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. ...

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 ...

asbeIntroduction It's time to talk about "mission critical" real estate, to borrow a term from my friend, Brad Thomas. Most of my readers know that I like stocks that play a major role in important supply chains. This includes railroad transportation, food production machinery, oil and gas producers, healthcare suppliers, defense contractors, and others. When it comes to real estate investing, I'm even pickier than I am in general, as most real estate segments come with low entry barriers. If you have a ...

Aufa Fahmi/iStock via Getty Images I have some of the best readers and responders on the planet. Sorry to all my fellow contributors here on Seeking Alpha and elsewhere, but I stand by that statement. So many of the investors who follow me are absolutely awesome. They're engaged. They're engaging. They help keep me mentally sharp with their questions and comments. Not to mention motivated and humble. I can't forget about that. It's exceptionally important for a professional to maintain a healthy dose of hum ...

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 ...