Digital Realty Q4 2023 Earnings Report
Key Takeaways
Digital Realty reported Q4 2023 results with revenues of $1.4 billion, an 11% increase year-over-year. Net income was $20 million, a significant decrease from the previous quarter. The company signed total bookings expected to generate $110 million in annualized GAAP rental revenue and introduced a 2024 Core FFO per share outlook of $6.60 - $6.75.
Reported net income available to common stockholders of $0.08 per share in 4Q23, compared to ($0.02) in 4Q22
Reported FFO per share of $1.53 in 4Q23, compared to $1.45 in 4Q22
Reported Core FFO per share of $1.63 in 4Q23, compared to $1.65 in 4Q22
Signed total bookings during 4Q23 that are expected to generate $110 million of annualized GAAP rental revenue
Digital Realty
Digital Realty
Digital Realty Revenue by Segment
Forward Guidance
Digital Realty introduced its 2024 Core FFO per share and Constant-Currency Core FFO per share outlook of $6.60 - $6.75.
Positive Outlook
- Total revenue: $5.550 - $5.650 billion
- Adjusted EBITDA: $2.800 - $2.900 billion
- Cash basis rental rates on renewal leases: 4.0% - 6.0%
- GAAP basis rental rates on renewal leases: 6.0% - 8.0%
- Year-end portfolio occupancy: +100 - 200 bps
Challenges Ahead
- Net non-cash rent adjustments: ($35 - $40 million)
- G&A: $450 - $460 million
- Same-Capital cash NOI growth: 2.0% - 3.0%
- U.S. Dollar / Pound Sterling: $1.25 - $1.30
- U.S. Dollar / Euro: $1.05 - $1.10