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Digital Realty Trust's Mixed Q4 Results
DLRDigital Realty Trust(DLR) The Motley Fool·2025-02-14 13:45

Core Insights - Digital Realty Trust exceeded earnings expectations in Q4 2024, with strong operational performance reflected in its funds from operations (FFO) reaching 1.61pershare,butrevenuefellshortat1.61 per share, but revenue fell short at 1.44 billion compared to the projected 1.46billion[2][6].FinancialPerformance−Earningspershare(EPS)forQ42024was1.46 billion [2][6]. Financial Performance - Earnings per share (EPS) for Q4 2024 was 0.51, significantly higher than the estimated 0.27andup16000.27 and up 1600% from 0.03 in Q4 2023 [3]. - Revenue for Q4 2024 was 1.44billion,slightlybelowtheestimateof1.44 billion, slightly below the estimate of 1.46 billion, but up 4.8% from 1.37billioninQ42023[3].−Fundsfromoperations(FFO)pershareincreasedby5.21.37 billion in Q4 2023 [3]. - Funds from operations (FFO) per share increased by 5.2% year-over-year to 1.61, while core FFO per share rose 6.1% to 1.73[3][7].OperationalHighlights−Thecompanyoperates308datacentersglobally,supportingvarioussectorsandcriticaltocloudservicesandIToutsourcing[4].−DigitalRealtyTrusthasfocusedonexpandingitsglobalfootprintandmaintaininghighoccupancylevelsthroughstrategicinvestments[5].−SignificantleasingactivitieswereexecutedacrosstheAmericas,EMEA,andAsiaPacificregions,contributingtostrongcashflows[7].FutureOutlook−Fortheupcomingyear,DigitalRealtyTrustforecastsaconstant−currencycoreFFOpersharebetween1.73 [3][7]. Operational Highlights - The company operates 308 data centers globally, supporting various sectors and critical to cloud services and IT outsourcing [4]. - Digital Realty Trust has focused on expanding its global footprint and maintaining high occupancy levels through strategic investments [5]. - Significant leasing activities were executed across the Americas, EMEA, and Asia Pacific regions, contributing to strong cash flows [7]. Future Outlook - For the upcoming year, Digital Realty Trust forecasts a constant-currency core FFO per share between 7.05 and $7.15, indicating a bullish outlook on growth through strategic investments [9]. - The company anticipates ongoing expansion and initiatives to enhance its data center capabilities, despite facing increased costs from construction and sustainability measures [8][9].