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Jun 30, 2024

Digital Realty Q2 2024 Earnings Report

Second quarter results for 2024 were announced, showcasing revenue and strategic financial maneuvers.

Key Takeaways

Digital Realty reported Q2 2024 results, including revenues of $1.4 billion, a net income of $75 million, and signed bookings expected to generate $164 million in annualized GAAP rental revenue. The company maintained its 2024 Core FFO per share outlook of $6.60 - $6.75.

Net income available to common stockholders was $0.20 per share.

FFO per share was $1.57.

Core FFO per share was $1.65.

Rental rate increases on renewal leases were 4.0% on a cash basis.

Total Revenue
$1.36B
Previous year: $1.37B
-0.7%
EPS
$1.65
Previous year: $1.68
-1.8%
Net Debt to EBITDA
5.3
Previous year: 6.8
-22.1%
Gross Profit
$324M
Previous year: $720M
-55.0%
Cash and Equivalents
$2.28B
Previous year: $125M
+1732.7%
Total Assets
$43.6B
Previous year: $42.4B
+2.9%

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
  • Net non-cash rent adjustments: ($35 - $40 million)
  • Adjusted EBITDA: $2.800 - $2.900 billion
  • G&A: $450 - $460 million
  • Cash basis Rental rates on renewal leases: 5.0% - 7.0%

Challenges Ahead

  • Net income per diluted share: $1.40 - $1.55
  • Real estate depreciation and (gain) / loss on sale: $4.75 - $4.75
  • Funds From Operations / share (NAREIT-Defined): $6.15 - $6.30
  • Non-core expenses and revenue streams: $0.45 - $0.45
  • Foreign currency translation adjustments: $0.00 - $0.00