Digital Realty Q2 2023 Earnings Report
Key Takeaways
Digital Realty reported revenues for the second quarter of 2023 of $1.4 billion, a 2% increase from the previous quarter and a 20% increase from the same quarter last year. The company delivered second quarter of 2023 net income of $116 million, and net income available to common stockholders of $108 million, or $0.37 per diluted share.
Reported net income available to common stockholders of $0.37 per share in 2Q23, compared to $0.19 in 2Q22
Reported FFO per share of $1.52 in 2Q23, compared to $1.55 in 2Q22
Reported Core FFO per share of $1.68 in 2Q23, compared to $1.72 in 2Q22
Reported rental rate increases on renewal leases of 6.9% on a cash basis in 2Q23
Digital Realty
Digital Realty
Digital Realty Revenue by Segment
Forward Guidance
Digital Realty adjusted its 2023 Core FFO per share and constant-currency Core FFO per share outlook to $6.55 - $6.65.
Positive Outlook
- Total revenue: $5.500 - $5.600 billion
- Adjusted EBITDA: $2.675 - $2.725 billion
- G&A: $425 - $435 million
- Rental rates on renewal leases (Cash basis): Greater than 4.0%
- Rental rates on renewal leases (GAAP basis): Greater than 8.0%
Challenges Ahead
- Net income per diluted share: $1.05 - $1.15
- Funds From Operations / share (NAREIT-Defined): $6.30 - $6.40
- Non-core expenses and revenue streams: $0.25 - $0.25
- Year-end portfolio occupancy: 84.0% - 85.0%
- Long-term debt issuance: $740 million