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Table of Contents
Exhibit 99.1
Table of Contents
Financial Supplement
Table of Contents
Third Quarter 2024
\
Overview
PAGE
Corporate Information
3
Key Quarterly Financial Data
5
Consolidated Statements of Operations
Earnings Release
7
2024 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
Third Quarter 2024
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 September 30, 2024, the company’s 312 data centers, including 73 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 41.1 million square feet, excluding approximately 9.1 million square feet of space under active development and 4.9 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
5707 Southwest Parkway, Building 1, Suite 275
Austin, TX 78735
Telephone: (737) 281-0101
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
David Barden
Brendan Lynch
Ari Klein
Nate Crossett
Michael Rollins
Matthew Niknam
(212) 425-7500
(646) 855-1320
(212) 526-9428
(212) 885-4103
(646) 725-3716
(212) 816-1116
(212) 250-4711
Edward Jones
Evercore ISI
Goldman Sachs
Green Street Advisors
HSBC
Jefferies
J.P. Morgan
Kyle Sanders
Irvin Liu
Jim Schneider
David Guarino
Phani Kanumuri
Jonathan Petersen
Richard Choe
(314) 515-0198
(415) 800-0183
(212) 357-2929
(949) 640-8780
+52 (551) 782-7350
(212) 284-1705
(212) 662-6708
KeyBanc
Mizuho Group
MoffettNathanson
Morgan Stanley
Morningstar
Raymond James
RBC Capital Markets
Brandon Nispel
Vikram Malhotra
Nick Del Deo
Simon Flannery
Samuel Siampaus
Frank Louthan
Jonathan Atkin
(503) 821-3871
(212) 282-3827
(212) 519-0025
(212) 761-6432
(312) 244-7966
(404) 442-5867
(415) 633-8589
Scotiabank
Stifel
TD Cowen
Truist Securities
UBS
Wells Fargo
Wolfe Research
Maher Yaghi
Erik Rasmussen
Michael Elias
Anthony Hau
John Hodulik
Eric Luebchow
Andrew Rosivach
(437) 995-5548
(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
November 19-20, 2024
NAREIT REITworld: 2024 Annual Conference
Las Vegas, NV
December 3-4, 2024
UBS Global Real Estate Conference CEO/CFO Conference 2024
London, UK
December 10-11, 2024
4th Annual Jefferies Global Real Estate Conference
Miami, FL
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)
Third Quarter 2024
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
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
High price
$165.17
$153.25
$154.18
$139.35
$133.39
Low price
$141.00
$135.54
$130.00
$113.94
$112.38
Closing price, end of quarter
$161.83
$152.05
$144.04
$134.58
$121.02
Average daily trading volume (1)
1,615
1,863
2,108
1,932
2,301
Indicated dividend per common share (2)
$4.88
$4.88
$4.88
$4.88
$4.88
Closing annual dividend yield, end of quarter
3.0%
3.2%
3.4%
3.6%
4.0%
Shares and units outstanding, end of quarter (1) (3)
337,744
332,346
319,009
318,057
309,325
Closing market value of shares and units outstanding (4)
$54,657,112
$50,533,209
$45,950,001
$42,804,053
$37,434,562
(1)
Shares or shares and units in thousands.
(2)
On an annualized basis.
(3)
As of September 30, 2024, the total number of shares and units includes 331,347 shares of common stock, 4,254 common units held by third parties and 2,143 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.
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Table of Contents
Key Quarterly Financial Data
Financial Supplement
Unaudited, Dollars (except per share data) and Square Feet in Thousands
Third Quarter 2024
Shares and Units at End of Quarter
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
Common shares outstanding
331,347
325,885
312,421
311,608
302,846
Common partnership units outstanding
6,397
6,461
6,588
6,449
6,479
Total Shares and Units
337,744
332,346
319,009
318,057
309,325
Enterprise Value
Market value of common equity (1)
$54,657,112
$50,533,209
$45,950,001
$42,804,053
$37,434,562
Liquidation value of preferred equity
755,000
755,000
755,000
755,000
755,000
Total debt at balance sheet carrying value
16,986,546
16,339,746
17,020,340
17,425,908
16,869,776
Total Enterprise Value
$72,398,658
$67,627,955
$63,725,341
$60,984,961
$55,059,338
Total debt / total enterprise value
23.5%
24.2%
26.7%
28.6%
30.6%
Debt-plus-preferred-to-total-enterprise-value
24.5%
25.3%
27.9%
29.8%
32.0%
Selected Balance Sheet Data
Investments in real estate (before depreciation)
$36,463,664
$34,573,283
$34,099,698
$34,355,662
$33,267,766
Total Assets
45,295,392
43,606,883
42,633,089
44,113,257
41,932,515
Total Liabilities
22,118,781
21,199,178
21,792,866
23,116,936
21,895,634
Selected Operating Data
Total operating revenues
$1,431,214
$1,356,749
$1,331,143
$1,369,633
$1,402,437
Total operating expenses
1,262,928
1,346,860
1,181,776
1,235,598
1,344,206
Net income
40,134
74,668
287,837
19,884
745,941
Net income / (loss) available to common stockholders
41,012
70,039
271,327
18,122
723,440
Financial Ratios
EBITDA (2)
$639,875
$625,130
$835,446
$572,958
$1,272,048
Adjusted EBITDA (3)
758,296
726,874
710,556
699,509
685,943
Net Debt-to-Adjusted EBITDA (4)
5.4x
5.3x
6.1x
6.2x
6.3x
Interest expense
123,803
114,756
109,535
113,638
110,767
Fixed charges (5)
162,296
152,529
148,239
156,851
150,079
Interest coverage ratio (6)
4.3x
4.3x
4.3x
4.0x
4.3x
Fixed charge coverage ratio (7)
4.1x
4.1x
4.0x
3.8x
4.1x
Profitability Measures
Net income / (loss) per common share - basic
$0.13
$0.22
$0.87
$0.06
$2.40
Net income / (loss) per common share - diluted
$0.09
$0.20
$0.82
$0.03
$2.31
Funds from operations (FFO) / diluted share and unit (8)
$1.55
$1.57
$1.41
$1.53
$1.55
Core funds from operations (Core FFO) / diluted share and unit (8)
$1.67
$1.65
$1.67
$1.63
$1.62
Adjusted funds from operations (AFFO) / diluted share and unit (9)
$1.52
$1.56
$1.68
$1.30
$1.40
Dividends per share and common unit
$1.22
$1.22
$1.22
$1.22
$1.22
Diluted FFO payout ratio (8) (10)
78.8%
77.9%
86.5%
79.8%
78.6%
Diluted Core FFO payout ratio (8) (11)
73.2%
73.9%
73.2%
75.0%
75.2%
Diluted AFFO payout ratio (9) (12)
80.4%
78.1%
72.8%
93.6%
87.3%
Portfolio Statistics
Buildings (13)
331
323
323
323
326
Data Centers (13)
312
310
309
309
312
Cross-connects (13) (14)
225,000
223,000
221,500
220,000
218,000
Net rentable square feet, excluding development space (13)
41,092
41,220
39,839
39,688
39,542
Occupancy at end of quarter (15)
83.9%
82.9%
82.1%
81.7%
82.8%
Occupied square footage (13)
34,479
34,160
32,727
32,407
32,727
Space under active development (16)
9,126
8,507
8,238
8,470
9,205
Space held for development (17)
4,862
5,130
4,141
4,130
3,937
Weighted average remaining lease term (years) (18)
4.8
4.7
4.5
4.6
4.8
Same-capital occupancy at end of quarter (15) (19)
83.3%
83.6%
82.6%
82.9%
82.8%
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Table of Contents
Key Quarterly Financial Data
Financial Supplement
Unaudited, Dollars (except per share data) and Square Feet in Thousands
Third Quarter 2024
(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.
(14)
Represents approximate amounts and excludes totals from July 2024 acquisition in Slough, UK.
(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.
(16)
Space under active development includes current Base Building and Data Centers projects in progress. Excludes buildings held-for-sale.
(17)
Space held for development includes space held for future Data Center development and excludes space under active development. Excludes buildings held for sale.
(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, 2022, with less than 5% of total rentable square feet under development. Excludes buildings that were undergoing, or were expected to undergo, development activities in 2023-2024, buildings classified as held-for-sale, and buildings sold or contributed to joint ventures for all periods presented. Prior period results have been adjusted to reflect current same-capital pool.
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Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
Third Quarter 2024
Digital Realty Reports Third Quarter 2024 Results
Austin, TX — October 24, 2024 — 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 third quarter of 2024. All per share results are presented on a fully diluted basis.
Highlights
◾
Reported net income available to common stockholders of $0.09 per share in 3Q24, compared to $2.31 in 3Q23
◾
Reported FFO per share of $1.55 in 3Q24, compared to $1.55 in 3Q23
◾
Reported Core FFO per share of $1.67 in 3Q24, compared to $1.62 in 3Q23
◾
Reported rental rate increases on renewal leases of 15.2% on a cash basis in 3Q24
◾
Signed total bookings during 3Q24 that are expected to generate $521 million of annualized GAAP rental revenue, including a $50 million contribution from the 0–1 megawatt category and $16 million contribution from interconnection
◾
Reported backlog of $859 million of annualized GAAP base rent at the end of 3Q24
◾
Raised 2024 Core FFO per share outlook to $6.65 - $6.75
Financial Results
Digital Realty reported revenues of $1.4 billion in the third quarter of 2024, a 5% increase from the previous quarter and a 2% increase from the same quarter last year.
The company delivered net income of $40 million in the third quarter of 2024, and net income available to common stockholders of $41 million, or $0.09 per diluted share, compared to $0.20 per diluted share in the previous quarter and $2.31 per diluted share in the same quarter last year.
Digital Realty generated Adjusted EBITDA of $758 million in the third quarter of 2024, a 4% increase from the previous quarter and a 11% increase over the same quarter last year.
The company reported Funds From Operations (FFO) of $520 million in the third quarter of 2024, or $1.55 per share, compared to $1.57 per share in the previous quarter and $1.55 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 $1.67 in the third quarter of 2024, compared to $1.65 per share in the previous quarter and $1.62 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share of $1.66 for the third quarter of 2024 and $4.99 per share for the nine-month period ended September 30, 2024.
“In the third quarter, Digital Realty posted over $520 million of new leasing, more than double the record set in the first quarter. Record leasing across both the greater-than-a-megawatt and 0-1 MW plus interconnection segments drove the backlog up nearly 60% above our prior record,” said Digital Realty President & Chief Executive Officer Andy Power. “Our backlog now represents over 20% of annualized in-place data center revenue, enhancing our visibility and positioning Digital Realty for accelerating longer-term growth.”
Leasing Activity
In the third quarter, Digital Realty signed total bookings that are expected to generate $521 million of annualized GAAP rental revenue, including a $50 million contribution from the 0–1 megawatt category and a $16 million contribution from interconnection.
The weighted-average lag between new leases signed during the third quarter of 2024 and the contractual commencement date was 15 months. The backlog of signed-but-not-commenced leases at quarter-end increased to $859 million of annualized GAAP base rent at Digital Realty’s share.
In addition to new leases signed, Digital Realty also signed renewal leases representing $258 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the third quarter of 2024 increased 15.2% on a cash basis and 27.5% on a GAAP basis.
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Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
Third Quarter 2024
New leases signed during the third quarter of 2024 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
$23,394
83
$282
7.5
$262
> 1 MW
425,641
1,102
386
158.8
223
Other (1)
4,684
66
71
—
—
Total
$453,719
1,251
$363
166.2
$225
EMEA (2)
0-1 MW
$20,406
66
$308
7.5
$228
> 1 MW
17,339
80
217
9.0
161
Other (1)
168
5
35
—
—
Total
$37,913
151
$252
16.5
$191
Asia Pacific (2)
0-1 MW
$6,563
20
$324
1.7
$315
> 1 MW
6,764
55
124
4.4
129
Other (1)
216
2
87
—
—
Total
$13,543
77
$175
6.1
$182
All Regions (2)
0-1 MW
$50,363
169
$297
16.6
$252
> 1 MW
449,744
1,236
364
172.1
218
Other (1)
5,068
73
69
—
—
Total
$505,174
1,479
$342
188.8
$221
Interconnection
$15,702
N/A
N/A
N/A
N/A
Grand Total
$520,876
1,479
$342
188.8
$221
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 September 30, 2024.
Investment Activity
As previously disclosed, in July, Digital Realty closed on the acquisition of two data centers with a combined IT load of 15 megawatts in the Slough Trading Estate for $200 million, marking the Company’s entry into the west London, UK submarket.
During the quarter, Digital Realty acquired the land and shell of one of its existing data centers in Schiphol Rijk, Amsterdam for €43 million, or approximately $48 million. The site comprises approximately 15 megawatts of fully leased capacity and was previously operated pursuant to an operating lease.
Subsequent to quarter end, Digital Realty closed on the acquisition of a 6.7-acre parcel in Richardson, Texas, adjacent to Digital Realty’s existing campus, for approximately $15 million to support the development of more than 80 megawatts of incremental IT capacity.
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Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
Third Quarter 2024
Balance Sheet
Digital Realty had approximately $17.0 billion of total debt outstanding as of September 30, 2024, comprised of $16.2 billion of unsecured debt and approximately $0.8 billion of secured debt and other. At the end of the third quarter of 2024, net debt-to-Adjusted EBITDA was 5.4x, debt-plus-preferred-to-total enterprise value was 24.5% and fixed charge coverage was 4.1x.
Digital Realty completed the following financing transactions during the third quarter:
◾
In July, the company repaid £250 million ($316 million) in aggregate principal amount of its 2.75% senior notes;
◾
In September, the company issued €850 million aggregate principal amount of 3.875% notes due 2033. Net proceeds were approximately €843 million ($933 million);
◾
In September, the company repaid €375 million ($415 million) on the Euro term loan;
◾
In late September, the company amended, extended, and upsized both its existing global revolving credit facility from $3.75 billion to $4.2 billion and its existing Japanese yen-denominated revolving credit facility from ¥33.3 billion (approximately $232 million) to ¥42.5 billion (approximately $297 million); and
◾
The company also sold 5.2 million shares of common stock under its At-The-Market (ATM) equity issuance program at a weighted average price of $156.19 per share, for net proceeds of approximately $806 million.
Subsequent to quarter end, the company sold an additional 0.4 million shares of common stock under its ATM program at a weighted average price of $160.81 per share, for net proceeds of approximately $62 million.
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Table of Contents
Digital Realty Trust
Financial Supplement
Earnings Release
Third Quarter 2024
2024 Outlook
Digital Realty raised its 2024 Core FFO per share and Constant-Currency Core FFO per share outlook to $6.65 - $6.75. The assumptions underlying the outlook are summarized in the following table.
As of
As of
As of
As of
Top-Line and Cost Structure
February 15, 2024
May 2, 2024
July 25, 2024
October 24, 2024
Total revenue
$5.550 - $5.650 billion
$5.550 - $5.650 billion
$5.550 - $5.650 billion
$5.550 - $5.600 billion
G1Net non-cash rent adjustments (1)
($35 - $40 million)
($35 - $40 million)
($35 - $40 million)
($25 - $30 million)
Adjusted EBITDA
$2.800 - $2.900 billion
$2.800 - $2.900 billion
$2.800 - $2.900 billion
$2.925 - $2.975 billion
G2G&A
$450 - $460 million
$450 - $460 million
$450 - $460 million
$455 - $460 million
Internal Growth
G3Rental rates on renewal leases
Cash basis
4.0% - 6.0%
5.0% - 7.0%
5.0% - 7.0%
8.0% - 10.0%
G4GAAP basis
6.0% - 8.0%
7.0% - 9.0%
7.0% - 9.0%
12.0% - 14.0%
G5Year-end portfolio occupancy
+100 - 200 bps
+100 - 200 bps
+100 - 200 bps
+150 - 200 bps
G6"Same-Capital" cash NOI growth (2)
2.0% - 3.0%
2.5% - 3.5%
2.5% - 3.5%
2.75% - 3.25%
Foreign Exchange Rates
U.S. Dollar / Pound Sterling
$1.25 - $1.30
$1.25 - $1.30
$1.25 - $1.30
$1.25 - $1.30
U.S. Dollar / Euro
$1.05 - $1.10
$1.05 - $1.10
$1.05 - $1.10
$1.05 - $1.10
External Growth
Dispositions / Joint Venture Capital
Dollar volume
$1,000 - $1,500 million
$1,000 - $1,500 million
$1,000 - $1,500 million
$1,000 - $1,500 million
Cap rate
6.0% - 8.0%
6.0% - 8.0%
6.0% - 8.0%
6.0% - 8.0%
Development
G7CapEx (Net of Partner Contributions) (3)
$2,000 - $2,500 million
$2,000 - $2,500 million
$2,000 - $2,500 million
$2,200 - $2,400 million
Average stabilized yields
10.0%+
10.0%+
10.0%+
10.0%+
G8Enhancements and other non-recurring CapEx (4)
$15 - $20 million
$15 - $20 million
$15 - $20 million
$25 - $30 million
G9Recurring CapEx + capitalized leasing costs (5)
$260 - $275 million
$260 - $275 million
$260 - $275 million
$260 - $275 million
Balance Sheet
Long-term debt issuance
Dollar amount
$0 - $1,000 million
$0 - $1,000 million
$0 - $1,000 million
$933 million
Pricing
5.0% - 5.5%
5.0% - 5.5%
5.0% - 5.5%
3.875%
Timing
Mid-Year
Mid-Year
Mid-Year
Sep-24
G10Net income per diluted share
$1.80 - $1.95
$1.80 - $1.95
$1.40 - $1.55
$1.40 - $1.50
Real estate depreciation and (gain) / loss on sale
$4.40 - $4.40
$4.40 - $4.40
$4.75 - $4.75
$4.75 - $4.75
G11Funds From Operations / share (NAREIT-Defined)
$6.20 - $6.35
$6.20 - $6.35
$6.15 - $6.30
$6.15 - $6.25
Non-core expenses and revenue streams
$0.40 - $0.40
$0.40 - $0.40
$0.45 - $0.45
$0.50 - $0.50
G12Core Funds From Operations / share
$6.60 - $6.75
$6.60 - $6.75
$6.60 - $6.75
$6.65 - $6.75
Foreign currency translation adjustments
$0.00 - $0.00
$0.00 - $0.00
$0.00 - $0.00
$0.00 - $0.00
Constant-Currency Core Funds From Operations / share
$6.60 - $6.75
$6.60 - $6.75
$6.60 - $6.75
$6.65 - $6.75
(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, 2022 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 2023-2024, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented.
(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
Third Quarter 2024
Non-GAAP Financial Measures
This document contains non-GAAP financial measures, including FFO, 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, 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 October 24, 2024, 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 third quarter 2024 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# 0345410 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 November 24, 2024. 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# 4823548. 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
Third Quarter 2024
Three Months Ended
Nine Months Ended
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Sep-24
30-Sep-23
Rental revenues
$956,351
$912,994
$894,409
$885,694
$886,960
$2,763,753
$2,627,233
Tenant reimbursements - Utilities
305,097
274,505
276,357
316,634
335,477
855,959
983,041
Tenant reimbursements - Other
39,624
41,964
38,434
46,418
64,876
120,021
151,218
Interconnection & other
112,655
109,505
108,071
106,413
107,305
330,231
313,521
Fee income
12,907
15,656
13,010
14,330
7,819
41,572
30,596
Other
4,581
2,125
862
144
—
7,568
1,819
Total Operating Revenues
$1,431,214
$1,356,749
$1,331,143
$1,369,633
$1,402,437
$4,119,106
$4,107,428
Utilities
$356,063
$315,248
$324,571
$366,083
$384,455
$995,882
$1,105,753
Rental property operating
249,796
237,653
224,369
237,118
223,089
711,817
672,717
Property taxes
45,633
49,620
41,156
40,161
72,279
136,408
159,420
Insurance
4,869
4,755
2,694
3,794
4,289
12,318
13,029
Depreciation & amortization
459,997
425,343
431,102
420,475
420,613
1,316,442
1,274,379
General & administration
115,120
119,511
114,419
109,235
108,039
349,051
321,769
Severance, equity acceleration and legal expenses
2,481
884
791
7,565
2,682
4,156
10,489
Transaction and integration expenses
24,194
26,072
31,839
40,226
14,465
82,105
44,496
Provision for impairment
—
168,303
—
5,363
113,000
168,303
113,000
Other expenses
4,774
(529)
10,836
5,580
1,295
15,080
1,949
Total Operating Expenses
$1,262,928
$1,346,860
$1,181,776
$1,235,598
$1,344,206
$3,791,564
$3,717,001
Operating Income
$168,286
$9,889
$149,367
$134,035
$58,231
$327,542
$390,426
Equity in earnings / (loss) of unconsolidated joint ventures
(26,486)
(41,443)
(16,008)
(29,955)
(19,793)
(83,936)
164
Gain / (loss) on sale of investments
(556)
173,709
277,787
(103)
810,688
450,940
900,634
Interest and other income / (expense), net
37,756
62,261
9,709
50,269
24,812
109,726
18,162
Interest (expense)
(123,803)
(114,756)
(109,535)
(113,638)
(110,767)
(348,095)
(324,103)
Income tax benefit / (expense)
(12,427)
(14,992)
(22,413)
(20,724)
(17,228)
(49,832)
(54,855)
Loss on debt extinguishment and modifications
(2,636)
—
(1,070)
—
—
(3,706)
—
Net Income
$40,134
$74,668
$287,837
$19,884
$745,941
$402,639
$930,427
Net (income) / loss attributable to noncontrolling interests
11,059
5,552
(6,329)
8,419
(12,320)
10,282
(9,893)
Net Income Attributable to Digital Realty Trust, Inc.
$51,193
$80,220
$281,508
$28,304
$733,621
$412,921
$920,534
Preferred stock dividends
(10,181)
(10,181)
(10,181)
(10,181)
(10,181)
(30,544)
(30,544)
Net Income / (Loss) Available to Common Stockholders
$41,012
$70,039
$271,327
$18,122
$723,440
$382,377
$889,990
Weighted-average shares outstanding - basic
327,977
319,537
312,292
305,781
301,827
319,965
296,184
Weighted-average shares outstanding - diluted
336,249
327,946
320,798
314,995
311,341
328,641
306,735
Weighted-average fully diluted shares and units
342,374
334,186
326,975
321,173
317,539
334,830
312,867
Net income / (loss) per share - basic
$0.13
$0.22
$0.87
$0.06
$2.40
$1.20
$3.00
Net income / (loss) per share - diluted
$0.09
$0.20
$0.82
$0.03
$2.31
$1.10
$2.87
12
Table of Contents
Funds From Operations and Core Funds From Operations
Financial Supplement
Unaudited and in Thousands, Except Per Share Data
Third Quarter 2024
Three Months Ended
Nine Months Ended
Reconciliation of Net Income to Funds From Operations (FFO)
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Sep-24
30-Sep-23
Net Income / (Loss) Available to Common Stockholders
$41,012
$70,039
$271,327
$18,122
$723,440
$382,378
$889,990
Adjustments:
Non-controlling interest in operating partnership
1,000
1,500
6,200
410
16,300
8,700
20,300
Real estate related depreciation & amortization (1)
449,086
414,920
420,591
410,167
410,836
1,284,597
1,247,072
Reconciling items related to non-controlling interests
(19,746)
(17,317)
(8,017)
(15,377)
(14,569)
(45,081)
(42,101)
Unconsolidated JV real estate related depreciation & amortization
48,474
47,117
47,877
64,833
43,215
143,468
112,320
(Gain) / loss on real estate transactions
556
(173,709)
(286,704)
103
(810,688)
(459,857)
(908,459)
Provision for impairment
—
168,303
—
5,363
113,000
168,303
113,000
Funds From Operations
$520,382
$510,852
$451,273
$483,621
$481,535
$1,482,507
$1,432,124
Weighted-average shares and units outstanding - basic
334,103
325,777
318,469
311,960
308,024
326,154
302,316
Weighted-average shares and units outstanding - diluted (2) (3)
342,374
334,186
326,975
321,173
317,539
334,830
312,867
Funds From Operations per share - basic
$1.56
$1.57
$1.42
$1.55
$1.56
$4.55
$4.74
Funds From Operations per share - diluted (2) (3)
$1.55
$1.57
$1.41
$1.53
$1.55
$4.52
$4.68
Three Months Ended
Nine Months Ended
Reconciliation of FFO to Core FFO
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Sep-24
30-Sep-23
Funds From Operations
$520,382
$510,852
$451,273
$483,621
$481,535
$1,482,507
$1,432,124
Other non-core revenue adjustments (4)
(4,583)
(33,818)
3,525
(146)
(27)
(34,876)
26,540
Transaction and integration expenses
24,194
26,072
31,839
40,226
14,465
82,105
44,496
Loss on debt extinguishment and modifications
2,636
—
1,070
—
—
3,706
—
Severance, equity acceleration and legal expenses (5)
2,481
884
791
7,565
2,682
4,156
10,489
(Gain) / Loss on FX and derivatives revaluation
1,513
32,222
33,602
(24,804)
451
67,337
(14,195)
Other non-core expense adjustments (6)
11,120
2,271
10,052
1,956
1,295
23,443
1,949
Core Funds From Operations
$557,744
$538,482
$532,153
$508,417
$500,402
$1,628,378
$1,501,403
Weighted-average shares and units outstanding - diluted (2) (3)
334,476
326,181
319,138
312,356
308,539
326,545
302,740
Core Funds From Operations per share - diluted (2)
$1.67
$1.65
$1.67
$1.63
$1.62
$4.99
$4.96
(1) Real Estate Related Depreciation & Amortization
Three Months Ended
Nine Months Ended
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Sep-24
30-Sep-23
Depreciation & amortization per income statement
$459,997
$425,343
$431,102
$420,475
$420,613
$1,316,442
$1,274,384
Non-real estate depreciation
(10,911)
(10,424)
(10,511)
(10,308)
(9,777)
(31,845)
(27,312)
Real Estate Related Depreciation & Amortization
$449,086
$414,920
$420,591
$410,167
$410,836
$1,284,597
$1,247,072
(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
Nine Months Ended
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Sep-24
30-Sep-23
Teraco noncontrolling share of FFO
$9,828
$12,453
$9,768
$7,135
$11,537
$32,049
$32,251
Teraco related minority interest
$9,828
$12,453
$9,768
$7,135
$11,537
$32,049
$32,251
(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 expenses and adjustments to reflect our proportionate share of transaction costs associated with noncontrolling interests.
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Table of Contents
Adjusted Funds From Operations (AFFO)
Financial Supplement
Unaudited and in Thousands, Except Per Share Data
Third Quarter 2024
Three Months Ended
Nine Months Ended
Reconciliation of Core FFO to AFFO
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Sep-24
30-Sep-23
Core FFO available to common stockholders and unitholders
$557,744
$538,482
$532,153
$508,417
$500,402
$1,628,378
$1,501,403
Adjustments:
Non-real estate depreciation
10,911
10,424
10,511
10,308
9,777
31,845
27,312
Amortization of deferred financing costs
4,853
5,072
5,576
5,744
5,776
15,501
15,832
Amortization of debt discount/premium
1,329
1,321
1,832
973
1,360
4,481
4,000
Non-cash stock-based compensation expense
15,026
14,464
12,592
9,226
14,062
42,083
41,012
Straight-line rental revenue
(17,581)
334
9,976
(21,992)
(14,080)
(7,271)
(46,424)
Straight-line rental expense
1,690
782
1,111
(4,999)
1,427
3,583
1,432
Above- and below-market rent amortization
(742)
(1,691)
(854)
(856)
(1,127)
(3,287)
(3,548)
Deferred tax (benefit) / expense
(9,366)
(9,982)
(3,437)
33,448
(8,539)
(22,786)
(16,995)
Leasing compensation & internal lease commissions
10,918
10,519
13,291
9,848
12,515
34,728
35,193
Recurring capital expenditures (1)
(67,308)
(60,483)
(47,676)
(142,808)
(90,251)
(175,467)
(184,214)
AFFO available to common stockholders and unitholders (2)
$507,474
$509,241
$535,073
$407,306
$431,322
$1,551,788
$1,375,001
Weighted-average shares and units outstanding - basic
334,103
325,777
318,469
311,960
308,024
326,154
302,316
Weighted-average shares and units outstanding - diluted (3)
334,476
326,181
319,138
312,356
308,539
326,545
302,740
AFFO per share - diluted (3)
$1.52
$1.56
$1.68
$1.30
$1.40
$4.75
$4.54
Dividends per share and common unit
$1.22
$1.22
$1.22
$1.22
$1.22
$3.66
$3.66
Diluted AFFO Payout Ratio
80.4%
78.1%
72.8%
93.6%
87.3%
77.0%
80.6%
Three Months Ended
Nine Months Ended
Share Count Detail
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Sep-24
30-Sep-23
Weighted Average Common Stock and Units Outstanding
334,103
325,777
318,469
311,960
308,024
326,154
302,316
Add: Effect of dilutive securities
373
404
669
396
515
391
424
Weighted Avg. Common Stock and Units Outstanding - diluted
334,476
326,181
319,138
312,356
308,539
326,545
302,740
(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
Third Quarter 2024
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
Assets
Investments in real estate:
Real estate
$28,808,770
$27,470,635
$27,122,796
$27,306,369
$25,887,031
Construction in progress
5,175,054
4,676,012
4,496,840
4,635,215
5,020,464
Land held for future development
23,392
93,938
114,240
118,190
179,959
Investments in Real Estate
$34,007,216
$32,240,584
$31,733,877
$32,059,773
$31,087,453
Accumulated depreciation and amortization
(8,777,002)
(8,303,070)
(7,976,093)
(7,823,685)
(7,489,193)
Net Investments in Properties
$25,230,214
$23,937,514
$23,757,784
$24,236,089
$23,598,260
Investment in unconsolidated joint ventures
2,456,448
2,332,698
2,365,821
2,295,889
2,180,313
Net Investments in Real Estate
$27,686,662
$26,270,212
$26,123,605
$26,531,977
$25,778,573
Operating lease right-of-use assets, net
$1,228,507
$1,211,003
$1,233,410
$1,414,256
$1,274,410
Cash and cash equivalents
2,175,605
2,282,062
1,193,784
1,625,495
1,062,050
Accounts and other receivables, net (1)
1,274,460
1,222,403
1,217,276
1,278,110
1,325,725
Deferred rent, net
641,778
613,749
611,670
624,427
586,418
Goodwill
9,395,233
9,128,811
9,105,026
9,239,871
8,998,074
Customer relationship value, deferred leasing costs & other intangibles, net
2,367,467
2,315,143
2,359,380
2,500,237
2,506,198
Assets held for sale
—
—
287,064
478,503
—
Other assets
525,679
563,500
501,875
420,382
401,068
Total Assets
$45,295,392
$43,606,883
$42,633,089
$44,113,257
$41,932,515
Liabilities and Equity
Global unsecured revolving credit facilities, net
$1,786,921
$1,848,167
$1,901,126
$1,812,287
$1,698,780
Unsecured term loans, net
913,733
1,297,893
1,303,263
1,560,305
1,524,663
Unsecured senior notes, net of discount
13,528,061
12,507,551
13,190,202
13,422,342
13,072,102
Secured and other debt, net of discount
757,831
686,135
625,750
630,973
574,231
Operating lease liabilities
1,343,903
1,336,839
1,357,751
1,542,094
1,404,510
Accounts payable and other accrued liabilities
2,140,764
1,973,798
1,870,344
2,168,983
2,147,103
Deferred tax liabilities, net
1,223,771
1,132,090
1,121,224
1,151,096
1,088,724
Accrued dividends and distributions
—
—
—
387,988
—
Security deposits and prepaid rents
423,797
416,705
413,225
401,867
385,521
Obligations associated with assets held for sale
—
—
9,981
39,001
—
Total Liabilities
$22,118,781
$21,199,178
$21,792,866
$23,116,936
$21,895,634
Redeemable non-controlling interests
1,465,636
1,399,889
1,350,736
1,394,814
1,360,308
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, 392,000 shares authorized (5)
3,285
3,231
3,097
3,088
3,002
Additional paid-in capital
27,229,143
26,388,393
24,508,683
24,396,797
23,239,088
Dividends in excess of earnings
(6,060,642)
(5,701,096)
(5,373,529)
(5,262,648)
(4,900,757)
Accumulated other comprehensive (loss), net
(657,364)
(884,715)
(850,091)
(751,393)
(882,996)
Total Stockholders' Equity
$21,246,112
$20,537,503
$19,019,850
$19,117,535
$18,190,026
Noncontrolling Interests
Noncontrolling interest in operating partnership
$427,930
$434,253
$438,422
$438,081
$441,366
Noncontrolling interest in consolidated joint ventures
36,933
36,060
31,215
45,892
45,182
Total Noncontrolling Interests
$464,863
$470,313
$469,637
$483,972
$486,547
Total Equity
$21,710,975
$21,007,816
$19,489,487
$19,601,507
$18,676,573
Total Liabilities and Equity
$45,295,392
$43,606,883
$42,633,089
$44,113,257
$41,932,515
(1)
Net of allowance for doubtful accounts of $56,353 and $46,643 as of September 30, 2024 and September 30, 2023, 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 September 30, 2024 and September 30, 2023.
(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 September 30, 2024 and September 30, 2023.
(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 September 30, 2024 and September 30, 2023.
(5)
Common Stock: 331,347 and 302,846 shares issued and outstanding as of September 30, 2024 and September 30, 2023, respectively.
15
Table of Contents
Components of Net Asset Value (NAV) (1)
Financial Supplement
Unaudited and in Thousands
Third Quarter 2024
44
Consolidated Properties Cash Net Operating Income (NOI)(2), Annualized (3)
Network-Dense
$1,126,118
Campus
1,692,081
Other (4)
141,333
Total Cash NOI, Annualized
$2,959,532
less: Partners' share of consolidated JVs
(81,306)
Acquisitions / dispositions / expirations
(20,537)
FY 2024 backlog cash NOI and 3Q24 carry-over (stabilized) (5)
58,549
Total Consolidated Cash NOI, Annualized
$2,916,238
Digital Realty's Pro Rata Share of Unconsolidated Joint Venture Cash NOI (3) (6)
$240,100
Other Income
Development and Management Fees (net), Annualized
$51,626
Other Assets
Pre-stabilized inventory, at cost (7)
$301,235
Land held for development
23,392
Development CIP (8)
5,175,054
less: Investment associated with FY24 Backlog NOI (9)
(266,977)
Cash and cash equivalents
2,175,605
Accounts and other receivables, net
1,274,460
Other assets
525,679
less: Partners' share of consolidated JV assets
(169,807)
Total Other Assets
$9,038,641
Liabilities
Global unsecured revolving credit facilities
$1,814,928
Unsecured term loans
917,563
Unsecured senior notes
13,610,251
Secured and other debt
766,303
Accounts payable and other accrued liabilities
2,140,764
Deferred tax liabilities, net
1,223,771
Security deposits and prepaid rents
423,797
Backlog NOI cost to complete (9)
77,427
Preferred stock
755,000
Digital Realty's share of unconsolidated JV debt
1,479,468
less: Partners' share of consolidated JV liabilities
(473,633)
Total Liabilities
$22,735,637
(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 3Q24 Cash NOI of $3.0 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, 2024. 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
Third Quarter 2024
4
As of September 30, 2024
Interest Rate
Interest
Including
Rate
Swaps
2024
2025
2026
2027
2028
Thereafter
Total
Global Unsecured Revolving Credit Facilities (1) (4)
Global unsecured revolving credit facility
3.984%
3.984%
—
—
—
—
—
$1,686,548
$1,686,548
Yen revolving credit facility
0.830%
0.830%
—
—
—
—
—
128,379
128,379
Deferred financing costs, net
—
—
—
—
—
—
—
—
(28,007)
Total Global Unsecured Revolving Credit Facilities
3.761%
3.761%
—
—
—
—
—
$1,814,928
$1,786,921
Unsecured Term Loans
Euro term loan facility
4.328%
3.230%
—
—
—
$417,563
—
—
$417,563
USD term loan facility
6.168%
5.180%
—
—
$500,000
—
—
—
500,000
Deferred financing costs, net
—
—
—
—
—
—
—
—
(3,830)
Total Unsecured Term Loans
5.331%
4.292%
—
—
$500,000
$417,563
—
—
$913,733
Senior Notes
£400 million 4.250% Notes due 2025
4.250%
4.250%
—
$535,000
—
—
—
—
$535,000
€650 million 0.625% Notes due 2025
0.625%
0.625%
—
723,775
—
—
—
—
723,775
€1.08 billion 2.500% Notes due 2026
2.500%
2.500%
—
—
$1,197,013
—
—
—
1,197,013
₣275 million 0.200% Notes due 2026
0.200%
0.200%
—
—
325,198
—
—
—
325,198
₣150 million 1.700% Notes due 2027
1.700%
1.700%
—
—
—
$177,381
—
—
177,381
$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%
—
—
—
—
$556,750
—
556,750
$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%
—
—
—
—
—
$319,285
319,285
$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%
—
—
—
—
—
468,125
468,125
€750 million 1.500% Notes due 2030
1.500%
1.500%
—
—
—
—
—
835,125
835,125
£550 million 3.750% Notes due 2030
3.750%
3.750%
—
—
—
—
—
735,625
735,625
€500 million 1.250% Notes due 2031
1.250%
1.250%
—
—
—
—
—
556,750
556,750
€1.00 billion 0.625% Notes due 2031
0.625%
0.625%
—
—
—
—
—
1,113,500
1,113,500
€750 million 1.000% Notes due 2032
1.000%
1.000%
—
—
—
—
—
835,125
835,125
€750 million 1.375% Notes due 2032
1.375%
1.375%
—
—
—
—
—
835,125
835,125
€850 million 3.875% Notes due 2033
3.875%
3.875%
—
—
—
—
—
946,475
946,475
Unamortized discounts
—
—
—
—
—
—
—
—
(30,651)
Deferred financing costs
—
—
—
—
—
—
—
—
(51,539)
Total Senior Notes
2.521%
2.329%
—
$1,258,775
$1,522,210
$1,177,381
$2,106,750
$7,545,135
$13,528,061
Secured Debt
ICN10 Facilities
5.750%
3.526%
—
—
—
—
—
$12,852
$12,852
Westin
3.290%
3.290%
—
—
—
$135,000
—
—
135,000
Teraco Loans
10.329%
9.634%
$140
$853
$52,035
103,205
$377,111
—
533,344
Deferred financing costs
—
—
—
—
—
—
—
—
(4,481)
Total Secured Debt
8.848%
8.262%
$140
$853
$52,035
$238,205
$377,111
$12,852
$676,715
Other Debt
Icolo loans
11.650%
11.650%
—
—
$5,601
$4,166
$993
$4,854
$15,614
Total Other Debt
11.650%
11.650%
—
—
$5,601
$4,166
$993
$4,854
$15,614
Mandatorily Redeemable Preferred Shares (Teraco)
Mandatorily Redeemable Preferred Shares (Teraco)
9.890%
9.890%
—
—
$69,493
—
—
—
$69,493
Unamortized discounts
—
—
—
—
—
—
—
—
(3,991)
Total Redeemable Preferred Shares
9.890%
9.890%
—
—
$69,493
—
—
—
$65,502
Total unhedged variable rate debt
—
—
$27
$162
$72,387
$423,187
$23,464
$1,820,145
$2,339,371
Total fixed rate / hedged variable rate debt
—
—
113
1,259,466
2,076,952
1,414,128
2,461,390
7,557,624
14,769,673
Total Debt
3.094%
2.862%
$140
$1,259,628
$2,149,339
$1,837,315
$2,484,854
$9,377,769
$17,109,044
Weighted Average Interest Rate
9.634%
2.171%
3.211%
3.060%
4.330%
2.446%
2.862%
Summary
Weighted Average Term to Initial Maturity
4.3 Years
Weighted Average Maturity (assuming exercise of extension options)
4.5 Years
Global Unsecured Revolving Credit Facilities Detail As of September 30, 2024
Maximum Available
Existing Capacity (3)
Currently Drawn
Global Unsecured Revolving Credit Facilities (4)
$4,507,007
$2,580,335
$1,814,928
(1)
Assumes all extensions will be exercised.
(2)
Subject to cross-currency swaps.
(3)
Net of letters of credit issued of $111.7 million
(4)
On September 24, 2024, Digital Realty amended, extended, and upsized both its existing global revolving credit facility from $3.75 billion to $4.2 billion and its existing Japanese yen-denominated revolving credit facility from ¥33.3 billion to ¥42.5 billion. Both facilities mature in January 2030, assuming the exercise of two six-month extension options.
17
Table of Contents
Debt Analysis and Covenant Compliance
Financial Supplement
Unaudited
Third Quarter 2024
As of September 30, 2024
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)
35%
Secured debt / total assets (6)
Less than 40%
5%
1%
Less than 40% (7)
3%
Total unencumbered assets / unsecured debt
Greater than 150%
259%
285%
N/A
N/A
Consolidated EBITDA / interest expense (8)
Greater than 1.50x
4.1x
4.1x
N/A
N/A
Fixed charge coverage
N/A
N/A
Greater than 1.50x
4.0x
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 , which will be 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, 1.250% notes due 2031, 0.625% notes due 2031, 1.00% notes due 2032, 1.375% notes due 2032 and 3.875% notes due 2033.
(3)
Ratios for the 0.20% notes due 2026, 1.70% notes due 2027, 5.550% notes due 2028, 0.55% notes due 2029, 1.250% notes due 2031, 0.625% notes due 2031, 1.00% notes due 2032, 1.375% notes due 2032 and 3.875% notes due 2033.
(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, which will be 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 $35,000,000,000.
(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
Third Quarter 2024
Stabilized (“Same-Capital”) Portfolio (1)
Three Months Ended
Nine Months Ended
30-Sep-24
30-Sep-23
% Change
30-Jun-24
% Change
30-Sep-24
30-Sep-23
% Change
Rental revenues
$718,246
$703,139
2.1%
$713,868
0.6%
$2,142,456
$2,078,367
3.1%
Tenant reimbursements - Utilities
240,970
291,169
(17.2%)
225,307
7.0%
694,622
840,186
(17.3%)
Tenant reimbursements - Other
31,184
36,430
(14.4%)
35,790
(12.9%)
95,286
87,622
8.7%
Interconnection & other
94,960
90,448
5.0%
93,624
1.4%
280,052
265,600
5.4%
Total Revenue
$1,085,360
$1,121,187
(3.2%)
$1,068,589
1.6%
$3,212,416
$3,271,776
(1.8%)
Utilities
$282,470
$340,568
(17.1%)
$252,323
11.9%
$800,664
$949,019
(15.6%)
Rental property operating
182,910
166,771
9.7%
188,637
(3.0%)
538,483
503,726
6.9%
Property taxes
36,710
40,351
(9.0%)
40,402
(9.1%)
108,705
95,457
13.9%
Insurance
4,248
4,077
4.2%
4,432
(4.1%)
12,623
12,023
5.0%
Total Expenses
$506,337
$551,768
(8.2%)
$485,795
4.2%
$1,460,475
$1,560,224
(6.4%)
Net Operating Income (2)
$579,023
$569,419
1.7%
$582,794
(0.6%)
$1,751,941
$1,711,552
2.4%
Less:
Stabilized straight-line rent
$6,355
$938
577.3%
($7,928)
(180.2%)
($11,524)
($8,348)
38.0%
Above- and below-market rent
840
1,016
(17.3%)
790
6.3%
2,459
3,268
(24.8%)
Cash Net Operating Income (3)
$571,828
$567,465
0.8%
$589,933
(3.1%)
$1,761,006
$1,716,631
2.6%
Stabilized Portfolio occupancy at period end (4)
83.3%
82.8%
0.5%
83.6%
(0.3%)
83.3%
82.8%
0.5%
(1)
Represents buildings owned as of December 31, 2022 with less than 5% of total rentable square feet under development. Excludes buildings that were undergoing, or were expected to undergo, development activities in 2023-2024, buildings classified as held for sale, 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)
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 September 30, 2024
Third Quarter 2024
0-1 MW
> 1 MW
Other (3)
Total
Leasing Activity - New (1) (2)
3Q24
LTM
3Q24
LTM
3Q24
LTM
3Q24
LTM
Annualized GAAP Rent (in thousands)
$50,363
$169,482
$449,744
$814,856
$5,068
$6,619
$505,174
$990,957
Kilowatt leased
16,642
54,920
172,139
362,525
—
—
188,781
417,446
NRSF (in thousands)
169
612
1,236
2,851
73
108
1,479
3,570
Weighted Average Lease Term (years)
3.5
4.1
13.8
12.1
14.8
12.3
12.7
10.7
Initial stabilized cash rent per Kilowatt
$252
$258
$165
$150
—
—
$173
$164
GAAP rent per Kilowatt
$252
$257
$218
$187
—
—
$221
$197
Leasing cost per Kilowatt
$26
$23
—
—
—
—
$2
$3
Net Effective Economics by Kilowatt (4)
Base rent by Kilowatt
$257
$261
$218
$188
—
—
$221
$197
Rental concessions by Kilowatt
$4
$4
—
$1
—
—
—
$1
Estimated operating expense by Kilowatt
$73
$76
$55
$47
—
—
$56
$51
Net rent per Kilowatt
$179
$181
$163
$140
—
—
$164
$145
Tenant improvements by Kilowatt
—
—
—
—
—
—
—
—
Leasing commissions by Kilowatt
$9
$8
—
—
—
—
$1
$1
Net effective rent per Kilowatt
$170
$172
$163
$140
—
—
$163
$144
Initial stabilized cash rent per NRSF
$297
$278
$276
$229
$51
$49
$267
$232
GAAP rent per NRSF
$297
$277
$364
$286
$69
$62
$342
$278
Leasing cost per NRSF
$31
$25
—
—
$1
$1
$4
$4
Net Effective Economics by NRSF (4)
Base rent by NRSF
$302
$281
$364
$287
$69
$62
$342
$279
Rental concessions by NRSF
$5
$4
—
$1
—
—
$1
$1
Estimated operating expense by NRSF
$86
$76
$92
$78
$8
$8
$87
$75
Net rent per NRSF
$211
$201
$272
$208
$61
$54
$255
$202
Tenant improvements by NRSF
—
—
—
—
$14
$14
$1
$1
Leasing commissions by NRSF
$10
$9
—
—
—
—
$1
$2
Net effective rent per NRSF
$201
$192
$272
$208
$47
$40
$253
$200
(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 September 30, 2024
Third Quarter 2024
0-1 MW
> 1 MW
Other (4)
Total
Leasing Activity - Renewals (1) (2) (3)
3Q24
LTM
3Q24
LTM
3Q24
LTM
3Q24
LTM
Leases renewed (Kilowatt)
36,417
139,873
50,927
197,206
—
—
87,344
337,079
Leases renewed (NRSF in thousands)
518
1,985
548
2,318
142
432
1,208
4,736
Leasing cost per Kilowatt
$2
$2
$1
$2
—
—
$1
$2
Leasing cost per NRSF
$1
$1
$1
$2
$3
$2
$1
$2
Weighted Term (years)
2.0
1.6
7.3
5.6
6.0
5.7
4.9
3.9
Cash Rent
Expiring cash rent per Kilowatt
$291
$296
$144
$135
—
—
$206
$202
Renewed cash rent per Kilowatt
$304
$310
$190
$158
—
—
$237
$221
% Change Cash Rent Per Kilowatt
4.5%
4.5%
31.4%
17.1%
—
—
15.5%
9.4%
Expiring cash rent per NRSF
$245
$250
$161
$138
$60
$49
$185
$177
Renewed cash rent per NRSF
$256
$262
$212
$162
$64
$66
$214
$195
% Change Cash Rent Per NRSF
4.5%
4.5%
31.4%
17.1%
7.7%
34.1%
15.2%
10.1%
GAAP Rent
Expiring GAAP rent per Kilowatt
$287
$295
$135
$128
—
—
$199
$197
Renewed GAAP rent per Kilowatt
$305
$310
$217
$166
—
—
$254
$226
% Change GAAP Rent Per Kilowatt
6.2%
5.1%
60.6%
29.4%
—
—
27.8%
14.3%
Expiring GAAP rent per NRSF
$242
$249
$151
$131
$54
$45
$179
$173
Renewed GAAP rent per NRSF
$257
$262
$243
$169
$64
$64
$228
$198
% Change GAAP Rent Per NRSF
6.2%
5.1%
60.6%
29.4%
18.5%
43.8%
27.5%
15.0%
Retention ratio (5)
80.0%
81.3%
87.6%
82.0%
78.0%
74.5%
83.0%
80.9%
Churn (6)
2.4%
7.4%
0.7%
4.5%
1.9%
2.8%
1.5%
5.6%
(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)
Third Quarter 2024
% 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
2,799
—
—
—
—
—
—
—
—
Month to Month (3)
229
$55,589
1.5%
$242
$241
$55,301
11,907
$389
$387
2024
635
191,108
5.0%
301
301
191,063
43,981
362
362
2025
2,072
624,550
16.5%
301
302
626,429
146,109
356
357
2026
648
171,326
4.5%
265
271
175,662
49,737
287
294
2027
676
149,249
3.9%
221
234
158,083
51,936
239
254
2028
337
61,391
1.6%
182
197
66,189
22,637
226
244
2029
264
48,360
1.3%
183
203
53,677
19,412
208
230
2030
105
26,696
0.7%
254
276
29,014
7,875
283
307
2031
108
20,645
0.5%
191
220
23,772
7,132
241
278
2032
74
10,010
0.3%
135
159
11,801
3,205
260
307
2033
36
10,084
0.3%
283
343
12,204
3,013
279
338
Thereafter
39
5,501
0.1%
143
142
5,484
2,258
203
202
Total / Wtd. Avg.
8,021
$1,374,509
36.2%
$263
$270
$1,408,679
369,201
$310
$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
1,610
—
—
—
—
—
—
—
—
Month to Month (3)
144
$19,433
0.5%
$135
$135
$19,460
13,450
$120
$121
2024
140
30,574
0.8%
218
218
30,574
16,111
158
158
2025
1,499
240,067
6.3%
160
162
242,611
137,583
145
147
2026
1,912
282,122
7.4%
148
153
292,680
172,437
136
141
2027
1,528
227,049
6.0%
149
157
240,483
145,179
130
138
2028
1,229
155,097
4.1%
126
134
164,904
113,166
114
121
2029
1,871
274,400
7.2%
147
161
301,365
209,757
109
120
2030
1,284
194,509
5.1%
152
167
213,973
141,071
115
126
2031
936
131,877
3.5%
141
162
151,593
96,633
114
131
2032
840
117,965
3.1%
140
159
133,764
91,156
108
122
2033
544
85,991
2.3%
158
180
98,064
57,540
125
142
Thereafter
2,805
408,152
10.8%
146
178
498,952
268,995
126
155
Total / Wtd. Avg.
16,342
$2,167,236
57.1%
$147
$162
$2,388,423
1,463,076
$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
1,321
—
—
—
—
—
—
—
—
Month to Month (3)
79
$8,402
0.2%
$107
$107
$8,402
—
—
—
2024
188
11,721
0.3%
62
62
11,721
—
—
—
2025
646
24,579
0.6%
38
38
24,687
—
—
—
2026
828
27,892
0.7%
34
35
28,871
—
—
—
2027
333
10,553
0.3%
32
34
11,182
—
—
—
2028
478
15,039
0.4%
31
34
16,162
—
—
—
2029
749
36,108
1.0%
48
55
40,921
—
—
—
2030
834
36,005
0.9%
43
58
48,055
—
—
—
2031
71
2,315
0.1%
32
38
2,722
—
—
—
2032
112
6,549
0.2%
58
66
7,364
—
—
—
2033
110
4,134
0.1%
38
44
4,839
—
—
—
Thereafter
3,070
69,133
1.8%
23
29
88,604
—
—
—
Total / Wtd. Avg.
8,820
$252,431
6.7%
$34
$39
$293,531
—
—
—
Total
Expiring Leases (1)
Annualized
Annualized
Annualized Rent Per
Annualized Rent Per
Annualized Rent Per
kW of Expiring
Annualized
Rent Per kW
Available
5,604
—
—
—
—
—
—
—
—
Month to Month (3)
452
$83,424
2.2%
$184
$184
$83,163
—
—
—
2024
964
233,403
6.2%
242
242
233,358
—
—
—
2025
4,217
889,196
23.4%
211
212
893,727
—
—
—
2026
3,388
481,340
12.7%
142
147
497,213
—
—
—
2027
2,537
386,851
10.2%
152
162
409,748
—
—
—
2028
2,043
231,527
6.1%
113
121
247,255
—
—
—
2029
2,884
358,869
9.5%
124
137
395,963
—
—
—
2030
2,223
257,210
6.8%
116
131
291,042
—
—
—
2031
1,115
154,837
4.1%
139
160
178,087
—
—
—
2032
1,027
134,523
3.5%
131
149
152,929
—
—
—
2033
689
100,209
2.6%
145
167
115,108
—
—
—
Thereafter
5,911
482,787
12.7%
82
100
593,039
—
—
—
Total / Wtd. Avg.
33,055
$3,794,177
100.0%
$138
$149
$4,090,633
—
—
—
(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 September 30, 2024, 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
Third Quarter 2024
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
$473,607
11.2%
8.8
2
Oracle Corporation
38
243,284
5.7%
9.6
3
Social Content Platform
29
229,131
5.4%
3.9
4
Global Cloud Provider
62
195,425
4.6%
5.0
5
IBM
37
132,481
3.1%
2.9
6
Equinix
15
96,419
2.3%
5.2
7
LinkedIn Corporation
7
83,267
2.0%
1.2
8
Meta Platforms, Inc.
47
63,436
1.5%
3.8
9
Fortune 25 Investment Grade-Rated Company
28
63,205
1.5%
2.1
10
Social Media Platform
5
63,164
1.5%
6.6
11
Specialized Cloud Provider
2
58,859
1.4%
4.9
12
Fortune 25 Tech Company
50
57,992
1.4%
3.4
13
Lumen Technologies, Inc.
129
53,953
1.3%
8.6
14
AT&T
75
49,236
1.2%
2.7
15
Fortune 500 SaaS Provider
10
43,824
1.0%
2.9
16
Comcast Corporation
42
42,767
1.0%
3.8
17
JPMorgan Chase & Co.
17
40,607
1.0%
2.9
18
Rackspace
23
37,320
0.9%
9.1
19
Centersquare
14
37,164
0.9%
5.7
20
Morgan Stanley
13
36,776
0.9%
4.6
Total / Weighted Average
$2,101,917
49.8%
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 September 30, 2024, 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
Third Quarter 2024
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)
30-Sep-24
30-Jun-24
IT Load (6)
Count
North America
Northern Virginia
5,252
1,676
270
$608,250
93.1%
90.3%
462.5
18
Chicago
2,262
553
48
228,250
92.3%
93.4%
81.0
7
New York
1,774
87
107
210,629
72.4%
72.0%
65.5
12
Dallas
3,032
408
110
208,153
83.0%
81.7%
111.2
19
Silicon Valley
1,524
—
131
171,920
91.2%
90.8%
94.6
14
Portland
1,147
—
16
152,829
98.9%
98.5%
123.6
3
Phoenix
796
—
—
77,795
75.9%
75.9%
42.5
2
Toronto
585
137
135
66,000
95.5%
95.0%
55.8
2
Atlanta
542
15
314
62,715
97.6%
96.6%
9.1
4
San Francisco
844
—
—
60,684
62.4%
64.2%
31.5
4
Seattle
397
—
—
45,739
75.1%
77.1%
5.9
1
Los Angeles
611
11
—
43,989
80.6%
81.2%
16.2
2
Houston
393
—
14
18,750
69.6%
69.6%
12.0
6
Boston
437
—
51
17,801
41.9%
41.8%
19.0
3
Miami
226
—
—
9,910
85.3%
86.3%
1.3
2
Austin
86
—
—
7,456
59.6%
59.6%
4.3
1
Charlotte
95
—
—
5,901
92.0%
91.3%
1.5
3
North America Total/Weighted Average
20,003
2,887
1,194
$1,996,770
85.5%
84.5%
1,137.5
103
EMEA
Frankfurt
2,235
1,488
—
$270,815
84.4%
85.3%
149.4
29
London
1,572
—
77
253,094
60.7%
60.2%
109.0
16
Amsterdam
1,332
222
92
191,981
85.0%
85.0%
116.3
13
Johannesburg
1,183
1,024
—
137,024
80.7%
80.7%
62.2
5
Paris
977
285
—
130,773
83.1%
87.5%
91.9
12
Marseille
520
38
378
76,334
80.2%
78.8%
45.4
4
Zurich
444
152
—
63,848
83.1%
83.5%
29.0
3
Dublin
553
—
—
59,509
71.8%
74.4%
39.3
9
Vienna
356
133
—
53,272
82.7%
82.7%
25.6
3
Madrid
308
100
—
45,503
75.9%
72.7%
16.8
4
Cape Town
326
402
—
41,139
75.9%
75.4%
21.1
2
Brussels
338
—
—
40,818
69.7%
69.6%
21.5
3
Stockholm
190
108
—
25,463
72.7%
71.4%
16.8
6
Copenhagen
226
—
99
25,179
69.8%
67.1%
12.9
3
Athens
148
61
—
19,017
80.8%
77.5%
9.0
4
Dusseldorf
142
—
71
18,736
54.7%
55.9%
7.7
3
Durban
45
—
—
7,093
90.1%
88.1%
1.1
1
Mombasa
37
—
21
4,195
39.0%
39.0%
3.5
2
Zagreb
24
10
—
2,882
94.6%
96.2%
0.9
1
Nairobi
16
75
—
2,881
64.3%
63.0%
0.5
1
Maputo
3
—
—
487
41.6%
41.6%
0.2
1
Barcelona
—
144
—
—
—
—
—
—
Crete
—
11
—
—
—
—
—
—
EMEA Total/Weighted Average
10,974
4,255
739
$1,470,043
77.6%
78.2%
780.0
125
Asia Pacific
Singapore
883
7
—
$255,851
91.8%
95.8%
84.3
3
Sydney
361
—
88
30,007
85.9%
91.2%
22.8
4
Melbourne
147
—
—
18,832
92.4%
62.9%
9.6
2
Hong Kong
114
66
104
10,838
73.2%
1.9%
7.5
1
Seoul
162
—
—
3,410
14.9%
14.7%
12.0
1
Asia Pacific Total/Weighted Average
1,667
73
192
$318,939
81.8%
77.6%
136.1
11
Consolidated Portfolio Total/Weighted Average
32,644
7,215
2,124
$3,785,752
82.7%
81.3%
2,053.6
239
Unconsolidated Joint Ventures
Northern Virginia
2,793
792
—
$242,515
96.8%
98.9%
209.7
12
Chicago
1,118
—
—
118,264
96.3%
94.2%
94.2
3
Silicon Valley
142
—
400
18,592
100.0%
96.5%
10.9
2
Dallas
183
181
—
14,168
100.0%
100.0%
8.0
2
Hong Kong
186
—
—
11,125
44.3%
44.3%
11.0
1
Toronto
104
—
—
10,351
54.6%
54.6%
6.8
1
Paris
91
179
—
7,440
59.9%
59.9%
10.0
1
Los Angeles
197
—
—
8,254
100.0%
100.0%
—
2
Lagos
4
26
—
821
92.2%
100.0%
—
2
Accra
—
24
—
—
—
—
—
—
Managed Unconsolidated Portfolio Total/Weighted Average
4,819
1,203
400
$431,531
93.4%
94.0%
350.5
26
Managed Portfolio Total/Weighted Average
37,463
8,418
2,524
$4,217,283
84.0%
82.9%
2,404.1
265
Digital Realty Share Total/Weighted Average (7)
33,055
6,639
2,518
$3,794,177
83.0%
81.6%
2,086.4
—
Non-Managed Unconsolidated Joint Ventures
Sao Paulo
1,391
99
1,198
$173,366
91.9%
91.9%
117.6
25
Tokyo
1,118
431
48
92,793
74.9%
76.0%
64.9
5
Osaka
583
59
137
78,554
83.3%
83.3%
58.9
4
Rio De Janeiro
112
—
—
11,712
100.0%
100.0%
8.0
2
Queretaro
105
—
583
10,112
100.0%
100.0%
8.0
3
Santiago
119
118
71
9,110
90.1%
90.1%
10.2
3
Seattle
51
—
—
7,770
100.0%
100.0%
9.0
1
Fortaleza
94
—
—
3,758
22.0%
22.0%
6.2
1
Chennai
55
—
104
—
—
—
7.2
1
Bogota
—
—
197
—
—
—
—
2
Non-Managed Portfolio Total/Weighted Average
3,629
708
2,338
$387,176
82.6%
82.5%
290.0
47
Portfolio Total/Weighted Average
41,092
9,126
4,862
$4,604,459
83.9%
82.9%
2,694.0
312
(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 September 30, 2024, 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
Third Quarter 2024
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
1,000
120
$1,013,128
$999,063
208
100%
4Q25
$516,149
$1,570,139
$2,086,288
$416,841
$872,026
$1,288,867
Chicago
20
—
34,282
34,282
54
89%
4Q26
77,698
579,262
656,959
77,698
579,262
656,959
Dallas
180
30
222,212
188,323
56
100%
4Q26
140,347
528,232
668,579
59,914
509,753
569,667
Other
310
150
690,647
590,931
26
88%
2Q25
268,224
57,589
325,813
190,416
48,871
239,287
Americas
1,510
300
$1,960,268
$1,812,599
344
97%
$1,002,418
$2,735,221
$3,737,639
$744,868
$2,009,911
$2,754,779
13.6%
Frankfurt
120
60
$824,482
$824,482
51
51%
3Q25
$736,267
$227,271
$963,538
$736,267
$227,271
$963,538
Paris
220
—
99,486
55,263
52
54%
2Q25
573,119
230,649
803,768
451,239
147,495
598,734
Zurich
10
—
37,203
37,203
13
67%
4Q24
243,967
42,305
286,273
243,967
42,305
286,273
Other
430
120
726,466
708,086
141
33%
1Q26
534,215
854,641
1,388,856
417,630
708,613
1,126,243
EMEA
780
180
$1,687,638
$1,625,035
257
42%
$2,087,568
$1,354,867
$3,442,435
$1,849,103
$1,125,685
$2,974,788
10.6%
Tokyo
30
20
$129,957
$64,978
30
59%
3Q25
$143,967
$202,962
$346,929
$71,984
$101,481
$173,464
Hong Kong
—
—
26,319
26,319
6
100%
3Q25
30,214
47,301
77,515
30,214
47,301
77,515
Osaka
40
10
56,658
28,329
6
100%
3Q25
26,997
33,553
60,551
13,499
16,777
30,275
Other
200
20
267,436
183,200
1
100%
4Q24
5,811
3,550
9,362
5,811
3,550
9,362
APAC
270
50
$480,370
$302,827
43
71%
$206,990
$287,366
$494,356
$121,508
$169,109
$290,617
10.4%
Total
2,560
530
$4,128,276
$3,740,461
644
74%
$3,296,976
$4,377,454
$7,674,430
$2,715,479
$3,304,705
$6,020,184
12.0%
(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 September 30, 2024, 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 September 30, 2024.
(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
Third Quarter 2024
100% Share (2)
DLR Share (3)
Current
Future
Total
Current
Future
Total
Construction Projects in Progress
Investment (4)
Investment (5)
Investment
Investment (4) (6)
Investment (5)
Investment
Future Development Capacity (7)
$2,828,960
$1,299,316
$4,128,276
$2,528,053
$1,212,408
$3,740,461
Data Center Construction
3,296,976
4,377,454
7,674,430
2,715,479
3,304,705
6,020,184
Equipment Pool & Other Inventory (8)
216,476
—
216,476
216,476
—
216,476
Campus, Tenant Improvements & Other (9)
284,922
156,989
441,912
284,922
156,989
441,912
Total Land Held and Development CIP
$6,627,334
$5,833,760
$12,461,094
$5,744,930
$4,674,103
$10,419,033
Enhancement & Other
$10,271
$7,905
$18,176
$10,271
$7,905
$18,176
Recurring
28,271
46,266
74,537
28,271
46,266
74,537
Total Land Held and Construction in Progress
$6,665,877
$5,887,931
$12,553,808
$5,783,473
$4,728,274
$10,511,746
(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 September 30, 2024.
(5)
Represents estimated cost to complete scope of work pursuant to approved development budget.
(6)
Excludes $108.7 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 $655.2 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 September 30, 2024, which benefit space recently converted to our operating portfolio and is composed primarily of shared infrastructure projects and first-generation tenant improvements. Includes $3.0 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.
26
Table of Contents
Historical Capital Expenditures and Investments in Real Estate
Financial Supplement
Dollars and Square Feet in Thousands
Third Quarter 2024
Three Months Ended
Nine Months Ended
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Sep-24
30-Sep-23
Non-Recurring Capital Expenditures (1)
Development (2)
$650,912
$531,903
$549,522
$845,315
$953,267
$1,732,337
$2,121,583
Enhancements and Other Non-Recurring
7,070
7,051
7,738
10,113
1,317
21,859
5,592
Total Non-Recurring Capital Expenditures
$657,981
$538,953
$557,260
$855,428
$954,584
$1,754,194
$2,127,175
Recurring Capital Expenditures (3)
$67,308
$60,483
$47,676
$142,808
$90,251
$175,467
$184,214
Total Direct Capital Expenditures
$725,289
$599,436
$604,936
$998,236
$1,044,835
$1,929,661
$2,311,389
Indirect Capital Expenditures
Capitalized Interest
$28,312
$27,592
$28,522
$33,032
$29,130
$84,426
$83,784
Capitalized Overhead
27,929
28,457
25,857
27,867
23,837
82,243
71,289
Total Indirect Capital Expenditures
$56,241
$56,049
$54,379
$60,899
$52,967
$166,669
$155,073
Total Improvements to and Advances for Investment in Real Estate
$781,530
$655,485
$659,315
$1,059,135
$1,097,802
$2,096,330
$2,466,462
(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 for all periods excluding the period ended September 30, 2024.
(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
Third Quarter 2024
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)
630 & 631 Ajax Avenue (Cyxtera)
Leasehold
Slough, UK
7/5/2024
$200,000
—
—
—
—
—
Pudongweg 37, Schiphol Rijk
Buildings
Amsterdam
8/7/2024
$47,880
5.7%
—
—
—
—
Total
$247,880
—
—
—
—
—
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)
1500 Towerview
Building
Eagan, MN
8/28/2024
$6,250
—
—
—
—
—
Total
$6,250
—
—
—
—
—
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 converted to USD based on FX rate as of September 30, 2024.
(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.
28
Table of Contents
Unconsolidated Joint Ventures
Financial Supplement
Dollars in Thousands
Third Quarter 2024
Summary Balance Sheet -
As of September 30, 2024
at the JV's 100% Share
Americas (1)
APAC (2)
EMEA (3)
Global (4)
Total
Gross cost of operating real estate
$6,298,590
$1,935,939
$363,239
$1,353,547
$9,951,315
Accumulated depreciation & amortization
(888,116)
(269,733)
(2,592)
(94,387)
(1,254,828)
Net Book Value of Operating Real Estate
$5,410,475
$1,666,207
$360,647
$1,259,160
$8,696,488
Cash
315,769
308,321
70,143
21,228
715,461
Other assets
1,814,902
190,627
35,994
244,500
2,286,023
Total Assets
$7,541,146
$2,165,154
$466,784
$1,524,888
$11,697,972
Debt
2,826,793
688,362
—
494,904
4,010,058
Other liabilities
698,170
177,633
396,556
34,606
1,306,965
Equity / (deficit)
4,016,183
1,299,160
70,228
995,378
6,380,950
Total Liabilities and Equity
$7,541,146
$2,165,154
$466,784
$1,524,888
$11,697,972
Digital Realty's ownership percentage
Various
Various
Various
38%
Digital Realty's Pro Rata Share of Unconsolidated JV Debt
$952,239
$336,770
—
$190,459
$1,479,468
Summary Statement of Operations -
Three Months Ended September 30, 2024
at the JV's 100% Share
Americas (1)
APAC (2)
EMEA (3)
Global (4)
Total
Total revenues
$213,340
$68,410
$3,623
$24,550
$309,924
Operating expenses
(92,367)
(34,996)
(2,003)
(8,889)
(138,255)
Net Operating Income (NOI)
$120,973
$33,414
$1,620
$15,661
$171,668
Straight-line rent
(3,154)
(1,434)
(237)
259
(4,566)
Above and below market rent
987
—
(537)
(823)
(373)
Cash Net Operating Income (NOI)
$118,806
$31,980
$846
$15,098
$166,730
Interest expense
($55,766)
($1,388)
($4,845)
($5,473)
($67,472)
Depreciation & amortization
(110,586)
(17,723)
(1,943)
(14,509)
(144,761)
Other income / (expense)
(16,610)
(2,968)
(942)
(20,113)
(40,633)
FX remeasurement on USD debt
18,196
—
(4,909)
(18,149)
(4,863)
Total Non-Operating Expenses
($164,767)
($22,079)
($12,638)
($58,243)
($257,727)
Net Income / (Loss)
($43,794)
$11,335
($11,018)
($42,582)
($86,059)
Digital Realty's Pro Rata Share of Unconsolidated JV NOI
$38,466
$16,708
$415
$6,027
$61,616
Digital Realty's Pro Rata Share of Unconsolidated JV Cash NOI
$37,961
$15,994
$260
$5,810
$60,025
Digital Realty's Earnings (loss) income from unconsolidated joint ventures
($13,545)
$5,667
($5,246)
($13,362)
($26,486)
Digital Realty's Pro Rata Share of Core FFO (5)
$10,895
$14,529
($1,906)
($2,202)
$21,316
Digital Realty's Fee Income from Joint Ventures
$8,562
$616
$966
$1,306
$11,449
(1)
Includes Ascenty, Blackstone NoVa, Clise, GI Partners, Mapletree, Menlo, Mitsubishi, Realty Income, TPG Real Estate, and Walsh.
(2)
Includes Digital Connexion, Lumen, and MC Digital Realty.
(3)
Includes 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
Third Quarter 2024
Three Months Ended
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1)
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
Net Income / (Loss) Available to Common Stockholders
$41,012
$70,039
$271,327
$18,122
$723,440
Interest
123,803
114,756
109,535
113,638
110,767
Loss on debt extinguishment and modifications
2,636
—
1,070
—
—
Income tax expense (benefit)
12,427
14,992
22,413
20,724
17,228
Depreciation & amortization
459,997
425,343
431,102
420,475
420,613
EBITDA
$639,875
$625,130
$835,446
$572,958
$1,272,048
Unconsolidated JV real estate related depreciation & amortization
48,474
47,117
47,877
64,833
43,214
Unconsolidated JV interest expense and tax expense
34,951
27,704
34,271
42,140
27,000
Severance, equity acceleration and legal expenses
2,481
884
791
7,565
2,682
Transaction and integration expenses
24,194
26,072
31,839
40,226
14,465
(Gain) / loss on sale of investments
556
(173,709)
(277,787)
103
(810,688)
Provision for impairment
—
168,303
—
5,363
113,000
Other non-core adjustments, net (2)
8,642
743
21,608
(35,439)
1,719
Non-controlling interests
(11,059)
(5,552)
6,329
(8,419)
12,320
Preferred stock dividends
10,181
10,181
10,181
10,181
10,181
Adjusted EBITDA
$758,296
$726,874
$710,556
$699,509
$685,943
(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 expenses, gain on sale of land option and lease termination fees.
Three Months Ended
Financial Ratios
30-Sep-24
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
Total GAAP interest expense
$123,803
$114,756
$109,535
$113,638
$110,767
Capitalized interest
28,312
27,592
28,522
33,032
29,130
Change in accrued interest and other non-cash amounts
43,720
(55,605)
55,421
(66,013)
44,183
Cash Interest Expense (3)
$195,835
$86,743
$193,479
$80,657
$184,081
Preferred stock dividends
10,181
10,181
10,181
10,181
10,181
Total Fixed Charges (4)
$162,296
$152,529
$148,239
$156,851
$150,079
Coverage
Interest coverage ratio (5)
4.3x
4.3x
4.3x
4.2x
4.2x
Cash interest coverage ratio (6)
3.4x
6.4x
6.3x
3.2x
7.0x
Fixed charge coverage ratio (7)
4.1x
4.1x
4.0x
4.0x
4.0x
Cash fixed charge coverage ratio (8)
3.3x
5.9x
3.1x
5.9x
3.3x
Leverage
Debt to total enterprise value (9)(10)
23.5%
24.2%
24.2%
26.7%
28.6%
Debt-plus-preferred-stock-to-total-enterprise-value (10)(11)
24.5%
25.3%
25.3%
27.9%
29.8%
Pre-tax income to interest expense (12)
1.3x
1.7x
3.5x
1.2x
7.6x
Net Debt-to-Adjusted EBITDA (13)
5.4x
5.3x
5.7x
6.0x
6.4x
(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
Third Quarter 2024
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, depreciation 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 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.
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Table of Contents
Management Statements on Non-GAAP Measures
Financial Supplement
Unaudited
Third Quarter 2024
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, 2022 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 2023-2024, buildings classified as held for sale, 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 September 30, 2024, GAAP interest expense was $124 million, capitalized interest was $28 million and preferred stock dividends was $10 million.
Reconciliation of Net Operating Income (NOI)
Three Months Ended
Nine Months Ended
(in thousands)
30-Sep-24
30-Jun-24
30-Sep-23
30-Sep-24
30-Sep-23
Operating income
$168,286
$9,889
$58,231
$327,542
$390,426
Fee income
(12,907)
(15,656)
(7,819)
(41,572)
(30,596)
Other income
(4,581)
(2,125)
—
(7,568)
(1,819)
Depreciation and amortization
459,997
425,343
420,613
1,316,442
1,274,379
General and administrative
115,120
119,511
108,039
349,051
321,769
Severance, equity acceleration and legal expenses
2,481
884
2,682
4,156
10,489
Transaction expenses
24,194
26,072
14,465
82,105
44,496
Provision for impairment
—
168,303
113,000
168,303
113,000
Other expenses
4,774
(529)
1,295
15,080
1,949
Net Operating Income
$757,365
$731,692
$710,505
$2,213,540
$2,124,094
Cash Net Operating Income (Cash NOI)
Net Operating Income
$757,365
$731,692
$710,505
$2,213,540
$2,124,094
Straight-line rental revenue
(18,423)
(2,873)
(14,185)
(23,818)
(17,999)
Straight-line rental expense
1,683
959
1,632
4,011
1,844
Above- and below-market rent amortization
(742)
(1,691)
(1,127)
(3,287)
(3,548)
Cash Net Operating Income
$739,883
$728,088
$696,826
$2,190,446
$2,104,391
Constant Currency CFFO Reconciliation
Three Months Ended
Nine Months Ended
(in thousands, except per share data)
30-Sep-24
30-Sep-23
30-Sep-24
30-Sep-23
Core FFO (1)
$557,744
$500,402
$1,628,378
$1,501,403
Core FFO impact of holding '23 Exchange Rates Constant (2)
(3,281)
—
1,792
—
Constant Currency Core FFO
$554,463
$500,402
$1,630,170
$1,501,403
Weighted-average shares and units outstanding - diluted
334,476
308,539
326,545
302,740
Constant Currency CFFO Per Share
$1.66
$1.62
$4.99
$4.96
1)
As reconciled to net income above.
2)
Adjustment calculated by holding currency translation rates for 2024 constant with average currency translation rates that were applicable to the same periods in 2023.
32
Table of Contents
Forward-Looking Statements
Financial Supplement
Third Quarter 2024
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, 2024 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;
●
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 federal income tax purposes;
●
Digital Realty Trust, L.P.’s failure to qualify as a partnership for 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, 2023, 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.
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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 | 0 | — | — |
| 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