Digital Realty Trust(US:DLR)2026-02-13 22:18Debt and Liabilities - As of December 31, 2025, the company's total outstanding debt was $18,557 million, with fixed rate debt at $14,424 million and variable rate debt at $2,686 million[476]. - The company's total liabilities increased to $24.56 billion in 2025 from $22.11 billion in 2024, reflecting a rise of approximately 11.1%[522]. - Unsecured senior notes increased to $16.19 billion in 2025 from $13.96 billion in 2024, reflecting a growth of approximately 16.0%[522]. - The company’s total stockholders' equity grew to $22.93 billion in 2025, up from $21.34 billion in 2024, representing an increase of about 7.4%[522]. - The company’s total liabilities increased to $24,564,494 in 2025 from $22,107,836 in 2024, representing an increase of 11%[542]. Revenue and Income - Rental and other services revenue for the year ended December 31, 2025, was $6.0 billion, with deferred rent and accounts receivable at $751 million and $729 million, respectively[497]. - Total operating revenues for 2025 reached $6,112,692, a 10% increase from $5,554,968 in 2024[525]. - Net income attributable to Digital Realty Trust, Inc. for 2025 was $1,308,589, up 117% from $602,490 in 2024[525]. - Operating income increased to $658,492 in 2025, compared to $471,864 in 2024, reflecting a 39% growth[525]. - Comprehensive income for 2025 was $2,021,674, significantly higher than $173,693 in 2024[527]. Assets and Investments - The total assets of Digital Realty Trust increased to $49.41 billion as of December 31, 2025, up from $45.28 billion in 2024, representing a growth of approximately 4.7%[522]. - Investments in properties, net, rose to $26.43 billion in 2025, compared to $24.12 billion in 2024, indicating an increase of about 9.6%[522]. - Cash and cash equivalents at the end of the period were $3,458,290 in 2025, down from $3,876,700 in 2024, a decrease of 11%[539]. - The company reported an increase in additional paid-in capital to $29,350,487 as of December 31, 2025, up from $28,079,738 as of December 31, 2024[536]. Cash Flow and Expenses - Net cash provided by operating activities was $2,412,136 in 2025, compared to $2,261,477 in 2024, reflecting a growth of 7%[539]. - Total operating expenses rose to $5,454,200 in 2025, up from $5,083,104 in 2024, representing a 7% increase[525]. - The net cash used in investing activities was $(2,230,472) in 2025, compared to $(1,906,157) in 2024, indicating an increase in cash outflow for investments[558]. - Depreciation and amortization expenses were $1,894,636 in 2025, up from $1,771,797 in 2024, marking a rise of 6.9%[558]. Foreign Currency and Interest Rate Management - The company is exposed to foreign currency exchange risk primarily with the Euro, Japanese yen, British pound sterling, Singapore dollar, South African rand, and Brazilian real, and employs various hedging strategies[480]. - The company utilized interest rate swaps to manage interest rate exposure, with fixed rate debt totaling $17,110 million when including swaps[476]. - A 10% increase in interest rates would result in an additional annual interest expense of $4 million on variable rate debt not subject to swaps[479]. - The fair value of fixed rate debt would decrease by $202 million following a 10% decrease in interest rates[479]. Joint Ventures and Contributions - The company retained a 20% interest in various joint ventures, including those with GI Partners and TPG Real Estate, with significant contributions and gains recognized in 2023 and 2024[662][663]. - A joint venture with Blackstone Inc. was formed on January 11, 2024, to develop four hyperscale data center campuses across Frankfurt, Paris, and Northern Virginia, supporting 10 data centers with approximately 500 megawatts of potential IT load capacity[669]. - The company contributed two data center buildings valued at approximately $261 million to a joint venture with Mitsubishi, recognizing a gain of about $7 million[660]. - The company recognized a gain of approximately $873 million from the contribution of operating data centers and development projects to the Fund, with gross proceeds of about $937 million[652]. Impairments and Provisions - The company reported a provision for impairment of $78,553 in 2025, down from $191,184 in 2024, reflecting a decrease of 58.9%[558]. - The company recorded a provision for impairment on real estate investments of $78.6 million in 2025, down from $191.2 million in 2024, showing a significant reduction in impairment losses[644][645]. Shareholder Equity and Dividends - The company declared dividends of $40,724 on preferred stock for both 2024 and 2025, maintaining consistency in dividend distribution[530]. - The total equity as of December 31, 2025, rose to $23,346,999, marking a growth from $21,742,595 as of December 31, 2024[536]. - The weighted average common shares outstanding increased to 339,807 in 2025 from 323,336 in 2024, reflecting a 5% growth[525].