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Mar 31, 2021

Digital Realty Q1 2021 Earnings Report

Digital Realty's financial performance was solid, driven by acceleration in digital adoption. The company delivered strong financial results and signed significant new leases.

Key Takeaways

Digital Realty reported strong first quarter 2021 results, with revenues of $1.1 billion, a 3% increase from the previous quarter and a 32% increase from the same quarter last year. Net income available to common stockholders was $372 million, or $1.32 per diluted share. The company signed total bookings expected to generate $117 million of annualized GAAP rental revenue.

Reported net income available to common stockholders of $1.32 per share in 1Q21, compared to net income available to common stockholders of $0.90 in 1Q20

Reported FFO per share of $1.49 in 1Q21, compared to $0.91 in 1Q20

Reported core FFO per share of $1.67 in 1Q21, compared to $1.53 in 1Q20

Signed total bookings during 1Q21 expected to generate $117 million of annualized GAAP rental revenue, including a $13 million contribution from interconnection

Total Revenue
$1.09B
Previous year: $823M
+32.4%
EPS
$1.67
Previous year: $1.53
+9.2%
North America Occupancy
86.4%
Europe Occupancy
76.2%
APAC Occupancy
89.3%
Gross Profit
$680M
Previous year: $516M
+31.8%
Cash and Equivalents
$221M
Previous year: $246M
-10.3%
Total Assets
$35.5B
Previous year: $33.1B
+7.3%

Digital Realty

Digital Realty

Digital Realty Revenue by Segment

Forward Guidance

Digital Realty raised its 2021 core FFO per share outlook from $6.40-$6.50 to $6.50-$6.55.

Positive Outlook

  • Total revenue $4.300 - $4.400 billion
  • Adjusted EBITDA $2.330 - $2.380 billion
  • Pricing 1.00%
  • Timing Early-to-mid 2021
  • Core Funds From Operations / share $6.50 - $6.55

Challenges Ahead

  • Net non-cash rent adjustments ($20) - ($25) million
  • G&A $380 - $390 million
  • Cash basis Slightly negative
  • GAAP basis Slightly positive
  • Non-core expenses and revenue streams $0.25 - $0.25