Digital Realty Reports First Quarter 2021 Results

Rhea-AI Summary

Digital Realty (NYSE: DLR) reported strong financial results for Q1 2021, with net income of $372 million or $1.32 per share, up from $0.90 in Q1 2020. The company generated revenues of $1.1 billion, a 32% increase year-over-year. Funds from operations (FFO) per share rose to $1.49, while core FFO per share increased to $1.67. Total bookings during the quarter are expected to generate $117 million in annualized GAAP rental revenue. Digital Realty raised its 2021 core FFO outlook to $6.50-$6.55, indicating confidence in its growth trajectory.

Positive

• Net income increased by 313% year-over-year, from $0.90 to $1.32 per share.
• Revenues grew by 32% compared to the same quarter last year, reaching $1.1 billion.
• Funds from operations (FFO) per share rose to $1.49 from $0.91 a year ago.
• Core FFO per share increased to $1.67, up 9% year-over-year.
• Total bookings in Q1 2021 projected to generate $117 million in annualized GAAP rental revenue.

Negative

• Rental rates on renewal leases rolled down 2.1% on a cash basis.

AUSTIN, Texas, April 29, 2021 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today financial results for the first quarter of 2021.  All per-share results are presented on a fully-diluted share and unit basis. 

Highlights

• Reported net income available to common stockholders of $1.32 per share in 1Q21, compared to net income available to common stockholders of $0.90 in 1Q20
• Reported FFO per share of $1.49 in 1Q21, compared to $0.91 in 1Q20
• Reported core FFO per share of $1.67 in 1Q21, compared to $1.53 in 1Q20
• Signed total bookings during 1Q21 expected to generate $117 million of annualized GAAP rental revenue, including a $13 million contribution from interconnection
• Raised core FFO per share outlook from $6.40-$6.50 to $6.50-$6.55

Financial Results

Digital Realty reported revenues for the first quarter of 2021 of $1.1 billion, a 3% increase from the previous quarter and a 32% increase from the same quarter last year. 

The company delivered first quarter of 2021 net income of $395 million, and net income available to common stockholders of $372 million, or $1.32 per diluted share, compared to $0.16 per diluted share in the previous quarter and $0.90 per diluted share in the same quarter last year. 

Digital Realty generated first quarter of 2021 Adjusted EBITDA of $615 million, a 6% increase from the previous quarter and a 28% increase over the same quarter last year. 

The company reported first quarter of 2021 funds from operations of $432 million, or $1.49 per share, compared to $1.45 per share in the previous quarter and $0.91 per share in the same quarter last year. 

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered first quarter of 2021 core FFO per share of $1.67, a 3% increase from $1.61 per share in the previous quarter, and a 9% increase from $1.53 per share in the same quarter last year. 

Leasing Activity

In the first quarter, Digital Realty signed total bookings expected to generate $117 million of annualized GAAP rental revenue, including a $13 million contribution from interconnection. 

"Digital Realty delivered solid financial results during the first quarter, driven by continued acceleration in digital adoption," said Digital Realty Chief Executive Officer A. William Stein.  "Our first-quarter bookings were very well balanced across products and regions, reflecting the strength of our full-service global platform.  We are investing to support customer growth and to continue to enhance the value of our comprehensive product offerings, and we remain well positioned to continue to deliver sustainable growth for all stakeholders." 

The weighted-average lag between leases signed during the first quarter of 2021 and the contractual commencement date was eight months. 

In addition to new leases signed, Digital Realty also signed renewal leases representing $193 million of annualized GAAP rental revenue during the quarter.  Rental rates on renewal leases signed during the first quarter of 2021 rolled down 2.1% on a cash basis and up 3.2% on a GAAP basis. 

New leases signed during the first quarter of 2021 are summarized by region as follows:

		Annualized GAAP
		Base Rent					GAAP Base Rent					GAAP Base Rent
The Americas		(in thousands)			Square Feet		per Square Foot			Megawatts		per Kilowatt
0-1 MW			$10,802		55,535			$195		4.9			$182
> 1 MW			27,130		284,454			95		22.0			103
Other (1)			1,562		50,770			31		—			—
Total			$39,494		390,759			$101		27.0			$117
EMEA (2)
0-1 MW			$13,491		50,867			$265		4.0			$284
> 1 MW			13,382		98,785			135		9.7			115
Other (1)			77		129			594		—			—
Total			$26,949		149,782			$180		13.7			$164
Asia Pacific (2)
0-1 MW			$8,312		14,843			$560		2.1			$323
> 1 MW			28,948		79,670			363		14.8			164
Other (1)			28		3,240			9		—			—
Total			$37,287		97,753			$381		16.9			$184
All Regions (2)
0-1 MW			$32,605		121,245			$269		11.0			$246
> 1 MW			69,459		462,908			150		46.5			125
Other (1)			1,666		54,139			31		—			—
Total			$103,731		638,293			$163		57.5			$148
Interconnection			$13,323		N/A			N/A		N/A			N/A
Grand Total			$117,054		638,293			$163		57.5			$148

Note:  Totals may not foot due to rounding differences.
(1)	Other includes Powered Base Building shell capacity as well as storage and office space within fully improved data center facilities.
(2)	Based on quarterly average exchange rates during the three months ended March 31, 2021.

Investment Activity

During the first quarter of 2021, Digital Realty closed on the sale of a portfolio of 11 data centers in Europe for a total of approximately $680 million.  The portfolio is expected to generate 2021 cash net operating income of approximately $45 million, representing a cap rate of approximately 6.7%. 

Separately, during the first quarter, Digital Realty also sold a 6.4-acre land parcel in Ashburn, VA for $12 million and a 30,400-square foot vacant building in Waltham, MA for approximately $2 million. 

In addition, Digital Realty acquired a 66,400-square foot building and an adjacent 4.7-acre land parcel in Brussels, Belgium that will support the development of 13.6 megawatts of IT capacity for €13 million, or approximately $15 million.  

Subsequent to quarter-end, Digital Realty acquired the freehold interest in 1.76 acres of land and a 76,000-square foot building housing its "CPH1" data center in Copenhagen, Denmark for DKK53 million, or approximately $8 million.  

Balance Sheet

Digital Realty had approximately $13.3 billion of total debt outstanding as of March 31, 2021, comprised of $13.1 billion of unsecured debt and approximately $0.2 billion of secured debt.  At the end of the first quarter of 2021, net debt-to-Adjusted EBITDA was 5.6x, debt plus-preferred-to-total enterprise value was 25.9% and fixed charge coverage was 5.8x. 

Digital Realty completed the following financing transactions during the first quarter of 2021. 

• In early January, Digital Realty issued €1.0 billion, or approximately $1.2 billion, of 0.625% green Euro bonds due 2031.
• In mid-January, Digital Realty repaid the entire $537 million outstanding balance on its unsecured term loan.
• In early February, Digital Realty redeemed all $350 million of its outstanding 2.75% notes due 2023.
• Subsequent to quarter-end, Digital Realty announced the redemption of all 8.05 million shares of its 6.625% Series C Preferred Stock with a total liquidation value of $201 million.

COVID-19

Throughout the COVID-19 global pandemic, Digital Realty's data centers around the world have remained fully operational in accordance with business continuity and pandemic response plans, prioritizing the health and safety of employees, customers and partners while ensuring service levels are maintained.  Digital Realty data centers have been deemed essential operations, allowing for critical personnel to remain in place and continue to provide services and support for customers.  Construction activity has been somewhat delayed in a few markets due to government restrictions in certain locations and/or limited availability of labor.  In some instances, these delays have impacted scheduled delivery dates.  We are monitoring the situation closely and remain in frequent communication with customers, contractors and suppliers.  We have proactively managed our supply chain, and we believe we have secured the vast majority of the equipment needed to complete our 2021 development activities.  We believe we have ample liquidity to fund our business needs, given the $221 million of cash on the balance sheet and $2.2 billion of availability under our global revolving credit facilities as of March 31, 2021.  While we have not experienced any significant business disruptions from the COVID-19 pandemic to date, we cannot predict what impact the COVID-19 pandemic may have on our future financial condition, results of operations or cash flows due to numerous uncertainties. 

2021 Outlook

Digital Realty raised its 2021 core FFO per share outlook from $6.40-$6.50 to $6.50-$6.55.  The assumptions underlying the outlook are summarized in the following table. 

		As of		As of
Top-Line and Cost Structure		February 11, 2021		April 29, 2021
Total revenue		$4.250 - $4.350 billion		$4.300 - $4.400 billion
Net non-cash rent adjustments (1)		($10) - ($15) million		($20) - ($25) million
Adjusted EBITDA		$2.300 - $2.350 billion		$2.330 - $2.380 billion
G&A		$365 - $375 million		$380 - $390 million
Internal Growth
Rental rates on renewal leases
Cash basis		Slightly negative		Slightly negative
GAAP basis		Slightly positive		Slightly positive
Year-end portfolio occupancy		84.0% - 85.0%		84.0% - 85.0%
"Same-capital" cash NOI growth (2)		(2.5%) - (3.5%)		(2.5%) - (3.5%)
Foreign Exchange Rates
U.S. Dollar / Pound Sterling		$1.25 - $1.30		$1.30 - $1.38
U.S. Dollar / Euro		$1.15 - $1.20		$1.15 - $1.20
External Growth
Dispositions
Dollar volume		$0.6 - $1.0 billion		$0.7 - $1.0 billion
Cap rate		0.0% - 12.0%		0.0% - 12.0%
Development
CapEx (3)		$2.0 - $2.3 billion		$2.0 - $2.3 billion
Average stabilized yields		9.0% - 15.0%		9.0% - 15.0%
Enhancements and other non-recurring CapEx (4)		$5 - $10 million		$5 - $10 million
Recurring CapEx + capitalized leasing costs (5)		$220 - $230 million		$220 - $230 million
Balance Sheet
Long-term debt issuance
Dollar amount		$1.0 - $1.5 billion		$1.0 - $1.5 billion
Pricing		1.00%		1.00%
Timing		Early-to-mid 2021		Early-to-mid 2021
Net income per diluted share		$1.40 - $1.45		$2.00 - $2.05
Real estate depreciation and (gain) / loss on sale		$4.90 - $4.90		$4.25 - $4.25
Funds From Operations / share (NAREIT-Defined)		$6.30 - $6.35		$6.25 - $6.30
Non-core expenses and revenue streams		$0.10 - $0.15		$0.25 - $0.25
Core Funds From Operations / share		$6.40 - $6.50		$6.50 - $6.55

(1)	Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rent 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, 2019 with less than 5% of total rentable square feet under development.  It also excludes properties that were undergoing, or were expected to undergo, development activities in 2020-2021, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented.
(3)	Includes land acquisitions.
(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.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, including FFO, core FFO and Adjusted EBITDA.  A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to core FFO, and definitions of FFO and core FFO 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. 

Investor Conference Call

Prior to Digital Realty's investor conference call at 5:30 p.m. EDT / 2:30 p.m. PDT on April 29, 2021, a presentation will be posted to the Investors section of the company's website at https://investor.digitalrealty.com/.  The presentation is designed to accompany the discussion of the company's First Quarter 2021 financial results and operating performance.  The conference call will feature Chief Executive Officer A. William Stein and Chief Financial Officer Andrew P. Power. 

To participate in the live call, investors are invited to dial (888) 317-6003 (for domestic callers) or (412) 317-6061 (for international callers) and reference the conference ID# 6064617 at least five minutes prior to start time.  A live webcast of the call will be available via the Investors section of Digital Realty's website at https://investor.digitalrealty.com/. 

Telephone and webcast replays will be available after the call until May 29, 2021.  The telephone replay can be accessed by dialing (877) 344-7529 (for domestic callers) or (412) 317-0088 (for international callers) and providing the conference ID# 10153437.  The webcast replay can be accessed on Digital Realty's website. 

About Digital Realty

Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions.  PlatformDIGITAL®, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture (PDx™) solution methodology for scaling digital business and efficiently managing data gravity challenges.  Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with 290 facilities in 47 metros across 24 countries on six continents.  To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter. 

Contact Information

Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738–6500

John J. Stewart / Jim Huseby
Investor Relations
Digital Realty
(415) 738–6500

 

 

Consolidated Quarterly Statements of Operations Unaudited and Dollars in Thousands, Except Per Share Data
			Three Months Ended
			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Rental revenues			$754,544			$754,422			$726,441			$698,041			$579,774
Tenant reimbursements - Utilities			184,973			154,937			155,111			141,576			113,520
Tenant reimbursements - Other			59,328			62,084			53,654			62,630			56,943
Interconnection & other			89,061			86,424			85,725			85,428			69,835
Fee income			2,426			4,722			3,687			4,353			2,452
Other			59			20			50			967			813
Total Operating Revenues			$1,090,391			$1,062,609			$1,024,668			$992,995			$823,337
Utilities			$176,046			$169,282			$177,925			$160,173			$129,526
Rental property operating			185,733			205,177			180,755			172,474			136,182
Property taxes			49,005			42,442			39,732			45,071			42,123
Insurance			3,498			3,410			2,926			3,370			3,547
Depreciation & amortization			369,733			359,915			365,842			349,165			291,457
General & administration			97,568			101,582			90,431			90,649			62,266
Severance, equity acceleration, and legal expenses			2,427			606			920			3,642			1,272
Transaction and integration expenses			14,120			19,290			14,953			15,618			56,801
Impairment of investments in real estate			—			—			6,482			—			—
Other expenses			(257)			641			297			22			114
Total Operating Expenses			$897,873			$902,345			$880,263			$840,184			$723,288
Operating Income			$192,518			$160,264			$144,405			$152,811			$100,049
Equity in (loss) earnings of unconsolidated joint ventures			(23,031)			31,055			(2,056)			(7,632)			(78,996)
Gain on sale / deconsolidation			333,921			1,684			10,410			—			304,801
Interest and other (expense) income, net			(7,186)			(2,747)			4,348			22,163			(3,542)
Interest (expense)			(75,653)			(77,848)			(89,499)			(79,874)			(85,800)
Income tax (expense)			(7,547)			(3,322)			(16,053)			(11,490)			(7,182)
Loss from early extinguishment of debt			(18,347)			(49,576)			(53,007)			—			(632)
Net Income / (Loss)			$394,675			$59,510			($1,452)			$75,978			$228,698
Net (income) loss attributable to noncontrolling interests			(8,756)			(1,818)			1,316			(1,147)			(4,684)
Net Income / (Loss) Attributable to Digital Realty Trust, Inc.			$385,919			$57,692			($136)			$74,831			$224,014
Preferred stock dividends, including undeclared dividends			(13,514)			(13,514)			(20,712)			(21,155)			(21,155)
Issuance costs associated with redeemed preferred stock			—			—			(16,520)			—			—
Net Income / (Loss) Available to Common Stockholders			$372,405			$44,178			($37,368)			$53,676			$202,859
Weighted-average shares outstanding - basic			281,094,798			280,117,213			270,214,413			267,569,823			222,163,324
Weighted-average shares outstanding - diluted			281,928,182			281,122,368			270,214,413			270,744,408			224,474,295
Weighted-average fully diluted shares and units			289,210,666			288,903,143			281,523,515			278,719,109			232,753,630
Net income / (loss) per share - basic			$1.32			$0.16			($0.14)			$0.20			$0.91
Net income / (loss) per share - diluted			$1.32			$0.16			($0.14)			$0.20			$0.90

 

 

Funds From Operations and Core Funds From Operations Unaudited and in Thousands, Except Per Share Data
		Three Months Ended
Reconciliation of Net Income to Funds From Operations (FFO)			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Net (Loss) / Income Available to Common Stockholders			$372,405			$44,178			($37,368)			$53,676			$202,859
Adjustments:
Non-controlling interest in operating partnership			9,800			1,300			(1,000)			1,400			7,800
Real estate related depreciation & amortization (1)			364,697			354,366			358,619			342,334			286,517
Unconsolidated JV real estate related depreciation & amortization			19,378			21,471			19,213			17,123			19,923
(Gain) on real estate transactions			(333,921)			(1,684)			(10,410)			-			(304,801)
Impairment of investments in real estate			-			-			6,482			-			-
Funds From Operations - diluted			$432,359			$419,631			$335,536			$414,533			$212,298
Weighted-average shares and units outstanding - basic			288,377			287,898			278,079			275,545			230,443
Weighted-average shares and units outstanding - diluted (2)			289,211			288,903			281,524			278,719			232,754
Funds From Operations per share - basic			$1.50			$1.46			$1.21			$1.50			$0.92
Funds From Operations per share - diluted (2)			$1.49			$1.45			$1.19			$1.49			$0.91
		Three Months Ended
Reconciliation of FFO to Core FFO			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Funds From Operations - diluted			$432,359			$419,631			$335,536			$414,533			$212,298
Termination fees and other non-core revenues (3)			(59)			(25)			(5,713)			(21,908)			(2,425)
Transaction and integration expenses			14,120			19,290			14,953			15,618			56,801
Loss from early extinguishment of debt			18,347			49,576			53,007			-			632
Issuance costs associated with redeemed preferred stock			-			-			16,520			-			-
Severance, equity acceleration, and legal expenses (4)			2,427			606			920			3,642			1,272
(Gain) / Loss on FX revaluation			34,072			(27,190)			10,312			17,526			81,288
Other non-core expense adjustments			(19,240)			3,353			6,697			22			5,509
Core Funds From Operations - diluted			$482,026			$465,241			$432,232			$429,433			$355,375
Weighted-average shares and units outstanding - diluted (2)			289,211			288,903			281,524			278,719			232,754
Core Funds From Operations per share - diluted (2)			$1.67			$1.61			$1.54			$1.54			$1.53
(1) Real Estate Related Depreciation & Amortization		Three Months Ended
			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Depreciation & amortization per income statement			$369,733			$359,915			$365,842			$349,165			$291,457
Non-real estate depreciation			(5,036)			(5,549)			(7,223)			(6,831)			(4,940)
Real Estate Related Depreciation & Amortization			$364,697			$354,366			$358,619			$342,334			$286,517

(2)	For all periods presented, we have excluded the effect of dilutive series C, series G, series I, 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 C, series G, series I, series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of diluted 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.
(3)	Includes lease termination fees and certain other adjustments that are not core to our business.
(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
Reconciliation of Core FFO to AFFO			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Core FFO available to common stockholders and unitholders			$482,026			$465,241			$432,232			$429,433			$355,375
Adjustments:
Non-real estate depreciation			5,036			5,549			7,223			6,831			4,940
Amortization of deferred financing costs			3,538			3,709			3,655			3,661			4,260
Amortization of debt discount/premium			1,134			1,033			987			1,011			943
Non-cash stock-based compensation expense			16,097			16,315			15,969			15,060			12,153
Straight-line rental revenue			(18,492)			(14,402)			(10,017)			(10,928)			(15,404)
Straight-line rental expense			6,709			3,629			3,934			7,373			1,460
Above- and below-market rent amortization			2,137			3,239			2,360			3,794			3,294
Deferred tax (expense) benefit			(4,509)			(4,226)			6,421			(150)			(792)
Leasing compensation & internal lease commissions			11,042			10,506			6,052			1,739			2,793
Recurring capital expenditures (1)			(39,522)			(83,571)			(53,683)			(38,796)			(34,677)
AFFO available to common stockholders and unitholders (2)			$465,196			$407,022			$415,133			$419,028			$334,345
Weighted-average shares and units outstanding - basic			288,377			287,898			278,079			275,545			230,443
Weighted-average shares and units outstanding - diluted (3)			289,211			288,903			281,524			278,719			232,754
AFFO per share - diluted (3)			$1.61			$1.41			$1.47			$1.50			$1.44
Dividends per share and common unit			$1.16			$1.12			$1.12			$1.12			$1.12
Diluted AFFO Payout Ratio			72.1%			79.5%			76.0%			74.5%			78.0%
		Three Months Ended
Share Count Detail			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Weighted Average Common Stock and Units Outstanding			288,377			287,898			278,079			275,545			230,443
Add: Effect of dilutive securities			834			1,005			3,445			3,174			2,311
Weighted Avg. Common Stock and Units Outstanding - diluted			289,211			288,903			281,524			278,719			232,754

(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 C, series G, series I, 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 C, series G, series I, series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of diluted FFO available to common stockholders and unitholders and for calculations of weighted average common stock and units outstanding.

 

 

Consolidated Balance Sheets Unaudited and in Thousands, Except Share and Per Share Data
							31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Assets
Investments in real estate:
Real estate								$22,762,279			$23,142,988			$22,125,486			$20,843,273			$20,477,290
Construction in progress								2,904,642			2,768,326			2,328,654			2,514,324			2,204,869
Land held for future development								192,896			226,862			198,536			175,209			137,447
Investments in real estate								$25,859,817			$26,138,175			$24,652,676			$23,532,806			$22,819,606
Accumulated depreciation and amortization								(5,649,019)			(5,555,221)			(5,250,140)			(4,945,534)			(4,694,713)
Net Investments in Properties								$20,210,798			$20,582,954			$19,402,536			$18,587,272			$18,124,893
Investment in unconsolidated joint ventures								970,703			1,148,158			1,059,978			1,033,235			1,064,009
Net Investments in Real Estate								$21,181,501			$21,731,112			$20,462,514			$19,620,507			$19,188,902
Cash and cash equivalents								$221,140			$108,501			$971,305			$505,174			$246,480
Accounts and other receivables (1)								657,096			603,111			585,506			542,750			527,699
Deferred rent								524,200			528,180			510,627			496,684			484,179
Customer relationship value, deferred leasing costs & other intangibles, net								3,057,245			3,122,904			3,106,414			3,128,140			3,500,588
Goodwill								8,125,706			8,330,996			8,012,256			7,791,522			7,466,046
Assets associated with real estate held for sale								—			—			—			10,981			—
Operating lease right-of-use assets (2)								1,495,869			1,386,959			1,363,285			1,375,427			1,364,621
Other assets								279,734			264,528			423,426			391,451			334,785
Total Assets								$35,542,491			$36,076,291			$35,435,333			$33,862,636			$33,113,300
Liabilities and Equity
Global unsecured revolving credit facilities								$451,007			$531,905			$124,082			$64,492			$603,101
Unsecured term loans								—			536,580			512,642			799,550			771,425
Unsecured senior notes, net of discount								12,566,198			11,997,010			11,999,170			11,268,753			10,637,006
Secured debt and other, net of premiums								239,634			239,222			238,866			238,826			239,800
Operating lease liabilities (2)								1,581,759			1,468,712			1,444,060			1,451,152			1,431,292
Accounts payable and other accrued liabilities								1,305,921			1,420,162			1,610,814			1,303,337			1,192,774
Deferred tax liabilities, net								650,543			698,308			711,474			664,802			684,752
Accrued dividends and distributions								—			324,386			571			—			—
Security deposits and prepaid rent								362,008			371,659			353,902			348,253			336,583
Liabilities associated with assets held for sale								—			—			—			238			—
Total Liabilities								$17,157,070			$17,587,944			$16,995,581			$16,139,403			$15,896,733
Redeemable non-controlling interests - operating partnership								40,097			42,011			41,265			40,584			40,027
Equity
Preferred Stock:  $0.01 par value per share, 110,000,000 shares authorized:
Series C Cumulative Redeemable Perpetual Preferred Stock (3)								$219,250			$219,250			$219,250			$219,250			$219,250
Series G Cumulative Redeemable Preferred Stock (4)								—			—			—			241,468			241,468
Series I Cumulative Redeemable Preferred Stock (5)								—			—			—			242,012			242,012
Series J Cumulative Redeemable Preferred Stock (6)								193,540			193,540			193,540			193,540			193,540
Series K Cumulative Redeemable Preferred Stock (7)								203,264			203,264			203,264			203,264			203,264
Series L Cumulative Redeemable Preferred Stock (8)								334,886			334,886			334,886			334,886			334,886
Common Stock: $0.01 par value per share, 392,000,000 shares authorized (9)								2,795			2,788			2,784			2,670			2,622
Additional paid-in capital								20,700,282			20,626,897			20,566,645			19,292,311			18,606,766
Dividends in excess of earnings								(3,952,497)			(3,997,938)			(3,726,901)			(3,386,525)			(3,139,350)
Accumulated other comprehensive income (loss), net								(77,783)			135,010			(123,623)			(358,349)			(444,222)
Total Stockholders' Equity								$17,623,737			$17,717,697			$17,669,845			$16,984,527			$16,460,236
Noncontrolling Interests
Noncontrolling interest in operating partnership								$571,292			$608,980			$620,676			$633,831			$656,266
Noncontrolling interest in consolidated joint ventures								150,295			119,659			107,966			64,291			60,038
Total Noncontrolling Interests								$721,587			$728,639			$728,642			$698,122			$716,304
Total Equity								$18,345,324			$18,446,336			$18,398,487			$17,682,649			$17,176,540
Total Liabilities and Equity								$35,542,491			$36,076,291			$35,435,333			$33,862,636			$33,113,300

(1)	Net of allowance for doubtful accounts of $23,975 and $18,825 as of March 31, 2021 and December 31, 2020, respectively.
(2)	Adoption of the new lease accounting standard required that we adjust the consolidated balance sheet to include the recognition of additional right-of-use assets and lease liabilities for operating leases. See our quarterly report on Form 10–Q filed on May 10, 2019 for additional information.
(3)	Series C Cumulative Redeemable Perpetual Preferred Stock, 6.625%, $201,250 and $201,250 liquidation preference, respectively ($25.00 per share), 8,050,000 and 8,050,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.  Subsequent to quarter end, we announced the redemption of the Series C preferred stock, which will occur on May 17, 2021.
(4)	Series G Cumulative Redeemable Preferred Stock, 5.875%, $0 (redeemed October 15, 2020, reclassified to accounts payable as of September 30, 2020 for accounting purposes) and $250,000 liquidation preference, respectively ($25.00 per share), 0 and 10,000,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.
(5)	Series I Cumulative Redeemable Preferred Stock, 6.350%, $0 and $250,000 liquidation preference, respectively ($25.00 per share), 0 and 10,000,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.
(6)	Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 and $200,000 liquidation preference, respectively ($25.00 per share), 8,000,000 and 8,000,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.
(7)	Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 and $210,000 liquidation preference, respectively ($25.00 per share), 8,400,000 and 8,400,000  shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.
(8)	Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 and $345,000 liquidation preference, respectively ($25.00 per share), 13,800,000 and 13,800,000  shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.
(9)	Common Stock: 281,372,310 and 208,900,758 shares issued and outstanding as of March 31, 2021 and December 31, 2020, 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-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Net Income / (Loss) Available to Common Stockholders			$372,405			$44,178			($37,368)			$53,676			$202,859
Interest			75,653			77,848			89,499			79,874			85,800
Loss from early extinguishment of debt			18,347			49,576			53,007			—			632
Income tax expense (benefit)			7,547			3,322			16,053			11,490			7,182
Depreciation & amortization			369,733			359,915			365,842			349,165			291,457
EBITDA			$843,685			$534,839			$487,033			$494,205			$587,930
Unconsolidated JV real estate related depreciation & amortization			19,378			21,471			19,213			17,123			19,923
Unconsolidated JV interest expense and tax expense			8,786			12,143			9,002			9,203			9,944
Severance, equity acceleration, and legal expenses			2,427			606			920			3,642			1,272
Transaction and integration expenses			14,120			19,290			14,953			15,618			56,801
(Gain) on sale / deconsolidation			(333,921)			(1,684)			(10,410)			—			(304,801)
Impairment of investments in real estate			—			—			6,482			—			—
Other non-core adjustments, net			38,574			(23,842)			4,945			(3,404)			85,185
Non-controlling interests			8,756			1,818			(1,316)			1,147			4,684
Preferred stock dividends, including undeclared dividends			13,514			13,514			20,712			21,155			21,155
Issuance costs associated with redeemed preferred stock			—			—			16,520			—			—
Adjusted EBITDA			$615,319			$578,156			$568,054			$558,690			$482,093
(1)     For definitions and discussion of EBITDA and Adjusted EBITDA, see the definitions section.
		Three Months Ended
Financial Ratios			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
Total GAAP interest expense			$75,653			$77,848			$89,499			$79,874			$85,800
Capitalized interest			11,434			11,836			12,379			13,133			10,480
Change in accrued interest and other non-cash amounts			44,620			(37,182)			19,718			(38,478)			24,321
Cash Interest Expense (2)			$131,707			$52,502			$121,596			$54,529			$120,601
Scheduled debt principal payments			—			—			—			57			125
Preferred dividends			13,514			13,514			20,712			21,155			21,155
Total Fixed Charges (3)			$100,601			$103,198			$122,590			$114,219			$117,560
Coverage
Interest coverage ratio (4)			6.6x			5.8x			5.2x			5.6x			4.6x
Cash interest coverage ratio (5)			4.5x			9.3x			4.4x			9.1x			3.7x
Fixed charge coverage ratio (6)			5.8x			5.1x			4.4x			4.6x			3.8x
Cash fixed charge coverage ratio (7)			4.1x			7.7x			3.8x			6.8x			3.2x
Leverage
Debt to total enterprise value (8) (9)			24.1%			24.4%			22.8%			23.3%			23.8%
Debt plus preferred stock to total enterprise value (10)			25.9%			26.2%			25.0%			26.0%			26.6%
Pre-tax income to interest expense (11)			6.2x			1.8x			1.0x			2.0x			3.7x
Net Debt to Adjusted EBITDA (12)			5.6x			6.0x			5.5x			5.6x			6.6x

(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, scheduled debt principal payments and preferred 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, scheduled debt principal payments and preferred dividends (including our pro rata share of unconsolidated joint venture cash fixed charges).
(8)	Mortgage debt and other loans 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 of 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.

 

Management Statements on Non-GAAP Measures
Unaudited

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 gains (or losses) from real estate transactions, impairment of investment in real estate, real estate related depreciation and amortization (excluding amortization of deferred financing costs), unconsolidated JV real estate related depreciation & amortization, non-controlling interests in operating partnership and 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) termination fees and other non-core revenues, (ii) transaction and integration expenses, (iii) loss from early extinguishment of debt, (iv) 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, unconsolidated joint venture real estate related depreciation & amortization, unconsolidated joint venture interest expense and tax, severance, equity acceleration, and legal expenses, transaction and integration expenses, gain on sale / deconsolidation, other non-core adjustments, net, non-controlling interests, preferred stock dividends, including undeclared dividends, and issuance costs associated with redeemed preferred stock. Adjusted EBITDA is EBITDA excluding unconsolidated joint venture real estate related depreciation & amortization, unconsolidated joint venture interest expense and tax, severance, equity acceleration, and legal expenses, transaction and integration expenses, gain on sale / deconsolidation, impairment of investments in real estate, other non-core adjustments, net, non-controlling interests, preferred stock dividends, including undeclared dividends, and 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. 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 using total debt at balance sheet carrying value, plus capital lease obligations, plus our share of JV debt, less unrestricted cash and cash equivalents (including JV share of cash) divided by the product of Adjusted EBITDA (inclusive of our share of JV EBITDA) multiplied by four.

Debt-plus-preferred-to-total enterprise value is mortgage debt and other loans plus preferred stock divided by mortgage debt and other loans 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, scheduled debt principal payments and preferred dividends. For the quarter ended March 31, 2021, GAAP interest expense was $76 million, capitalized interest was $11 million and scheduled debt principal payments and preferred dividends was $14 million.

Reconciliation of Net Operating Income (NOI)		Three Months Ended
(in thousands)		31-Mar-21			31-Dec-20			31-Mar-20
Operating income			$192,518			$160,264			$100,049
Fee income			(2,426)			(4,722)			(2,452)
Other income			(59)			(20)			(813)
Depreciation and amortization			369,733			359,915			291,457
General and administrative			97,568			101,582			62,266
Severance, equity acceleration, and legal expenses			2,427			606			1,272
Transaction expenses			14,120			19,290			56,801
Other expenses			(257)			641			114
Net Operating Income			$673,624			$637,556			$508,694
Cash Net Operating Income (Cash NOI)
Net Operating Income			$673,624			$637,556			$508,694
Straight-line rental revenue			(18,607)			(15,451)			(13,392)
Straight-line rental expense			6,583			3,499			1,496
Above- and below-market rent amortization			2,137			3,239			3,294
Cash Net Operating Income			$663,737			$628,843			$500,092

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 expected investment and expansion activity, COVID-19, 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, 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 and net income, 2021 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, 2021 backlog NOI, NAV components, and other forward-looking financial data. Such statements are based on management's beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Some of the risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

• reduced demand for data centers or decreases in information technology spending;
• increased competition or available supply of data center space;
• decreased rental rates, increased operating costs or increased vacancy rates;
• the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services;
• our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers;
• our ability to attract and retain customers;
• breaches of our obligations or restrictions under our contracts with our customers;
• our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties;
• the impact of current global and local economic, credit and market conditions;
• our inability to retain data center space that we lease or sublease from third parties;
• information security and data privacy breaches;
• difficulty managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas;
• our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent acquisitions;
• our failure to successfully integrate and operate acquired or developed properties or businesses;
• difficulties in identifying properties to acquire and completing acquisitions;
• risks related to joint venture investments, including as a result of our lack of control of such investments;
• risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;
• our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital;
• financial market fluctuations and changes in foreign currency exchange rates;
• adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges;
• our inability to manage our growth effectively;
• losses in excess of our insurance coverage;
• our inability to attract and retain talent;
• impact on our operations and on the operations of our customers, suppliers and business partners during a pandemic, such as COVID-19;
• environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;
• our inability to comply with rules and regulations applicable to our company;
• Digital Realty Trust, Inc.'s failure to maintain its status as a REIT for federal income tax purposes;
• Digital Realty Trust, L.P.'s failure to qualify as a partnership for federal income tax purposes;
• restrictions on our ability to engage in certain business activities;
• changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates; and
• the impact of any financial, accounting, legal or regulatory issues or litigation that may affect us.

The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance.  Several additional material risks are discussed in our annual report on Form 10–K for the year ended December 31, 2020 and other filings with the Securities and Exchange Commission.  Those risks continue to be relevant to our performance and financial condition.  Moreover, we operate in a very 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, Turn-Key Flex and Powered Base Building are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. 

 

 

View original content:http://www.prnewswire.com/news-releases/digital-realty-reports-first-quarter-2021-results-301280680.html

SOURCE Digital Realty

FAQ

What were Digital Realty's Q1 2021 financial results?

Digital Realty reported net income of $372 million ($1.32 per share) and revenues of $1.1 billion in Q1 2021.

How much did Digital Realty raise its core FFO outlook for 2021?

Digital Realty raised its 2021 core FFO outlook to $6.50-$6.55 per share.

What is the expected annualized GAAP rental revenue from Q1 2021 bookings?

The total bookings during Q1 2021 are expected to generate $117 million in annualized GAAP rental revenue.

What were the rental rate trends for Digital Realty in Q1 2021?

Rental rates on renewal leases rolled down 2.1% on a cash basis but were up 3.2% on a GAAP basis.

How did Digital Realty's revenue compare to the previous year?

Digital Realty's revenue of $1.1 billion in Q1 2021 is a 32% increase compared to Q1 2020.