Digital Realty Trust(US:DLR) ZACKSยท2024-10-25 18:25Core Insights - Digital Realty Trust (DLR) reported third-quarter 2024 core funds from operations (FFO) per share of $1.67, matching the Zacks Consensus Estimate and showing an increase from $1.62 per share a year ago [1] - The company experienced healthy leasing activity, with over $520 million in new leasing, more than double the previous record set in the first quarter, leading to a backlog increase of nearly 60% [2] - Operating revenues for the quarter were $1.43 billion, slightly below the Zacks Consensus Estimate of $1.44 billion, but up 2.1% year over year [1][3] Leasing and Revenue Details - Total signed bookings in the third quarter are estimated to generate $521 million of annualized GAAP rental revenue, with significant contributions from the 0-1 megawatt category and interconnection [2] - Renewal leases signed during the quarter accounted for $258 million of annualized cash rental revenues, with rental rates on renewal leases increasing by 15.2% on a cash basis and 27.5% on a GAAP basis [3] Financial Performance - Adjusted EBITDA for the quarter was $758.3 million, reflecting a 10.5% year-over-year increase [3] - Rental property operating expenses rose by 12% to $249.8 million, while interest expenses increased by 11.8% to $123.8 million [3] Balance Sheet Overview - As of September 30, 2024, Digital Realty had cash and cash equivalents of $2.18 billion, down from $2.28 billion at the end of the second quarter [4] - The company reported total debt of $17 billion, with a net debt-to-adjusted EBITDA ratio of 5.4X and a fixed charge coverage ratio of 4.1X [4] 2024 Guidance - Digital Realty raised its guidance for 2024 core FFO per share to a range of $6.65-$6.75, while lowering total revenue expectations to $5.55-$5.60 billion [5]