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 ...

Core Insights - Digital Realty has announced new Microsoft Azure ExpressRoute peering locations in Atlanta, Brussels, and Vienna, enhancing dedicated connections from private IT infrastructure to Azure services [1][2] - This expansion adds to Digital Realty's existing 12 Azure ExpressRoute cloud on-ramps, bringing the total to 15 locations globally [3] - The Azure ExpressRoute service provides low-latency and secure connections to Azure resources, keeping customer traffic on Microsoft's global network and away from the public internet [4] Group 1 - The new locations in Atlanta, Brussels, and Vienna are part of a broader strategy to enhance Digital Realty's global relationship with Microsoft [2][5] - Digital Realty's PlatformDIGITAL® serves as a physical meeting place for customers to establish direct connections to Azure, facilitating hybrid IT solutions [5][7] - The collaboration aims to provide enterprise-grade connectivity for customers to architect and deploy hybrid solutions with a consistent global experience [5][6] Group 2 - Digital Realty operates over 300 facilities in more than 50 metropolitan areas across 25+ countries, positioning itself as a key player in the data center and interconnection solutions market [8] - The company emphasizes its role in addressing Data Gravity challenges and supporting emerging technologies like AI through its comprehensive service offerings [8]

Digital Realty Trust (DLR) is slated to report first-quarter 2025 results on April 24 after the closing bell. The quarterly results are expected to reflect year-over-year growth in both revenues and funds from operations (FFO) per share. For the first quarter, the Zacks Consensus Estimate for rental revenues is pegged at $972.3 million, up 8.7% from $894.4 million reported in the year-ago quarter. The Zacks Consensus Estimate for interconnection & other revenues currently stands at $115.1 million, indicatin ...

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 ...

Core Viewpoint - The current market environment is characterized by volatility, with the S&P 500 experiencing corrections and potential bear market conditions due to tariff implementations by the Trump administration, prompting investors to consider dividend stocks as a stable investment option [1][2]. Group 1: Realty Income - Realty Income offers a monthly dividend payment with a yield of 5.6%, supported by a diverse retail property portfolio of over 15,600 properties, including tenants like 7-Eleven and Walgreens [3][4]. - The company utilizes a triple net lease model, allowing tenants to cover property taxes, maintenance, and insurance, which stabilizes cash flow and reduces operational costs [4][5]. - Realty Income maintains a well-diversified portfolio, with no single industry exceeding 10.2% of annual base rent and an average occupancy rate of 98.2% over the past 25 years [6]. Group 2: Digital Realty Trust - Digital Realty Trust provides data center infrastructure for cloud computing and AI, operating over 300 data centers across 25 countries, serving more than 5,000 customers [7][8]. - The company benefits from strong demand from hyperscalers, with a projected 33% annual growth in AI-ready data center capacity by 2030, and offers a dividend of 3.3% [9]. - Digital Realty has experienced a 25% decline from its December peak, presenting a potential buy opportunity for investors [9]. Group 3: Prologis - Prologis is a leading REIT specializing in warehouses and distribution centers, with a global presence across 20 countries and over 1.2 billion square feet of logistics space [10][11]. - The company is positioned to benefit from the growth of e-commerce, which accounted for 56% of retail sales growth in 2024, with projections indicating U.S. e-commerce penetration could reach 30% by 2030 [12]. - Prologis offers a dividend of 4% and has seen a 23% decline from its March peak, making it an attractive option for long-term investors despite potential short-term uncertainties [13].

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