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Sep 30, 2022

Digital Realty Q3 2022 Earnings Report

Reported record quarterly bookings, completed acquisition of Teraco, and updated 2022 Core FFO outlook.

Key Takeaways

Digital Realty reported strong Q3 2022 results, with revenues of $1.2 billion and net income of $239 million. The company also signed record quarterly bookings and completed its acquisition of Teraco.

Reported net income available to common stockholders of $0.75 per share in 3Q22, compared to $0.44 in 3Q21

Reported FFO per share of $1.55 in 3Q22, compared to $1.54 in 3Q21

Reported Core FFO per share of $1.67 in 3Q22, compared to $1.65 in 3Q21

Signed total bookings during 3Q22 expected to generate $176 million of annualized GAAP rental revenue, including a $13 million contribution from interconnection, excluding Teraco

Total Revenue
$1.19B
Previous year: $1.13B
+5.2%
EPS
$1.67
Previous year: $1.65
+1.2%
North America Occupancy
85.5%
Previous year: 86%
-0.6%
Europe Occupancy
78.4%
Previous year: 76.1%
+3.0%
APAC Occupancy
79.2%
Previous year: 86.6%
-8.5%
Gross Profit
$674M
Previous year: $671M
+0.5%
Cash and Equivalents
$177M
Previous year: $116M
+52.6%
Total Assets
$39.2B
Previous year: $35.8B
+9.4%

Digital Realty

Digital Realty

Digital Realty Revenue by Segment

Forward Guidance

Digital Realty updated its 2022 Core FFO per share outlook of $6.70-$6.75 and updated its 2022 constant-currency Core FFO per share outlook of $6.95 - $7.00.

Positive Outlook

  • Total revenue $4.650 - $4.700 billion
  • Net non-cash rent adjustments ($55 - $60 million)
  • Adjusted EBITDA $2.450 - $2.475 billion
  • G&A $395 - $400 million
  • GAAP basis rental rates on renewal leases up low-single-digits

Challenges Ahead

  • U.S. Dollar / Pound Sterling $1.10 - $1.15
  • U.S. Dollar / Euro $0.95 - $1.00
  • CapEx $2.1 - $2.3 billion
  • Net income per diluted share $1.45 - $1.50
  • Funds From Operations / share (NAREIT-Defined) $6.30 - $6.35