Digital Realty Trust(US:DLR)2025-02-25 02:40Debt and Liabilities - As of December 31, 2024, the total outstanding debt was $16,847 million, with fixed rate debt at $12,160 million and variable rate debt at $3,103 million[475]. - The company’s fixed rate debt had an estimated fair value of $11,463 million, while the total fair value of outstanding debt was $16,150 million[475]. - A 10% increase in interest rates would lead to an increase in annual interest expense of $4 million on variable rate debt not subject to swaps[476]. - The fair value of fixed rate debt would decrease by $139 million following a 10% decrease in interest rates[476]. - The total liabilities decreased to $22.11 billion as of December 31, 2024, from $23.12 billion as of December 31, 2023[520]. - Unsecured term loans, net significantly decreased to $386.9 million as of December 31, 2024, from $1.56 billion as of December 31, 2023[520]. Revenue and Income - Rental and other services revenue for the year ended December 31, 2024, was $5.5 billion, with deferred rent net and accounts receivable at $642 million and $570 million, respectively[496]. - Total operating revenues for 2024 reached $5,554,968, a slight increase of 1.4% compared to $5,477,061 in 2023[522]. - Net income for 2024 was $588,327, a decrease of 38.1% from $950,312 in 2023[524]. - Operating income decreased to $471,864 in 2024, down 10% from $524,461 in 2023[522]. - The company reported a net income available to common stockholders of $561,766 for 2024, down 38.1% from $908,114 in 2023[522]. - Basic net income per share available to common stockholders was $1.74 in 2024, compared to $3.04 in 2023, reflecting a decline of 42.5%[522]. - Total operating expenses increased to $5,083,104 in 2024, up 2.6% from $4,952,600 in 2023[522]. Assets and Equity - Total assets increased to $45.28 billion as of December 31, 2024, compared to $44.11 billion as of December 31, 2023[520]. - Stockholders' equity rose to $21.34 billion as of December 31, 2024, up from $19.12 billion as of December 31, 2023, reflecting an increase of approximately 11.6%[520]. - The Operating Partnership's investments in properties, net decreased slightly to $24.12 billion as of December 31, 2024, from $24.24 billion as of December 31, 2023[520]. - The total equity increased to $21.74 billion as of December 31, 2024, compared to $19.60 billion as of December 31, 2023, indicating a growth of approximately 10.9%[520]. - Cash and cash equivalents increased to $3.87 billion as of December 31, 2024, compared to $1.63 billion as of December 31, 2023[520]. Foreign Currency and Risk Management - The company’s exposure to foreign currency exchange risk is primarily related to the Euro, Japanese yen, British pound sterling, Singapore dollar, South African rand, and Brazilian real[479]. - The company utilizes cross-currency interest rate swaps to hedge currency exposure associated with foreign subsidiaries[479]. - The company has designated notes denominated in Swiss francs with a total outstanding principal balance of 545 million CHF as non-derivative hedges of net investments in foreign operations[601]. - As of December 31, 2024, the company had no outstanding derivative foreign currency contracts[600]. Audit and Internal Control - The evaluation of the probability of collection of Scale and Hyperscale lease payments was identified as a critical audit matter, requiring significant auditor judgment[497]. - The company maintained effective internal control over financial reporting as of December 31, 2024, based on established criteria[500]. - The company’s internal control system is designed to provide reasonable assurance regarding the preparation and fair presentation of financial statements[481]. Comprehensive Income and Other Adjustments - Comprehensive income attributable to Digital Realty Trust, Inc. was $173,693 in 2024, down from $792,055 in 2023[524]. - The company experienced a foreign currency translation adjustment loss of $605,636 in 2024, compared to a loss of $209,973 in 2023[524]. - Other comprehensive loss for the year ended December 31, 2024, was $450,286, compared to a loss of $157,198 in 2023, reflecting a worsening situation[533]. Investments and Acquisitions - The company sold or contributed properties generating gross proceeds of $1,246.4 million in joint venture contributions in 2024, with a gain on sale of $304.1 million[659]. - A joint venture with Blackstone Inc. was formed to develop four hyperscale data center campuses, with net proceeds of approximately $231 million received from the first phase[661]. - The company recognized a total gain on disposition of approximately $200.5 million from the sale of its interest in four data centers to Brookfield Infrastructure Partners L.P.[663]. - The company expanded its joint venture with GI Partners, receiving approximately $386 million in net proceeds from the contribution of a data center valued at approximately $453 million[665]. Shareholder and Equity Changes - The number of common shares increased to 311,607,580 by December 31, 2023, up from 291,148,222 a year earlier, representing a growth of about 7%[530]. - The company reported distributions totaling $1,544,156,000 for the year ended December 31, 2023, compared to $1,474,864,000 in the previous year, representing an increase of approximately 4.7%[550]. - The balance of redeemable partnership units as of December 31, 2024, was $1,433,185, an increase from $1,394,814 in 2023[553].