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 ...

Real estate investment trust (REIT) Digital Realty Trust Inc (NYSE:DLR) is up 3% at $179.15 at last glance, after an upgrade from Deutsche Bank to "buy" from "hold." The firm also lifted its price target to $194 from $185. On the charts, DLR has been moving steadily lower since its Nov. 29 record high of $198.00. Today's pop has the stock extending a bounce off the $170 level and 100-day moving average, however, as well as moving into positive territory for 2025. Year over year, the equity is up 29.3%. DLR' ...

DALLAS, Jan. 7, 2025 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today that Digital Dutch Finco B.V., an indirect wholly owned finance subsidiary of the company's operating partnership, Digital Realty Trust, L.P., priced an offering of €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2035 at a price of 99.343% of the principal amount. The Euro Notes will be senior ...

Shares of Digital Realty (DLR) have gained 12.7% in the past three months against the industry’s 9.8% decline.Amid robust demand for data centers, Digital Realty is well-poised to grow backed by a diverse tenant base, accretive acquisitions, development efforts and solid balance-sheet strength.Analysts seem bullish on this Zacks Rank #3 (Hold) company, with the Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share revised upward marginally over the past three months to $7.09.Image Sour ...

“Jim Chanos, founder of Kynikos Associates, now known as Chanos & Company, came out with his dataBack in October 2022, I wrote an article titled Digital Realty: Chanos Big Short = Buying Opportunity. Here’s what I said:This article was coproduced with Wolf Report.Introducing iREIT®Join iREIT® on Alpha today to get the most in-depth research that includes REITs, mREIT, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers. Our iREIT® Tracker provides data on over 250 tickers with our quality scores, buy ...

Join iREIT® on Alpha today to get the most in-depth research that includes REITs, mREIT, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers. Our iREIT® Tracker provides data on over 250 tickers with our quality scores, buy targets, and trim targets.In a recent Seeking Alpha article someone asked me for a “synopsis of what working method has allowed me to become the epitome of producing relevant article”.Brad, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service covers R ...

Artificial Intelligence has proved to be one of the hottest topics and thus market movers in 2024. The global investments in the sector for the first three quarters of 2024 already surpassed the- I am a university graduate with a master's degree in both Physics and Financial Management. - Engaged as a full-time trader/investor for 10 years now, my primary work interest lies in exchange-traded and OTC fixed-income investment vehicles. I believe that my long-term love for maths, science, and problem-solving h ...

Core Viewpoint - Digital Realty (DLR) is well-positioned to benefit from the increasing reliance on technology and the acceleration of digital transformation strategies by enterprises, supported by a solid tenant base and strategic investments in land, infrastructure, and acquisitions [1] Group 1: Industry Growth Drivers - High growth in cloud computing, the Internet of Things, and Big Data is driving demand for data center infrastructure, with robust anticipated growth in artificial intelligence, autonomous vehicles, and virtual/augmented reality markets [2] - Strong demand is observed in top-tier data center markets, which are absorbing new construction at a faster pace despite high occupancy rates [2] Group 2: Company Strengths - DLR has a high-quality, diversified customer base with over 5,000 global customers, including major players from various industries, ensuring stable revenue generation [3] - The company is expected to continue its growth trajectory through strategic investments, including a recent acquisition of a 6.7-acre parcel in Richardson, TX, for approximately $15 million to support over 80 megawatts of incremental IT capacity [4] - DLR's solid balance sheet includes cash and cash equivalents of $2.18 billion, with a well-laddered debt maturity schedule and no debt maturities until early 2025 [5] Group 3: Financial Strategy - The company plans to execute dispositions/joint venture capital in the range of $1.0-$1.5 billion in 2024, which is expected to improve net debt-to-adjusted EBITDA as asset sales and cash flow growth occur [6] - DLR's shares have gained 24.2% over the past six months, outperforming the industry average of 10.9% [7] Group 4: Industry Challenges - DLR faces intense competition in the data center industry, with expected increases in competition from existing and new players, leading to potential pricing pressure [9] - The company's asset concentration in specific regions, such as Northern Virginia, Chicago, and Frankfurt, poses a risk as these areas accounted for significant portions of total annualized rent [10]