Digital Realty Reports Fourth Quarter 2024 Results

Core Insights - Digital Realty reported a revenue of $1.4 billion for Q4 2024, reflecting a 5% increase year-over-year and a slight increase from the previous quarter [2] - The company achieved a net income of $186 million in Q4 2024, translating to $0.51 per share, a significant rise from $0.03 per share in Q4 2023 [2][10] - Adjusted EBITDA for the quarter was $751 million, showing a 7% increase compared to the same quarter last year [3] Financial Results - Revenues for Q4 2024 were $1.4 billion, up 5% from Q4 2023 [2] - Net income available to common stockholders was $179 million, or $0.51 per share, compared to $0.03 per share in Q4 2023 [2][10] - Adjusted EBITDA was reported at $751 million, a 7% increase year-over-year [3] - Funds From Operations (FFO) for Q4 2024 were $545 million, or $1.61 per share, compared to $1.53 per share in Q4 2023 [3][10] - Core FFO per share was $1.73, up from $1.63 in the same quarter last year [4][10] Leasing Activity - Total bookings in Q4 2024 are expected to generate $100 million in annualized GAAP rental revenue, with significant contributions from the 0-1 megawatt category [6] - The backlog of signed-but-not-commenced leases at the end of Q4 2024 was $797 million in annualized GAAP base rent [7][10] - Renewal leases signed during the quarter represented $250 million in annualized cash rental revenue, with rental rates increasing by 4.7% on a cash basis [8][10] Investment Activity - Digital Realty acquired a 6.7-acre parcel in Richardson, Texas, for approximately $15 million, supporting up to 100 megawatts of IT capacity [12] - The company sold a 15.1% interest in a data center in Frankfurt, Germany, for approximately $74 million [12] - A joint venture with Blackstone Inc. for a $7 billion hyperscale data center development was advanced, focusing on campuses in Frankfurt and Northern Virginia [13] Balance Sheet - As of December 31, 2024, Digital Realty had approximately $16.7 billion in total debt, with a net debt-to-Adjusted EBITDA ratio of 4.8x [14] - The company issued €850 million of 3.875% notes due 2035, with net proceeds of approximately €841 million [14] 2025 Outlook - Digital Realty provided a 2025 Constant-Currency Core FFO per share outlook of $7.05 - $7.15 [15] - Total revenue is projected to be between $5.800 billion and $5.900 billion [16] - The company anticipates rental rate increases on renewal leases of 4.0% - 6.0% on a cash basis [16]