Financial Performance - Total operating revenues for the three months ended March 31, 2025, increased by approximately $76.5 million, reaching $1,407,637, compared to $1,331,143 in the same period in 2024, representing a 5.7% increase[193] - Stabilized rental and other services revenue increased by $30.9 million to $1,053,488, while non-stabilized rental and other services revenue rose by $38.7 million to $333,373, marking increases of 3.0% and 13.1% respectively[194] - Funds from Operations (FFO) for Q1 2025 was $570,716,000, an increase of 26.4% from $451,274,000 in Q1 2024[267] - GAAP Net Income Available to Common Stockholders decreased to $99,793,000 in Q1 2025 from $271,327,000 in Q1 2024, representing a decline of 63.3%[267] - Basic FFO per share increased to $1.67 in Q1 2025 from $1.42 in Q1 2024, reflecting a growth of 17.6%[267] Occupancy Rates - As of March 31, 2025, the consolidated portfolio occupancy rate was 82.4%, down from 82.9% as of December 31, 2024[172] - The occupancy rate for the North America region was 85.0%, slightly down from 85.5% in the previous quarter[172] - The Europe region's occupancy rate was 76.9%, down from 77.3% as of December 31, 2024[172] - The Asia Pacific region reported an occupancy rate of 81.8%, up from 81.2% in the previous quarter[172] Debt and Liquidity - The company targets a debt-to-Adjusted EBITDA ratio around 5.5x and a fixed charge coverage of greater than three times[168] - Outstanding consolidated indebtedness as of March 31, 2025, was $17.2 billion, with fixed-rate debt comprising 93.0% of total debt[249] - The effective interest rate as of March 31, 2025, was 2.65%, with fixed-rate debt having an effective interest rate of 2.59%[249] - The company expects to meet liquidity requirements with approximately $3.1 billion available under Global Revolving Credit Facilities as of April 28, 2025[242] - The ratio of debt to total enterprise value was approximately 25.4% as of March 31, 2025[249] Capital Expenditures and Investments - Expected capital expenditures for the remainder of 2025 are projected to be between $2.3 billion and $2.8 billion[8] - Current investment in construction projects as of March 31, 2025, totals $5,349,847, with future investments expected to reach $5,612,741[9] - Capital expenditures for the three months ended March 31, 2025, totaled $727.5 million, an increase of 20.2% from $604.9 million in the same period of 2024[237] - Net cash used in investing activities increased by $909.8 million, primarily due to higher spending on development projects and contributions to investments in unconsolidated entities[256] Joint Ventures and Partnerships - A joint venture was formed with Bersama Digital Infrastructure Asia to develop data centers in Indonesia, with a 50% interest acquired for approximately $94.7 million[170] - The joint venture with Mitsubishi Corporation involved a contribution value of approximately $261 million for two data centers, with Mitsubishi holding an 80% interest after additional capital contributions[244] Operating Expenses - Total operating expenses for the three months ended March 31, 2025, were $1,211,887, an increase of $30,111 or 2.5% compared to the same period in 2024[1] - Total property level operating expenses for the three months ended March 31, 2025, were $605,324, an increase of $12,535 or 2.1% from $592,789 in the same period in 2024[195] - Total stabilized utilities expenses decreased by approximately $10.7 million primarily due to lower power pricing in EMEA and APAC regions[196] - Total stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $11.2 million, driven by higher building operations and data center labor costs[199] - Total non-stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $3.0 million, primarily due to increased data center labor expenses[200] Cash Flow - Net cash provided by operating activities increased by $46.8 million, reaching $399.1 million in Q1 2025 compared to $352.3 million in Q1 2024[254] Market Outlook - The company aims for sustainable long-term growth in earnings and funds from operations per share and unit[165] - The company expects average aggregate rental rates on renewed data center leases for 2025 expirations to be positive compared to current rates, although future results cannot be assured[180] - The company anticipates that near-term single asset acquisitions will comprise a smaller percentage of growth due to lower capitalization rates driven by private institutional investors[240] Foreign Currency and Interest Rate Risk - The company is exposed to foreign currency exchange risk primarily with the Euro, Japanese yen, and British pound sterling, which may impact future costs and cash flows[273] - Interest rate sensitivity analysis indicated a potential increase of $3,000,000 in annual interest expense on variable rate debt following a 10% increase in interest rates[271] - The company utilizes interest rate swap agreements to mitigate exposure to interest rate movements, with fixed rate debt accounting for a significant portion of total debt[271]

Core Insights - Digital Realty Trust (DLR) reported first-quarter 2025 core funds from operations (FFO) per share of $1.77, exceeding the Zacks Consensus Estimate of $1.73, with a year-over-year increase of 6% [1] - The company raised its 2025 core FFO guidance range to $7.05-$7.15 from the previous range of $7.00-$7.10, with the Zacks Consensus Estimate of $7.06 falling within this range [12] Financial Performance - Operating revenues for the first quarter were $1.41 billion, slightly below the Zacks Consensus Estimate of $1.42 billion, but up 5.7% year-over-year [2] - Same-Capital cash net operating income (NOI) grew by 3.9% [2] - Total operating expenses increased by 2.5% year-over-year to $1.21 billion, driven by various operational costs [5] - Adjusted EBITDA for the quarter was $791.2 million, reflecting an 11.3% year-over-year increase [5] Leasing and Revenue Growth - Total bookings signed in the first quarter are expected to generate $242 million in annualized GAAP rental revenues, with significant contributions from various categories [3] - Renewal leases signed during the quarter accounted for $147 million in annualized cash rental revenues, with rental rates increasing by 5.6% on a cash basis and 7.1% on a GAAP basis [4] Portfolio Expansion - Digital Realty acquired three land parcels in Charlotte, NC, for a total of $36 million, enhancing its IT capacity significantly [6][7] - The company entered the Indonesian market through a 50-50 joint venture for $95 million, aiming to develop data centers in the region [8] - Following the quarter end, DLR acquired approximately 100 acres of land in the Atlanta metro area for $120 million, expected to support over 200 megawatts of IT capacity [9] Balance Sheet and Debt Management - As of March 31, 2025, DLR had cash and cash equivalents of $2.32 billion, down from $3.87 billion at the end of 2024 [10] - The company reported total debt of $17 billion, with a net debt-to-adjusted EBITDA ratio of 5.1X and a fixed charge coverage of 4.9X [10][11] Future Guidance - DLR projects total revenues between $5.825 billion and $5.925 billion, with adjusted EBITDA expected in the range of $505 million to $515 million [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, with year-end portfolio occupancy expected to rise by 100-200 basis points [13]

Financial Data and Key Metrics Changes - The company reported strong overall leasing in Q1 2025 of $242 million, consistent with a record pace set in 2024, driving the backlog of booked not billed leases to a new record of $919 million [7][39] - Core FFO per share grew by 6.1% year over year, reaching $1.77 per share, with a constant currency basis reporting $1.79 per share [42][43] - Data center revenue increased by 7% year over year, and adjusted EBITDA rose by 11% year over year [44] Business Line Data and Key Metrics Changes - Leasing in the zero to one megawatt plus interconnection segment was $69 million, marking the second highest ever, while greater than one megawatt leasing totaled $172 million, largely driven by hyperscaler leasing in North America [12][38] - The backlog at the company's share totaled $919 million at quarter-end, a 7% increase above the prior record [39] - More than 85% of bookings included fixed rent escalators of at least 4% or were linked to CPI [39] Market Data and Key Metrics Changes - The company saw strong demand across all regions, with North America hyperscale bookings being the strongest [19][20] - Pricing for new data center leasing reached a new milestone at $244 per kilowatt per month, up 10% from the prior record [16] - The company increased its development pipeline by another 70 megawatts since year-end, totaling 814 megawatts, with 63% preleased [19] Company Strategy and Development Direction - The company continues to execute its full spectrum meeting place strategy, focusing on markets with robust and diverse demand, including enterprise service providers and cloud availability zones [9][63] - The formation of the first US hyperscale fund aims to support up to $10 billion of data center investments, enhancing returns and reducing reliance on any single capital source [28][30] - The company is expanding its global footprint, including new entries into markets like Indonesia and the launch of a new data center in Crete [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2025 growth targets, supported by a record backlog and a 40% increase in the 2026 backlog since the beginning of the year [10][39] - Despite market volatility and uncertainty, the company maintains a robust pipeline across both enterprise and hyperscale segments [60][61] - The company anticipates strong commencements in the next two quarters, providing momentum into the end of the year and beyond [40] Other Important Information - The company achieved 100% renewable energy coverage for operations in Singapore and continues to expand its portfolio of green data centers [33][34] - The company reported a weighted average interest rate of 2.6% on its debt, with 93% of its net debt being fixed rate [51] Q&A Session Summary Question: Outlook on leasing environment given recent hyperscaler demand trends - Management noted a strong start to the year with robust pipelines in both enterprise and hyperscale segments, despite recent market volatility [60][61] Question: Impact of pricing and tariffs on development costs - Management indicated a modest impact of less than 5% on potential build costs due to supply chain management and proactive ordering [70][72] Question: Insights on land acquisitions in Atlanta and Charlotte - Management highlighted the strategic importance of these markets, noting existing connectivity and the presence of major cloud providers [78][80] Question: Changes in CapEx investment plans among hyperscale customers - Management emphasized the diversity of demand and noted that while some customers may slow down, others are pushing forward with their plans [88][90] Question: Current backlog status and leasing activity - Management confirmed a record backlog of signed but not commenced contracts, with strong activity expected to continue [112][114] Question: Pricing strength for new leases - Management attributed pricing strength to robust demand from traditional enterprise IT, digital transformation, and AI training, particularly in the US [129][130]

Financial Data and Key Metrics Changes - The company reported strong overall leasing in Q1 2025 of $242 million, consistent with a record pace set in 2024, driving the backlog of booked not billed leases to a new record of $919 million [7][39] - Core FFO per share grew by 6.1% year over year, reaching $1.77 per share, with a constant currency basis reporting $1.79 per share [42][43] - Data center revenue increased by 7% year over year, and adjusted EBITDA rose by 11% year over year [44] Business Line Data and Key Metrics Changes - Leasing in the zero to one megawatt plus interconnection segment was $69 million, marking the second highest ever, while greater than one megawatt leasing totaled $172 million, largely driven by hyperscaler leasing in North America [12][38] - The backlog at the company's share totaled $919 million at quarter-end, a 7% increase above the prior record [39] Market Data and Key Metrics Changes - The company saw strong demand across all regions, with North America being the strongest for hyperscale bookings [19][20] - Pricing for new data center leasing reached $244 per kilowatt per month, up 10% from the prior record, reflecting strength within the greater than one megawatt category [16] Company Strategy and Development Direction - The company continues to evolve its funding model, having formed its first US hyperscale fund, which is expected to support approximately $10 billion of hyperscale data center investment [28][30] - The company is focusing on markets with robust and diverse demand, particularly in enterprise service providers and cloud availability zones, while also addressing the needs of hyperscale customers [62][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2025 growth targets, supported by a record backlog and a 40% increase in the 2026 backlog since the beginning of the year [10][39] - Despite market volatility and uncertainty, the company maintains a robust pipeline across both enterprise and hyperscale segments [60][61] Other Important Information - The company opened a new 16 megawatt data center powered by 100% renewable sources, continuing its leadership in sustainable building practices [31][32] - The company has reached 100% renewable energy coverage for operations in Singapore and has installed solar on its facilities [33] Q&A Session Summary Question: Outlook on leasing environment given recent hyperscaler demand trends - Management noted a strong start to the year with robust pipelines in both enterprise and hyperscale segments, despite recent market volatility [60][61] Question: Impact of pricing and tariffs on development costs - Management indicated a modest impact of less than 5% on potential build costs due to supply chain management and proactive ordering of components [70][72] Question: Insights on land acquisitions in Atlanta and Charlotte - Management highlighted the strategic importance of these markets, noting existing connectivity and the presence of major cloud providers [78][80] Question: Changes in CapEx investment plans among hyperscale customers - Management emphasized the diversity of demand among hyperscalers and noted that while some customers may slow down, others are pushing forward [88][90] Question: Current backlog status and leasing activity - Management confirmed a record backlog of signed but not commenced contracts, with strong activity expected to continue into Q2 and Q3 [112][114] Question: Pricing strength for new leases - Management attributed pricing strength to robust demand from traditional enterprise IT, digital transformation, and AI training, particularly in the US [129][130]

Core Insights - Digital Realty Trust (DLR) reported $1.41 billion in revenue for Q1 2025, a year-over-year increase of 5.8% [1] - The earnings per share (EPS) for the same period was $1.77, compared to $0.82 a year ago, indicating significant growth [1] - The revenue fell short of the Zacks Consensus Estimate by 1.03%, while the EPS exceeded the estimate by 2.31% [1] Revenue Breakdown - Rental revenues were reported at $960.53 million, compared to the estimated $972.32 million, reflecting a year-over-year increase of 7.4% [4] - Tenant reimbursements for utilities totaled $271.19 million, slightly below the estimated $280.74 million, showing a decrease of 1.9% year-over-year [4] - Other tenant reimbursements reached $42.18 million, surpassing the estimated $39.89 million, marking a 9.7% increase from the previous year [4] - Total tenant reimbursements (utilities + other) were $313.37 million, below the average estimate of $320.63 million, with a year-over-year change of -0.5% [4] - Fee income was reported at $20.64 million, exceeding the estimated $17.32 million, representing a substantial increase of 58.7% year-over-year [4] - Other revenues were only $0.13 million, significantly lower than the estimated $0.68 million, indicating an 84.6% decrease from the previous year [4] - Interconnection and other revenues were $112.97 million, slightly below the estimated $115.10 million, with a year-over-year increase of 4.5% [4] Stock Performance - Digital Realty Trust shares have returned +1.5% over the past month, contrasting with the Zacks S&P 500 composite's -5.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Digital Realty Trust (DLR) reported quarterly funds from operations (FFO) of $1.77 per share, exceeding the Zacks Consensus Estimate of $1.73 per share, and showing an increase from $1.67 per share a year ago [1] Financial Performance - The company achieved revenues of $1.41 billion for the quarter ended March 2025, which was 1.03% below the Zacks Consensus Estimate, compared to $1.33 billion in the same quarter last year [2] - Over the last four quarters, Digital Realty Trust has surpassed consensus FFO estimates three times, but has not beaten consensus revenue estimates during this period [2] Stock Performance - Digital Realty Trust shares have declined approximately 14.5% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The current consensus FFO estimate for the upcoming quarter is $1.75 on revenues of $1.45 billion, and for the current fiscal year, it is $7.06 on revenues of $5.87 billion [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which Digital Realty Trust belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which could impact Digital Realty Trust's stock performance [5]

1Q25 FINANCIAL RESULTS April 24, 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 228,000+ 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 & Integ ...

Table of Contents E x hibit 9 9.1 Table of Contents Financial Supplement Table of Contents First Quarter 2025 | Overview | PAGE | | --- | --- | | Corporate Information | 3 | | Key Quarterly Financial Data | 5 | | Consolidated Statements of Operations | | | Earnings Release | 7 | | 2025 Outlook | 10 | | Consolidated Quarterly Statements of Operations | 12 | | Funds From Operations and Core Funds From Operations | 13 | | Adjusted Funds From Operations | 14 | | Balance Sheet Information | | | Consolidated Bala ...

High Speed, Dedicated Connection to Azure Now Available from Digital Realty's Data CenterCampuses in Atlanta, Brussels, and Vienna DALLAS, April 24, 2025 /PRNewswire/ -- Digital Realty (NYSE: DLR), a global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, today announced new Microsoft Azure ExpressRoute peering locations in Atlanta, Brussels, and Vienna, enabling customers to establish a dedicated connection from their private IT infrastructure to Azure services ...

Wall Street analysts forecast that Digital Realty Trust (DLR) will report quarterly earnings of $1.73 per share in its upcoming release, pointing to a year-over-year increase of 3.6%. It is anticipated that revenues will amount to $1.42 billion, exhibiting an increase of 6.8% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their i ...