Digital Realty Trust(US:DLR)2025-10-23 20:10Company Overview - As of September 30, 2025, Digital Realty operates 311 data centers, with a total portfolio of approximately 42.7 million square feet, excluding 10.2 million square feet under active development[6]. - Digital Realty's global data center footprint includes over 300 facilities across more than 50 metros in 25 countries[53]. - The company is focused on expanding its PlatformDIGITAL® to support cloud and digital transformation initiatives[53]. Financial Performance - Digital Realty reported revenues of $1.6 billion in Q3 2025, a 6% increase from Q2 2025 and a 10% increase year-over-year[22]. - The company delivered net income of $64 million in Q3 2025, with net income available to common stockholders of $58 million, translating to $0.15 per share[22]. - Adjusted EBITDA reached $868 million in Q3 2025, a 5% increase from the previous quarter and a 14% increase year-over-year[23]. - Funds From Operations (FFO) were reported at $570 million, or $1.65 per share, compared to $1.55 per share in the same quarter last year[23]. - Core FFO per share was $1.89 in Q3 2025, up from $1.67 in Q3 2024, with Constant-Currency Core FFO per share at $1.85[24]. - Total operating revenues for Q3 2025 reached $1,577,234, an increase of 5.6% compared to $1,493,150 in Q2 2025[56]. - Rental revenues for Q3 2025 were $1,045,708, up 4.2% from $1,003,550 in Q2 2025[56]. - The company reported a net income per share (diluted) of $0.15 for Q3 2025, compared to $2.94 in Q2 2025[56]. Stock and Market Information - The company's common stock closed at $172.88 at the end of Q3 2025, with a high of $182.00 and a low of $159.22 during the quarter[14]. - The average daily trading volume for Digital Realty's common stock was 1,520 shares in Q3 2025[14]. - The indicated annual dividend per common share is $4.88, resulting in a closing annual dividend yield of 2.8% at the end of Q3 2025[14]. - Digital Realty's corporate credit rating is BBB+ with a stable outlook according to Standard & Poor's[13]. - The company has approximately 349,244 shares and units outstanding as of September 30, 2025[14]. - Digital Realty's total market value of shares and units outstanding was approximately $60.38 billion at the end of Q3 2025[14]. Growth and Expansion - Digital Realty is focused on expanding its data center, colocation, and interconnection solutions across various industry verticals, including cloud and IT services, communications, and financial services[6]. - The company has ongoing construction projects and investments in real estate, indicating a commitment to external growth[6]. - Digital Realty signed total bookings expected to generate $201 million of annualized GAAP rental revenue, with a backlog of $852 million at quarter-end[26][29]. - Renewal leases signed during Q3 2025 represented $192 million of annualized cash rental revenue, with rental rates increasing by 8.0% on a cash basis[28][29]. - Digital Realty has five gigawatts of buildable IT capacity worldwide, positioning the company to meet evolving customer needs[25]. - The company is actively developing new data center projects, contributing to future growth and expansion[102]. Debt and Financial Ratios - As of September 30, 2025, Digital Realty had approximately $18.2 billion in total debt, with a net debt-to-Adjusted EBITDA ratio of 4.9x[37]. - The company reported a fixed charge coverage ratio of 4.6x at the end of Q3 2025[37]. - The diluted AFFO payout ratio for Q3 2025 was 69.2%, a decrease from 72.8% in Q2 2025, indicating improved cash flow management[63]. - Total liabilities decreased to $23,739,412,000 as of September 30, 2025, down from $23,853,149,000 in Q2 2025, a reduction of 0.5%[68]. - The company anticipates cash basis rental rate growth on renewal leases to be between 5.75% - 6.25% by year-end 2025[40]. Customer and Lease Information - The top 20 customers contributed an annualized recurring revenue of $2,368,697, accounting for 51.2% of total revenue[98]. - The weighted average remaining lease term for the top customers is 6.0 years, with the Fortune 50 Software Company representing 12.1% of annualized recurring revenue[98]. - The retention ratio improved to 70.1%, while the churn rate decreased to 1.6%[94]. - The average cash rent per NRSF for renewed leases increased by 9.5% to $213[94]. Risks and Challenges - The company reported a provision for impairment of $168,303,000 in the nine months ended September 30, 2025, indicating potential challenges in asset valuation[146]. - The company faces risks including decreased rental rates, increased operating costs, and competition in the data center market, which could impact financial performance[150].