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Sep 30, 2024

Digital Realty Q3 2024 Earnings Report

Reported third quarter results, with revenue increase and significant leasing activity.

Key Takeaways

Digital Realty reported a 5% increase in revenue from the previous quarter, reaching $1.4 billion. The company signed total bookings expected to generate $521 million in annualized GAAP rental revenue, and the backlog of signed-but-not-commenced leases increased to $859 million.

Net income available to common stockholders was $0.09 per share.

FFO per share was $1.55.

Core FFO per share was $1.67.

Rental rate increases on renewal leases were 15.2% on a cash basis.

Total Revenue
$1.43B
Previous year: $1.4B
+2.1%
EPS
$1.67
Previous year: $1.62
+3.1%
North America Occupancy
85.5%
Previous year: 84.4%
+1.3%
Europe Occupancy
77.6%
Previous year: 77%
+0.8%
APAC Occupancy
81.8%
Previous year: 77.4%
+5.7%
Gross Profit
$775M
Previous year: $723M
+7.2%
Cash and Equivalents
$2.18B
Previous year: $1.06B
+104.8%
Free Cash Flow
-$215M
Total Assets
$45.3B
Previous year: $41.9B
+8.0%

Digital Realty

Digital Realty

Digital Realty Revenue by Segment

Forward Guidance

Digital Realty raised its 2024 Core FFO per share and Constant-Currency Core FFO per share outlook to $6.65 - $6.75.

Positive Outlook

  • Total revenue outlook between $5.550 - $5.600 billion
  • Adjusted EBITDA outlook between $2.925 - $2.975 billion
  • Cash basis rental rates on renewal leases between 8.0% - 10.0%
  • Year-end portfolio occupancy increase between +150 - 200 bps
  • Long-term debt issuance of $933 million

Challenges Ahead

  • Net non-cash rent adjustments between ($25 - $30 million)
  • G&A expenses between $455 - $460 million
  • CapEx (Net of Partner Contributions) between $2,200 - $2,400 million
  • Enhancements and other non-recurring CapEx between $25 - $30 million
  • Net income per diluted share between $1.40 - $1.50