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Dec 31, 2020

Digital Realty Q4 2020 Earnings Report

Digital Realty's fourth quarter 2020 results were announced, marked by revenue growth and strategic acquisitions.

Key Takeaways

Digital Realty reported Q4 2020 revenues of $1.1 billion, a 35% increase year-over-year. Net income was $60 million, with net income available to common stockholders at $44 million, or $0.16 per diluted share. The company signed bookings expected to generate $130 million in annualized GAAP rental revenue, including $12 million from interconnection.

Reported net income available to common stockholders of $0.16 per share in 4Q20, compared to $1.50 in 4Q19

Reported FFO per share of $1.45 in 4Q20, compared to $1.62 in 4Q19

Reported core FFO per share of $1.61 in 4Q20, compared to $1.62 in 4Q19

Signed total bookings during 4Q20 expected to generate $130 million of annualized GAAP rental revenue, including a $12 million contribution from interconnection

Total Revenue
$1.06B
Previous year: $787M
+35.0%
EPS
$1.61
Previous year: $1.62
-0.6%
North America Occupancy
87%
Previous year: 85.9%
+1.3%
Europe Occupancy
78.7%
Previous year: 82.6%
-4.7%
APAC Occupancy
89%
Previous year: 80.8%
+10.1%
Gross Profit
$646M
Previous year: $491M
+31.6%
Cash and Equivalents
$109M
Previous year: $89.8M
+20.8%
Total Assets
$36.1B
Previous year: $23.1B
+56.4%

Digital Realty

Digital Realty

Digital Realty Revenue by Segment

Forward Guidance

Digital Realty introduced its 2021 core FFO per share outlook of $6.40-$6.50.

Positive Outlook

  • Total revenue: $4.250 - $4.350 billion
  • Adjusted EBITDA: $2.300 - $2.350 billion
  • Year-end portfolio occupancy: 84.0% - 85.0%
  • U.S. Dollar / Pound Sterling: $1.25 - $1.30
  • U.S. Dollar / Euro: $1.15 - $1.20

Challenges Ahead

  • Net non-cash rent adjustments: ($10) - ($15) million
  • G&A: $365 - $375 million
  • Rental rates on renewal leases (Cash basis): Slightly negative
  • Same-capital cash NOI growth: (2.5%) - (3.5%)
  • Dispositions cap rate: 0.0% - 12.0%