Digital Realty Q4 2024 Earnings Report

Digital Realty reported strong revenue growth and record leasing activity in Q4 2024.

Key Takeaways

Digital Realty achieved a 5.00% year-over-year revenue increase in Q4 2024, driven by record leasing activity in the 0–1 MW plus interconnection segment. Net income saw an 835.67% surge, reflecting strong demand and operational improvements. The company introduced a 2025 Core FFO per share guidance of $7.05 - $7.15.

Revenue increased by 5.00% year-over-year to $1.44 billion.

Net income surged by 835.67% year-over-year to $186 million.

Record leasing activity in the 0–1 MW plus interconnection segment, adding 166 new customers.

2025 Core FFO per share guidance set at $7.05 - $7.15.

Total Revenue

$1.44B

Previous year: $1.37B

+4.8%

EPS

$1.73

Previous year: $1.63

+6.1%

North America Occupancy

0.95%

Previous year: 83.8%

-98.9%

Europe Occupancy

0.95%

Previous year: 75.8%

-98.7%

APAC Occupancy

0.93%

Previous year: 76.7%

-98.8%

Cash and Equivalents

$3.87B

Previous year: $1.63B

+138.1%

Digital Realty Revenue

Digital Realty EPS

Digital Realty Revenue by Segment

Digital Realty Revenue by Geographic Location

Forward Guidance

Digital Realty expects strong revenue growth and stable occupancy rates in 2025, with a focus on expanding its hyperscale and interconnection services.

Positive Outlook

2025 Core FFO per share expected at $7.05 - $7.15.
Revenue guidance set between $5.80 billion - $5.90 billion.
Rental rates on renewal leases expected to increase by 4.0% - 6.0% (cash basis).
Continued expansion in the hyperscale and interconnection segments.
Stable occupancy rates projected across global data centers.

Challenges Ahead

Expected Adjusted EBITDA decline due to increased costs.
Potential impact from foreign exchange fluctuations.
Higher interest rates may increase financing costs.
Increased development and expansion costs may pressure margins.
Competitive pressures in the data center market could affect pricing.