Digital Realty Q2 2021 Earnings Report
Key Takeaways
Digital Realty reported second quarter 2021 results with revenues of $1.1 billion, net income of $126 million, and net income available to common stockholders of $127 million, or $0.45 per diluted share. The company signed total bookings expected to generate $113 million of annualized GAAP rental revenue.
Reported net income available to common stockholders of $0.45 per share in 2Q21, compared to net income available to common stockholders of $0.20 in 2Q20
Reported FFO per share of $1.78 in 2Q21, compared to $1.49 in 2Q20
Reported core FFO per share of $1.54 in 2Q21 – including a $0.12 non-cash charge to reflect the higher corporate tax rate in the UK – compared to $1.54 in 2Q20
Signed total bookings during 2Q21 expected to generate $113 million of annualized GAAP rental revenue, including a $13 million contribution from interconnection
Digital Realty
Digital Realty
Digital Realty Revenue by Segment
Forward Guidance
Digital Realty revised its 2021 core FFO per share outlook from $6.50-$6.55 to $6.45-$6.50, including a $0.12 non-cash charge related to the higher corporate tax rate in the UK.
Positive Outlook
- Total revenue $4.325 - $4.425 billion
- Adjusted EBITDA $2.350 - $2.400 billion
- Slightly positive GAAP basis rental rates on renewal leases
- Year-end portfolio occupancy 84.0% - 85.0%
- Long-term debt issuance $1.8 - $2.0 billion
Challenges Ahead
- Net non-cash rent adjustments ($20) - ($25) million
- G&A $380 - $390 million
- Slightly negative Cash basis rental rates on renewal leases
- Same-capital cash NOI growth (2.5%) - (3.5%)
- Recurring CapEx + capitalized leasing costs $210 - $220 million