EX-99.12dlr-20250424xex99d1.htmEX-99.1
Table of Contents
Exhibit 99.1
Table of Contents
Financial Supplement
Table of Contents
First Quarter 2025
Overview
PAGE
Corporate Information
3
Key Quarterly Financial Data
5
Consolidated Statements of Operations
Earnings Release
7
2025 Outlook
10
Consolidated Quarterly Statements of Operations
12
Funds From Operations and Core Funds From Operations
13
Adjusted Funds From Operations
14
Balance Sheet Information
Consolidated Balance Sheets
15
Components of Net Asset Value
16
Debt Maturities
17
Debt Analysis and Covenant Compliance
18
Internal Growth
Same-Capital Operating Trend Summary
19
Summary of Leasing Activity - Signed
20
Summary of Leasing Activity - Renewed
21
Lease Expirations - By Size
22
Top 20 Customers by Annualized Rent
23
Occupancy Analysis
24
External Growth
Development Lifecycle
25
Construction Projects in Progress
26
Historical Capital Expenditures and Investments in Real Estate
27
Acquisitions / Dispositions / Joint Ventures
28
Unconsolidated Joint Ventures
29
Additional Information
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios
30
Management Statements on Non-GAAP Measures
31
Forward-Looking Statements
33
Table of Contents
Financial Supplement
Corporate Information
First Quarter 2025
Corporate Profile
Digital Realty Trust, Inc. (“Digital Realty” or the “company”) owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. (the “operating partnership”). The company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. As of March 31, 2025, the company’s 308 data centers, including 78 data centers held as investments in unconsolidated joint ventures, contain applications and operations critical to the day-to-day operations of technology industry and corporate enterprise data center customers.
Digital Realty’s portfolio is comprised of approximately 41.8 million square feet, excluding approximately 9.5 million square feet of space under active development and 5.1 million square feet of space held for future development, located throughout North America, Europe, South America, Asia, Australia, and Africa. For additional information, please visit the company’s website at digitalrealty.com.
Corporate Headquarters
2323 Bryan Street, Suite 1800
Dallas, TX 75201
Telephone: (214) 231-1350
Website: digitalrealty.com
Senior Management
President & Chief Executive Officer: Andrew P. Power
Chief Financial Officer: Matthew R. Mercier
Chief Investment Officer: Gregory S. Wright
Chief Technology Officer: Christopher L. Sharp
Chief Revenue Officer: Colin M. McLean
Investor Relations
To request more information or to be added to our e-mail distribution list, please visit the Investor Relations section of our website at https://investor.digitalrealty.com.
Analyst Coverage
BMO
Bank of America
BMO Capital
BNP Paribas
Argus Research
Merrill Lynch
Barclays
Markets
Exane
Citigroup
Deutsche Bank
Marie Ferguson
Alexander Waters
Brendan Lynch
Ari Klein
Nate Crossett
Michael Rollins
Matthew Niknam
(212) 425-7500
(646) 855-0684
(212) 526-9428
(212) 885-4103
(646) 725-3716
(212) 816-1116
(212) 250-4711
Evercore ISI
Goldman Sachs
Green Street Advisors
HSBC
Jefferies
JMP Securities
J.P. Morgan
Irvin Liu
Jim Schneider
David Guarino
Phani Kanumuri
Jonathan Petersen
Greg Miller
Richard Choe
(415) 800-0183
(212) 357-2929
(949) 640-8780
+52 (551) 782-7350
(212) 284-1705
(212) 906-3500
(212) 662-6708
KeyBanc
Mizuho Group
MoffettNathanson
Morningstar
Raymond James
RBC Capital Markets
Scotiabank
Brandon Nispel
Vikram Malhotra
Nick Del Deo
Samuel Siampaus
Frank Louthan
Jonathan Atkin
Maher Yaghi
(503) 821-3871
(212) 282-3827
(212) 519-0025
(312) 244-7966
(404) 442-5867
(415) 633-8589
(437) 995-5548
Stifel
TD Cowen
Truist Securities
UBS
Wells Fargo
Wolfe Research
Erik Rasmussen
Michael Elias
Anthony Hau
John Hodulik
Eric Luebchow
Andrew Rosivach
(212) 271-3461
(646) 562-1358
(212) 303-4176
(212) 713-4226
(312) 630-2386
(646) 582-9250
This Earnings Press Release and Supplemental Information package supplements the information provided in our quarterly and annual reports filed with the U.S. Securities and Exchange Commission. Additional information about Digital Realty and our business is also available on our website at digitalrealty.com.
Upcoming Conference Schedule
May 5-7, 2025
Wells Fargo Real Estate Securities
Charleston, SC
May 13, 2025
BMO North America Real Estate
New York, NY
June 3-4, 2025
NAREIT REITweek
New York, NY
June 10, 2025
Mizuho Technology Conference
New York, NY
Webcasts for these events are available through the Digital Realty Investor Relations website when possible. Please check our website for additional information.
3
Table of Contents
Financial Supplement
Corporate Information (Continued)
First Quarter 2025
Stock Listing Information
The stock of Digital Realty Trust, Inc. is traded primarily on the New York Stock Exchange under the following symbols:
Common Stock:
DLR
Series J Preferred Stock:
DLRPRJ
Series K Preferred Stock:
DLRPRK
Series L Preferred Stock:
DLRPRL
Symbols may vary by stock quote provider.
Credit Ratings
Standard & Poor’s
Corporate Credit Rating:
BBB
(Stable Outlook)
Preferred Stock:
BB+
Moody’s
Issuer Rating:
Baa2
(Stable Outlook)
Preferred Stock:
Baa3
Fitch
Issuer Default Rating:
BBB
(Stable Outlook)
Preferred Stock:
BB+
These credit ratings may not reflect the potential impact of risks relating to the structure or trading of the company’s securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, hold or sell any security, and may be revised or withdrawn at any time by the issuing rating agency at its sole discretion. The company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency’s rating should be evaluated independently of any other agency’s rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies.
Common Stock Price Performance
The following summarizes recent activity of Digital Realty’s common stock (DLR):
Three Months Ended
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
High price
$187.74
$198.00
$165.17
$153.25
$154.18
Low price
$139.27
$155.16
$141.00
$135.54
$130.00
Closing price, end of quarter
$143.29
$177.33
$161.83
$152.05
$144.04
Average daily trading volume (1)
2,529
1,911
1,615
1,863
2,108
Indicated dividend per common share (2)
$4.88
$4.88
$4.88
$4.88
$4.88
Closing annual dividend yield, end of quarter
3.4%
2.8%
3.0%
3.2%
3.4%
Shares and units outstanding, end of quarter (1) (3)
343,092
342,772
337,744
332,346
319,009
Closing market value of shares and units outstanding (4)
$49,161,653
$60,783,759
$54,657,112
$50,533,209
$45,950,001
(1)
Shares or shares and units in thousands.
(2)
On an annualized basis.
(3)
As of March 31, 2025, the total number of shares and units includes 336,743 shares of common stock, 4,049 common units held by third parties and 2,300 common units and vested and unvested long-term incentive units held by directors, officers and others and excludes all shares of common stock potentially issuable upon conversion of our series J, series K and series L cumulative redeemable preferred stock upon certain change of control transactions.
(4)
Dollars in thousands as of the end of the quarter.
This Earnings Press Release and Supplemental Information package supplements the information provided in our quarterly and annual reports filed with the U.S. Securities and Exchange Commission. Additional information about us and our data centers is also available on our website at digitalrealty.com.
4
Table of Contents
Key Quarterly Financial Data
Financial Supplement
Unaudited, Dollars (except per share data) and Square Feet in Thousands
First Quarter 2025
Shares and Units at End of Quarter
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Common shares outstanding
336,743
336,637
331,347
325,885
312,421
Common partnership units outstanding
6,349
6,135
6,397
6,461
6,588
Total Shares and Units
343,092
342,772
337,744
332,346
319,009
Enterprise Value
Market value of common equity (1)
$49,161,653
$60,783,759
$54,657,112
$50,533,209
$45,950,001
Liquidation value of preferred equity
755,000
755,000
755,000
755,000
755,000
Total debt at balance sheet carrying value
17,016,279
16,714,377
16,986,546
16,339,746
17,020,340
Total Enterprise Value
$66,932,932
$78,253,136
$72,398,658
$67,627,955
$63,725,341
Total debt / total enterprise value
25.4%
21.4%
23.5%
24.2%
26.7%
Debt-plus-preferred-to-total-enterprise-value
26.6%
22.3%
24.5%
25.3%
27.9%
Selected Balance Sheet Data
Investments in real estate (before depreciation)
$35,693,166
$35,401,912
$36,463,664
$34,573,283
$34,099,698
Total Assets
45,080,562
45,283,616
45,295,392
43,606,883
42,633,089
Total Liabilities
21,902,406
22,107,836
22,118,781
21,199,178
21,792,866
Selected Operating Data
Total operating revenues
$1,407,637
$1,435,862
$1,431,214
$1,356,749
$1,331,143
Total operating expenses
1,211,887
1,291,540
1,262,928
1,346,860
1,181,776
Net income
106,395
185,688
40,134
74,668
287,837
Net income / (loss) available to common stockholders
99,793
179,388
41,012
70,039
271,327
Financial Ratios
EBITDA (2)
$658,400
$746,578
$639,875
$625,130
$835,446
Adjusted EBITDA (3)
791,156
751,276
758,296
726,874
710,556
Net Debt-to-Adjusted EBITDA (4)
5.1x
4.8x
5.4x
5.3x
6.1x
Interest expense
98,464
104,742
123,803
114,756
109,535
Fixed charges (5)
138,739
149,364
162,296
152,529
148,239
Interest coverage ratio (6)
5.3x
4.5x
4.3x
4.3x
4.3x
Fixed charge coverage ratio (7)
4.9x
4.2x
4.1x
4.1x
4.0x
Profitability Measures
Net income / (loss) per common share - basic
$0.30
$0.54
$0.13
$0.22
$0.87
Net income / (loss) per common share - diluted
$0.27
$0.51
$0.09
$0.20
$0.82
Funds from operations (FFO) / diluted share and unit (8)
$1.67
$1.61
$1.55
$1.57
$1.41
Core funds from operations (Core FFO) / diluted share and unit (8)
$1.77
$1.73
$1.67
$1.65
$1.67
Adjusted funds from operations (AFFO) / diluted share and unit (9)
$1.78
$1.36
$1.52
$1.56
$1.68
Dividends per share and common unit
$1.22
$1.22
$1.22
$1.22
$1.22
Diluted FFO payout ratio (8) (10)
73.2%
75.6%
78.8%
77.9%
86.5%
Diluted Core FFO payout ratio (8) (11)
68.8%
70.7%
73.2%
73.9%
73.2%
Diluted AFFO payout ratio (9) (12)
68.6%
89.5%
80.4%
78.1%
72.8%
Portfolio Statistics
Buildings (13)
328
328
331
323
323
Data Centers (13)
308
308
312
310
309
Cross-connects (13) (14)
228,000
227,000
225,000
223,000
221,500
Net rentable square feet, excluding development space (13)
41,778
41,326
41,092
41,220
39,839
Occupancy at end of quarter (15)
84.0%
84.1%
83.9%
82.9%
82.1%
Occupied square footage (13)
35,100
34,741
34,479
34,160
32,727
Space under active development (16)
9,463
8,904
9,126
8,507
8,238
Space held for development (17)
5,062
4,686
4,862
5,130
4,141
Weighted average remaining lease term (years) (18)
4.9
4.8
4.8
4.7
4.5
Same-capital occupancy at end of quarter (15) (19)
82.7%
82.9%
83.0%
83.5%
82.4%
5
Table of Contents
Key Quarterly Financial Data
Financial Supplement
Unaudited, Dollars (except per share data) and Square Feet in Thousands
First Quarter 2025
(1)
The market value of common equity is based on the closing stock price at the end of the quarter and assumes 100% redemption of the limited partnership units in our operating partnership, including common units and vested and unvested long-term incentive units, for shares of our common stock on a one-for-one basis. Excludes shares of common stock potentially issuable upon conversion of our series J, series K and series L cumulative redeemable preferred stock upon certain change of control transactions, as applicable.
(2)
EBITDA is calculated as earnings before interest expense, loss on debt extinguishment and modifications, tax expense, and depreciation and amortization. For a discussion of EBITDA, see page 31. For a reconciliation of net income available to common stockholders to EBITDA, see page 30.
(3)
Adjusted EBITDA is EBITDA excluding (i) unconsolidated joint venture real estate related depreciation & amortization, (ii) unconsolidated joint venture interest and tax expense, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) non-controlling interests, (ix) preferred stock dividends, and (x) issuance costs associated with redeemed preferred stock. For a discussion of Adjusted EBITDA, see page 31. For a reconciliation of net income available to common stockholders to Adjusted EBITDA, see page 30.
(4)
Net Debt to Adjusted EBITDA is calculated as total debt at balance sheet carrying value (see page 5), plus capital lease obligations, plus our share of unconsolidated joint venture debt at carrying value, less cash and cash equivalents (including our share of unconsolidated joint venture cash), divided by the product of Adjusted EBITDA (including our share of unconsolidated joint venture EBITDA), multiplied by four.
(5)
Fixed charges consist of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred stock dividends.
(6)
Interest coverage ratio is Adjusted EBITDA divided by GAAP interest expense plus capitalized interest (including our share of unconsolidated joint venture interest expense).
(7)
Fixed charge coverage ratio is Adjusted EBITDA divided by fixed charges (including our share of unconsolidated joint venture fixed charges).
(8)
For definitions and discussion of FFO and Core FFO, see page 31. For reconciliations of net income available to common stockholders to FFO and Core FFO, see page 13.
(9)
For a definition and discussion of AFFO, see page 31. For a reconciliation of Core FFO to AFFO, see page 14.
(10)
Diluted FFO payout ratio is dividends declared per common share and unit divided by diluted FFO per share and unit.
(11)
Diluted Core FFO payout ratio is dividends declared per common share and unit divided by diluted Core FFO per share and unit.
(12)
Diluted AFFO payout ratio is dividends declared per common share and unit divided by diluted AFFO per share and unit.
(13)
Includes buildings held as investments in unconsolidated entities. Excludes buildings held-for-sale and contribution.
(14)
Represents approximate amounts.
(15)
Occupancy and same-capital occupancy exclude space under active development and space held for development. Occupancy represents our consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures and non-managed unconsolidated joint ventures. For some of our buildings, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common area. Excludes buildings held for sale and contribution.
(16)
Space under active development includes current Base Building and Data Centers projects in progress. Excludes buildings held-for-sale and contribution.
(17)
Space held for development includes space held for future Data Center development and excludes space under active development. Excludes buildings held for sale and contribution.
(18)
Weighted average remaining lease term excludes renewal options and is weighted by net rentable square feet.
(19)
Represents buildings owned as of December 31, 2023, with less than 5% of total rentable square feet under development. Excludes buildings that were undergoing, or were expected to undergo, development activities in 2024-2025, buildings classified as held-for-sale and contribution, and buildings sold or contributed to joint ventures for all periods presented. Prior period results have been adjusted to reflect current same-capital pool.
6
Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
First Quarter 2025
Digital Realty Reports First Quarter 2025 Results
Dallas, TX — April 24, 2025 — Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today financial results for the first quarter of 2025. All per share results are presented on a fully diluted basis.
Highlights
◾
Reported net income available to common stockholders of $0.27 per share in 1Q25, compared to $0.82 in 1Q24
◾
Reported FFO per share of $1.67 in 1Q25, compared to $1.41 in 1Q24
◾
Reported Core FFO per share of $1.77 in 1Q25, compared to $1.67 in 1Q24
◾
Reported Constant-Currency Core FFO per share of $1.79 in 1Q25
◾
Reported rental rate increases on renewal leases of 5.6% on a cash basis in 1Q25
◾
Signed total bookings during 1Q25 that are expected to generate $242 million of annualized GAAP rental revenue, including a $69 million contribution from the 0–1 megawatt plus interconnection category
◾
Reported a record backlog of $919 million of annualized GAAP base rent at the end of 1Q25
◾
Raised 2025 Core FFO per share outlook to $7.05 - $7.15; maintained 2025 Constant-Currency Core FFO per share outlook of $7.05 - $7.15
Financial Results
Digital Realty reported revenues of $1.4 billion in the first quarter of 2025, a 2% decrease from the previous quarter and a 6% increase from the same quarter last year.
The company delivered net income of $106 million in the first quarter of 2025, as well as net income available to common stockholders of $100 million and $0.27 per share, compared to $0.51 per share in the previous quarter and $0.82 per share in the same quarter last year.
Digital Realty generated Adjusted EBITDA of $791 million in the first quarter of 2025, a 5% increase from the previous quarter and an 11% increase over the same quarter last year.
The company reported Funds From Operations (FFO) of $571 million in the first quarter of 2025, or $1.67 per share, compared to $1.61 per share in the previous quarter and $1.41 per share in the same quarter last year.
Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered Core FFO per share of $1.77 in the first quarter of 2025, compared to $1.73 per share in the previous quarter and $1.67 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share of $1.79 in the first quarter of 2025.
“Robust demand across our key product segments drove strong leasing and acceleration in Core FFO per share growth in the first quarter,” said Digital Realty President & Chief Executive Officer Andy Power. “Leasing kept pace with our 2024 record, lifting our backlog to a new high of $919 million and enhancing our visibility, while the successful launch of our first U.S. Hyperscale Data Center Fund further bolstered and evolved our funding model.”
Leasing Activity
In the first quarter, Digital Realty signed total bookings that are expected to generate $242 million of annualized GAAP rental revenue at its share, including a $54 million contribution from the 0–1 megawatt category and a $15 million contribution from interconnection.
The weighted-average lag between new leases signed during the first quarter of 2025 and the contractual commencement date was ten months. The backlog of signed-but-not-commenced leases at quarter-end was $919 million of annualized GAAP base rent at Digital Realty’s share.
In addition to new leases signed, Digital Realty also signed renewal leases representing $147 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the first quarter of 2025 increased 5.6% on a cash basis and 7.1% on a GAAP basis.
7
Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
First Quarter 2025
New leases signed during the first quarter of 2025 are summarized by region and product as follows:
Annualized GAAP
Base Rent
Square Feet
GAAP Base Rent
GAAP Base Rent
Americas
(in thousands)
(in thousands)
per Square Foot
Megawatts
per Kilowatt
0-1 MW
$23,219
97
$240
6.4
$304
> 1 MW
163,390
448
365
53.0
257
Other (1)
1,307
21
63
—
—
Total
$187,916
565
$332
59.4
$262
EMEA (2)
0-1 MW
$24,906
75
$333
7.7
$268
> 1 MW
3,626
27
136
1.6
189
Other (1)
97
3
31
—
—
Total
$28,630
105
$274
9.3
$255
Asia Pacific (2)
0-1 MW
$5,997
15
$405
1.4
$357
> 1 MW
5,113
68
76
7.2
59
Other (1)
—
—
—
—
—
Total
$11,110
82
$135
8.6
$108
All Regions (2)
0-1 MW
$54,122
186
$290
15.5
$291
> 1 MW
172,129
542
318
61.8
232
Other (1)
1,404
24
59
—
—
Total
$227,655
752
$303
77.3
$244
Interconnection
$14,649
N/A
N/A
N/A
N/A
Grand Total
$242,305
752
$303
77.3
$244
Note: Totals may not foot due to rounding differences.
(1)
Other includes Powered Base Building® shell capacity as well as storage and office space within fully improved data center facilities.
(2)
Based on quarterly average exchange rates during the three months ended March 31, 2025.
Investment Activity
During the first quarter, Digital Realty closed on the acquisition of three land parcels in Charlotte, North Carolina. The first was a 48-acre parcel for $20 million, located adjacent to a recently acquired 156-acre campus. The enlarged campus can support the development of up to 400 megawatts of IT capacity. Separately, Digital Realty acquired two parcels adjacent to its existing connectivity hub in Uptown Charlotte for approximately $16 million, enabling the expansion of approximately 12 megawatts of IT capacity for cloud, enterprise and colocation customers.
Digital Realty also announced the formation of its U.S. Hyperscale Data Center Fund (the “Fund”), successfully raising more than $1.7 billion of equity commitments from a broad array of global Limited Partners. The Fund is targeting $2.5 billion of LP equity commitments, representing up to an 80% ownership interest, while Digital Realty will maintain at least a 20% stake in the assets. The Fund will be comprised of operating hyperscale data centers and development sites, located across leading U.S. data center markets, including Northern Virginia, Dallas, Atlanta, Charlotte, New York metro and Silicon Valley. The initial portfolio includes five operating data centers plus four land sites with access to power for data center development. Digital Realty expects to contribute a share of the assets to the Fund in the second quarter and will serve as General Partner, maintaining operational and management responsibilities for the assets.
Digital Realty entered the Indonesia market in the first quarter through a 50% stake in a joint venture, Digital Realty Bersama, for approximately IDR1.5 billion or $95 million. Digital Realty Bersama owns and operates a connected campus that includes a recently launched data center (CGK11) in Central Jakarta and another data center (CGK10) in West Jakarta. Initially launched with five megawatts of IT load capacity, CGK11 is expected to support up to 32 megawatts. CGK11 offers robust connectivity, with direct access to a wide array of networks and services, including a direct connection to Indonesia's largest internet exchange provider, making it one of the most connected data center sites in downtown Jakarta.
Subsequent to quarter end, Digital Realty closed on the acquisition of approximately 100 acres of land in the Atlanta metro area for approximately $120 million, which is expected to support over 200 megawatts of IT capacity.
8
Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
First Quarter 2025
Balance Sheet
Digital Realty had approximately $17.0 billion of total debt outstanding as of March 31, 2025, comprised of $16.2 billion of unsecured debt and approximately $0.8 billion of secured debt and other. At the end of the first quarter of 2025, net debt-to-Adjusted EBITDA was 5.1x, debt-plus-preferred-to-total enterprise value was 26.6% and fixed charge coverage was 4.9x.
Digital Realty completed the following financing transactions during the first quarter:
◾
In January, the company issued €850 million of 3.875% notes due 2035, for net proceeds of approximately €841 million ($867 million); and
◾
In January, the company also repaid £400 million ($501 million) of 4.25% senior notes.
9
Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
First Quarter 2025
2025 Outlook
Digital Realty raised its 2025 Core FFO per share outlook to $7.05 - $7.15 and maintained its 2025 Constant-Currency Core FFO per share outlook of $7.05 - $7.15. The assumptions underlying the outlook are summarized in the following table.
As of
As of
Top-Line and Cost Structure
February 13, 2025
April 24, 2025
G1Total revenue
$5.800 - $5.900 billion
$5.825 - $5.925 billion
G2Net non-cash rent adjustments (1)
($45 - $50 million)
($50 - $55 million)
G3Adjusted EBITDA
$3.100 - $3.200 billion
$3.125 - $3.225 billion
G4G&A
$500 - $510 million
$505 - $515 million
Internal Growth
Rental rates on renewal leases
Cash basis
4.0% - 6.0%
4.0% - 6.0%
GAAP basis
6.0% - 8.0%
6.0% - 8.0%
Year-end portfolio occupancy
+100 - 200 bps
+100 - 200 bps
"Same-Capital" cash NOI growth (2)
3.5% - 4.5%
3.5% - 4.5%
Foreign Exchange Rates
U.S. Dollar / Pound Sterling
$1.20 - $1.25
$1.25 - $1.35
U.S. Dollar / Euro
$1.00 - $1.05
$1.05 - $1.15
External Growth
G5Dispositions / Joint Venture Capital
Dollar volume
$500 - $1,000 million
$500 - $1,000 million
Cap rate
0.0% - 10.0%
0.0% - 10.0%
Development
G6CapEx (Net of Partner Contributions) (3)
$3,000 - $3,500 million
$3,000 - $3,500 million
Average stabilized yields
10.0%+
10.0%+
G7Enhancements and other non-recurring CapEx (4)
$30 - $35 million
$30 - $35 million
G8Recurring CapEx + capitalized leasing costs (5)
$320 - $335 million
$320 - $335 million
Balance Sheet
G9Long-term debt issuance
Dollar amount
$900 - $1,500 million
$900 - $1,500 million
G10Pricing
5.0% - 5.5%
4.0% - 5.5%
Timing
Mid-Year
Mid-Year
G11Net income per diluted share
$2.10 - $2.20
$2.15 - $2.25
Real estate depreciation and (gain) / loss on sale
$4.50 - $4.50
$4.50 - $4.50
G12Funds From Operations / share (NAREIT-Defined)
$6.60 - $6.70
$6.65 - $6.75
Non-core expenses and revenue streams
$0.40 - $0.40
$0.40 - $0.40
G13Core Funds From Operations / share
$7.00 - $7.10
$7.05 - $7.15
Foreign currency translation adjustments
$0.05 - $0.05
$0.00 - $0.00
Constant-Currency Core Funds From Operations / share
$7.05 - $7.15
$7.05 - $7.15
(1)
Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments).
(2)
The “Same-Capital” pool includes properties owned as of December 31, 2023 with less than 5% of total rentable square feet under development. It excludes properties that were undergoing, or were expected to undergo, development activities in 2024-2025, properties classified as held for sale and contribution, and properties sold or contributed to joint ventures for all periods presented. The 2025 “Same-Capital” cash NOI growth outlook is presented on a constant currency basis.
(3)
Excludes land acquisitions and includes Digital Realty’s share of JV contributions. Figure is net of JV partner contributions.
(4)
Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs.
(5)
Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.
Note: The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.
10
Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
First Quarter 2025
Non-GAAP Financial Measures
This document contains non-GAAP financial measures, including FFO, Core FFO, Constant Currency Core FFO, Adjusted FFO, Net Operating Income (NOI), “Same-Capital” Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO to Adjusted FFO, reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Constant Currency Core FFO, Adjusted FFO, NOI and “Same-Capital” Cash NOI are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.
The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the company's control and/or cannot be reasonably predicted.
For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Investor Conference Call
Prior to Digital Realty’s investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on April 24, 2025, a presentation will be posted to the Investors section of the company’s website at https://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company’s first quarter 2025 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.
To participate in the live call, investors are invited to dial +1 (888) 317-6003 (for domestic callers) or +1 (412) 317-6061 (for international callers) and reference the conference ID# 9420618 at least five minutes prior to start time. A live webcast of the call will be available via the Investors section of Digital Realty’s website at https://investor.digitalrealty.com.
Telephone and webcast replays will be available after the call until May 24, 2025. The telephone replay can be accessed by dialing +1 (877) 344-7529 (for domestic callers) or +1 (412) 317-0088 (for international callers) and providing the conference ID# 2558953. The webcast replay can be accessed on Digital Realty’s website.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.
Contact Information
Matt Mercier
Chief Financial Officer
Digital Realty
(415) 874-2803
Jordan Sadler / Jim Huseby
Investor Relations
Digital Realty
(415) 275-5344
11
Table of Contents
Consolidated Quarterly Statements of Operations
Financial Supplement
Unaudited and in Thousands, Except Per Share Data
First Quarter 2025
Three Months Ended
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Rental revenues
$960,526
$958,892
$956,351
$912,994
$894,409
Tenant reimbursements - Utilities
271,189
302,664
305,097
274,505
276,357
Tenant reimbursements - Other
42,177
38,591
39,624
41,964
38,434
Interconnection & other
112,969
112,360
112,655
109,505
108,071
Fee income
20,643
23,316
12,907
15,656
13,010
Other
133
40
4,581
2,125
862
Total Operating Revenues
$1,407,637
$1,435,862
$1,431,214
$1,356,749
$1,331,143
Utilities
$313,385
$337,534
$356,063
$315,248
$324,571
Rental property operating
238,600
273,104
249,796
237,653
224,369
Property taxes
48,856
46,044
45,633
49,620
41,156
Insurance
4,483
6,007
4,869
4,755
2,694
Depreciation & amortization
443,009
455,355
459,997
425,343
431,102
General & administration
121,112
124,470
115,120
119,511
114,419
Severance, equity acceleration and legal expenses
2,428
2,346
2,481
884
791
Transaction and integration expenses
39,902
11,797
24,194
26,072
31,839
Provision for impairment
—
22,881
—
168,303
—
Other expenses
112
12,002
4,774
(529)
10,836
Total Operating Expenses
$1,211,887
$1,291,540
$1,262,928
$1,346,860
$1,181,776
Operating Income
$195,750
$144,322
$168,286
$9,889
$149,367
Equity in earnings / (loss) of unconsolidated joint ventures
(7,640)
(36,201)
(26,486)
(41,443)
(16,008)
Gain / (loss) on sale of investments
1,111
144,885
(556)
173,709
277,787
Interest and other income / (expense), net
32,773
44,517
37,756
62,261
9,709
Interest (expense)
(98,464)
(104,742)
(123,803)
(114,756)
(109,535)
Income tax benefit / (expense)
(17,135)
(4,928)
(12,427)
(14,992)
(22,413)
Loss on debt extinguishment and modifications
—
(2,165)
(2,636)
—
(1,070)
Net Income
$106,395
$185,688
$40,134
$74,668
$287,837
Net (income) / loss attributable to noncontrolling interests
3,579
3,881
11,059
5,552
(6,329)
Net Income Attributable to Digital Realty Trust, Inc.
$109,974
$189,569
$51,193
$80,220
$281,508
Preferred stock dividends
(10,181)
(10,181)
(10,181)
(10,181)
(10,181)
Net Income / (Loss) Available to Common Stockholders
$99,793
$179,388
$41,012
$70,039
$271,327
Weighted-average shares outstanding - basic
336,683
333,376
327,977
319,537
312,292
Weighted-average shares outstanding - diluted
344,721
340,690
336,249
327,946
320,798
Weighted-average fully diluted shares and units
350,632
346,756
342,374
334,186
326,975
Net income / (loss) per share - basic
$0.30
$0.54
$0.13
$0.22
$0.87
Net income / (loss) per share - diluted
$0.27
$0.51
$0.09
$0.20
$0.82
12
Table of Contents
Funds From Operations and Core Funds From Operations
Financial Supplement
Unaudited and in Thousands, Except Per Share Data
First Quarter 2025
Three Months Ended
Reconciliation of Net Income to Funds From Operations (FFO)
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Net Income / (Loss) Available to Common Stockholders
$99,793
$179,388
$41,012
$70,039
$271,327
Adjustments:
Non-controlling interest in operating partnership
3,000
4,000
1,000
1,500
6,200
Real estate related depreciation & amortization (1)
432,652
445,462
449,086
414,920
420,591
Reconciling items related to non-controlling interests
(19,480)
(19,531)
(19,746)
(17,317)
(8,017)
Unconsolidated JV real estate related depreciation & amortization
55,861
49,463
48,474
47,117
47,877
(Gain) / loss on real estate transactions
(1,111)
(137,047)
556
(173,709)
(286,704)
Provision for impairment
—
22,881
—
168,303
—
Funds From Operations
$570,715
$544,616
$520,382
$510,852
$451,273
Weighted-average shares and units outstanding - basic
342,594
339,442
334,103
325,777
318,469
Weighted-average shares and units outstanding - diluted (2) (3)
350,632
346,756
342,374
334,186
326,975
Funds From Operations per share - basic
$1.67
$1.60
$1.56
$1.57
$1.42
Funds From Operations per share - diluted (2) (3)
$1.67
$1.61
$1.55
$1.57
$1.41
Three Months Ended
Reconciliation of FFO to Core FFO
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Funds From Operations
$570,715
$544,616
$520,382
$510,852
$451,273
Other non-core revenue adjustments (4)
(1,925)
4,537
(4,583)
(33,818)
3,525
Transaction and integration expenses
39,902
11,797
24,194
26,072
31,839
Loss on debt extinguishment and modifications
—
2,165
2,636
—
1,070
Severance, equity acceleration and legal expenses (5)
2,428
2,346
2,481
884
791
(Gain) / Loss on FX and derivatives revaluation
(2,064)
7,127
1,513
32,222
33,602
Other non-core expense adjustments (6)
(702)
14,229
11,120
2,271
10,052
Core Funds From Operations
$608,354
$586,816
$557,744
$538,482
$532,153
Weighted-average shares and units outstanding - diluted (2) (3)
343,050
339,982
334,476
326,181
319,138
Core Funds From Operations per share - diluted (2)
$1.77
$1.73
$1.67
$1.65
$1.67
(1) Real Estate Related Depreciation & Amortization
Three Months Ended
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Depreciation & amortization per income statement
$443,009
$455,355
$459,997
$425,343
$431,102
Non-real estate depreciation
(10,356)
(9,894)
(10,911)
(10,424)
(10,511)
Real Estate Related Depreciation & Amortization
$432,652
$445,462
$449,086
$414,920
$420,591
(2)
Certain of Teraco's minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. US GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO. When calculating diluted FFO, Teraco related minority interest is added back to the FFO numerator as the denominator assumes all shares have been put back to Digital Realty.
Three Months Ended
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Teraco noncontrolling share of FFO
$13,286
$14,905
$9,828
$12,453
$9,768
Teraco related minority interest
$13,286
$14,905
$9,828
$12,453
$9,768
(3)
For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and the share count detail section that follows the reconciliation of Core FFO to AFFO for calculations of weighted average common stock and units outstanding. For definitions and discussion of FFO and Core FFO, see the Definitions section.
(4)
Includes deferred rent adjustments related to a customer bankruptcy, joint venture development fees included in gains, lease termination fees and gain on sale of equity investment included in other income.
(5)
Relates to severance and other charges related to the departure of company executives and integration-related severance.
(6)
Includes write-offs associated with bankrupt or terminated customers, non-recurring legal and insurance expenses and adjustments to reflect our proportionate share of transaction costs associated with noncontrolling interests.
13
Table of Contents
Adjusted Funds From Operations (AFFO)
Financial Supplement
Unaudited and in Thousands, Except Per Share Data
First Quarter 2025
Three Months Ended
Reconciliation of Core FFO to AFFO
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Core FFO available to common stockholders and unitholders
$608,354
$586,816
$557,744
$538,482
$532,153
Adjustments:
Non-real estate depreciation
10,356
9,894
10,911
10,424
10,511
Amortization of deferred financing costs
6,548
5,697
4,853
5,072
5,576
Amortization of debt discount/premium
1,125
1,324
1,329
1,321
1,832
Non-cash stock-based compensation expense
16,700
13,386
15,026
14,464
12,592
Straight-line rental revenue
(9,692)
(18,242)
(17,581)
334
9,976
Straight-line rental expense
(160)
(136)
1,690
782
1,111
Above- and below-market rent amortization
(706)
(269)
(742)
(1,691)
(854)
Deferred tax (benefit) / expense
(517)
(15,048)
(9,366)
(9,982)
(3,437)
Leasing compensation & internal lease commissions
13,405
10,505
10,918
10,519
13,291
Recurring capital expenditures (1)
(35,305)
(130,245)
(67,308)
(60,483)
(47,676)
AFFO available to common stockholders and unitholders (2)
$610,108
$463,682
$507,474
$509,241
$535,073
Weighted-average shares and units outstanding - basic
342,594
339,442
334,103
325,777
318,469
Weighted-average shares and units outstanding - diluted (3)
343,050
339,982
334,476
326,181
319,138
AFFO per share - diluted (3)
$1.78
$1.36
$1.52
$1.56
$1.68
Dividends per share and common unit
$1.22
$1.22
$1.22
$1.22
$1.22
Diluted AFFO Payout Ratio
68.6%
89.5%
80.4%
78.1%
72.8%
Three Months Ended
Share Count Detail
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Weighted Average Common Stock and Units Outstanding
342,594
339,442
334,103
325,777
318,469
Add: Effect of dilutive securities
456
540
373
404
669
Weighted Avg. Common Stock and Units Outstanding - diluted
343,050
339,982
334,476
326,181
319,138
(1)
Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and external leasing commissions. Recurring capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty’s operating standards, or internal leasing commissions.
(2)
For a definition and discussion of AFFO, see the Definitions section. For a reconciliation of net income available to common stockholders to FFO and Core FFO, see above.
(3)
For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and for calculations of weighted average common stock and units outstanding.
14
Table of Contents
Consolidated Balance Sheets
Financial Supplement
Unaudited and in Thousands, Except Per Share Data
First Quarter 2025
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Assets
Investments in real estate:
Real estate
$27,947,964
$27,558,993
$28,808,770
$27,470,635
$27,122,796
Construction in progress
4,973,266
5,164,334
5,175,054
4,676,012
4,496,840
Land held for future development
69,089
38,785
23,392
93,938
114,240
Investments in Real Estate
$32,990,319
$32,762,112
$34,007,216
$32,240,584
$31,733,877
Accumulated depreciation and amortization
(8,856,535)
(8,641,331)
(8,777,002)
(8,303,070)
(7,976,093)
Net Investments in Properties
$24,133,784
$24,120,781
$25,230,214
$23,937,514
$23,757,784
Investment in unconsolidated joint ventures
2,702,847
2,639,800
2,456,448
2,332,698
2,365,821
Net Investments in Real Estate
$26,836,631
$26,760,582
$27,686,662
$26,270,212
$26,123,605
Operating lease right-of-use assets, net
$1,165,924
$1,178,853
$1,228,507
$1,211,003
$1,233,410
Cash and cash equivalents
2,321,885
3,870,891
2,175,605
2,282,062
1,193,784
Accounts and other receivables, net (1)
1,373,521
1,257,464
1,274,460
1,222,403
1,217,276
Deferred rent, net
641,290
642,456
641,778
613,749
611,670
Goodwill
9,174,165
8,929,431
9,395,233
9,128,811
9,105,026
Customer relationship value, deferred leasing costs & other intangibles, net
2,124,989
2,178,054
2,367,467
2,315,143
2,359,380
Assets held for sale and contribution
953,236
—
—
—
287,064
Other assets
488,921
465,885
525,679
563,500
501,875
Total Assets
$45,080,562
$45,283,616
$45,295,392
$43,606,883
$42,633,089
Liabilities and Equity
Global unsecured revolving credit facilities, net
$1,096,931
$1,611,308
$1,786,921
$1,848,167
$1,901,126
Unsecured term loans, net
404,335
386,903
913,733
1,297,893
1,303,263
Unsecured senior notes, net of discount
14,744,063
13,962,852
13,528,061
12,507,551
13,190,202
Secured and other debt, net of discount
770,950
753,314
757,831
686,135
625,750
Operating lease liabilities
1,281,572
1,294,219
1,343,903
1,336,839
1,357,751
Accounts payable and other accrued liabilities
1,927,611
2,056,215
2,140,764
1,973,798
1,870,344
Deferred tax liabilities
1,109,294
1,084,562
1,223,771
1,132,090
1,121,224
Accrued dividends and distributions
—
418,661
—
—
—
Security deposits and prepaid rents
559,768
539,802
423,797
416,705
413,225
Obligations associated with assets held for sale and contribution
7,882
—
—
—
9,981
Total Liabilities
$21,902,406
$22,107,836
$22,118,781
$21,199,178
$21,792,866
Redeemable non-controlling interests
1,459,322
1,433,185
1,465,636
1,399,889
1,350,736
Equity
Preferred Stock: $0.01 par value per share, 110,000 shares authorized:
Series J Cumulative Redeemable Preferred Stock (2)
$193,540
$193,540
$193,540
$193,540
$193,540
Series K Cumulative Redeemable Preferred Stock (3)
203,264
203,264
203,264
203,264
203,264
Series L Cumulative Redeemable Preferred Stock (4)
334,886
334,886
334,886
334,886
334,886
Common Stock: $0.01 par value per share, 502,000 shares authorized (5)
3,338
3,337
3,285
3,231
3,097
Additional paid-in capital
28,091,661
28,079,738
27,229,143
26,388,393
24,508,683
Dividends in excess of earnings
(6,604,217)
(6,292,085)
(6,060,642)
(5,701,096)
(5,373,529)
Accumulated other comprehensive (loss), net
(926,874)
(1,182,283)
(657,364)
(884,715)
(850,091)
Total Stockholders' Equity
$21,295,598
$21,340,397
$21,246,112
$20,537,503
$19,019,850
Noncontrolling Interests
Noncontrolling interest in operating partnership
$415,956
$396,099
$427,930
$434,253
$438,422
Noncontrolling interest in consolidated joint ventures
7,280
6,099
36,933
36,060
31,215
Total Noncontrolling Interests
$423,236
$402,198
$464,863
$470,313
$469,637
Total Equity
$21,718,834
$21,742,595
$21,710,975
$21,007,816
$19,489,487
Total Liabilities and Equity
$45,080,562
$45,283,616
$45,295,392
$43,606,883
$42,633,089
(1)
Net of allowance for doubtful accounts of $62,803 and $43,873 as of March 31, 2025 and March 31, 2024, respectively.
(2)
Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 liquidation preference ($25.00 per share), 8,000 shares issued and outstanding as of March 31, 2025 and March 31, 2024.
(3)
Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 liquidation preference ($25.00 per share), 8,400 shares issued and outstanding as of March 31, 2025 and March 31, 2024.
(4)
Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 liquidation preference ($25.00 per share), 13,800 shares issued and outstanding as of March 31, 2025 and March 31, 2024.
(5)
Common Stock: 336,743 and 312,421 shares issued and outstanding as of March 31, 2025 and March 31, 2024, respectively.
15
Table of Contents
Components of Net Asset Value (NAV) (1)
Financial Supplement
Unaudited and in Thousands
First Quarter 2025
44
Consolidated Properties Cash Net Operating Income (NOI)(2), Annualized (3)
Network-Dense
$1,163,813
Campus
1,819,990
Other (4)
100,846
Total Cash NOI, Annualized
$3,084,649
less: Partners' share of consolidated JVs
(76,620)
Acquisitions / dispositions / expirations
(75,224)
FY 2025 backlog cash NOI and 1Q25 carry-over (stabilized) (5)
218,729
Total Consolidated Cash NOI, Annualized
$3,151,534
Digital Realty's Pro Rata Share of Unconsolidated Joint Venture Cash NOI (3) (6)
$280,820
Other Income
Development and Management Fees (net), Annualized
$82,571
Other Assets
Pre-stabilized inventory, at cost (7)
$231,885
Land held for development
69,089
Development CIP (8)
4,973,266
less: Investment associated with FY25 Backlog NOI (9)
(938,038)
Cash and cash equivalents
2,321,885
Accounts and other receivables, net
1,373,521
Other assets
488,921
less: Partners' share of consolidated JV assets
(161,517)
Total Other Assets
$8,359,012
Liabilities
Global unsecured revolving credit facilities
$1,121,628
Unsecured term loans
405,600
Unsecured senior notes
14,849,815
Secured and other debt
778,767
Accounts payable and other accrued liabilities
1,927,611
Deferred tax liabilities
1,109,294
Security deposits and prepaid rents
559,768
Obligations associated with assets held for sale and contribution
7,882
Backlog NOI cost to complete (9)
377,263
Preferred stock
755,000
Digital Realty's share of unconsolidated JV debt
1,697,287
less: Partners' share of consolidated JV liabilities
(451,453)
Total Liabilities
$23,138,462
(1)
Backlog and associated financial line items include activity related to unconsolidated joint venture properties.
(2)
For definitions and discussion of NOI and cash NOI and a reconciliation of operating income to NOI and cash NOI, see page 32.
(3)
Annualized cash NOI is calculated by multiplying results for the most recent quarter by four. Annualized results may not be indicative of any four-quarter period and do not take into account scheduled lease expirations, among other things. Annualized data is presented for illustrative purposes only. Reflects annualized 1Q25 Cash NOI of $3.1 billion. NOI is allocated based on management’s estimates derived using contractual ABR and stabilized margins.
(4)
Other includes Powered Base Building shell capacity as well as storage and office space within fully improved data center facilities.
(5)
Estimated cash NOI related to signed leases that are expected to commence through December 31, 2025. Includes Digital Realty’s share of signed leases at unconsolidated joint venture properties.
(6)
For a reconciliation of Digital Realty’s pro rata share of unconsolidated joint venture operating income to cash NOI, see page 29.
(7)
Excludes Digital Realty’s share of cost at unconsolidated joint venture properties.
(8)
See page 26 for further details on the breakdown of the construction in progress balance.
(9)
Includes Digital Realty’s share of construction in progress and expected cost to complete at unconsolidated joint venture properties.
16
Table of Contents
Debt Maturities
Financial Supplement
Unaudited and Dollars in thousands
First Quarter 2025
As of March 31, 2025
Interest Rate
Interest
Including
Rate
Swaps
2025
2026
2027
2028
2029
Thereafter
Total
Global Unsecured Revolving Credit Facilities (1)
Global unsecured revolving credit facility
3.451%
3.451%
—
—
—
—
—
$923,988
$923,988
Yen revolving credit facility
1.120%
1.120%
—
—
—
—
—
197,640
197,640
Deferred financing costs, net
—
—
—
—
—
—
—
—
(24,697)
Total Global Unsecured Revolving Credit Facilities
3.040%
3.040%
—
—
—
—
—
$1,121,628
$1,096,931
Unsecured Term Loans (1)
Euro term loan facility
3.313%
3.230%
—
—
$405,600
—
—
—
$405,600
Deferred financing costs, net
—
—
—
—
—
—
—
—
(1,265)
Total Unsecured Term Loans
3.313%
3.230%
—
—
$405,600
—
—
—
$404,335
Senior Notes
€650 million 0.625% Notes due 2025
0.625%
0.625%
$703,040
—
—
—
—
—
$703,040
€1.08 billion 2.500% Notes due 2026
2.500%
2.500%
—
$1,162,720
—
—
—
—
1,162,720
₣275 million 0.200% Notes due 2026
0.200%
0.200%
—
310,974
—
—
—
—
310,974
₣150 million 1.700% Notes due 2027
1.700%
1.700%
—
—
$169,622
—
—
—
169,622
$1.00 billion 3.700% Notes due 2027 (2)
3.700%
2.485%
—
—
1,000,000
—
—
—
1,000,000
€500 million 1.125% Notes due 2028
1.125%
1.125%
—
—
—
$540,800
—
—
540,800
$900 million 5.550% Notes due 2028 (2)
5.550%
3.996%
—
—
—
900,000
—
—
900,000
$650 million 4.450% Notes due 2028
4.450%
4.450%
—
—
—
650,000
—
—
650,000
₣270 million 0.550% Notes due 2029
0.550%
0.550%
—
—
—
—
$305,319
—
305,319
$900 million 3.600% Notes due 2029
3.600%
3.600%
—
—
—
—
900,000
—
900,000
£350 million 3.300% Notes due 2029
3.300%
3.300%
—
—
—
—
452,130
—
452,130
$1.15 billion 1.875% Notes due 2029 (2)
1.875%
1.263%
—
—
—
—
1,150,000
—
1,150,000
€750 million 1.500% Notes due 2030
1.500%
1.500%
—
—
—
—
—
$811,200
811,200
£550 million 3.750% Notes due 2030
3.750%
3.750%
—
—
—
—
—
710,490
710,490
€500 million 1.250% Notes due 2031
1.250%
1.250%
—
—
—
—
—
540,800
540,800
€1.00 billion 0.625% Notes due 2031
0.625%
0.625%
—
—
—
—
—
1,081,600
1,081,600
€750 million 1.000% Notes due 2032
1.000%
1.000%
—
—
—
—
—
811,200
811,200
€750 million 1.375% Notes due 2032
1.375%
1.375%
—
—
—
—
—
811,200
811,200
€850 million 3.875% Notes due 2033
3.875%
3.875%
—
—
—
—
—
919,360
919,360
€850 million 3.875% Notes due 2035
3.875%
3.875%
—
—
—
—
—
919,360
919,360
Unamortized discounts, net
—
—
—
—
—
—
—
—
(33,220)
Deferred financing costs, net
—
—
—
—
—
—
—
—
(72,532)
Total Senior Notes
2.507%
2.284%
$703,040
$1,473,694
$1,169,622
$2,090,800
$2,807,449
$6,605,210
$14,744,063
Secured Debt
ICN10 Facilities
5.590%
3.465%
—
—
—
—
—
$11,463
$11,463
Westin
3.290%
3.290%
—
—
$135,000
—
—
—
135,000
Teraco Loans
9.834%
9.896%
$605
$49,067
97,319
$364,014
$9,278
32,663
552,947
Deferred financing costs, net
—
—
—
—
—
—
—
—
(4,055)
Total Secured Debt
8.502%
8.515%
$605
$49,067
$232,319
$364,014
$9,278
$44,126
$695,355
Other Debt
Icolo loans
12.710%
12.710%
—
$5,915
$4,505
$1,065
$5,108
—
$16,593
Total Other Debt
12.710%
12.710%
—
$5,915
$4,505
$1,065
$5,108
—
$16,593
Mandatorily Redeemable Preferred Shares (Teraco)
Mandatorily Redeemable Preferred Shares (Teraco)
9.675%
9.675%
—
$62,764
—
—
—
—
$62,764
Unamortized discounts, net
—
—
—
—
—
—
—
—
(3,762)
Total Redeemable Preferred Shares
9.675%
9.675%
—
$62,764
—
—
—
—
$59,002
Total unhedged variable rate debt
—
—
$115
$63,448
$1,213
$7,787
—
$1,126,011
$1,198,573
Total fixed rate / hedged variable rate debt
—
—
703,530
1,527,991
1,810,833
2,448,092
$2,821,836
6,644,953
15,957,236
Total Debt
2.842%
2.647%
$703,645
$1,591,439
$1,812,046
$2,455,879
$2,821,836
$7,770,964
$17,155,809
Weighted Average Interest Rate
0.633%
2.600%
3.062%
4.362%
2.307%
2.324%
2.647%
Summary
Weighted Average Term to Initial Maturity
4.4 Years
Weighted Average Maturity (assuming exercise of extension options)
4.5 Years
Global Unsecured Revolving Credit Facilities Detail As of March 31, 2025
Maximum Available
Existing Capacity (3)
Currently Drawn
Global Unsecured Revolving Credit Facilities
$4,429,690
$3,190,482
$1,121,628
(1)
Assumes all extensions will be exercised.
(2)
Subject to cross-currency swaps.
(3)
Net of letters of credit issued of $117.6 million.
17
Table of Contents
Debt Analysis and Covenant Compliance
Financial Supplement
Unaudited
First Quarter 2025
As of March 31, 2025
Global Unsecured
Unsecured Senior Notes
Credit Facilities
Debt Covenant Ratios (1)
Required
Actual (2)
Actual (3)
Required
Actual
Total outstanding debt / total assets (4)
Less than 60%
43%
36%
Less than 60% (5)
33%
Secured debt / total assets (6)
Less than 40%
5%
1%
Less than 40% (7)
3%
Total unencumbered assets / unsecured debt
Greater than 150%
251%
275%
N/A
N/A
Consolidated EBITDA / interest expense (8)
Greater than 1.50x
4.8x
4.8x
N/A
N/A
Fixed charge coverage
N/A
N/A
Greater than 1.50x
4.5x
Unsecured debt / total unencumbered asset value (9)
N/A
N/A
Less than 60%
36%
Unencumbered assets debt service coverage ratio (9)
N/A
N/A
Greater than 1.50x
5.0x
(1)
For definitions of the terms used in the table above and related footnotes, please refer to the indentures which govern the notes, the Third Amended and Restated Global Senior Credit Agreement dated as of September 24, 2024 and the Second Amended and Restated Yen facility Credit Agreement dated as of September 24, 2024, each as amended and which are filed as exhibits to our reports filed with the U.S. Securities and Exchange Commission.
(2)
Ratios for the Unsecured Senior Notes listed on page 17 except for the 0.20% notes due 2026, 1.70% notes due 2027, 5.550% notes due 2028, 0.55% notes due 2029, 1.875% notes due 2029, 1.250% notes due 2031, 0.625% notes due 2031, 1.00% notes due 2032, 1.375% notes due 2032, 3.875% notes due 2033 and 3.875% notes due 2035.
(3)
Ratios for the 0.20% notes due 2026, 1.70% notes due 2027, 5.550% notes due 2028, 0.55% notes due 2029, 1.875% notes due 2029, 1.250% notes due 2031, 0.625% notes due 2031, 1.00% notes due 2032, 1.375% notes due 2032, 3.875% notes due 2033 and 3.875% notes due 2035.
(4)
This ratio is referred to as the Leverage Ratio, defined as Consolidated Debt / Total Asset Value, under the global unsecured revolving credit facility and the Yen facility. For the calculation of Total Assets, please refer to the indentures which govern the notes, the Third Amended and Restated Global Senior Credit Agreement dated as of September 24, 2024 and the Second Amended and Restated Yen facility Credit Agreement dated as of September 24, 2024, each as amended and which are filed as exhibits to our reports filed with the U.S. Securities and Exchange Commission.
(5)
The company has the right to maintain a Leverage Ratio of greater than 60.0% but less than or equal to 65.0% for up to four consecutive fiscal quarters during the term of the facility following any acquisition of one or more Assets.
(6)
This ratio is referred to as the Secured Debt Leverage Ratio, defined as Secured Debt / Total Asset Value, under the global unsecured revolving credit facility and the Yen facility.
(7)
The company has the right to maintain a Secured Debt Leverage Ratio of greater than 40.0% but less than or equal to 45.0% for up to four consecutive fiscal quarters during the term of the facility following any acquisition of one or more Assets.
(8)
Calculated as current quarter annualized consolidated EBITDA to current quarter annualized Interest Expense (including capitalized interest and debt discounts). This ratio no longer applies from and after the date that the company achieves a Debt Rating of at least BBB+ / Baa1 and a Total Asset Value of at least $35.0 billion.
(9)
Assets must satisfy certain conditions to qualify for inclusion as an Unencumbered Asset under the global unsecured revolving credit facility and the Yen facility.
18
Table of Contents
Same-Capital Operating Trend Summary
Financial Supplement
Unaudited and in Thousands
First Quarter 2025
Stabilized (“Same-Capital”) Portfolio (1)
Three Months Ended
31-Mar-25
31-Mar-24
% Change
31-Dec-24
% Change
Rental revenues
$719,355
$689,987
4.3%
$715,724
0.5%
Tenant reimbursements - Utilities
220,433
228,364
(3.5%)
238,311
(7.5%)
Tenant reimbursements - Other
28,022
24,782
13.1%
26,781
4.6%
Interconnection & other
85,678
79,449
7.8%
82,509
3.8%
Total Revenue
$1,053,488
$1,022,582
3.0%
$1,063,324
(0.9%)
Utilities
$251,946
$262,687
(4.1%)
$257,354
(2.1%)
Rental property operating
177,432
166,218
6.7%
205,692
(13.7%)
Property taxes
36,367
33,354
9.0%
34,224
6.3%
Insurance
4,664
3,616
29.0%
4,357
7.0%
Total Expenses
$470,409
$465,874
1.0%
$501,626
(6.2%)
Net Operating Income (2)
$583,079
$556,708
4.7%
$561,698
3.8%
Less:
Stabilized straight-line rent
($1,284)
($5,641)
(77.2%)
$10,962
(111.7%)
Above- and below-market rent
909
946
(3.9%)
443
105.3%
Cash Net Operating Income (3)
$583,454
$561,403
3.9%
$550,293
6.0%
Cash NOI impact of holding '24 Exchange Rates Constant (4)
5,740
—
Constant Currency Cash Net Operating Income
$589,194
$561,403
5.0%
Stabilized Portfolio occupancy at period end (5)
82.7%
82.4%
0.3%
82.9%
(0.2%)
(1)
Represents buildings owned as of December 31, 2023 with less than 5% of total rentable square feet under development. Excludes buildings that were undergoing, or were expected to undergo, development activities in 2024-2025, buildings classified as held for sale and contribution, and buildings sold or contributed to joint ventures for all periods presented. Prior period numbers adjusted to reflect current same-capital pool.
(2)
For a definition and discussion of net operating income and a reconciliation of operating income to NOI, see page 32.
(3)
For a definition and discussion of cash net operating income and a reconciliation of operating income to cash NOI, see page 32.
(4)
Adjustment calculated by holding currency translation rates for 2025 constant with average currency translation rates that were applicable to the same periods in 2024.
(5)
Occupancy excludes space under active development and space held for development. For some of our buildings, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common areas.
19
Table of Contents
Summary of Leasing Activity
Financial Supplement
Leases Signed in the Quarter End March 31, 2025
First Quarter 2025
0-1 MW
> 1 MW
Other (3)
Total
Leasing Activity - New (1) (2)
1Q25
LTM
1Q25
LTM
1Q25
LTM
1Q25
LTM
Annualized GAAP Rent (in thousands)
$54,122
$205,858
$172,129
$754,696
$1,404
$7,419
$227,655
$967,973
Kilowatt leased
15,502
62,880
61,801
307,612
—
—
77,303
370,492
NRSF (in thousands)
186
691
542
2,376
24
117
752
3,184
Weighted Average Lease Term (years)
3.8
3.8
12.6
12.2
10.5
12.5
10.4
10.4
Initial stabilized cash rent per Kilowatt
$287
$271
$183
$161
—
—
$204
$180
GAAP rent per Kilowatt
$291
$273
$232
$204
—
—
$244
$216
Leasing cost per Kilowatt
$21
$24
$2
—
—
—
$5
$4
Net Effective Economics by Kilowatt (4)
Base rent by Kilowatt
$294
$275
$234
$205
—
—
$246
$217
Rental concessions by Kilowatt
$3
$3
$2
$1
—
—
$3
$1
Estimated operating expense by Kilowatt
$86
$79
$58
$52
—
—
$64
$56
Net rent per Kilowatt
$205
$193
$174
$153
—
—
$180
$160
Tenant improvements by Kilowatt
—
—
—
—
—
—
—
—
Leasing commissions by Kilowatt
$9
$9
—
—
—
—
$2
$2
Net effective rent per Kilowatt
$197
$184
$174
$153
—
—
$178
$158
Initial stabilized cash rent per NRSF
$286
$295
$250
$250
$48
$50
$253
$253
GAAP rent per NRSF
$290
$298
$318
$318
$59
$63
$303
$304
Leasing cost per NRSF
$21
$26
$2
—
$2
$2
$7
$6
Net Effective Economics by NRSF (4)
Base rent by NRSF
$294
$301
$321
$319
$59
$64
$306
$306
Rental concessions by NRSF
$3
$3
$3
$1
$1
—
$3
$2
Estimated operating expense by NRSF
$85
$87
$80
$83
$8
$8
$79
$81
Net rent per NRSF
$205
$211
$238
$235
$50
$55
$224
$223
Tenant improvements by NRSF
—
—
—
—
—
—
—
—
Leasing commissions by NRSF
$9
$10
—
—
$1
$1
$2
$2
Net effective rent per NRSF
$196
$201
$237
$235
$50
$55
$221
$221
(1)
Excludes short-term, roof, storage, and garage leases.
(2)
Includes leases for new and re-leased space.
(3)
Other includes Powered Base Building shell capacity as well as storage and office space within fully improved data center facilities.
(4)
All dollar amounts are per square foot averaged over lease term. Per Kilowatt amounts are presented in monthly values. Per NRSF amounts are presented in yearly values.
Note: LTM is last twelve months, including current quarter. Weighted average lease term excludes renewal options and is weighted by net rentable square feet.
20
Table of Contents
Summary of Leasing Activity
Financial Supplement
Leases Renewed in the Quarter Ended March 31, 2025
First Quarter 2025
0-1 MW
> 1 MW
Other (4)
Total
Leasing Activity - Renewals (1) (2) (3)
1Q25
LTM
1Q25
LTM
1Q25
LTM
1Q25
LTM
Leases renewed (Kilowatt)
37,215
141,387
2,500
157,969
—
—
39,715
299,356
Leases renewed (NRSF in thousands)
499
2,030
26
1,800
273
495
798
4,326
Leasing cost per Kilowatt
$1
$1
—
$1
—
—
$1
$1
Leasing cost per NRSF
$1
$1
—
$1
$2
$3
$1
$1
Weighted Term (years)
1.2
1.5
3.0
5.3
4.0
4.5
2.2
3.5
Cash Rent
Expiring cash rent per Kilowatt
$275
$304
$161
$141
—
—
$268
$218
Renewed cash rent per Kilowatt
$285
$317
$169
$159
—
—
$278
$234
% Change Cash Rent Per Kilowatt
3.8%
4.3%
4.6%
12.9%
—
—
3.8%
7.2%
Expiring cash rent per NRSF
$246
$254
$187
$148
$43
$51
$175
$187
Renewed cash rent per NRSF
$255
$265
$196
$168
$54
$61
$184
$201
% Change Cash Rent Per NRSF
3.8%
4.3%
4.6%
12.9%
24.1%
18.8%
5.6%
7.6%
GAAP Rent
Expiring GAAP rent per Kilowatt
$274
$302
$156
$132
—
—
$267
$212
Renewed GAAP rent per Kilowatt
$286
$317
$174
$170
—
—
$279
$240
% Change GAAP Rent Per Kilowatt
4.1%
5.0%
11.2%
29.0%
—
—
4.4%
12.8%
Expiring GAAP rent per NRSF
$245
$253
$181
$139
$41
$47
$173
$182
Renewed GAAP rent per NRSF
$256
$265
$202
$179
$56
$62
$186
$206
% Change GAAP Rent Per NRSF
4.1%
5.0%
11.2%
29.0%
38.4%
31.5%
7.1%
13.4%
Retention ratio (5)
75.4%
79.5%
21.0%
79.7%
77.9%
57.3%
70.3%
76.2%
Churn (6)
2.5%
9.2%
0.7%
3.9%
1.8%
7.1%
1.5%
6.3%
(1)
Excludes short-term, roof, storage, and garage leases.
(2)
Rental rates represent annual estimated cash rent per kilowatt and net rentable square feet, adjusted for straight-line rents in accordance with GAAP.
(3)
Per Kilowatt amounts are presented in monthly values. Per NRSF amounts are presented in yearly values.
(4)
Other includes Powered Base Building shell capacity as well as storage and office space within fully improved data center facilities.
(5)
Based on square feet.
(6)
Churn is defined as recurring revenue lost during the period due to leases terminated or not renewed, divided by recurring revenue at the beginning of the period.
Note: LTM is last twelve months, including current quarter. Weighted average lease term excludes renewal options and is weighted by net rentable square feet.
21
Table of Contents
Lease Expirations - By Size
Financial Supplement
Dollars and Square Feet in Thousands (except per square foot and per kW data)
First Quarter 2025
% of
Annualized Rent Per
Annualized Rent Per
Rent Per kW
Square Footage of
Annualized
Annualized
Occupied
Occupied Square
Annualized Rent
kW of Expiring
Rent per kW
Per Month at
Year
Expiring Leases (1)
Rent (2)
Rent
Square Foot
Foot at Expiration
at Expiration
Leases
Per Month
Expiration
0-1 MW
Available
2,916
—
—
—
—
—
—
—
—
Month to Month (3)
206
$57,643
1.5%
$279
$280
$57,867
11,453
$419
$421
2025
1,781
559,976
14.7%
314
316
563,554
126,486
369
371
2026
1,196
334,468
8.8%
280
284
339,337
90,247
309
313
2027
714
164,131
4.3%
230
240
171,071
55,077
248
259
2028
370
79,178
2.1%
214
232
85,986
27,616
239
259
2029
309
63,077
1.7%
204
227
69,928
23,548
223
247
2030
187
43,457
1.1%
233
261
48,742
12,669
286
321
2031
100
20,065
0.5%
201
228
22,678
6,627
252
285
2032
58
10,376
0.3%
178
209
12,157
4,353
199
233
2033
32
8,632
0.2%
268
319
10,262
2,635
273
325
2034
29
3,883
0.1%
133
133
3,889
1,811
179
179
Thereafter
30
4,972
0.1%
168
190
5,619
2,076
200
226
Total / Wtd. Avg.
7,928
$1,349,856
35.5%
$269
$278
$1,391,091
364,597
$309
$318
> 1 MW
Expiring Leases (1)
Annualized
Annualized
Annualized Rent Per
Annualized Rent Per
Annualized Rent Per
kW of Expiring
Annualized
Rent Per kW
Available
1,670
—
—
—
—
—
—
—
—
Month to Month (3)
65
$8,308
0.2%
$127
$128
$8,336
4,867
$142
$143
2025
906
157,146
4.1%
173
174
157,970
88,990
147
148
2026
1,861
272,507
7.2%
146
150
278,629
165,403
137
140
2027
1,640
243,978
6.4%
149
156
256,486
154,823
131
138
2028
1,596
206,125
5.4%
129
137
218,616
143,602
120
127
2029
1,911
280,089
7.4%
147
161
307,954
214,151
109
120
2030
1,369
210,747
5.5%
154
166
227,675
149,919
117
127
2031
998
151,519
4.0%
152
176
176,113
104,742
121
140
2032
854
120,440
3.2%
141
159
135,847
92,941
108
122
2033
569
91,340
2.4%
160
188
106,797
60,596
126
147
2034
1,254
150,537
4.0%
120
140
175,320
119,985
105
122
Thereafter
2,033
318,609
8.4%
157
197
401,296
196,664
135
170
Total / Wtd. Avg.
16,727
$2,211,346
58.1%
$147
$163
$2,451,039
1,496,683
$123
$136
Other (4)
Expiring Leases (1)
Annualized
Annualized
Annualized Rent Per
Annualized Rent Per
Annualized Rent Per
kW of Expiring
Annualized
Rent Per kW
Available
1,292
—
—
—
—
—
—
—
—
Month to Month (3)
57
$2,257
0.1%
$40
$40
$2,257
—
—
—
2025
605
17,513
0.5%
29
29
17,560
—
—
—
2026
805
29,153
0.8%
36
37
30,003
—
—
—
2027
348
11,902
0.3%
34
36
12,429
—
—
—
2028
488
14,560
0.4%
30
32
15,512
—
—
—
2029
792
44,171
1.2%
56
62
49,106
—
—
—
2030
847
36,960
1.0%
44
57
48,568
—
—
—
2031
124
3,725
0.1%
30
36
4,465
—
—
—
2032
111
6,286
0.2%
57
63
7,030
—
—
—
2033
110
4,166
0.1%
38
44
4,861
—
—
—
2034
564
20,644
0.5%
37
45
25,224
—
—
—
Thereafter
2,544
54,102
1.4%
21
27
69,073
—
—
—
Total / Wtd. Avg.
8,685
$245,438
6.4%
$33
$39
$286,087
—
—
—
Total
Expiring Leases (1)
Annualized
Annualized
Annualized Rent Per
Annualized Rent Per
Annualized Rent Per
kW of Expiring
Annualized
Rent Per kW
Available
5,760
—
—
—
—
—
—
—
—
Month to Month (3)
328
$68,208
1.8%
$208
$208
$68,459
—
—
—
2025
3,293
734,635
19.3%
223
224
739,084
—
—
—
2026
3,861
636,127
16.7%
165
168
647,969
—
—
—
2027
2,702
420,012
11.0%
155
163
439,986
—
—
—
2028
2,454
299,863
7.9%
122
130
320,114
—
—
—
2029
3,012
387,337
10.2%
129
142
426,988
—
—
—
2030
2,402
291,163
7.6%
121
135
324,985
—
—
—
2031
1,221
175,309
4.6%
144
166
203,256
—
—
—
2032
1,023
137,102
3.6%
134
152
155,034
—
—
—
2033
712
104,138
2.7%
146
171
121,920
—
—
—
2034
1,848
175,064
4.6%
95
111
204,434
—
—
—
Thereafter
4,607
377,683
9.9%
82
103
475,988
—
—
—
Total / Wtd. Avg.
33,223
$3,806,641
100.0%
$139
$150
$4,128,217
—
—
—
(1)
For some buildings, we calculate square footage based on factors in addition to contractually leased square feet, including available power, required support space and common areas. We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common areas.
(2)
Annualized rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of March 31, 2025, multiplied by 12.
(3)
Includes leases, licenses, and similar agreements that upon expiration have been automatically renewed on a month-to-month basis.
(4)
Other includes unimproved building shell capacity as well as storage and office space within fully improved data center facilities.
Note: Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures based on our ownership percentage.
22
Table of Contents
Top 20 Customers by Annualized Rent
Financial Supplement
Dollars in Thousands
First Quarter 2025
Weighted
Average
Annualized
% of Annualized
Remaining
Number of
Recurring
Recurring
Lease Term in
Customer
Locations
Revenue (1)
Revenue
Years
1
Fortune 50 Software Company
73
$500,501
11.7%
8.8
2
Oracle Corporation
43
280,104
6.6%
9.4
3
Social Content Platform
30
233,027
5.5%
3.5
4
Global Cloud Provider
64
201,038
4.7%
4.6
5
IBM
36
114,227
2.7%
2.8
6
Equinix
16
92,218
2.2%
5.4
7
LinkedIn Corporation
7
84,500
2.0%
3.4
8
Fortune 25 Investment Grade-Rated Company
29
67,330
1.6%
1.7
9
Meta Platforms, Inc.
48
66,034
1.5%
3.4
10
Social Media Platform
4
63,631
1.5%
6.1
11
Specialized Cloud Provider
3
58,770
1.4%
4.4
12
Fortune 25 Tech Company
54
55,496
1.3%
3.1
13
Lumen Technologies, Inc.
130
54,196
1.3%
8.3
14
AT&T
77
49,122
1.2%
2.5
15
Comcast Corporation
43
45,949
1.1%
3.3
16
Fortune 500 SaaS Provider
9
41,652
1.0%
2.6
17
JPMorgan Chase & Co.
19
40,643
1.0%
3.2
18
Rackspace
25
38,558
0.9%
8.6
19
Morgan Stanley
13
37,740
0.9%
4.2
20
Zayo
121
36,202
0.8%
1.5
Total / Weighted Average
$2,160,938
50.9%
6.0
(1)
Annualized recurring revenue represents the monthly contractual base rent (defined as cash base rent before abatements) and interconnection revenue under existing leases as of March 31, 2025, multiplied by 12.
Note: Represents consolidated portfolio in addition to our managed portfolio of unconsolidated joint ventures based on ownership percentage. Our direct customers may be the entities named in the table above or their subsidiaries or affiliates.
23
Table of Contents
Occupancy Analysis
Financial Supplement
Dollars and Square Feet in Thousands
First Quarter 2025
5
Net Rentable
Space Under Active
Space Held for
Annualized
Occupancy (5)
White Space
Data Center
Metropolitan Area
Square Feet (1)
Development (2)
Development (3)
Rent (4)
31-Mar-25
31-Dec-24
IT Load (6)
Count
North America
Northern Virginia
5,334
1,609
254
$652,278
93.7%
92.8%
478.5
18
Chicago
2,262
553
48
232,255
92.9%
92.6%
81.0
7
New York
1,640
—
100
211,732
75.1%
73.7%
64.7
11
Dallas
3,126
408
110
204,738
81.6%
84.0%
111.2
19
Silicon Valley
1,524
—
—
161,324
87.0%
87.9%
94.6
13
Portland
1,147
—
—
153,755
98.9%
98.9%
123.6
3
Phoenix
796
—
—
75,650
74.9%
76.7%
42.5
2
Toronto
593
130
135
63,348
96.4%
96.1%
55.8
2
San Francisco
844
—
—
62,303
57.5%
61.6%
31.5
4
Atlanta
489
68
314
58,825
93.4%
96.7%
11.1
4
Seattle
397
—
—
56,415
73.1%
73.8%
5.9
1
Los Angeles
611
11
—
43,474
78.4%
79.4%
16.9
2
Houston
393
—
14
19,236
69.6%
69.7%
12.0
6
Boston
437
—
51
15,146
38.4%
38.1%
19.0
3
Miami
226
—
—
10,034
85.9%
86.0%
1.3
2
Austin
86
—
—
7,457
59.6%
59.7%
4.3
1
Charlotte
95
—
—
6,363
94.2%
92.4%
1.5
3
North America Total/Weighted Average
20,000
2,779
1,025
$2,034,333
85.0%
85.5%
1,155.3
101
EMEA
London
1,402
23
76
$237,568
63.8%
61.0%
98.9
13
Frankfurt
1,829
1,343
—
226,939
83.7%
87.2%
117.4
24
Amsterdam
1,332
222
92
189,063
86.2%
86.2%
116.3
13
Paris
1,090
172
—
148,976
85.7%
82.8%
104.7
12
Johannesburg
1,263
945
—
144,128
81.8%
81.7%
67.4
5
Marseille
558
358
378
77,375
75.5%
75.4%
45.2
4
Zurich
596
—
—
75,025
75.0%
85.2%
42.4
3
Dublin
555
—
—
62,140
74.0%
71.3%
39.3
9
Vienna
356
133
—
52,020
82.5%
82.6%
25.6
3
Madrid
308
100
—
46,121
76.5%
76.4%
16.8
4
Cape Town
326
402
—
44,400
87.5%
87.3%
21.1
2
Brussels
338
—
—
38,571
69.6%
69.7%
21.5
3
Copenhagen
226
—
99
24,611
69.6%
69.2%
12.9
3
Stockholm
245
—
—
22,020
46.9%
57.7%
16.8
6
Dusseldorf
142
—
71
19,568
59.8%
59.8%
7.7
3
Athens
148
61
—
19,554
84.4%
81.9%
9.0
4
Durban
59
—
—
6,747
68.3%
69.7%
2.1
1
Mombasa
37
—
21
4,518
42.9%
39.6%
1.9
2
Nairobi
16
75
—
3,286
66.3%
64.6%
0.9
1
Zagreb
24
10
—
2,836
94.6%
94.6%
0.9
1
Maputo
3
—
—
487
41.6%
41.6%
0.2
1
Rome
—
37
—
187
100.0%
100.0%
0.1
1
Barcelona
—
144
—
—
—
—
—
—
Crete
—
11
—
—
—
—
—
—
EMEA Total/Weighted Average
10,851
4,037
738
$1,446,141
77.8%
78.1%
769.1
118
Asia Pacific
Singapore
793
—
97
$213,413
90.5%
91.1%
72.1
3
Sydney
361
—
88
26,000
83.2%
83.3%
22.8
4
Melbourne
147
—
—
17,901
90.5%
90.6%
9.6
2
Hong Kong
114
66
104
10,897
73.7%
73.3%
7.5
1
Seoul
162
—
—
6,576
33.6%
25.2%
12.0
1
Asia Pacific Total/Weighted Average
1,577
66
289
$274,786
81.8%
81.2%
123.9
11
Consolidated Portfolio Total/Weighted Average
32,427
6,882
2,052
$3,755,260
82.4%
82.9%
2,048.3
230
Managed Unconsolidated Joint Ventures
Northern Virginia
2,793
1,583
—
$253,645
98.7%
97.0%
209.7
12
Chicago
1,118
—
—
119,605
96.9%
96.3%
94.2
3
Frankfurt
551
—
—
53,409
85.7%
81.0%
46.1
5
Dallas
364
—
—
27,081
100.0%
100.0%
16.0
2
Silicon Valley
142
—
400
18,867
100.0%
100.0%
10.9
2
Paris
136
135
—
15,998
73.3%
60.1%
15.0
1
Hong Kong
186
—
—
11,138
44.2%
44.3%
11.0
1
Los Angeles
197
—
—
10,626
82.1%
80.0%
4.6
2
Toronto
104
—
—
8,143
54.5%
54.5%
6.8
1
Lagos
5
26
—
2,258
99.5%
93.3%
0.7
2
Accra
—
24
—
—
—
—
—
—
Managed Unconsolidated Portfolio Total/Weighted Average
5,597
1,769
400
$520,771
93.3%
91.8%
414.7
31
Managed Portfolio Total/Weighted Average
38,024
8,651
2,452
$4,276,031
84.0%
84.2%
2,463.0
261
Digital Realty Share Total/Weighted Average (7)
33,223
6,180
2,389
$3,806,641
82.7%
82.8%
2,113.8
—
Non-Managed Unconsolidated Joint Ventures
Sao Paulo
1,466
25
1,198
$183,708
93.2%
92.0%
123.6
25
Tokyo
1,166
431
—
101,178
77.2%
76.2%
70.9
5
Osaka
586
113
80
75,957
83.8%
82.0%
58.9
4
Santiago
119
118
71
14,969
90.6%
90.1%
10.2
3
Queretaro
105
—
583
12,151
100.0%
100.0%
8.0
3
Rio De Janeiro
112
—
—
11,390
100.0%
100.0%
8.0
2
Seattle
51
—
—
7,770
100.0%
100.0%
9.0
1
Fortaleza
94
—
—
1,667
16.7%
22.0%
6.2
1
Chennai
55
—
104
345
2.7%
2.5%
7.2
1
Mumbai
—
125
376
—
—
—
—
—
Bogota
—
—
197
—
—
—
—
2
Non-Managed Portfolio Total/Weighted Average
3,754
812
2,610
$409,134
83.9%
83.0%
302.0
47
Portfolio Total/Weighted Average
41,778
9,463
5,062
$4,685,166
84.0%
84.1%
2,765.0
308
(1)
We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common areas.
(2)
Space under active development includes current Base Building and Data Center projects in progress.
(3)
Space held for development includes space held for future Data Center development and excludes space under active development.
(4)
Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of March 31, 2025, multiplied by 12.
(5)
Occupancy excludes space under active development and space held for development. For some of our buildings, we calculate occupancy based on factors in addition to contractually leased square feet, including available power, required support space and common areas.
(6)
White Space IT Load represents UPS-backed utility power dedicated to Digital Realty’s operated data center space.
(7)
Represents consolidated portfolio plus our managed portfolio of unconsolidated joint ventures based on our ownership percentage.
24
Table of Contents
Development Lifecycle (1)
Financial Supplement
Dollars in Thousands
First Quarter 2025
Future Development Capacity
Data Center Construction
IT Capacity (100% Share) (2)
Total Investment (3)
Project Summary (4)
100% Share (4)
DLR Share (5)
Under
Average
Current
Future
Total
Current
Future
Total
100% Share
DLR Share
Construction
Expected
Investment
Investment
Investment
Investment
Investment
Investment
Yields
Region
Land (MW)
Shell (MW)
(4)
(5)
(MW)
% Leased
Completion
(6)
(7)
(8)
(6)
(7)
(8)
(9)
Northern Virginia
900
30
$1,250,358
$1,204,681
384
75%
2Q26
$1,090,957
$3,043,829
$4,134,786
$737,982
$1,735,040
$2,473,022
Chicago
40
—
45,738
45,738
54
89%
4Q26
131,913
516,949
648,862
131,913
516,949
648,862
Dallas
230
30
395,482
395,482
48
100%
4Q26
40,254
473,670
513,925
40,254
473,670
513,925
Other
730
150
1,101,927
1,003,070
13
97%
4Q25
160,512
13,252
173,764
101,077
7,758
108,836
Americas
1,900
210
$2,793,505
$2,648,971
499
79%
$1,423,637
$4,047,700
$5,471,337
$1,011,227
$2,733,418
$3,744,644
13.9%
Frankfurt
90
90
$883,646
$718,796
40
48%
4Q25
$640,055
$79,465
$719,520
$640,055
$79,465
$719,520
Amsterdam
40
10
73,554
73,554
27
—
4Q25
240,937
182,644
423,580
240,937
182,644
423,580
Paris
220
—
132,877
87,800
34
52%
3Q25
421,519
95,217
516,736
317,539
46,332
363,871
Other
520
100
668,481
644,680
148
29%
3Q26
658,320
908,450
1,566,770
512,653
812,986
1,325,639
EMEA
870
200
$1,758,559
$1,524,830
249
32%
$1,960,832
$1,265,776
$3,226,607
$1,711,183
$1,121,427
$2,832,610
11.3%
Tokyo
30
10
$106,797
$53,398
30
69%
4Q25
$158,396
$166,540
$324,936
$79,198
$83,270
$162,468
Hong Kong
—
—
26,299
26,299
6
100%
3Q25
63,156
17,931
81,086
63,156
17,931
81,086
Sydney
—
10
41,336
41,336
7
100%
2Q26
1,112
68,637
69,749
1,112
68,637
69,749
Other
200
40
303,341
169,510
22
27%
1Q26
66,490
99,501
165,991
31,174
43,981
75,154
APAC
230
60
$477,773
$290,544
65
61%
$289,153
$352,609
$641,762
$174,639
$213,818
$388,457
9.8%
Total
3,000
470
$5,029,836
$4,464,345
814
63%
$3,673,621
$5,666,085
$9,339,706
$2,897,049
$4,068,662
$6,965,711
12.5%
(1)
Includes development projects in consolidated and unconsolidated joint ventures.
(2)
Represents the expected megawatt capacity to be developed based on our current plans and estimates; actual megawatt capacity developed may differ. Includes land and space held or actively under construction in preparation for future data center fit-out.
(3)
Represents cost incurred through March 31, 2025, plus remaining cost to complete on approved phases in preparation for future data center fit-out, including pro-rata share of acquisition, shell, and infrastructure costs.
(4)
Includes Digital Realty's and partners' shares in development joint venture projects.
(5)
Includes only Digital Realty's share in development joint venture projects.
(6)
Represents cost incurred through March 31, 2025.
(7)
Represents estimated cost to complete scope of work pursuant to approved development budget.
(8)
Represents total cost to develop a data center, including pro-rata share of acquisition, infrastructure, and shell space, plus the direct investment in the data center fit-out.
(9)
Represents pre-tax estimated stabilized cash yields, which are based on total expected investment amounts and anticipated net operating income from leases signed or other assumptions based on market conditions.
25
Table of Contents
Construction Projects in Progress (1)
Financial Supplement
Dollars in Thousands
First Quarter 2025
100% Share (2)
DLR Share (3)
Current
Future
Total
Current
Future
Total
Construction Projects in Progress
Investment (4) (10)
Investment (5)
Investment
Investment (4) (6) (10)
Investment (5)
Investment
Future Development Capacity (7)
$2,992,474
$2,037,362
$5,029,836
$2,592,575
$1,871,770
$4,464,345
Data Center Construction
3,673,621
5,666,085
9,339,706
2,897,049
4,068,662
6,965,711
Equipment Pool & Other Inventory (8)
216,089
—
216,089
216,089
—
216,089
Campus, Tenant Improvements & Other (9)
239,564
171,892
411,456
239,564
171,892
411,456
Total Land Held and Development CIP
$7,121,748
$7,875,339
$14,997,087
$5,945,277
$6,112,324
$12,057,601
Enhancement & Other
$12,165
$7,392
$19,557
$12,165
$7,392
$19,557
Recurring
35,173
42,989
78,162
35,173
42,989
78,162
Total Land Held and Construction in Progress
$7,169,086
$7,925,720
$15,094,806
$5,992,615
$6,162,705
$12,155,320
(1)
Includes development projects in consolidated and unconsolidated joint ventures.
(2)
Includes Digital Realty's and partners' shares in development joint venture projects.
(3)
Includes only Digital Realty's share in development joint venture projects.
(4)
Represents cost incurred through March 31, 2025.
(5)
Represents estimated cost to complete scope of work pursuant to approved development budget.
(6)
Excludes $133.8 million representing our partners' shares in consolidated joint ventures included in Construction in Progress or Land Held for Future Development in our Consolidated Balance Sheet; includes $721.4 million representing Digital Realty's share in development projects classified as Investments in Unconsolidated Joint Ventures in our Consolidated Balance Sheet.
(7)
Includes land and space held or actively under construction in preparation for future data center fit-out.
(8)
Represents long-lead equipment and materials required for timely deployment and delivery of data center fit-out.
(9)
Represents improvements in progress as of March 31, 2025, which benefit space recently converted to our operating portfolio and is composed primarily of shared infrastructure projects and first-generation tenant improvements. Includes $2.8 million included in our Consolidated Balance Sheet related to fair value adjustments on Teraco portfolio projects that were partially constructed as of August 1, 2022.
(10)
Includes $315.3 million classified as assets held for sale and contribution in our Consolidated Balance Sheet related to eight development projects that will be contributed to a joint venture and our U.S. Hyperscale Fund in the second quarter.
26
Table of Contents
Historical Capital Expenditures and Investments in Real Estate
Financial Supplement
Dollars and Square Feet in Thousands
First Quarter 2025
Three Months Ended
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Non-Recurring Capital Expenditures (1)
Development (2)
$686,622
$528,356
$650,912
$531,903
$549,522
Enhancements and Other Non-Recurring
5,588
13,384
7,070
7,051
7,738
Total Non-Recurring Capital Expenditures
$692,210
$541,740
$657,982
$538,953
$557,260
Recurring Capital Expenditures (3)
$35,305
$130,245
$67,308
$60,483
$47,676
Total Direct Capital Expenditures
$727,515
$671,985
$725,290
$599,436
$604,936
Indirect Capital Expenditures
Capitalized Interest
$30,095
$34,442
$28,312
$27,592
$28,522
Capitalized Overhead
29,693
28,983
27,929
28,457
25,857
Total Indirect Capital Expenditures
$59,788
$63,425
$56,241
$56,049
$54,379
Total Improvements to and Advances for Investment in Real Estate
$787,303
$735,410
$781,530
$655,485
$659,315
(1)
Non-recurring capital expenditures are primarily for development of space and land, excluding acquisition costs.
(2)
Amount reflects the total capital expenditures on consolidated development projects during the quarter. The total includes 100% of spending on projects contributed to joint ventures prior to their contribution.
(3)
Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and external leasing commissions. Recurring capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty’s operating standards, or internal leasing commissions.
27
Table of Contents
Acquisitions / Dispositions/ Joint Ventures
Financial Supplement
Dollars and Square Feet in Thousands
First Quarter 2025
Closed Acquisitions:
Net
Rentable
Square Feet
Square Feet
% of Total Net
Acquisition
Metropolitan
Date
Purchase
Cap
Square
Under
Held For
Rentable Square
Property
Type
Area
Acquired
Price (1)
Rate (2)
Feet (3)
Development
Development
Feet Occupied (4)
Moores Chapel Road
Land
Charlotte, NC
2/18/2025
$20,000
NA
—
—
—
—
CGK10 & CGK11 (5)
Land and Buildings
Jakarta, Indonesia
3/13/2025
94,731
NA
—
—
—
—
712 E 5th St & 725 E Trade St
Land
Charlotte, NC
3/26/2025
16,100
NA
—
—
—
—
Total
$130,831
—
—
—
—
—
Closed Dispositions:
Net
Rentable
Square Feet
Square Feet
% of Total Net
Disposition
Metropolitan
Date
Sale
Cap
Square
Under
Held For
Rentable Square
Property
Type
Area
Disposed
Price (1)
Rate (2)
Feet (3)
Development
Development
Feet Occupied (4)
—
—
—
—
—
—
—
—
—
Total
—
—
—
—
—
—
—
—
—
Closed Joint Venture Contributions:
Net
Rentable
Square Feet
Square Feet
% of Total Net
Metropolitan
Contribution
Cap
Square
Under
Held For
Rentable Square
Property
Area
Date
Price
Rate (2)
Feet (3)
Development
Development
Feet Occupied (4)
—
—
—
—
—
—
—
—
Total
—
—
—
—
—
—
—
—
(1)
Represents the purchase price or sale price, as applicable before contractual price adjustments, transaction expenses, taxes, and potential currency fluctuations. All prices were converted to USD based on FX rate as of March 31, 2025.
(2)
We calculate the cash capitalization rate on acquisitions, dispositions, and joint venture contributions by dividing anticipated annual net operating income by the purchase/sale/contribution price, including assumed debt and related pre-payment penalties. Net operating income represents rental revenue and tenant reimbursement revenue from in-place leases, less rental property operating and maintenance expenses, property taxes and insurance expenses, and is not a financial measure calculated in accordance with GAAP. We caution you not to place undue reliance on our cash capitalization rates because they are based solely on data made available to us in the diligence process in connection with the relevant acquisitions and are calculated on a non-GAAP basis. Our calculation of the cash capitalization rate on acquisitions may change, based on our experience operating the data centers subsequent to closing of the acquisitions.
In addition, the actual cash capitalization rates may differ from our expectations based on numerous other factors, including the results of our final purchase price allocation, difficulties collecting anticipated rental revenues, tenant bankruptcies, property tax reassessments and unanticipated expenses at the data centers that we cannot pass on to tenants.
(3)
We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area.
(4)
Occupancy excludes space under active development and space held for development.
(5)
Digital Realty closed on the acquisition of a 50% interest in Digital Realty Bersama, a Joint Venture which consists of two data centers in Jakarta, Indonesia for approximately IDR1.5 billion or $95 million.
28
Table of Contents
Unconsolidated Joint Ventures
Financial Supplement
Dollars in Thousands
First Quarter 2025
Summary Balance Sheet -
As of March 31, 2025
at the JV's 100% Share
Americas (1)
APAC (2)
EMEA (3)
Global (4)
Total
Gross cost of operating real estate
$6,706,180
$2,015,121
$766,861
$1,728,318
$11,216,480
Accumulated depreciation & amortization
(1,053,478)
(296,264)
(8,123)
(120,792)
(1,478,657)
Net Book Value of Operating Real Estate
$5,652,702
$1,718,857
$758,738
$1,607,526
$9,737,823
Cash
385,528
518,039
62,693
49,506
1,015,766
Other assets
1,698,892
194,924
268,833
379,664
2,542,313
Total Assets
$7,737,122
$2,431,820
$1,090,264
$2,036,696
$13,295,902
Debt
2,961,514
910,128
348,522
643,562
4,863,726
Other liabilities
760,460
185,384
457,602
477,336
1,880,782
Equity / (deficit)
4,015,148
1,336,307
284,141
915,798
6,551,394
Total Liabilities and Equity
$7,737,122
$2,431,820
$1,090,264
$2,036,696
$13,295,902
Digital Realty's Pro Rata Share of Unconsolidated JV Debt
$975,396
$446,165
$69,704
$206,022
$1,697,287
Summary Statement of Operations -
Three Months Ended March 31, 2025
at the JV's 100% Share
Americas (1)
APAC (2)
EMEA (3)
Global (4)
Total
Total revenues
$226,218
$75,047
$8,142
$47,830
$357,237
Operating expenses
(100,290)
(33,318)
(3,046)
(21,223)
(157,877)
Net Operating Income (NOI)
$125,928
$41,729
$5,096
$26,607
$199,360
Straight-line rent
(3,093)
(2,077)
(393)
(815)
(6,377)
Above and below market rent
502
—
(848)
(3,427)
(3,773)
Cash Net Operating Income (NOI)
$123,337
$39,652
$3,855
$22,365
$189,210
Interest expense
($46,693)
($1,743)
($4,698)
($9,727)
($62,861)
Depreciation & amortization
(111,157)
(20,358)
(3,785)
(23,532)
(158,833)
Other income / (expense)
(24,164)
(2,674)
(717)
747
(26,807)
FX remeasurement on USD debt
24,202
—
(652)
(17,236)
6,316
Total Non-Operating Expenses
($157,812)
($24,775)
($9,852)
($49,748)
($242,187)
Net Income / (Loss)
($31,884)
$16,954
($4,756)
($23,141)
($42,827)
Digital Realty's Pro Rata Share of Unconsolidated JV NOI
$39,050
$20,918
$1,201
$13,360
$74,529
Digital Realty's Pro Rata Share of Unconsolidated JV Cash NOI
$38,445
$19,880
$953
$10,927
$70,205
Digital Realty's Earnings (loss) income from unconsolidated joint ventures
($9,183)
$9,433
($306)
($7,584)
($7,640)
Digital Realty's Pro Rata Share of Core FFO (5)
$12,209
$19,612
$855
$9,128
$41,804
Digital Realty's Fee Income from Joint Ventures
$12,752
$571
$1,219
$3,645
$18,187
(1)
Includes Ascenty, Blackstone NoVa, Clise, GI Partners, Mapletree, Menlo, Mitsubishi, Realty Income, TPG Real Estate, and Walsh.
(2)
Includes Digital Realty Bersama, Digital Connexion, Lumen, and MC Digital Realty.
(3)
Includes Blackstone Frankfurt, Blackstone Paris, Medallion, and Mivne.
(4)
Includes Digital Core REIT.
(5)
For a definition of Core FFO, see page 31.
Note: Digital Realty’s ownership percentages in the Joint Ventures vary.
29
Table of Contents
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios
Financial Supplement
Unaudited and Dollars in Thousands
First Quarter 2025
Three Months Ended
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1)
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Net Income / (Loss) Available to Common Stockholders
$99,793
$179,388
$41,012
$70,039
$271,327
Interest
98,464
104,742
123,803
114,756
109,535
Loss on debt extinguishment and modifications
—
2,165
2,636
—
1,070
Income tax expense (benefit)
17,135
4,928
12,427
14,992
22,413
Depreciation & amortization
443,009
455,355
459,997
425,343
431,102
EBITDA
$658,400
$746,578
$639,875
$625,130
$835,446
Unconsolidated JV real estate related depreciation & amortization
55,861
49,463
48,474
47,117
47,877
Unconsolidated JV interest expense and tax expense
33,390
32,255
34,951
27,704
34,271
Severance, equity acceleration and legal expenses
2,428
2,346
2,481
884
791
Transaction and integration expenses
39,902
11,797
24,194
26,072
31,839
(Gain) / loss on sale of investments
(1,111)
(144,885)
556
(173,709)
(277,787)
Provision for impairment
—
22,881
—
168,303
—
Other non-core adjustments, net (2)
(4,316)
24,539
8,642
743
21,608
Non-controlling interests
(3,579)
(3,881)
(11,059)
(5,552)
6,329
Preferred stock dividends
10,181
10,181
10,181
10,181
10,181
Adjusted EBITDA
$791,156
$751,276
$758,296
$726,874
$710,556
(1)
For definitions and discussion of EBITDA and Adjusted EBITDA, see the Definitions section.
(2)
Includes foreign exchange net unrealized gains/losses attributable to remeasurement, deferred rent adjustments related to a customer bankruptcy, write offs associated with bankrupt or terminated customers, non-recurring legal and insurance expenses, gain on sale of land option and lease termination fees.
Three Months Ended
Financial Ratios
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
31-Mar-24
Total GAAP interest expense
$98,464
$104,742
$123,803
$114,756
$109,535
Capitalized interest
30,095
34,442
28,312
27,592
28,522
Change in accrued interest and other non-cash amounts
45,416
(58,137)
43,720
(55,605)
55,421
Cash Interest Expense (3)
$173,975
$81,046
$195,835
$86,743
$193,479
Preferred stock dividends
10,181
10,181
10,181
10,181
10,181
Total Fixed Charges (4)
$138,739
$149,364
$162,296
$152,529
$148,239
Coverage
Interest coverage ratio (5)
5.3x
4.5x
4.3x
4.3x
4.3x
Cash interest coverage ratio (6)
4.1x
6.9x
3.4x
6.4x
3.2x
Fixed charge coverage ratio (7)
4.9x
4.2x
4.1x
4.1x
4.0x
Cash fixed charge coverage ratio (8)
3.9x
6.3x
3.3x
5.9x
3.1x
Leverage
Debt to total enterprise value (9)(10)
25.4%
21.4%
23.5%
24.2%
26.7%
Debt-plus-preferred-stock-to-total-enterprise-value (10)(11)
26.6%
22.3%
24.5%
25.3%
27.9%
Pre-tax income to interest expense (12)
2.1x
2.8x
1.3x
1.7x
3.6x
Net Debt-to-Adjusted EBITDA (13)
5.1x
4.8x
5.4x
5.3x
6.1x
(3)
Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash-based interest expense.
(4)
Fixed charges consist of GAAP interest expense, capitalized interest, and preferred stock dividends.
(5)
Adjusted EBITDA divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated joint venture interest expense).
(6)
Adjusted EBITDA divided by cash interest expense (including our pro rata share of unconsolidated joint venture interest expense).
(7)
Adjusted EBITDA divided by fixed charges (including our pro rata share of unconsolidated joint venture fixed charges).
(8)
Adjusted EBITDA divided by the sum of cash interest expense and preferred stock dividends (including our pro rata share of unconsolidated joint venture cash fixed charges).
(9)
Total debt divided by market value of common equity plus debt plus preferred stock.
(10)
Total enterprise value defined as market value of common equity plus debt plus preferred stock.
(11)
Same as (9), except numerator includes preferred stock.
(12)
Calculated as net income plus interest expense divided by GAAP interest expense.
(13)
Calculated as total debt at balance sheet carrying value, plus capital lease obligations, plus Digital Realty’s pro rata share of unconsolidated joint venture debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated joint venture EBITDA), multiplied by four.
30
Table of Contents
Management Statements on Non-GAAP Measures
Financial Supplement
Unaudited
First Quarter 2025
Definitions
Funds From Operations (FFO):
We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts (Nareit) in the Nareit Funds From Operations White Paper - 2018 Restatement. FFO is a non-GAAP financial measure and represents net income (loss) (computed in accordance with GAAP), excluding gain (loss) from the disposition of real estate assets, provision for impairment, real estate related depreciation and amortization (excluding amortization of deferred financing costs), our share of unconsolidated JV real estate related depreciation & amortization, net income attributable to non-controlling interests in operating partnership and reconciling items related to non-controlling interests. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions and after adjustments for unconsolidated partnerships and joint ventures, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs.
We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited.
Other REITs may not calculate FFO in accordance with the Nareit definition and, accordingly, our FFO may not be comparable to other REITs’ FFO. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
Core Funds from Operations (Core FFO):
We present core funds from operations, or Core FFO, as a supplemental operating measure because, in excluding certain items that do not reflect core revenue or expense streams, it provides a performance measure that, when compared year over year, captures trends in our core business operating performance. We calculate Core FFO by adding to or subtracting from FFO (i) other non-core revenue adjustments, (ii) transaction and integration expenses, (iii) loss on debt extinguishment and modifications, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration and legal expenses, (vi) gain/loss on FX and derivatives revaluation, and (vii) other non-core expense adjustments. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO as a measure of our performance is limited.
Other REITs may calculate Core FFO differently than we do and accordingly, our Core FFO may not be comparable to other REITs’ Core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
Adjusted Funds from Operations (AFFO):
We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from Core FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount/premium, (iv) non-cash stock-based compensation expense, (v) straight-line rental revenue, (vi) straight-line rental expense, (vii) above- and below-market rent amortization, (viii) deferred tax expense / (benefit), (ix) leasing compensation and internal lease commissions, and (x) recurring capital expenditures.
Other REITs may calculate AFFO differently than we do and, accordingly, our AFFO may not be comparable to other REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
EBITDA and Adjusted EBITDA:
We believe that earnings before interest, loss on debt extinguishment and modifications, income taxes, and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, (i) unconsolidated joint venture real estate related depreciation & amortization, (ii) unconsolidated joint venture interest expense and tax, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) non-controlling interests, (ix) preferred stock dividends, and (x) issuance costs associated with redeemed preferred stock.
Adjusted EBITDA is EBITDA excluding (i) unconsolidated joint venture real estate related depreciation & amortization, (ii) unconsolidated joint venture interest expense and tax, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) non-controlling interests, (ix) preferred stock dividends, and (x) gain on / issuance costs associated with redeemed preferred stock. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs. Because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, exclude capitalized costs, such as leasing commissions, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited.
Other REITs may calculate EBITDA and Adjusted EBITDA differently than we do and, accordingly, our EBITDA and Adjusted EBITDA may not be comparable to other REITs’ EBITDA and Adjusted EBITDA. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income computed in accordance with GAAP as a measure of our financial performance.
31
Table of Contents
Management Statements on Non-GAAP Measures
Financial Supplement
Unaudited
First Quarter 2025
Net Operating Income (NOI) and Cash NOI:
Net operating income, or NOI, represents rental revenue, tenant reimbursement revenue and interconnection revenue less utilities expense, rental property operating expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. Cash NOI is NOI less straight-line rents and above- and below-market rent amortization. Cash NOI is commonly used by stockholders, company management and industry analysts as a measure of property operating performance on a cash basis. Same-Capital Cash NOI represents buildings owned as of December 31, 2023 of the prior year with less than 5% of total rentable square feet under development and excludes buildings that were undergoing, or were expected to undergo, development activities in 2024-2025, buildings classified as held for sale and contribution, and buildings sold or contributed to joint ventures for all periods presented (prior period numbers adjusted to reflect current same-capital pool).
However, because NOI and cash NOI exclude depreciation and amortization and capture neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our results from operations, the utility of NOI and cash NOI as measures of our performance is limited. Other REITs may calculate NOI and cash NOI differently than we do and, accordingly, our NOI and cash NOI may not be comparable to other REITs’ NOI and cash NOI. NOI and cash NOI should be considered only as supplements to net income computed in accordance with GAAP as measures of our performance.
Additional Definitions
Net debt-to-Adjusted EBITDA ratio is calculated as total debt at balance sheet carrying value, plus capital lease obligations, plus Digital Realty’s pro rata share of unconsolidated joint venture debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated joint venture EBITDA), multiplied by four.
Debt-plus-preferred-to-total enterprise value is total debt plus preferred stock divided by total debt plus the liquidation value of preferred stock and the market value of outstanding Digital Realty Trust, Inc. common stock and Digital Realty Trust, L.P. units, assuming the redemption of Digital Realty Trust, L.P. units for shares of Digital Realty Trust, Inc. common stock.
Fixed charge coverage ratio is Adjusted EBITDA divided by the sum of GAAP interest expense, capitalized interest and preferred stock dividends. For the quarter ended March 31, 2025, GAAP interest expense was $98 million, capitalized interest was $30 million and preferred stock dividends was $10 million.
Reconciliation of Net Operating Income (NOI)
Three Months Ended
(in thousands)
31-Mar-25
31-Dec-24
31-Mar-24
Operating income
$195,750
$144,322
$149,367
Fee income
(20,643)
(23,316)
(13,010)
Other income
(133)
(40)
(862)
Depreciation and amortization
443,009
455,355
431,102
General and administrative
121,112
124,470
114,419
Severance, equity acceleration and legal expenses
2,428
2,346
791
Transaction expenses
39,902
11,797
31,839
Provision for impairment
—
22,881
—
Other expenses
112
12,002
10,836
Net Operating Income
$781,536
$749,818
$724,482
Cash Net Operating Income (Cash NOI)
Net Operating Income
$781,536
$749,818
$724,482
Straight-line rental revenue
(9,693)
(22,577)
(2,522)
Straight-line rental expense
24
51
1,369
Above- and below-market rent amortization
(706)
(269)
(854)
Cash Net Operating Income
$771,162
$727,022
$722,474
Constant Currency CFFO Reconciliation
Three Months Ended
(in thousands, except per share data)
31-Mar-25
31-Mar-24
Core FFO (1)
$608,354
$532,153
Core FFO impact of holding '24 Exchange Rates Constant (2)
5,609
—
Constant Currency Core FFO
$613,963
$532,153
Weighted-average shares and units outstanding - diluted
343,050
319,138
Constant Currency CFFO Per Share
$1.79
$1.67
1)
As reconciled to net income above.
2)
Adjustment calculated by holding currency translation rates for 2025 constant with average currency translation rates that were applicable to the same periods in 2024.
32
Table of Contents
Forward-Looking Statements
Financial Supplement
First Quarter 2025
This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, anticipated continued demand for our products and service, our liquidity, our joint ventures, supply and demand for data center and colocation space, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company’s FFO, Core FFO, constant currency Core FFO, adjusted FFO, and net income, 2025 outlook and underlying assumptions, information related to trends, our strategy and plans, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and development activity and plans, projected construction costs, estimated yields on investment, expected occupancy, expected square footage and IT load capacity upon completion of development projects, backlog NOI, NAV components, and other forward-looking financial data.
Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:
●
reduced demand for data centers or decreases in information technology spending;
●
decreased rental rates, increased operating costs or increased vacancy rates;
●
increased competition or available supply of data center space;
●
the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services;
●
breaches of our obligations or restrictions under our contracts with our customers;
●
our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties;
●
the impact of current global and local economic, credit and market conditions;
●
increased tariffs, global supply chain or procurement disruptions, or increased supply chain costs;
●
the impact from periods of heightened inflation on our costs, such as operating and general and administrative expenses, interest expense and real estate acquisition and construction costs;
●
the impact on our customers’ and our suppliers’ operations during an epidemic, pandemic, or other global events;
●
our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers;
●
changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate;
●
our inability to retain data center space that we lease or sublease from third parties;
●
information security and data privacy breaches;
●
difficulties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas;
●
our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions;
●
our failure to successfully integrate and operate acquired or developed properties or businesses;
●
difficulties in identifying properties to acquire and completing acquisitions;
●
risks related to joint venture investments, including as a result of our lack of control of such investments;
●
risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;
●
our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital;
●
financial market fluctuations and changes in foreign currency exchange rates;
●
adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges;
●
our inability to manage our growth effectively;
●
losses in excess of our insurance coverage;
●
our inability to attract and retain talent;
●
environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;
●
the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations;
●
our inability to comply with rules and regulations applicable to our company;
●
Digital Realty Trust, Inc.’s failure to maintain its status as a REIT for U.S. federal income tax purposes;
●
Digital Realty Trust, L.P.’s failure to qualify as a partnership for U.S. federal income tax purposes;
●
restrictions on our ability to engage in certain business activities;
●
changes in local, state, federal and international laws, and regulations, including related to taxation, real estate, and zoning laws, and increases in real property tax rates; and
●
the impact of any financial, accounting, legal or regulatory issues or litigation that may affect us.
The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. Several additional material risks are discussed in our annual report on Form 10-K for the year ended December 31, 2024, and other filings with the U.S. Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Digital Realty, Digital Realty Trust, the Digital Realty logo, Interxion, Turn-Key Flex, Powered Base Building, ServiceFabric, AnyScale Colo, Pervasive Data Center Architecture, PlatformDIGITAL, PDx, Data Gravity Index and Data Gravity Index DGx are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All other names, trademarks and service marks are the property of their respective owners.
33
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor