Digital Realty Trust(US:DLR)2022-02-24 16:00Financial Performance - The company's rental and services revenue for the year ended December 31, 2021, was $4.4 billion[266]. - Total operating revenues for the year ended December 31, 2021, were $4,427,882 thousand, an increase of 13.4% from $3,903,609 thousand in 2020[275]. - Net income attributable to Digital Realty Trust, Inc. for 2021 was $1,709,259 thousand, compared to $356,398 thousand in 2020, representing a significant increase[275]. - The company reported a net income per share available to common stockholders of $5.95 for 2021, up from $1.01 in 2020[275]. - Net income for the year ended December 31, 2021, was $1,747,412, compared to $362,730 in 2020, representing a significant increase of 382%[277]. - Comprehensive income attributable to Digital Realty Trust, Inc. for 2021 was $1,400,371, up from $579,329 in 2020, indicating a growth of 142%[277]. - Total operating revenues increased to $4,427,882, up 13.4% from $3,903,609 in 2020[291]. - Net income for the year ended December 31, 2021, was $1,747,412, a significant increase from $362,730 in 2020[293]. - Operating income rose to $694,009, compared to $557,526 in the previous year, reflecting a growth of 24.5%[291]. Assets and Liabilities - Total assets as of December 31, 2021, were $36,369,560 thousand, slightly up from $36,076,291 thousand in 2020[273]. - Total liabilities as of December 31, 2021, were $17,845,778 thousand, compared to $17,587,944 thousand in 2020[273]. - The company’s cash and cash equivalents increased to $142,698 thousand in 2021 from $108,501 thousand in 2020[273]. - The company reported a foreign currency translation adjustment loss of $(318,828) in 2021, compared to a gain of $230,340 in 2020[277]. - The company reported a depreciation and amortization expense of $1,486,632 thousand, up from $1,366,379 thousand in 2020[287]. - Total cash used in investing activities was $1,061,721 thousand, a decrease from $2,599,347 thousand in 2020[287]. - Total outstanding debt as of December 31, 2021, is $13,562,240, with a weighted-average interest rate of 2.23%[382]. - The total amount of secured and other debt is $147,082, with a weighted-average interest rate of 3.47%[382]. Investments and Acquisitions - The acquisition of Interxion was completed on March 12, 2020, for a total equity consideration of approximately $7.0 billion, including $108.5 million of assumed cash and cash equivalents[337]. - The total purchase consideration for the Interxion acquisition was recorded at $6.88 billion, with goodwill of approximately $4.34 billion recognized[338]. - The company recognized a gain on the sale of assets of approximately $1,011,200,000 from the contribution of properties to Digital Core REIT[358]. - The company’s investment in unconsolidated entities totaled $1,807,689,000 as of December 31, 2021, compared to $1,148,158,000 in 2020, an increase of 57.5%[362]. Cash Flow and Financing Activities - Cash provided by operating activities was $1,702,228 thousand, slightly down from $1,706,541 thousand in the previous year[287]. - Cash flows from financing activities resulted in a net cash outflow of $590,630 thousand, compared to a net inflow of $935,689 thousand in 2020[287]. - The company has a global revolving credit facility of up to $3.0 billion, with a maturity date of January 24, 2026[386]. - Digital Intrepid Holding B.V. issued CHF 275 million of 0.20% Guaranteed Notes due 2026 and CHF 270 million of 0.55% Guaranteed Notes due 2029, with net proceeds of approximately CHF 542.3 million (approximately $590.9 million) after expenses[393]. Dividends and Distributions - Digital Realty Trust, Inc. declared dividends totaling $1,347,507,000 for the year ended December 31, 2021, reflecting an annual rate of $4.640 per share[423]. - The company has consistently paid dividends on its common and preferred stock, with payments made quarterly[421]. - The annual rate of distribution per unit increased from $1.31250 in 2019 to $1.65625 in 2021, indicating a growth of approximately 26.1%[422]. Internal Controls and Compliance - The company assessed its internal control over financial reporting as effective as of December 31, 2021, following the acquisition of Interxion and subsidiaries during the year[257]. - The company’s internal control systems are designed to provide reasonable assurance regarding the preparation and fair presentation of financial statements, despite inherent limitations[257]. - The company maintained compliance with financial covenants, including a leverage ratio not exceeding 60% and an interest coverage ratio greater than 1.50 as of December 31, 2021[393]. Risk Management - Digital Realty Trust, Inc. is exposed to foreign currency exchange risk primarily with the Euro, Japanese yen, British pound sterling, and Singapore dollar, and attempts to mitigate this risk through local currency financing[250]. - The company does not use derivatives for trading or speculative purposes, entering contracts only with major financial institutions based on credit ratings[246]. - Interest rate swaps are recorded at fair value, with no impact from netting arrangements as of December 31, 2021[326]. Employee and Shareholder Engagement - The company’s incentive plan allows for the issuance of various awards, including Long-Term Incentive Units and Service-Based Restricted Stock Units, which vest over two to four years[431]. - The total number of common units held by third parties decreased from 6,212,369 (2.2%) in 2020 to 4,389,384 (1.5%) in 2021[413]. - The total number of incentive units held by employees and directors decreased from 1,833,898 (0.6%) in 2020 to 1,542,387 (0.5%) in 2021[413].