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Mar 31, 2022

Digital Realty Q1 2022 Earnings Report

Reported record bookings and reiterated 2022 core FFO per share outlook.

Key Takeaways

Digital Realty reported first quarter revenues of $1.1 billion, a 1% increase from the previous quarter and a 3% increase from the same quarter last year. Net income was $76.9 million, or $0.22 per diluted share. The company signed total bookings expected to generate $167 million of annualized GAAP rental revenue.

Reported net income available to common stockholders of $0.22 per share in 1Q22, compared to $1.32 in 1Q21

Reported FFO per share of $1.60 in 1Q22, compared to $1.50 in 1Q21

Reported core FFO per share of $1.67 in 1Q22, compared to $1.67 in 1Q21

Signed total bookings during 1Q22 expected to generate $167 million of annualized GAAP rental revenue, including an $11 million contribution from interconnection

Total Revenue
$1.13B
Previous year: $1.09B
+3.4%
EPS
$1.67
Previous year: $1.67
+0.0%
North America Occupancy
84.5%
Previous year: 86.4%
-2.2%
Europe Occupancy
76%
Previous year: 76.2%
-0.3%
APAC Occupancy
81.9%
Previous year: 89.3%
-8.3%
Gross Profit
$645M
Previous year: $680M
-5.1%
Cash and Equivalents
$158M
Previous year: $221M
-28.6%
Total Assets
$36.7B
Previous year: $35.5B
+3.2%

Digital Realty

Digital Realty

Digital Realty Revenue by Segment

Forward Guidance

Digital Realty reiterated its 2022 core FFO per share outlook of $6.80-$6.90.

Positive Outlook

  • Total revenue: $4.700 - $4.800 billion
  • Adjusted EBITDA: $2.475 - $2.525 billion
  • G&A: $410 - $420 million
  • Year-end portfolio occupancy: 83.0% - 84.0%
  • Same-capital cash NOI growth: (2.5% - 3.5%)

Challenges Ahead

  • Net non-cash rent adjustments: ($45 - $50 million)
  • U.S. Dollar / Pound Sterling: $1.25 - $1.35
  • U.S. Dollar / Euro: $1.05 - $1.10
  • Dollar volume of Dispositions: $0.5 - $1.0 billion
  • Cap rate of Dispositions: 0.0% - 10.0%