - Total revenue increased by 20% year-over-year and 2% sequentially, with a 12% year-over-year increase excluding utility reimbursements [44][70] - Adjusted EBITDA grew by 14% year-over-year and 4% sequentially [45] - Core FFO per share was reported at $1.68, a 2% increase compared to the previous quarter [69] Business Line Data and Key Metrics Changes - New leasing during the quarter was $114 million, with 43% coming from the zero to one megawatt plus interconnection segment [9][17] - Greater than one megawatt bookings totaled $61 million, showing a significant rebound from the previous quarter [41] - Renewal leases totaled $211 million with pricing increases of 6.9% on a cash basis, marking the strongest renewal pricing in three years [68] Market Data and Key Metrics Changes - Northern Virginia saw nearly a doubling of rates over the past year due to supply constraints [18] - Churn remained low at 1.5%, with 133 new customers added, validating the stability of enterprise IT spending [10] - The backlog of signed but not yet commenced leases was $437 million at quarter end [19] Company Strategy and Development Direction - The company is focused on enhancing its customer value proposition and expanding its connectivity options [28] - There is a strong emphasis on AI and digital transformation, with ongoing collaborations on AI-focused projects [30] - The company aims to maintain a healthy balance sheet and has diversified its capital sources to support future growth [14][29] Management's Comments on Operating Environment and Future Outlook - Management noted a healthy demand for data center capacity across various regions, despite limited new supply [6] - The company remains optimistic about the second half of 2023, although there is caution due to a recent customer bankruptcy [22] - The strategic partnership with Reliance Industries in India is expected to enhance service capabilities in a growing market [15][118] Other Important Information - The company has achieved a significant milestone in its ESG initiatives, aiming for climate neutrality by 2030 [16][39] - The weighted average debt maturity is nearly five years, with a fixed interest rate of 2.7% [47] - The company has raised over $2 billion in capital through asset sales and equity issuance [72][74] Q&A Session Summary Question: What is the outlook for the development JV pipeline and funding? - Management expressed confidence in the development JV guidance and noted strong demand for these transactions [51][88] Question: How are the core operating results expected to trend in the second half of the year? - Management indicated that trends in cash mark-to-market and pricing power are expected to continue positively [78] Question: Can you provide insights on the recent uplift in rents and market dynamics? - The company was able to take back capacity from a customer and lease it at a significantly higher rate due to tight market conditions [81] Question: What is the value of data center assets available for future joint ventures? - Management estimated around $15 billion in value for potential joint venture opportunities [99] Question: How is the company addressing the customer bankruptcy situation? - The company is monitoring the situation closely and expects to have more information by the next quarterly report [96]

2Q23 Financial Results 7 HISTORICAL BOOKINGS ANNUALIZED GAAP BASE RENT Digital $ in millions 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $0 $50 $100 $150 Transformation Driving Steady Demand Global Full-Product Spectrum Provides Broadest Solutions 2Q23 BOOKINGS 2Q23 Financial Results | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------|-----------------------------|----------------------------------|------- ...

Digital Realty Trust, Inc. (NYSE:DLR) REITWeek - NAREIT Conference June 6, 2022 11:45 PM ET Company Participants Andrew Power - President & CEO Chris Sharp - Chief Technology Officer Conference Call Participants Jon Petersen - Jefferies Jon Petersen All right. I think we can get started. Thanks. Thank you, everybody, for joining us today. My name is Jon Peterson. I'm the Head of REIT, research team at Jefferies. Really honored to have the Digital Realty team here with me today. For any of you that follow my ...