DIGITAL REALTY REPORTS FOURTH QUARTER 2021 RESULTS

Rhea-AI Summary

Digital Realty (DLR) reported robust financial results for Q4 2021, with net income of $1.1 billion, translating to $3.71 per diluted share, significantly up from $0.16 in Q4 2020. Funds from Operations (FFO) per share reached $1.54, a slight increase from the previous year. The company signed leases projected to generate $156 million in annualized GAAP revenue. Additionally, 2022 core FFO per share outlook is set at $6.80-$6.90. Notably, the firm completed strategic investments, including a stake acquisition in Teraco, while managing total debt of approximately $13.4 billion.

Positive

• Net income increased to $1.1 billion, or $3.71 per diluted share, from $0.16 in Q4 2020.
• Signed leases expected to generate $156 million in annualized GAAP rental revenue.
• 2022 core FFO per share outlook of $6.80-$6.90 indicates strong earnings expectations.
• Completed major investments, including a $960 million deal with Digital Core REIT and a strategic acquisition of Teraco.

Negative

• Revenues decreased by 2% from the previous quarter and increased by only 5% year-over-year.
• Adjusted EBITDA dropped by 4% compared to Q3 2021.
• Rental rates on renewal leases rolled down 3.9% on a cash basis.

AUSTIN, Texas, Feb. 17, 2022 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today financial results for the fourth quarter of 2021.  All per-share results are presented on a fully-diluted share and unit basis. 

Highlights

• Reported net income available to common stockholders of $3.71 per share in 4Q21, compared to $0.16 in 4Q20
• Reported FFO per share of $1.54 in 4Q21, compared to $1.45 in 4Q20
• Reported core FFO per share of $1.67 in 4Q21, compared to $1.61 in 4Q20
• Signed total bookings during 4Q21 expected to generate $156 million of annualized GAAP rental revenue, including an $11 million contribution from interconnection
• Introduced 2022 core FFO per share outlook of $6.80-$6.90

Financial Results

Digital Realty reported revenues for the fourth quarter of 2021 of $1.1 billion, a 2% decrease from the previous quarter and a 5% increase from the same quarter last year. 

The company delivered fourth quarter of 2021 net income of $1.1 billion, and net income available to common stockholders of $1.1 billion, or $3.71 per diluted share, compared to $0.44 per diluted share in the previous quarter and $0.16 per diluted share in the same quarter last year. 

Digital Realty generated fourth quarter of 2021 Adjusted EBITDA of $584 million, a 4% decrease from the previous quarter and a 1% increase over the same quarter last year. 

The company reported fourth quarter of 2021 funds from operations of $449 million, or $1.54 per share, compared to $1.54 per share in the previous quarter and $1.45 per share in the same quarter last year. 

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered fourth quarter of 2021 core FFO per share of $1.67, a 1% increase from $1.65 per share in the previous quarter and a 4% increase from $1.61 per share in the same quarter last year. 

Leasing Activity

In the fourth quarter, Digital Realty signed total bookings expected to generate $156 million of annualized GAAP rental revenue, including an $11 million contribution from interconnection. 

"Digital Realty delivered record bookings in the fourth quarter and for the full year, with over $500 million of new business globally in 2021, demonstrating the strength of our global value proposition," said Digital Realty Chief Executive Officer A. William Stein.  "Demand for data center solutions remains robust, and we are investing organically as well as strategically to expand our global platform to provide customers the capacity and communities they require to execute their digital transformation strategies around the world." 

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

In addition to new leases signed, Digital Realty also signed renewal leases representing $151 million of annualized GAAP rental revenue during the quarter.  Rental rates on renewal leases signed during the fourth quarter of 2021 rolled down 3.9% on a cash basis and down 2.6% on a GAAP basis. 

New leases signed during the fourth 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			$16,113		69,789			$231		5.9			$228
> 1 MW			23,326		202,251			115		25.2			77
Other (1)			7,001		273,896			26		—			—
Total			$46,441		545,936			$85		31.1			$106
EMEA (2)
0-1 MW			$18,471		77,302			$239		7.0			$221
> 1 MW			73,350		512,010			143		54.6			112
Other (1)			266		—			—		—			—
Total			$92,087		589,312			$156		61.5			$124
Asia Pacific (2)
0-1 MW			$7,183		15,923			$451		1.5			$411
> 1 MW			—		—			—		—			—
Other (1)			182		3,195			57		—			—
Total			$7,366		19,118			$385		1.5			$411
All Regions (2)
0-1 MW			$41,767		163,014			$256		14.3			$243
> 1 MW			96,676		714,261			135		79.8			101
Other (1)			7,449		277,091			27		—			—
Total			$145,893		1,154,366			$126		94.1			$123
Interconnection			$10,566		N/A			N/A		N/A			N/A
Grand Total			$156,459		1,154,366			$126		94.1			$123

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

Investment Activity

During the fourth quarter, Digital Realty announced the successful listing of Digital Core REIT as a standalone publicly traded vehicle listed on the Singapore Stock Exchange.  Digital Realty contributed a 90% interest in a fully-leased portfolio of 10 assets in the U.S. and Canada that was valued at $1.4 billion at a 4.25% cap rate.  The transaction generated net proceeds of approximately $960 million, and Digital Realty recognized a gain of approximately $1 billion in the fourth quarter of 2021.  Digital Realty will provide operational support for Digital Core REIT and will earn fees for asset and property management as well as acquisitions, dispositions, and development.  Following exercise of the overallotment option, Digital Realty owns approximately a 35% equity interest in Digital Core REIT. 

During the fourth quarter, Digital Realty made a strategic investment in AtlasEdge Data Centres, a European edge data center provider; acquired 16 acres of land in Northern Virginia for approximately $23 million; and sold a mixed-use retail and data center property in San Jose, California for approximately $60 million. 

During the fourth quarter, Medallion, a leading Nigerian colocation and interconnection provider jointly owned by Digital Realty and Pembani Remgro, acquired two land parcels in Lagos, Nigeria.  Digital Realty's share of the total consideration was approximately $22 million. 

Subsequent to quarter-end, Digital Realty announced it has entered into a definitive agreement to acquire roughly a 55% stake in Teraco, Africa's leading carrier-neutral colocation provider, from a consortium of investors including Berkshire Partners and Permira, in a transaction valuing Teraco at approximately $3.5 billion and representing a cap rate of approximately 3.5% on projected 2022 cash net operating income of approximately $121 million.  The transaction is expected to close in the first half of 2022 and is subject to customary closing conditions. 

Balance Sheet

Digital Realty had approximately $13.4 billion of total debt outstanding as of December 31, 2021, comprised of $13.3 billion of unsecured debt and approximately $0.1 billion of secured debt.  At the end of the fourth quarter of 2021, net debt-to-Adjusted EBITDA was 6.1x, debt-plus-preferred-to-total enterprise value was 21.7% and fixed charge coverage was 5.4x.  Pro forma for settlement of the $1 billion forward equity offering, net debt-to-adjusted EBITDA was 5.7x and fixed charge coverage was also 5.7x. 

Digital Realty completed the following financing transactions during the fourth quarter. 

• In mid-November, Digital Realty amended, extended, and upsized its existing global revolving credit facility from $2.35 billion to $3.0 billion. Digital Realty also amended and extended its existing ¥33.3 billion (approximately $290 million) Japanese yen-denominated revolving credit facility. Both facilities mature in January 2027, assuming the exercise of two six-month extension options. The revolving credit facilities now feature a sustainability-linked pricing component, with pricing subject to adjustment based on annual performance targets, further demonstrating Digital Realty's continued leadership and commitment to sustainable business practices.
• Subsequent to quarter-end, Digital Realty closed an offering of €750 million, or approximately $850 million, of 1.375% Euro bonds due 2032.
• Likewise subsequent to quarter-end, Digital Realty redeemed all $450 million of its outstanding 4.75% notes due 2025.

2022 Outlook

Digital Realty introduced its 2022 core FFO per share outlook of $6.80-$6.90.  The assumptions underlying the outlook are summarized in the following table. 

		As of
Top-Line and Cost Structure		February 17, 2022
Total revenue		$4.700 - $4.800 billion
Net non-cash rent adjustments (1)		($35) - ($40) million
Adjusted EBITDA		$2.475 - $2.525 billion
G&A		$410 - $420 million
Internal Growth
Rental rates on renewal leases
Cash basis		Flat
GAAP basis		Slightly positive
Year-end portfolio occupancy		83.0% - 84.0%
"Same-capital" cash NOI growth (2)		(2.5%) - (3.5%)
Foreign Exchange Rates
U.S. Dollar / Pound Sterling		$1.30 - $1.38
U.S. Dollar / Euro		$1.10 - $1.15
External Growth
Dispositions
Dollar volume		$0.5 - $1.0 billion
Cap rate		0.0% - 10.0%
Development
CapEx (3)		$2.3 - $2.5 billion
Average stabilized yields		9.0% - 15.0%
Enhancements and other non-recurring CapEx (4)		$5 - $10 million
Recurring CapEx + capitalized leasing costs (5)		$210 - $220 million
Balance Sheet
Long-term debt issuance
Dollar amount		$1.8 - $2.0 billion
Pricing		1.5% - 2.0%
Timing		Early & Late 2022
Net income per diluted share		$1.05 - $1.10
Real estate depreciation and (gain) / loss on sale		$5.35 - $5.35
Funds From Operations / share (NAREIT-Defined)		$6.40 - $6.45
Non-core expenses and revenue streams		$0.40 - $0.45
Core Funds From Operations / share		$6.80 - $6.90
Foreign currency translation adjustments		$0.10 - $0.10
Constant-Currency Core Funds From Operations / share		$6.90 - $7.00

(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, 2020 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 2021-2022, 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. EST / 2:30 p.m. PST on February 17, 2022, a presentation will be posted to the Investors section of the company's website at https://investor.digitalrealty.com/.  The presentation is designed to accompany the discussion of the company's fourth quarter 2021 financial results and operating performance.  The conference call will feature Chief Executive Officer A. William Stein and President & 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# 6195647 at least five minutes prior to start time.  A live webcast of the call will be available via the Investors section of Digital Realty's website at https://investor.digitalrealty.com/. 

Telephone and webcast replays will be available after the call until March 17, 2022.  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# 3330128.  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 over 280 facilities in nearly 50 metros across 25 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
President & Chief Financial Officer
Digital Realty
(415) 738-6500

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															Twelve Months Ended
			31-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20				31-Dec-21			31-Dec-20
Rental revenues			$763,117			$773,195			$768,826			$754,544			$754,422				$3,059,682			$2,758,678
Tenant reimbursements - Utilities			195,340			189,060			169,743			184,973			154,937				739,116			565,144
Tenant reimbursements - Other			58,528			57,666			60,261			59,328			62,084				235,783			235,311
Interconnection & other			89,850			90,983			90,565			89,061			86,424				360,459			327,412
Fee income			4,133			3,255			3,628			2,426			4,722				13,442			15,214
Other			200			18,977			165			59			20				19,401			1,850
Total Operating Revenues			$1,111,168			$1,133,136			$1,093,188			$1,090,391			$1,062,609				$4,427,883			$3,903,609
Utilities			$213,933			$209,585			$185,010			$176,046			$169,282				$784,574			$636,905
Rental property operating			205,250			196,743			198,207			185,733			205,177				785,933			694,588
Property taxes			42,673			55,915			42,795			49,005			42,442				190,388			169,368
Insurance			3,507			4,718			5,703			3,498			3,410				17,426			13,253
Depreciation & amortization			378,883			369,035			368,981			369,733			359,915				1,486,632			1,366,379
General & administration			103,705			97,082			94,956			97,568			101,582				393,311			344,928
Severance, equity acceleration, and legal expenses			1,003			1,377			2,536			2,427			606				7,343			6,440
Transaction and integration expenses			12,427			13,804			7,075			14,120			19,290				47,426			106,662
Impairment of investments in real estate			18,291			—			—			—			—				18,291			6,482
Other expenses			(1)			510			2,298			(257)			641				2,550			1,074
Total Operating Expenses			$979,671			$948,769			$907,561			$897,873			$902,345				$3,733,874			$3,346,079
Operating Income			$131,497			$184,367			$185,627			$192,518			$160,264				$694,009			$557,530
Equity in (loss) earnings of unconsolidated joint ventures			(7,714)			40,884			52,143			(23,031)			31,055				62,282			(57,629)
Gain / (loss) on sale of investments			1,047,011			(635)			499			333,921			1,684				1,380,796			316,895
Interest and other (expense) income, net			(4,349)			(2,947)			10,124			(7,186)			(2,747)				(4,358)			20,222
Interest (expense)			(71,762)			(71,417)			(75,014)			(75,653)			(77,848)				(293,846)			(333,021)
Income tax (expense)			(3,961)			(13,709)			(47,582)			(7,547)			(3,322)				(72,799)			(38,047)
Loss from early extinguishment of debt			(325)			—			—			(18,347)			(49,576)				(18,672)			(103,215)
Net Income / (Loss)			$1,090,397			$136,543			$125,797			$394,675			$59,510				$1,747,412			$362,735
Net (income) loss attributable to noncontrolling interests			(22,587)			(2,266)			(4,544)			(8,756)			(1,818)				(38,153)			(6,333)
Net Income / (Loss) Attributable to Digital Realty Trust, Inc.			$1,067,810			$134,277			$121,253			$385,919			$57,692				$1,709,259			$356,402
Preferred stock dividends, including undeclared dividends			(10,181)			(10,181)			(11,885)			(13,514)			(13,514)				(45,761)			(76,536)
Gain on / (Issuance costs associated with) redeemed preferred stock			—			—			18,000			—			—				18,000			(16,520)
Net Income / (Loss) Available to Common Stockholders			$1,057,629			$124,096			$127,368			$372,405			$44,178				$1,681,498			$263,346
Weighted-average shares outstanding - basic			283,869,662			283,105,966			281,791,855			281,094,798			280,117,213				282,474,927			260,098,978
Weighted-average shares outstanding - diluted			284,868,184			283,817,950			282,433,857			281,928,182			281,122,368				283,221,968			262,522,508
Weighted-average fully diluted shares and units			290,893,110			290,228,785			289,484,805			289,210,666			288,903,143				289,912,489			270,496,513
Net income / (loss) per share - basic			$3.73			$0.44			$0.45			$1.32			$0.16				$5.95			$1.01
Net income / (loss) per share - diluted			$3.71			$0.44			$0.45			$1.32			$0.16				$5.94			$1.00

 

 

Funds From Operations and Core Funds From Operations Unaudited and in Thousands, Except Per Share Data
		Three Months Ended																Twelve Months Ended
Reconciliation of Net Income to Funds From Operations (FFO)			31-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20				31-Dec-21			31-Dec-20
Net Income / (Loss) Available to Common Stockholders			$1,057,629			$124,096			$127,368			$372,405			$44,178				$1,681,498			$263,346
Adjustments:
Non-controlling interest in operating partnership			23,100			3,000			3,200			9,800			1,300				39,100			9,500
Real estate related depreciation & amortization (1)			372,447			362,728			363,640			364,697			354,366				1,463,512			1,341,836
Unconsolidated JV real estate related depreciation & amortization			24,146			21,293			20,983			19,378			21,471				85,800			77,730
(Gain) on real estate transactions (2)			(1,047,011)			(63,799)			(499)			(333,921)			(1,684)				(1,445,230)			(316,895)
Impairment of investments in real estate			18,291			-			-			-			-				18,291			6,482
Funds From Operations - diluted			$448,602			$447,318			$514,692			$432,359			$419,631				$1,842,971			$1,381,998
Weighted-average shares and units outstanding - basic			289,895			289,542			288,843			288,377			287,898				289,165			268,073
Weighted-average shares and units outstanding - diluted (3)			290,893			290,228			289,485			289,211			288,903				289,912			270,497
Funds From Operations per share - basic			$1.55			$1.54			$1.78			$1.50			$1.46				$6.37			$5.16
Funds From Operations per share - diluted (3)			$1.54			$1.54			$1.78			$1.50			$1.45				$6.36			$5.11
		Three Months Ended																Twelve Months Ended
Reconciliation of FFO to Core FFO			31-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20				31-Dec-21			31-Dec-20
Funds From Operations - diluted			$448,602			$447,318			$514,692			$432,359			$419,631				$1,842,971			$1,381,998
Other non-core revenue adjustments (4)			9,859			(18,066)			(11,122)			(59)			(25)				(19,388)			(30,071)
Transaction and integration expenses			12,427			13,804			7,075			14,120			19,290				47,426			106,662
Loss from early extinguishment of debt			325			-			-			18,347			49,576				18,672			103,215
(Gain on) / Issuance costs associated with redeemed preferred stock			-			-			(18,000)			-			-				(18,000)			16,520
Severance, equity acceleration, and legal expenses (5)			1,003			1,377			2,536			2,427			606				7,343			6,440
(Gain) / Loss on FX revaluation			14,308			33,774			(51,649)			34,072			(27,190)				30,505			81,936
Other non-core expense adjustments			(1)			1,004			2,298			(19,240)			3,353				(15,939)			15,581
Core Funds From Operations - diluted			$486,523			$479,211			$445,830			$482,026			$465,241				$1,893,590			$1,682,281
Weighted-average shares and units outstanding - diluted (3)			290,893			290,228			289,485			289,211			288,903				289,912			270,497
Core Funds From Operations per share - diluted (3)			$1.67			$1.65			$1.54			$1.67			$1.61				$6.53			$6.22
(1) Real Estate Related Depreciation & Amortization		Three Months Ended																Twelve Months Ended
			31-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20				31-Dec-21			31-Dec-20
Depreciation & amortization per income statement			$378,883			$369,035			$368,981			$369,733			$359,915				1,486,632			1,366,379
Non-real estate depreciation			(6,436)			(6,307)			(5,341)			(5,036)			(5,549)				(23,120)			(24,543)
Real Estate Related Depreciation & Amortization			$372,447			$362,728			$363,640			$364,697			$354,366				$1,463,512			$1,341,836

(2)	For the third quarter 2021, includes a $64 million gain that represents Digital Realty's share from a sale of a portfolio of assets within an unconsolidated joint venture. The gain is included in equity in earnings of unconsolidated joint ventures in our consolidated income statement.
(3)	For all periods presented, we have excluded the effect of dilutive series C, 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 J, series K and series L preferred stock, as applicable, which we consider highly improbable, and upon physical settlement of our September 2021 forward sales agreements. 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.
(4)	Includes lease termination fees and certain other adjustments that are not core to our business. For the third quarter 2021, includes a $19 million promote received related to a sale of portfolio of assets within an unconsolidated joint venture.  The promote is included in Other revenue in our consolidated income statement.
(5)	Relates to severance and other charges related to the departure of company executives and integration-related severance.

 

 

Adjusted Funds From Operations (AFFO) Unaudited and in Thousands, Except Per Share Data
		Three Months Ended																Twelve Months Ended
Reconciliation of Core FFO to AFFO			31-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20				31-Dec-21			31-Dec-20
Core FFO available to common stockholders and unitholders			$486,523			$479,211			$445,830			$482,026			$465,241				$1,893,590			$1,682,281
Adjustments:
Non-real estate depreciation			6,436			6,307			5,341			5,036			5,549				23,120			24,543
Amortization of deferred financing costs			3,515			3,625			3,718			3,538			3,709				14,396			15,285
Amortization of debt discount/premium			1,107			1,138			1,166			1,134			1,033				4,545			3,974
Non-cash stock-based compensation expense			15,097			15,082			15,579			16,097			16,315				61,855			59,497
Straight-line rental revenue			(16,497)			(11,969)			(16,139)			(18,492)			(14,402)				(63,097)			(50,751)
Straight-line rental expense			5,754			7,862			7,175			6,709			3,629				27,500			16,396
Above- and below-market rent amortization			910			1,165			1,858			2,137			3,239				6,070			12,687
Deferred tax (expense) benefit			(13,731)			2,112			35,522			(4,509)			(4,226)				19,394			1,253
Leasing compensation & internal lease commissions			9,564			11,142			11,078			11,042			10,506				42,826			21,090
Recurring capital expenditures (1)			(87,550)			(50,800)			(39,231)			(39,522)			(83,571)				(217,103)			(210,727)
AFFO available to common stockholders and unitholders (2)			$411,128			$464,875			$471,897			$465,196			$407,022				$1,813,096			$1,575,528
Weighted-average shares and units outstanding - basic			289,895			289,542			288,843			288,377			287,898				289,165			268,073
Weighted-average shares and units outstanding - diluted (3)			290,893			290,228			289,485			289,211			288,903				289,912			270,497
AFFO per share - diluted (3)			$1.41			$1.60			$1.63			$1.61			$1.41				$6.25			$5.82
Dividends per share and common unit			$1.16			$1.16			$1.16			$1.16			$1.12				$4.64			$4.48
Diluted AFFO Payout Ratio			82.1%			72.4%			71.2%			72.1%			79.5%				74.2%			76.9%
		Three Months Ended																Twelve Months Ended
Share Count Detail			31-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20				31-Dec-21			31-Dec-20
Weighted Average Common Stock and Units Outstanding			289,895			289,542			288,843			288,377			287,898				289,165			268,073
Add: Effect of dilutive securities			948			686			642			834			1,005				703			2,424
Weighted Avg. Common Stock and Units Outstanding - diluted			290,843			290,228			289,485			289,211			288,903				289,868			270,497

(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 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 J, series K and series L preferred stock, as applicable, which we consider highly improbable, and upon physical settlement of our September 2021 forward sales agreements.  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-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20
Assets
Investments in real estate:
Real estate								$23,625,451			$23,384,809			$23,287,853			$22,762,279			$23,142,988
Construction in progress								3,213,387			3,238,388			3,270,570			2,904,642			2,768,326
Land held for future development								133,683			118,091			143,575			192,896			226,862
Investments in real estate								$26,972,522			$26,741,289			$26,701,998			$25,859,817			$26,138,175
Accumulated depreciation and amortization								(6,210,281)			(6,159,294)			(5,919,650)			(5,649,019)			(5,555,221)
Net Investments in Properties								$20,762,241			$20,581,995			$20,782,348			$20,210,798			$20,582,954
Investment in unconsolidated joint ventures								1,807,689			1,292,325			1,119,026			970,703			1,148,158
Net Investments in Real Estate								$22,569,930			$21,874,320			$21,901,374			$21,181,501			$21,731,112
Cash and cash equivalents								$142,698			$116,002			$120,482			$221,140			$108,501
Accounts and other receivables (1)								671,721			610,416			630,086			657,096			603,111
Deferred rent								547,385			552,850			539,379			524,200			528,180
Customer relationship value, deferred leasing costs & other intangibles, net								2,735,486			2,871,622			2,956,027			3,057,245			3,122,904
Goodwill								7,937,440			8,062,914			8,185,931			8,125,706			8,330,996
Operating lease right-of-use assets (2)								1,405,441			1,442,661			1,452,633			1,495,869			1,386,959
Other assets								359,459			316,863			365,308			279,734			264,528
Total Assets								$36,369,560			$35,847,648			$36,151,220			$35,542,491			$36,076,291
Liabilities and Equity
Global unsecured revolving credit facilities								$398,172			$832,322			$1,026,368			$451,007			$531,905
Unsecured term loans								—			—			—			—			536,580
Unsecured senior notes, net of discount								12,903,370			13,012,790			12,659,043			12,566,198			11,997,010
Secured debt and other, net of premiums								146,668			242,427			242,410			239,634			239,222
Operating lease liabilities (2)								1,512,187			1,543,231			1,545,689			1,581,759			1,468,712
Accounts payable and other accrued liabilities								1,543,623			1,341,866			1,367,240			1,305,921			1,420,162
Deferred tax liabilities, net								666,451			725,955			742,127			650,543			698,308
Accrued dividends and distributions								338,729			—			—			—			324,386
Security deposits and prepaid rent								336,578			341,778			362,606			362,008			371,659
Total Liabilities								$17,845,778			$18,040,369			$17,945,483			$17,157,070			$17,587,944
Redeemable non-controlling interests - operating partnership								46,995			40,920			41,490			40,097			42,011
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
Series J Cumulative Redeemable Preferred Stock (4)								$193,540			$193,540			$193,540			193,540			193,540
Series K Cumulative Redeemable Preferred Stock (5)								203,264			203,264			203,264			203,264			203,264
Series L Cumulative Redeemable Preferred Stock (6)								334,886			334,886			334,886			334,886			334,886
Common Stock: $0.01 par value per share, 392,000,000 shares authorized (7)								2,824			2,818			2,806			2,795			2,788
Additional paid-in capital								21,075,863			21,010,202			20,844,834			20,700,282			20,626,897
Dividends in excess of earnings								(3,631,929)			(4,359,033)			(4,153,407)			(3,952,497)			(3,997,938)
Accumulated other comprehensive income (loss), net								(173,880)			(111,560)			31,733			(77,783)			135,010
Total Stockholders' Equity								$18,004,568			$17,274,117			$17,457,656			$17,623,737			$17,717,697
Noncontrolling Interests
Noncontrolling interest in operating partnership								$425,337			$459,918			$513,897			$571,292			$608,980
Noncontrolling interest in consolidated joint ventures								46,882			32,324			192,694			150,295			119,659
Total Noncontrolling Interests								$472,219			$492,242			$706,591			$721,587			$728,639
Total Equity								$18,476,787			$17,766,359			$18,164,247			$18,345,324			$18,446,336
Total Liabilities and Equity								$36,369,560			$35,847,648			$36,151,220			$35,542,491			$36,076,291

(1)	Net of allowance for doubtful accounts of $28,574 and $18,825 as of December 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%, $0 and $201,250 liquidation preference, respectively ($25.00 per share), 0 and 8,050,000 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively.
(4)	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 December 31, 2021 and December 31, 2020, respectively.
(5)	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 December 31, 2021 and December 31, 2020, respectively.
(6)	Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 and $345,000 liquidation preference, respectively ($25.00 per share), 13,800,000 800,000  shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively.
(7)	Common Stock: 284,415,013 and 208,900,758 shares issued and outstanding as of December 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-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20
Net Income / (Loss) Available to Common Stockholders			$1,057,629			$124,096			$127,368			$372,405			$44,178
Interest			71,762			71,417			75,014			75,653			77,848
Loss from early extinguishment of debt			325			—			—			18,347			49,576
Income tax expense (benefit)			3,961			13,709			47,582			7,547			3,322
Depreciation & amortization			378,883			369,035			368,981			369,733			359,915
EBITDA			$1,512,560			$578,257			$618,945			$843,685			$534,839
Unconsolidated JV real estate related depreciation & amortization			24,146			21,293			20,983			19,378			21,471
Unconsolidated JV interest expense and tax expense			15,222			11,008			15,523			8,786			12,143
Severance, equity acceleration, and legal expenses			1,003			1,377			2,536			2,427			606
Transaction and integration expenses			12,427			13,804			7,075			14,120			19,290
(Gain) / loss on sale of investments			(1,047,011)			635			(499)			(333,921)			(1,684)
Impairment of investments in real estate			18,291			—			—			—			—
Other non-core adjustments, net			14,307			(28,745)			(60,308)			38,574			(23,842)
Non-controlling interests			22,587			2,266			4,544			8,756			1,818
Preferred stock dividends, including undeclared dividends			10,181			10,181			11,885			13,514			13,514
(Gain on) / Issuance costs associated with redeemed preferred stock			—			—			(18,000)			—			—
Adjusted EBITDA			$583,712			$610,076			$602,684			$615,319			$578,156
(1)  For definitions and discussion of EBITDA and Adjusted EBITDA, see the definitions section.
		Three Months Ended
Financial Ratios			31-Dec-21			30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20
Total GAAP interest expense			$71,762			$71,417			$75,014			$75,653			$77,848
Capitalized interest			15,328			15,142			11,558			11,434			11,836
Change in accrued interest and other non-cash amounts			(37,974)			17,820			(43,604)			44,620			(37,182)
Cash Interest Expense (2)			$49,116			$104,379			$42,968			$131,707			$52,502
Preferred dividends			10,181			10,181			11,885			13,514			13,514
Total Fixed Charges (3)			$97,271			$96,740			$98,457			$100,601			$103,198
Coverage
Interest coverage ratio (4)			6.0x			6.5x			6.1x			6.6x			5.8x
Cash interest coverage ratio (5)			9.8x			5.4x			10.9x			4.5x			9.3x
Fixed charge coverage ratio (6)			5.4x			5.8x			5.4x			5.8x			5.1x
Cash fixed charge coverage ratio (7)			8.3x			5.0x			9.0x			4.1x			7.7x
Leverage
Debt to total enterprise value (8) (9)			20.5%			24.8%			23.9%			24.1%			24.4%
Debt plus preferred stock to total enterprise value (10)			21.7%			26.1%			25.2%			25.9%			26.2%
Pre-tax income to interest expense (11)			16.2x			2.9x			2.7x			6.2x			1.8x
Net Debt to Adjusted EBITDA (12)			6.1x			6.0x			6.0x			5.6x			6.0x

(2)	Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash based interest expense.
(3)	Fixed charges consist of GAAP interest expense, capitalized interest,  and preferred dividends.
(4)	Adjusted EBITDA divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated joint venture interest expense).
(5)	Adjusted EBITDA divided by cash interest expense (including our pro rata share of unconsolidated joint venture interest expense).
(6)	Adjusted EBITDA divided by fixed charges (including our pro rata share of unconsolidated joint venture fixed charges).
(7)	Adjusted EBITDA divided by the sum of cash interest expense, and preferred 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) other non-core revenue adjustments, (ii) transaction and integration expenses, (iii) loss from early extinguishment of debt, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration, and legal expenses, (vi) gain/loss on FX revaluation, and (vii) other non-core expense adjustments. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of core FFO as a measure of our performance is limited. Other REITs may calculate core FFO differently than we do and accordingly, our core FFO may not be comparable to other REITs' core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Adjusted Funds from Operations (AFFO):

We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from core FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount/premium, (iv) non-cash stock-based compensation expense, (v) straight-line rental revenue, (vi) straight-line rental expense, (vii) above- and below-market rent amortization, (viii) deferred tax (expense) benefit, (ix) leasing compensation and internal lease commissions, and (x) recurring capital expenditures. Other REITs may calculate AFFO differently than we do and, accordingly, our AFFO may not be comparable to other REITs' AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

EBITDA and Adjusted EBITDA:

We believe that earnings before interest, loss from early extinguishment of debt, income taxes, and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, 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.  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 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. 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 unconsolidated JV debt, less unrestricted cash and cash equivalents (including our share of unconsolidated JV cash) divided by the product of Adjusted EBITDA (inclusive of our share of unconsolidated 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 December 31, 2021, GAAP interest expense was $72 million, capitalized interest was $15 million and scheduled debt principal payments and preferred dividends was $10 million.

Reconciliation of Net Operating Income (NOI)		Three Months Ended										Twelve Months Ended
(in thousands)		31-Dec-21			30-Sep-21			31-Dec-20				31-Dec-21			31-Dec-20
Operating income			$131,497			$184,367			$160,264				$694,009			$557,530
Fee income			(4,133)			(3,255)			(4,722)				(13,442)			(15,214)
Other income			(200)			(18,977)			(20)				(19,401)			(1,850)
Depreciation and amortization			378,883			369,035			359,915				1,486,632			1,366,379
General and administrative			103,705			97,082			101,582				393,311			344,928
Severance, equity acceleration, and legal expenses			1,003			1,377			606				7,343			6,440
Transaction expenses			12,427			13,804			19,290				47,426			106,662
Other expenses			(1)			510			641				2,550			1,074
Net Operating Income			$641,472			$643,943			$637,556				$2,616,719			$2,372,431
Cash Net Operating Income (Cash NOI)
Net Operating Income			$641,472			$643,943			$637,556				$2,616,719			$2,372,431
Straight-line rental revenue			(16,346)			(12,029)			(15,451)				(64,107)			(48,769)
Straight-line rental expense			5,453			7,779			3,758				27,050			16,223
Above- and below-market rent amortization			910			1,165			3,239				6,069			12,686
Cash Net Operating Income			$631,489			$640,858			$629,102				$2,585,731			$2,352,571

This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, our expected physical settlement of the forward sale agreements and use of proceeds from any such settlement,  our liquidity, our joint ventures, supply and demand for data center and colocation space, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company's FFO, core FFO and net income, 2022 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, 2022 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;
• global supply chain or procurement disruptions, or increased supply chain costs;
• 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 of the COVID-19 pandemic on our operations and on the operations of our customers, suppliers and business partners;
• 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 U.S. 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, Interxion, Turn-Key Flex, Powered Base Building, and PlatformDIGITAL, Data Gravity Index and Data Gravity Index DGx are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All other names, trademarks and service marks are the property of their respective owners.  

View original content:https://www.prnewswire.com/news-releases/digital-realty-reports-fourth-quarter-2021-results-301485287.html

SOURCE Digital Realty

FAQ

What were Digital Realty's Q4 2021 earnings per share?

Digital Realty reported earnings of $3.71 per diluted share for Q4 2021.

How much annualized GAAP rental revenue did Digital Realty sign in Q4 2021?

Digital Realty signed leases expected to generate $156 million in annualized GAAP rental revenue in Q4 2021.

What is the 2022 core FFO per share outlook for Digital Realty?

Digital Realty's 2022 core FFO per share outlook is set at $6.80-$6.90.

What was Digital Realty's total debt as of December 31, 2021?

Digital Realty had approximately $13.4 billion in total debt outstanding as of December 31, 2021.

Did Digital Realty experience any significant changes in revenue in Q4 2021?

Yes, Digital Realty experienced a 2% decrease in revenue compared to the previous quarter.