Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subjects: ERN, ERP

Digital Realty Reports Fourth Quarter 2023 Results


AUSTIN, Texas, Feb. 15, 2024  /PRNewswire/ -- 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 fourth quarter of 2023. All per share results are presented on a fully diluted basis.

Highlights

Financial Results

Digital Realty reported revenues of $1.4 billion in the fourth quarter of 2023, a 2% decrease from the previous quarter and an 11% increase from the same quarter last year. 

The company delivered net income of $20 million in the fourth quarter of 2023, and net income available to common stockholders of $18 million, or $0.08 per diluted share, compared to $2.33 per diluted share in the previous quarter and ($0.02) per diluted share in the same quarter last year. 

Digital Realty generated Adjusted EBITDA of $700 million in the fourth quarter of 2023, a 2% increase from the previous quarter and 9% increase over the same quarter last year. 

The company reported Funds From Operations (FFO) of $484 million in the fourth quarter of 2023, or $1.53 per share, compared to $1.55 per share in the previous quarter and $1.45 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 $1.63 in the fourth quarter of 2023, compared to $1.62 per share in the previous quarter and $1.65 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share of $1.62 for the fourth quarter of 2023 and $6.57 per share for the twelve-month period ended December 31, 2023.

"Our fourth quarter results marked the culmination of a transformative year for Digital Realty.  We delivered on our strategic priorities and positioned the company for the growing opportunity that lies ahead," said Digital Realty President & Chief Executive Officer Andy Power. "During the fourth quarter, we bolstered and diversified our capital sources through the formation of two new development joint ventures, while continuing to evolve our portfolio to capture the tremendous opportunities created by AI."

Leasing Activity

In the fourth quarter, Digital Realty signed total bookings that are expected to generate $110 million of annualized GAAP rental revenue, including a $39 million contribution from the 0?1 megawatt category and a $13 million contribution from interconnection.

The weighted-average lag between new leases signed during the fourth quarter of 2023 and the contractual commencement date was 16 months.

In addition to new leases signed, Digital Realty also signed renewal leases representing $210 million of annualized rental revenue during the quarter. Rental rates on renewal leases signed during the fourth quarter of 2023 increased 8.2% on a cash basis and 10.6% on a GAAP basis.

New leases signed during the fourth quarter of 2023 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



$13,068


57



$228


4.5



$241

 > 1 MW



7,520


66



115


3.9



160

 Other (1)



300


5



62


?



?

Total



$20,887


128



$163


8.4



$204















 EMEA (2)














 0-1 MW



$17,189


87



$198


6.3



$226

 > 1 MW



44,669


306



146


25.7



145

 Other (1)



49


2



28


?



?

Total



$61,908


395



$157


32.0



$161















 Asia Pacific (2)














 0-1 MW



$9,225


27



$343


2.8



$273

 > 1 MW



4,453


28



158


3.0



124

 Other (1)



128


4



30


?



?

Total



$13,806


59



$233


5.8



$196















 All Regions (2)














 0-1 MW



$39,482


171



$231


13.7



$241

 > 1 MW



56,642


400



142


32.6



145

 Other (1)



477


11



44


?



?

Total



$96,601


582



$166


46.3



$173















Interconnection



$13,483


N/A



N/A


N/A



N/A















Grand Total



$110,084


582



$166


46.3



$173


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 December 31, 2023.

Investment Activity

During the fourth quarter, Digital Realty signed definitive agreements with Brookfield Infrastructure Partners L.P., Cyxtera Technologies and Digital Core REIT to successfully resolve the relationship with Cyxtera. These agreements were completed in conjunction with Brookfield's announced agreement to acquire Cyxtera, pursuant to its Plan of Reorganization under its Chapter 11 proceedings. As part of the agreements, Brookfield would acquire Digital Realty's interest in four data centers for approximately $275 million, Digital Realty would redeploy $55 million to buy out Cyxtera's leases in three Digital Realty data centers in Singapore and Frankfurt, Brookfield would grant Digital Realty a purchase option to acquire a data center outside of London, UK, Brookfield would assume the leases in three data centers previously leased to Cyxtera, and Brookfield would amend the leases in these three data centers in New Jersey and Los Angeles, accelerating the expiration date to September 2024. Subsequent to year end, Digital Realty closed on the transactions and exercised its purchase option to acquire the data center outside of London, UK, which is expected to close at the end of the first quarter.

As previously disclosed, in mid-November, Digital Realty and Realty Income Corporation established a joint venture to support the development of two build-to-suit data centers in Northern Virginia. Realty Income initially invested approximately $200 million to acquire an 80% equity interest in the venture, while Digital Realty maintains a 20% interest. Each partner will fund its pro rata share of the remaining development costs for the two facilities. The build-to-suit facilities are 100% pre-leased and are expected to generate a 6.9% initial cash lease yield upon lease commencement in mid-2024.

Also previously disclosed, in December, Digital Realty and Blackstone Inc. announced a $7 billion joint venture to develop four hyperscale data center campuses across Frankfurt, Paris and Northern Virginia. The campuses are planned to support the construction of 10 data centers with approximately 500 megawatts of potential IT load capacity. Blackstone will initially invest approximately $700 million to acquire an 80% equity interest in the joint venture, while Digital Realty maintains a 20% interest. Digital Realty will manage the development and day-to-day operations of the joint venture, for which it will receive customary fees. Subsequent to year end, the first phase of the joint venture closed on hyperscale data center campuses in Paris and Northern Virginia, while the second phase is scheduled to close later this year, upon obtaining the required regulatory approvals.

Additionally, Digital Realty completed the sale of an option maintained on a second parcel of land in Sydney, Australia with an area of 21 acres for approximately AU$29 million or $20 million.

Further during the fourth quarter, Digital Realty exercised its option to purchase approximately 19 acres of land (PAR 8 ? 11) in Paris, France for approximately ?70 million or $77 million. The parcel of land, previously leased to Digital Realty, is currently under development to support up to 77 megawatts of IT load. Subsequent to year end, Digital Realty closed on PAR 8 ? 11.

In addition, during the fourth quarter, Digital Realty closed on the acquisition of approximately three acres adjacent to its existing campus near Athens, Greece for approximately ?6 million or $6 million. This land can support the development of an additional data center (ATH5) with up to 15 megawatts of IT load.

Subsequent to year end, GI Partners executed its option to acquire an additional 15% interest in two stabilized hyperscale data center buildings in Chicago, increasing their interest from the 65% interest acquired in the third quarter to 80%. The top-up, completed at the same terms as the initial closing, resulted in approximately $68 million of gross proceeds to Digital Realty.

Balance Sheet

Digital Realty had approximately $17.4 billion of total debt outstanding as of December 31, 2023, comprised of $16.8 billion of unsecured debt and approximately $0.6 billion of secured debt and other. At the end of the fourth quarter of 2023, net debt-to-Adjusted EBITDA was 6.2x, debt-plus-preferred-to-total enterprise value was 29.8% and fixed charge coverage was 3.8x. Pro forma for the completion of the Blackstone development joint ventures announced in December 2023, the completion of asset sales, and the issuance of common stock subsequent to year end, net debt-to-Adjusted EBITDA was 5.8x.

During the quarter, Digital Realty sold 8.7 million shares of its common stock at a weighted average price of $133.21 per share through its ATM program, for net proceeds of approximately $1.1 billion. Subsequent to year end, the company sold 0.6 million shares of its common stock at a weighted average price of $133.43 per share for net proceeds of approximately $84 million

Subsequent to year end, the company retired $240 million of the $740 million U.S. dollar term loan.

2024 Outlook

Digital Realty introduced its 2024 Core FFO per share and Constant-Currency Core FFO per share outlooks of $6.60 - $6.75. The assumptions underlying the outlook are summarized in the following table. 







As of


 Top-Line and Cost Structure


February 15, 2024


Total revenue


$5.550 - $5.650 billion


Net non-cash rent adjustments (1)


($35 - $40 million)


Adjusted EBITDA


$2.800 - $2.900 billion


G&A


$450 - $460 million






 Internal Growth




Rental rates on renewal leases




Cash basis


4.0% - 6.0%


GAAP basis


6.0% - 8.0%


Year-end portfolio occupancy


+100 - 200 bps


"Same-Capital" cash NOI growth (2)


2.0% - 3.0%






Foreign Exchange Rates




U.S. Dollar / Pound Sterling


$1.25 - $1.30


U.S. Dollar / Euro


$1.05 - $1.10






 External Growth




Dispositions / Joint Venture Capital




Dollar volume


$1,000 - $1,500 million


Cap rate


6.0% - 8.0%


Development




CapEx (Net of Partner Contributions) (3)


$2,000 - $2,500 million


Average stabilized yields


10.0%+


Enhancements and other non-recurring CapEx (4)


$15 - $20 million


Recurring CapEx + capitalized leasing costs (5)


$260 - $275 million






 Balance Sheet




Long-term debt issuance




Dollar amount


$0 - $1,000 million


Pricing


5.0% - 5.5%


Timing


Mid-Year






 Net income per diluted share


$1.80 - $1.95


Real estate depreciation and (gain) / loss on sale


$4.40 - $4.40


 Funds From Operations / share (NAREIT-Defined)


$6.20 - $6.35


Non-core expenses and revenue streams


$0.40 - $0.40


 Core Funds From Operations / share


$6.60 - $6.75


Foreign currency translation adjustments


$0.00 - $0.00


 Constant-Currency Core Funds From Operations / share


$6.60 - $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.

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 February 15, 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 fourth quarter 2023 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# 0216634 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 March 15, 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# 4147003. 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
(737) 281-0101

Jordan Sadler / Jim Huseby
Investor Relations
Digital Realty
(737) 281-0101

Consolidated Quarterly Statements of Operations


Financial Supplement

Unaudited and in Thousands, Except Per Share Data

Fourth Quarter 2023



























Three Months Ended



Twelve Months Ended




31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22




31-Dec-23



31-Dec-22

Rental revenues



$885,694



$886,960



$869,298



$870,975



$834,374




$3,512,926



$3,141,488

Tenant reimbursements - Utilities



316,634



335,477



330,416



317,148



247,725




1,299,676



941,891

Tenant reimbursements - Other



46,418



64,876



46,192



40,150



46,045




197,636



199,663

Interconnection & other



106,413



107,305



104,521



101,695



97,286




419,934



379,641

Fee income



14,330



7,819



14,908



7,868



7,508




44,926



24,506

Other



144



?



932



887



168




1,963



4,645

Total Operating Revenues



$1,369,633



$1,402,437



$1,366,267



$1,338,724



$1,233,108




$5,477,061



$4,691,834
























Utilities



$366,083



$384,455



$374,934



$346,364



$268,561




$1,471,836



$1,005,070

Rental property operating



237,118



223,089



224,762



224,861



222,430




909,830



820,746

Property taxes



40,161



72,279



46,718



40,424



42,032




199,581



175,631

Insurance



3,794



4,289



4,385



4,355



4,578




16,823



16,114

Depreciation & amortization



420,475



420,613



432,573



421,198



430,130




1,694,859



1,577,933

General & administration



109,235



108,039



105,964



107,766



104,452




431,004



398,669

Severance, equity acceleration and legal expenses



7,565



2,682



3,652



4,155



15,980




18,054



23,498

Transaction and integration expenses



40,226



14,465



17,764



12,267



17,350




84,722



68,766

Provision for impairment



5,363



113,000



?



?



3,000




118,363



3,000

Other expenses



5,580



1,295



655



?



3,615




7,529



12,438

Total Operating Expenses



$1,235,598



$1,344,206



$1,211,407



$1,161,388



$1,112,127




$4,952,600



$4,101,865
























Operating Income



$134,035



$58,231



$154,860



$177,335



$120,981




$524,461



$589,969
























Equity in earnings / (loss) of unconsolidated joint ventures



(29,955)



(19,793)



5,059



14,897



(28,112)




(29,791)



(13,496)

Gain / (loss) on sale of investments



(103)



810,688



89,946



?



(6)




900,531



176,754

Interest and other income / (expense), net



50,269



24,812



(6,930)



280



(22,894)




68,431



8,918

Interest (expense)



(113,638)



(110,767)



(111,116)



(102,220)



(86,882)




(437,741)



(299,132)

Income tax benefit / (expense)



(20,724)



(17,228)



(16,173)



(21,454)



17,676




(75,579)



(31,551)

Loss from early extinguishment of debt



?



?



?



?



?




?



(51,135)

Net Income



$19,884



$745,941



$115,647



$68,839



$763




$950,311



$380,327
























Net income / (loss) attributable to noncontrolling interests



8,419



(12,320)



2,538



(111)



3,326




(1,474)



(2,455)

Net Income Attributable to Digital Realty Trust, Inc.



$28,304



$733,621



$118,185



$68,728



$4,089




$948,838



$377,872
























Preferred stock dividends



(10,181)



(10,181)



(10,181)



(10,181)



(10,181)




(40,725)



(40,725)

Net Income / (Loss) Available to Common Stockholders



$18,122



$723,440



$108,003



$58,547



($6,093)




$908,113



$337,147
























Weighted-average shares outstanding - basic



305,781



301,827



295,390



291,219



289,365




298,603



286,334

Weighted-average shares outstanding - diluted



314,995



311,341



306,819



303,065



301,712




309,065



297,919

Weighted-average fully diluted shares and units



321,173



317,539



313,021



309,026



307,546




315,113



303,708
























Net income / (loss) per share - basic



$0.06



$2.40



$0.37



$0.20



($0.02)




$3.04



$1.18

Net income / (loss) per share - diluted



$0.08



$2.33



$0.37



$0.19



($0.02)




$3.00



$1.13


























 

Funds From Operations and Core Funds From Operations



Unaudited and in Thousands, Except Per Share Data



























Three Months Ended



Twelve Months Ended

Reconciliation of Net Income to Funds From Operations (FFO)



31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22




31-Dec-23



31-Dec-22
























Net Income / (Loss)  Available to Common Stockholders



$18,122



$723,440



$108,003



$58,547



($6,093)




$908,112



$337,147

Adjustments:























Non-controlling interest in operating partnership



410



16,300



2,500



1,500



(586)




20,710



7,914

Real estate related depreciation & amortization (1)



410,167



410,836



424,044



412,192



422,951




1,657,239



1,547,865

Reconciling items related to non-controlling interests



(15,377)



(14,569)



(14,144)



(13,388)



(13,856)




(57,477)



(22,110)

Unconsolidated JV real estate related depreciation & amortization



64,833



43,215



35,386



33,719



33,927




177,153



123,099

(Gain) / loss on real estate transactions



103



(810,688)



(89,946)



(7,825)



572




(908,356)



(177,332)

Provision for impairment



5,363



113,000



?



?



3,000




118,363



3,000

Funds From Operations



$483,621



$481,535



$465,844



$484,745



$439,915




$1,915,745



$1,819,583
























Weighted-average shares and units outstanding - basic



311,960



308,024



301,593



297,180



295,199




304,651



292,123

Weighted-average shares and units outstanding - diluted (2)(3)



321,173



317,539



313,021



309,026



307,546




315,113



303,708
























Funds From Operations per share - basic



$1.55



$1.56



$1.54



$1.63



$1.49




$6.29



$6.23
























Funds From Operations per share - diluted (2)(3)



$1.53



$1.55



$1.52



$1.60



$1.45




$6.20



$6.03


























Three Months Ended



Twelve Months Ended

Reconciliation of FFO to Core FFO



31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22




31-Dec-23



31-Dec-22
























Funds From Operations



$483,621



$481,535



$465,844



$484,745



$439,915




$1,915,745



$1,819,583

Other non-core revenue adjustments



(146)



(27)



27,454



(887)



(3,786)




26,393



8,768

Transaction and integration expenses



40,226



14,465



17,764



12,267



17,350




84,722



68,766

Loss from early extinguishment of debt



?



?



?



?



?




?



51,135

Severance, equity acceleration and legal expenses (4)



7,565



2,682



3,652



4,155



15,980




18,054



23,498

(Gain) / Loss on FX revaluation



(24,804)



451



(7,868)



(6,778)



14,564




(39,000)



(24,694)

Other non-core expense adjustments



1,956



1,295



655



?



3,615




3,905



12,388

Core Funds From Operations



$508,417



$500,402



$507,501



$493,500



$487,638




$2,009,820



$1,959,444
























Weighted-average shares and units outstanding - diluted (2)(3)



312,356



308,539



301,806



297,382



295,519




305,138



292,528
























Core Funds From Operations per share - diluted (2)



$1.63



$1.62



$1.68



$1.66



$1.65




$6.59



$6.70
























(1)          Real Estate Related Depreciation & Amortization


Three Months Ended



Twelve Months Ended




31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22




31-Dec-23



31-Dec-22
























Depreciation & amortization per income statement



$420,475



$420,613



$432,573



$421,198



$430,130




$1,694,859



$1,577,933

Non-real estate depreciation



(10,308)



(9,777)



(8,529)



(9,006)



(7,179)




(37,619)



(30,068)

Real Estate Related Depreciation & Amortization



$410,167



$410,836



$424,044



$412,192



$422,951




$1,657,239



$1,547,865


























(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



Twelve Months Ended




31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22




31-Dec-23



31-Dec-22

Teraco noncontrolling share of FFO



$7,135



$11,537



$9,645



$11,069



$7,213




$39,386



$11,919

Teraco related minority interest



$7,135



$11,537



$9,645



$11,069



$7,213




$39,386



$11,919



(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)

Relates to severance and other charges related to the departure of company executives and integration-related severance.

 

Adjusted Funds From Operations (AFFO)



Unaudited and in Thousands, Except Per Share Data



























Three Months Ended



Twelve Months Ended

 Reconciliation of Core FFO to AFFO



31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22




31-Dec-23



31-Dec-22
























 Core FFO available to common stockholders and unitholders



$508,417



$500,402



$507,501



$493,500



$487,638




$2,009,820



$1,959,444

Adjustments:























Non-real estate depreciation



10,308



9,777



8,529



9,006



7,179




37,619



30,068

Amortization of deferred financing costs



5,744



5,776



5,984



4,072



3,753




21,575



13,987

Amortization of debt discount/premium



973



1,360



1,339



1,301



1,276




4,973



4,829

Non-cash stock-based compensation expense



9,226



14,062



13,893



13,056



16,042




50,238



62,242

Straight-line rental revenue



(21,992)



(14,080)



(16,151)



(16,194)



(29,392)




(68,417)



(83,604)

Straight-line rental expense



(4,999)



1,427



520



(515)



(208)




(3,567)



4,401

Above- and below-market rent amortization



(856)



(1,127)



(1,195)



(1,226)



(762)




(4,404)



(696)

Deferred tax (benefit) / expense



33,448



(8,539)



1,339



(9,795)



(4,885)




16,452



(12,491)

Leasing compensation & internal lease commissions



9,848



12,515



11,611



11,067



9,578




45,040



42,117

Recurring capital expenditures (1)



(142,808)



(90,251)



(53,498)



(40,465)



(109,999)




(327,022)



(266,466)
























AFFO available to common stockholders and unitholders (2)



$407,306



$431,322



$479,873



$463,807



$380,220




$1,782,308



$1,753,831
























Weighted-average shares and units outstanding - basic



311,960



308,024



301,593



297,180



295,199




304,651



292,123

Weighted-average shares and units outstanding - diluted (3)



312,356



308,539



301,806



297,382



295,519




305,138



292,528
























AFFO per share - diluted (3)



$1.30



$1.40



$1.59



$1.56



$1.29




$5.84



$6.00
























 Dividends per share and common unit



$1.22



$1.22



$1.22



$1.22



$1.22




$4.88



$4.88
























Diluted AFFO Payout Ratio



93.6 %



87.3 %



76.7 %



78.2 %



94.8 %




83.5 %



81.4 %


























 


























Three Months Ended



Twelve Months Ended

Share Count Detail



31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22




31-Dec-23



31-Dec-22
























Weighted Average Common Stock and Units Outstanding



311,960



308,024



301,593



297,180



295,199




304,651



292,123

Add: Effect of dilutive securities



396



515



213



202



320




487



405

Weighted Avg. Common Stock and Units Outstanding - diluted



312,356



308,539



301,806



297,382



295,519




305,138



292,528



(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.

 

Consolidated Balance Sheets



Unaudited and in Thousands, Except Per Share Data




















31-Dec-23


30-Sep-23


30-Jun-23


31-Mar-23


31-Dec-22

Assets
















Investments in real estate:















Real estate


$27,306,369



$25,887,031



$27,087,769



$27,052,022



$26,136,057

Construction in progress


4,635,215



5,020,464



4,635,939



4,563,578



4,789,134

Land held for future development


118,190



179,959



193,936



194,564



118,452

Investments in Real Estate


$32,059,773



$31,087,453



$31,917,644



$31,810,164



$31,043,643

Accumulated depreciation and amortization


(7,823,685)



(7,489,193)



(7,739,462)



(7,600,559)



(7,268,981)

Net Investments in Properties


$24,236,089



$23,598,260



$24,178,182



$24,209,605



$23,774,662

Investment in unconsolidated joint ventures


2,295,889



2,180,313



2,040,452



1,995,576



1,991,426

Net Investments in Real Estate


$26,531,977



$25,778,573



$26,218,634



$26,205,180



$25,766,088

















Operating lease right-of-use assets,net


$1,414,256



$1,274,410



$1,291,233



$1,317,293



$1,351,329

Cash and cash equivalents


1,625,495



1,062,050



124,519



131,406



141,773

Accounts and other receivables, net (1)


1,278,110



1,325,725



1,158,383



1,070,066



969,292

Deferred rent, net


624,427



586,418



613,796



627,700



601,590

Goodwill


9,239,871



8,998,074



9,148,603



9,199,636



9,208,497

Customer relationship value, deferred leasing costs & other intangibles, net


2,500,237



2,506,198



2,825,596



3,015,291



3,092,627

Assets held for sale



478,503



?



593,892



?



?

Other assets


420,382



401,068



414,078



386,495



353,802

Total Assets


$44,113,257



$41,932,515



$42,388,735



$41,953,068



$41,484,998
















Liabilities and Equity















Global unsecured revolving credit facilities, net


$1,812,287



$1,698,780



$2,242,258



$2,514,202



$2,150,451

Unsecured term loans, net


1,560,305



1,524,663



1,548,780



1,542,275



797,449

Unsecured senior notes, net of discount


13,422,342



13,072,102



13,383,819



13,258,079



13,120,033

Secured and other debt, net of discount


630,973



574,231



554,594



560,955



528,870

Operating lease liabilities


1,542,094



1,404,510



1,420,239



1,443,994



1,471,044

Accounts payable and other accrued liabilities


2,168,983



2,147,103



2,214,820



1,923,819



1,868,884

Deferred tax liabilities, net


1,151,096



1,088,724



1,128,961



1,164,276



1,192,752

Accrued dividends and distributions


387,988



?



?



?



363,716

Security deposits and prepaid rents


401,867



385,521



417,693



392,021



369,654

Obligations associated with assets held for sale



39,001



?



4,990



?



?

Total Liabilities


$23,116,936



$21,895,634



$22,916,155



$22,799,620



$21,862,853
















Redeemable non-controlling interests


1,394,814



1,360,308



1,367,422



1,448,772



1,514,680
















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)


3,088



3,002



2,967



2,888



2,887

Additional paid-in capital


24,396,797



23,239,088



22,882,200



22,126,379



22,142,868

Dividends in excess of earnings


(5,262,648)



(4,900,757)



(5,253,915)



(4,995,982)



(4,698,313)

Accumulated other comprehensive (loss), net


(751,393)



(882,996)



(741,484)



(652,486)



(595,798)

Total Stockholders' Equity


$19,117,535



$18,190,026



$17,621,456



$17,212,490



$17,583,334
















Noncontrolling Interests















Noncontrolling interest in operating partnership


$438,081



$441,366



$436,099



$444,843



$419,317

Noncontrolling interest in consolidated joint ventures


45,892



45,182



47,603



47,342



104,814
















Total Noncontrolling Interests


$483,972



$486,547



$483,702



$492,185



$524,131
















Total Equity


$19,601,507



$18,676,573



$18,105,158



$17,704,675



$18,107,465
















Total Liabilities and Equity


$44,113,257



$41,932,515



$42,388,735



$41,953,068



$41,484,998





















(1)

Net of allowance for doubtful accounts of $41,204 and $33,048 as of December 31, 2023 and December 31, 2022, 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 December 31, 2023 and December 31, 2022.

(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 December 31, 2023 and December 31, 2022.

(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 December 31, 2023 and December 31, 2022.

(5)

Common Stock: 311,608 and 291,148 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively.

 

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios



Unaudited and Dollars in Thousands




















Three Months Ended

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1)



31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22

















Net Income / (Loss) Available to Common Stockholders



$18,122



$723,440



$108,003



$58,547



($6,093)

Interest



113,638



110,767



111,116



102,220



86,882

Income tax expense (benefit)



20,724



17,228



16,173



21,454



(17,676)

Depreciation & amortization



420,475



420,613



432,573



421,198



430,130

EBITDA



$572,958



$1,272,048



$667,866



$603,420



$493,243

Unconsolidated JV real estate related depreciation & amortization



64,833



43,214



35,386



33,719



33,927

Unconsolidated JV interest expense and tax expense



42,140



27,000



32,105



18,556



53,481

Severance, equity acceleration and legal expenses



7,565



2,682



3,652



4,155



15,980

Transaction and integration expenses



40,226



14,465



17,764



12,267



17,350

(Gain) / loss on sale of investments



103



(810,688)



(89,946)



?



6

Provision for impairment



5,363



113,000



?



?



3,000

Other non-core adjustments, net



(35,439)



1,719



22,132



(14,604)



15,127

Non-controlling interests



(8,419)



12,320



(2,538)



111



(3,326)

Preferred stock dividends



10,181



10,181



10,181



10,181



10,181

Adjusted EBITDA



$699,509



$685,943



$696,604



$667,804



$638,969





















(1)

For definitions and discussion of EBITDA and Adjusted EBITDA, see the Definitions section.

 



















Three Months Ended

Financial Ratios



31-Dec-23



30-Sep-23



30-Jun-23



31-Mar-23



31-Dec-22

















Total GAAP interest expense



$113,638



$110,767



$111,116



$102,220



$86,882

Capitalized interest



33,032



29,130



27,883



26,771



24,581

Change in accrued interest and other non-cash amounts



(66,013)



44,183



(60,612)



38,137



(67,909)

Cash Interest Expense (2)



$80,657



$184,081



$78,387



$167,128



$43,554

















Preferred stock dividends



10,181



10,181



10,181



10,181



10,181

Total Fixed Charges (3)



$156,851



$150,079



$149,181



$139,172



$121,645

































Coverage
















Interest coverage ratio (4)



 4.0x



 4.3x



 4.5x



 4.7x



 5.3x

Cash interest coverage ratio (5)



 6.4x



 3.4x



 7.4x



 3.7x



 11.9x

Fixed charge coverage ratio (6)



 3.8x



 4.1x



 4.2x



 4.4x



 4.9x

Cash fixed charge coverage ratio (7)



 5.8x



 3.2x



 6.6x



 3.5x



 10.0x

















Leverage
















Debt to total enterprise value (8)(9)



28.6 %



30.6 %



33.3 %



37.3 %



35.2 %

Debt-plus-preferred-stock-to-total-enterprise-value (9)(10)



29.8 %



32.0 %



34.7 %



38.9 %



36.8 %

Pre-tax income to interest expense (11)



 1.2x



 7.7x



 2.0x



 1.7x



 1.0x

Net Debt-to-Adjusted EBITDA (12)



 6.2x



 6.3x



 6.8x



 7.1x



 6.9x



(2)

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.

(3)

Fixed charges consist of GAAP interest expense, capitalized interest, and preferred stock dividends.

(4)

Adjusted EBITDA divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated joint venture interest expense).

(5)

Adjusted EBITDA divided by cash interest expense (including our pro rata share of unconsolidated joint venture interest expense).

(6)

Adjusted EBITDA divided by fixed charges (including our pro rata share of unconsolidated joint venture fixed charges).

(7)

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).

(8)

Total debt divided by market value of common equity plus debt plus preferred stock.

(9)

Total enterprise value defined as market value of common equity plus debt plus preferred stock.

(10)

Same as (8), except numerator includes preferred stock.

(11)

Calculated as net income plus interest expense divided by GAAP interest expense.

(12)

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.

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, or Nareit, in the Nareit Funds From Operations White Paper - 2018 Restatement. FFO represents net income (loss) (computed in accordance with GAAP), excluding (i) gains (or losses) from real estate transactions, (ii) provision for impairment, real estate related depreciation and amortization (excluding amortization of deferred financing costs), (iii) unconsolidated JV real estate related depreciation & amortization, (iv) non-controlling interests in operating partnership, (v) depreciation related to non-controlling interests and (vi) after adjustments for unconsolidated partnerships and joint ventures. 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 from early extinguishment of debt, (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 from early extinguishment of debt, 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, (vii) 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.

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, 2021 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 2022-2023, 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 December 31, 2023, GAAP interest expense was $114 million, capitalized interest was $33 million and preferred stock dividends was $10 million.


















Reconciliation of Net Operating Income (NOI)


Three Months Ended



Twelve Months Ended

(in thousands)


31-Dec-23


30-Sep-23


31-Dec-22



31-Dec-23


31-Dec-22


















Operating income



$134,035



$58,231



$120,981




$524,461



$589,969


















 Fee income



(14,330)



(7,819)



(7,508)




(44,926)



(24,506)

 Other income



(144)



?



(168)




(1,963)



(4,645)

 Depreciation and amortization



420,475



420,613



430,130




1,694,859



1,577,933

 General and administrative



109,235



108,039



104,452




431,004



398,669

 Severance, equity acceleration and legal expenses



7,565



2,682



15,980




18,054



23,498

 Transaction expenses



40,226



14,465



17,350




84,722



68,766

 Provision for impairment



5,363



113,000



3,000




118,363



3,000

 Other expenses



5,580



1,295



3,615




7,529



12,438


















Net Operating Income



$708,003



$710,505



$687,831




$2,832,102



$2,645,122



































 Cash Net Operating Income (Cash NOI)


































Net Operating Income



$708,003



$710,505



$687,831




$2,832,102



$2,645,122


















 Straight-line rental revenue



(22,085)



(14,185)



(32,226)




(40,480)



(69,998)

 Straight-line rental expense



(4,745)



1,632



(680)




(2,901)



2,857

 Above- and below-market rent amortization



(856)



(1,127)



(762)




(4,404)



(696)


















Cash Net Operating Income



$680,317



$696,826



$654,164




$2,784,317



$2,577,283




















































Constant Currency CFFO Reconciliation


Three Months Ended



Twelve Months Ended

(in thousands, except per share data)


31-Dec-23


30-Sep-23


31-Dec-22



31-Dec-23


31-Dec-22


















Core FFO (1)



$508,417






$487,638




$2,009,820



$1,959,444

 Core FFO impact of holding '22 Exchange Rates Constant (2)



(3,781)






?




(3,964)



?


















Constant Currency Core FFO



$504,636






$487,638




$2,005,856



$1,959,444

 Weighted-average shares and units outstanding - diluted



312,356






295,519




305,138



292,528

Constant Currency CFFO Per Share



$1.62






$1.65




$6.57



$6.70



1)

As reconciled to net income above.

2)

Adjustment calculated by holding currency translation rates for 2023 constant with average currency translation rates that were applicable to the same periods in 2022.

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:

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, 2022, 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.

 

SOURCE Digital Realty Trust


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