AUSTIN, Texas, Oct. 24, 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 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.

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.

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.

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
Net 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
G&A	$450 - $460 million	$450 - $460 million	$450 - $460 million	$455 - $460 million

Internal Growth
Rental rates on renewal leases
Cash basis	4.0% - 6.0%	5.0% - 7.0%	5.0% - 7.0%	8.0% - 10.0%
GAAP basis	6.0% - 8.0%	7.0% - 9.0%	7.0% - 9.0%	12.0% - 14.0%
Year-end portfolio occupancy	+100 - 200 bps	+100 - 200 bps	+100 - 200 bps	+150 - 200 bps
"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
CapEx (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%+
Enhancements and other non-recurring CapEx ⁽⁴⁾	$15 - $20 million	$15 - $20 million	$15 - $20 million	$25 - $30 million
Recurring 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

Net 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
Funds 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
Core 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.

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

Consolidated Quarterly Statements of Operations				Third Quarter 2024
Unaudited and in Thousands, Except Per Share Data

	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

Funds From Operations and Core Funds From Operations					Third Quarter 2024
Unaudited and in Thousands, Except Per Share Data

	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.

Adjusted Funds From Operations (AFFO)					Third Quarter 2024
Unaudited and in Thousands, Except Per Share Data

	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.

Consolidated Balance Sheets					Third Quarter 2024
Unaudited and in Thousands, Except Per Share Data

	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.

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios			Third Quarter 2024
Unaudited and Dollars in Thousands

	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

Total Fixed Charges ⁽⁴⁾

$162,296

$152,529

$148,239

$156,851

$150,079

Coverage

Interest coverage ratio ⁽⁵⁾

4.3x

4.2x

Cash interest coverage ratio ⁽⁶⁾

3.4x

6.4x

6.3x

3.2x

7.0x

Fixed charge coverage ratio ⁽⁷⁾

4.1x

4.0x

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 %

26.7 %

28.6 %

Debt-plus-preferred-stock-to-total-enterprise-value ^(10)(11)

24.5 %

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.

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.

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

Digital Realty Reports Third Quarter 2024 Results