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Dec 31, 2022

Digital Realty Q4 2022 Earnings Report

Digital Realty's financial performance was marked by a net loss, but revenues increased and leasing activity remained strong.

Key Takeaways

Digital Realty reported a net loss of $6 million, or ($0.02) per diluted share. However, revenues increased 11% year-over-year to $1.2 billion, and total bookings are expected to generate $117 million of annualized GAAP rental revenue.

Reported net loss available to common stockholders of ($0.02) per share.

Reported FFO per share of $1.45.

Reported Core FFO per share of $1.65.

Signed total bookings expected to generate $117 million of annualized GAAP rental revenue.

Total Revenue
$1.23B
Previous year: $1.11B
+11.0%
EPS
$1.65
Previous year: $1.67
-1.2%
North America Occupancy
86.3%
Previous year: 85.4%
+1.1%
Europe Occupancy
78.1%
Previous year: 74.6%
+4.7%
APAC Occupancy
75.9%
Previous year: 76.2%
-0.4%
Gross Profit
$700M
Previous year: $649M
+7.8%
Cash and Equivalents
$142M
Previous year: $143M
-0.6%
Total Assets
$41.5B
Previous year: $36.4B
+14.1%

Digital Realty

Digital Realty

Forward Guidance

Digital Realty introduced its 2023 Core FFO per share outlook of $6.65-$6.75 and provided its 2023 constant-currency Core FFO per share outlook of $6.65 - $6.75.

Positive Outlook

  • Total revenue $5.700 - $5.800 billion
  • Adjusted EBITDA $2.675 - $2.725 billion
  • Cash basis Rental rates on renewal leases Greater than 3.0%
  • GAAP basis Rental rates on renewal leases Greater than 3.0%
  • Year-end portfolio occupancy 85.0% - 86.0%

Challenges Ahead

  • Net non-cash rent adjustments ($55 - $60 million)
  • G&A $425 - $435 million
  • U.S. Dollar / Pound Sterling $1.20 - $1.25
  • U.S. Dollar / Euro $1.00 - $1.05
  • CapEx $2.3 - $2.5 billion