Core Insights - Digital Realty Trust exceeded earnings expectations in Q4 2024, with strong operational performance reflected in its funds from operations (FFO) reaching $1.61 per share, but revenue fell short at $1.44 billion compared to the projected $1.46 billion [2][6]. Financial Performance - Earnings per share (EPS) for Q4 2024 was $0.51, significantly higher than the estimated $0.27 and up 1600% from $0.03 in Q4 2023 [3]. - Revenue for Q4 2024 was $1.44 billion, slightly below the estimate of $1.46 billion, but up 4.8% from $1.37 billion in Q4 2023 [3]. - Funds from operations (FFO) per share increased by 5.2% year-over-year to $1.61, while core FFO per share rose 6.1% to $1.73 [3][7]. Operational Highlights - The company operates 308 data centers globally, supporting various sectors and critical to cloud services and IT outsourcing [4]. - Digital Realty Trust has focused on expanding its global footprint and maintaining high occupancy levels through strategic investments [5]. - Significant leasing activities were executed across the Americas, EMEA, and Asia Pacific regions, contributing to strong cash flows [7]. Future Outlook - For the upcoming year, Digital Realty Trust forecasts a constant-currency core FFO per share between $7.05 and $7.15, indicating a bullish outlook on growth through strategic investments [9]. - The company anticipates ongoing expansion and initiatives to enhance its data center capabilities, despite facing increased costs from construction and sustainability measures [8][9].

Core Insights - Digital Realty Trust (DLR) reported a fourth-quarter 2024 constant currency core funds from operations (FFO) per share of $1.73, exceeding the Zacks Consensus Estimate of $1.69, with a year-over-year increase of 6.1% [1][4] - The company experienced steady leasing momentum with improved rental rates, although higher operating expenses impacted performance [2][6] Financial Performance - Operating revenues for the fourth quarter were $1.44 billion, slightly below the Zacks Consensus Estimate of $1.46 billion, but up 4.8% year-over-year [3] - For the full year 2024, constant currency core FFO per share was $6.72, a 2% increase from the previous year, surpassing the consensus estimate of $6.71 [4] - Adjusted EBITDA for the quarter was $751.3 million, reflecting a 7.4% year-over-year increase [7] Leasing and Revenue Growth - Total signed bookings in the fourth quarter are projected to generate $100 million in annualized GAAP rental revenues, with significant contributions from various categories [5] - Renewal leases signed during the quarter accounted for $250 million in annualized cash rental revenues, with rental rates increasing by 4.7% on a cash basis and 9.1% on a GAAP basis [6] Operating Expenses - Total operating expenses rose 4.5% year-over-year to $1.29 billion, driven by increased costs related to property operations, taxes, insurance, and general administration [6] Portfolio Activity - During the fourth quarter, DLR acquired several land parcels totaling approximately $201 million and disposed of three facilities for a total of $100 million [8][9] - The company also sold a 15.1% interest in a data center in Frankfurt for $74 million [9] Balance Sheet and Capital Management - DLR ended 2024 with cash and cash equivalents of $3.87 billion, up from $2.18 billion at the end of Q3 2024 [10] - Total debt outstanding was $16.7 billion, with a net debt-to-adjusted EBITDA ratio of 4.8X and a fixed charge coverage of 4.2X [11] 2025 Guidance - For 2025, DLR expects constant currency core FFO per share to be in the range of $7.05-$7.15, with total revenues projected between $5.80-$5.90 billion [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 [14]

Digital Realty Trust, Inc. (NYSE:DLR) Q4 2024 Earnings Conference Call February 13, 2025 5:00 PM ET Company Participants Jordan Sadler - SVP of Public and Private IR Andy Power - President and CEO Matt Mercier - CFO Chris Sharp - CTO Greg Wright - CIO Colin McLean - CRO Conference Call Participants David Barden - Bank of America Richard Choe - JPMorgan Irvin Liu - Evercore ISI Jonathan Atkin - RBC Michael Rollins - Citi Matt Niknam - Deutsche Bank Ari Klein - BMO David Guarino - Green Street Frank Louthan - ...

4Q24 FINANCIAL RESULTS February 13, 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 227,000+ 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 & In ...

Digital Realty Trust (DLR) reported $1.44 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 4.8%. EPS of $1.73 for the same period compares to $0.08 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.46 billion, representing a surprise of -1.47%. The company delivered an EPS surprise of +1.76%, with the consensus EPS estimate being $1.70.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Core Viewpoint - Digital Realty Trust (DLR) reported quarterly funds from operations (FFO) of $1.73 per share, exceeding the Zacks Consensus Estimate of $1.70 per share, and showing an increase from $1.63 per share a year ago [1][2] Group 1: Financial Performance - The company achieved an FFO surprise of 1.76% for the quarter [1] - Digital Realty Trust's revenues for the quarter ended December 2024 were $1.44 billion, which was 1.47% below the Zacks Consensus Estimate, compared to $1.37 billion in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus FFO estimates three times but has not beaten consensus revenue estimates [2] Group 2: Stock Performance and Outlook - Digital Realty Trust shares have declined approximately 8% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [4][6] - The current consensus FFO estimate for the upcoming quarter is $1.73 on revenues of $1.46 billion, and for the current fiscal year, it is $7.07 on revenues of $6.01 billion [7] Group 3: Industry Context - The REIT and Equity Trust - Other industry, to which Digital Realty Trust belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Digital Realty Trust may also be influenced by the overall outlook for the industry [8]

Company Overview - As of December 31, 2024, Digital Realty operates 308 data centers with a total portfolio of approximately 41.3 million square feet[4]. - The company has 8.9 million square feet of space under active development and 4.7 million square feet held for future development[4]. - Digital Realty has a strong presence across multiple continents, including North America, Europe, South America, Asia, Australia, and Africa[4]. Financial Performance - Digital Realty reported revenues of $1.4 billion in Q4 2024, a 5% increase year-over-year[22]. - Net income available to common stockholders was $179 million, or $0.51 per share, compared to $0.03 per share in Q4 2023[22]. - Adjusted EBITDA for Q4 2024 was $751 million, a 7% increase from the same quarter last year[23]. - Funds From Operations (FFO) reached $545 million, or $1.61 per share, compared to $1.53 per share in Q4 2023[23]. - Total operating revenues for Q4 2024 reached $1,435,862, a slight increase from $1,369,633 in Q4 2023, representing a year-over-year growth of 4.8%[49]. - Net income attributable to Digital Realty Trust, Inc. for Q4 2024 was $189,569, compared to $28,304 in Q4 2023, marking a significant increase of 572.5%[49]. - Core Funds From Operations (Core FFO) per share - diluted for Q4 2024 was $1.73, compared to $1.63 in Q4 2023, indicating a growth of 6.1%[52]. Stock Performance - The common stock closing price at the end of Q4 2024 was $177.33, with a high of $198.00 and a low of $155.16 during the quarter[13]. - The average daily trading volume for the stock in Q4 2024 was 1,911 thousand shares[13]. - The indicated annual dividend per common share is $4.88, resulting in a closing annual dividend yield of 2.8% at the end of Q4 2024[13]. Debt and Capital Structure - Digital Realty's corporate credit rating is BBB with a stable outlook from Standard & Poor's[12]. - The company reported a total market value of shares and units outstanding of approximately $60.78 billion at the end of Q4 2024[13]. - Total debt to total enterprise value decreased to 21.4% in Q4 2024 from 28.6% in Q4 2023[22]. - Digital Realty's total debt outstanding as of December 31, 2024, was approximately $16.7 billion, with a net debt-to-Adjusted EBITDA ratio of 4.8x[33]. - The company issued €850 million of 3.875% notes due 2035, with net proceeds of approximately €841 million ($867 million) during the fourth quarter[34]. Operational Highlights - Digital Realty signed total bookings expected to generate $100 million of annualized GAAP rental revenue in Q4 2024[26]. - The backlog of signed-but-not-commenced leases at quarter-end was $797 million of annualized GAAP base rent[27]. - Rental rates on renewal leases increased by 4.7% on a cash basis and 9.1% on a GAAP basis in Q4 2024[28]. - The company added a record 166 new customers in the 0-1 megawatt plus interconnection segment during Q4 2024[25]. - Digital Realty signed new leases totaling $99.5 million in annualized GAAP base rent during Q4 2024, with an average GAAP base rent of $243 per square foot across all regions[29]. Future Outlook - Digital Realty introduced a 2025 Constant-Currency Core FFO per share outlook of $7.05 - $7.15[28]. - The company anticipates long-term debt issuance between $900 million and $1.5 billion in 2025, with pricing expected between 5.0% and 5.5%[38]. - The company’s strategic priorities include enhancing its product offerings and expanding its market presence, with a focus on data center and colocation space[149]. Challenges and Risks - The company faces reduced demand for data centers and decreased information technology spending, which could adversely affect financial performance[150]. - Increased competition and available supply of data center space may lead to decreased rental rates and increased vacancy rates[150]. - Global supply chain disruptions and heightened inflation may increase operating costs and affect overall profitability[150]. - The company must navigate risks related to joint venture investments and the integration of acquired properties[150]. - There are challenges in attracting and retaining talent, which could hinder operational effectiveness[150].

Core Insights - Digital Realty reported a revenue of $1.4 billion for Q4 2024, reflecting a 5% increase year-over-year and a slight increase from the previous quarter [2] - The company achieved a net income of $186 million in Q4 2024, translating to $0.51 per share, a significant rise from $0.03 per share in Q4 2023 [2][10] - Adjusted EBITDA for the quarter was $751 million, showing a 7% increase compared to the same quarter last year [3] Financial Results - Revenues for Q4 2024 were $1.4 billion, up 5% from Q4 2023 [2] - Net income available to common stockholders was $179 million, or $0.51 per share, compared to $0.03 per share in Q4 2023 [2][10] - Adjusted EBITDA was reported at $751 million, a 7% increase year-over-year [3] - Funds From Operations (FFO) for Q4 2024 were $545 million, or $1.61 per share, compared to $1.53 per share in Q4 2023 [3][10] - Core FFO per share was $1.73, up from $1.63 in the same quarter last year [4][10] Leasing Activity - Total bookings in Q4 2024 are expected to generate $100 million in annualized GAAP rental revenue, with significant contributions from the 0-1 megawatt category [6] - The backlog of signed-but-not-commenced leases at the end of Q4 2024 was $797 million in annualized GAAP base rent [7][10] - Renewal leases signed during the quarter represented $250 million in annualized cash rental revenue, with rental rates increasing by 4.7% on a cash basis [8][10] Investment Activity - Digital Realty acquired a 6.7-acre parcel in Richardson, Texas, for approximately $15 million, supporting up to 100 megawatts of IT capacity [12] - The company sold a 15.1% interest in a data center in Frankfurt, Germany, for approximately $74 million [12] - A joint venture with Blackstone Inc. for a $7 billion hyperscale data center development was advanced, focusing on campuses in Frankfurt and Northern Virginia [13] Balance Sheet - As of December 31, 2024, Digital Realty had approximately $16.7 billion in total debt, with a net debt-to-Adjusted EBITDA ratio of 4.8x [14] - The company issued €850 million of 3.875% notes due 2035, with net proceeds of approximately €841 million [14] 2025 Outlook - Digital Realty provided a 2025 Constant-Currency Core FFO per share outlook of $7.05 - $7.15 [15] - Total revenue is projected to be between $5.800 billion and $5.900 billion [16] - The company anticipates rental rate increases on renewal leases of 4.0% - 6.0% on a cash basis [16]

Market Performance - The S&P 500 benchmark index was down by about 1.7% at 11 a.m. ET, while the Vanguard Real Estate ETF (VNQ) was slightly higher by 0.64% [1] - Data center REITs Equinix (EQIX) and Digital Realty Trust (DLR) were down by 7% and 12% respectively, and Iron Mountain (IRM) was down by more than 8% [2] AI and Data Center Industry - The AI boom has created a surge in demand for data centers, with U.S. tech giants investing billions in AI, particularly in data centers [4][5] - Equinix and Digital Realty are leaders in the data center REIT industry, with Equinix data centers often regarded as internet hubs [6] - Iron Mountain has been shifting its focus from paper records storage to digital records by building out data centers [6] Impact of DeepSeek's Announcement - DeepSeek's announcement of a large language model developed in two months at a cost of under $6 million has caused investors to question AI hardware and data center investments [3][7] - The news has led to a sell-off in data center REITs, but there is no evidence of tech companies pulling back on spending [7] - The announcement could also accelerate AI spending among tech giants, potentially benefiting data center REITs in the long term [8]

DALLAS, Jan. 21, 2025 /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 2024 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, 2024 has not yet been filed.  Please note that federal tax laws affect taxpaye ...