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Sep 30, 2021

Digital Realty Q3 2021 Earnings Report

Reported strong third-quarter results, underpinned by global platform, broad product spectrum, and significant scale.

Key Takeaways

Digital Realty reported third-quarter revenues of $1.1 billion, a 4% increase from the previous quarter and an 11% increase from the same quarter last year. Net income was $137 million, and net income available to common stockholders was $124 million, or $0.44 per diluted share. Adjusted EBITDA was $610 million, and core FFO per share was $1.65.

Reported net income available to common stockholders of $0.44 per share in 3Q21, compared to a net loss available to common stockholders of ($0.14) in 3Q20

Reported FFO per share of $1.54 in 3Q21, compared to $1.19 in 3Q20

Reported core FFO per share of $1.65 in 3Q21, compared to $1.54 in 3Q20

Signed total bookings during 3Q21 expected to generate $113 million of annualized GAAP rental revenue, including a $12 million contribution from interconnection

Total Revenue
$1.13B
Previous year: $1.03B
+10.5%
EPS
$1.65
Previous year: $1.54
+7.1%
North America Occupancy
86%
Previous year: 86.8%
-0.9%
Europe Occupancy
76.1%
Previous year: 77.6%
-1.9%
APAC Occupancy
86.6%
Previous year: 89.2%
-2.9%
Gross Profit
$671M
Previous year: $626M
+7.1%
Cash and Equivalents
$116M
Previous year: $971M
-88.1%
Total Assets
$35.8B
Previous year: $35.4B
+1.2%

Digital Realty

Digital Realty

Digital Realty Revenue by Segment

Forward Guidance

Digital Realty raised its 2021 core FFO per share outlook from $6.45-$6.50 to $6.50-$6.55.

Positive Outlook

  • Total revenue $4.400 - $4.425 billion
  • Net non-cash rent adjustments ($20) - ($25) million
  • Adjusted EBITDA $2.400 - $2.425 billion
  • G&A $380 - $390 million
  • Net income per diluted share $2.45 - $2.50

Challenges Ahead

  • Rental rates on renewal leases Cash basis Slightly negative
  • Rental rates on renewal leases GAAP basis Slightly positive
  • Year-end portfolio occupancy 84.0% - 85.0%
  • "Same-capital" cash NOI growth (2.5%) - (3.5%)
  • Long-term debt issuance Dollar amount $1.8 - $2.0 billion