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Sep 30, 2023

Digital Realty Q3 2023 Earnings Report

Reported strong and broad-based demand across product spectrum and record leasing in the 0-1 megawatt plus interconnection category.

Key Takeaways

Digital Realty reported third quarter 2023 results with revenues of $1.4 billion, a 3% increase from the previous quarter and an 18% increase from the same quarter last year. Net income was $746 million, or $2.33 per diluted share. Total bookings are expected to generate $152 million of annualized GAAP rental revenue.

Reported net income available to common stockholders of $2.33 per share in 3Q23, compared to $0.75 in 3Q22

Reported FFO per share of $1.55 in 3Q23, compared to $1.55 in 3Q22

Reported Core FFO per share of $1.62 in 3Q23, compared to $1.67 in 3Q22

Reported “Same-Capital” cash NOI growth of 9.4% in 3Q23

Total Revenue
$1.4B
Previous year: $1.19B
+17.7%
EPS
$1.62
Previous year: $1.67
-3.0%
North America Occupancy
84.4%
Previous year: 85.5%
-1.3%
Europe Occupancy
77%
Previous year: 78.4%
-1.8%
APAC Occupancy
77.4%
Previous year: 79.2%
-2.3%
Gross Profit
$723M
Previous year: $674M
+7.1%
Cash and Equivalents
$1.06B
Previous year: $177M
+500.1%
Total Assets
$41.9B
Previous year: $39.2B
+6.9%

Digital Realty

Digital Realty

Digital Realty Revenue by Segment

Forward Guidance

Digital Realty narrowed its 2023 Core FFO per share and constant-currency Core FFO per share outlook to $6.58 - $6.62.

Positive Outlook

  • Total revenue $5.475 - $5.525 billion
  • Adjusted EBITDA $2.685 - $2.715 billion
  • G&A $425 - $435 million
  • Cash basis Greater than 5.0%
  • GAAP basis Greater than 9.0%

Challenges Ahead

  • Net non-cash rent adjustments ($55 - $60 million)
  • Year-end portfolio occupancy 83.0% - 84.0%
  • U.S. Dollar / Pound Sterling $1.20 - $1.25
  • U.S. Dollar / Euro $1.05 - $1.10
  • Long-term debt issuance $740 million