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Mar 31, 2024

Digital Realty Q1 2024 Earnings Report

Reported first quarter 2024 results, showing strong demand and a new leasing record driven by large footprint deals.

Key Takeaways

Digital Realty reported a revenue of $1.3 billion, net income of $288 million, and net income available to common stockholders of $271 million, or $0.82 per diluted share. The company signed total bookings expected to generate $252 million of annualized GAAP rental revenue and maintained its 2024 Core FFO per share outlook of $6.60 - $6.75.

Reported net income available to common stockholders of $0.82 per share in 1Q24, compared to $0.20 in 1Q23

Reported FFO per share of $1.41 in 1Q24, compared to $1.60 in 1Q23

Reported Core FFO per share of $1.67 in 1Q24, compared to $1.66 in 1Q23

Reported rental rate increases on renewal leases of 11.8% on a cash basis in 1Q24

Total Revenue
$1.33B
Previous year: $1.34B
-0.6%
EPS
$1.67
Previous year: $1.66
+0.6%
North America Occupancy
84.4%
Previous year: 86%
-1.9%
Europe Occupancy
76.4%
APAC Occupancy
77%
Gross Profit
$307M
Previous year: $727M
-57.7%
Cash and Equivalents
$1.19B
Previous year: $131M
+808.5%
Total Assets
$42.6B
Previous year: $42B
+1.6%

Digital Realty

Digital Realty

Digital Realty Revenue by Segment

Forward Guidance

Digital Realty maintained its 2024 Core FFO per share and Constant-Currency Core FFO per share outlook of $6.60 - $6.75.

Positive Outlook

  • Total revenue: $5.550 - $5.650 billion
  • Adjusted EBITDA: $2.800 - $2.900 billion
  • Cash basis rental rates on renewal leases: 5.0% - 7.0%
  • GAAP basis rental rates on renewal leases: 7.0% - 9.0%
  • Same-Capital cash NOI growth: 2.5% - 3.5%

Challenges Ahead

  • Net non-cash rent adjustments: ($35 - $40 million)
  • G&A: $450 - $460 million
  • Long-term debt issuance: $0 - $1,000 million
  • Net income per diluted share: $1.80 - $1.95
  • Funds From Operations / share (NAREIT-Defined): $6.20 - $6.35