Digital Realty Reports Fourth Quarter 2022 Results

Rhea-AI Summary

Digital Realty (NYSE: DLR) reported mixed financial results for Q4 2022, with a net loss of $0.02 per share, a drastic drop from $3.71 in Q4 2021. Revenue reached $1.2 billion, reflecting an 11% year-over-year increase. Funds from Operations (FFO) per share fell to $1.45, compared to $1.54 in the same quarter last year. The company signed bookings expected to generate $117 million in GAAP rental revenue and introduced a 2023 Core FFO per share outlook of $6.65 - $6.75. Digital Realty also engaged in strategic transactions, including a $596 million facility sale in Frankfurt and acquiring sites for future development.

Positive

• Q4 2022 revenue increased by 11% year-over-year to $1.2 billion.
• Signed bookings expected to generate $117 million annualized GAAP rental revenue.
• Introduced 2023 Core FFO per share outlook of $6.65 - $6.75.

Negative

• Net loss of $0.02 per share, compared to a gain of $3.71 in Q4 2021.
• FFO per share decreased to $1.45 from $1.54 in Q4 2021.
• Core FFO per share declined to $1.65 from $1.67 in Q4 2021.

AUSTIN, Texas, Feb. 16, 2023 /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 2022.  All per share results are presented on a fully diluted basis. 

Highlights

• Reported net (loss) / income available to common stockholders of ($0.02) per share in 4Q22, compared to $3.71 in 4Q21
• Reported FFO per share of $1.45 in 4Q22, compared to $1.54 in 4Q21
• Reported Core FFO per share of $1.65 in 4Q22, compared to $1.67 in 4Q21
• Reported Constant-Currency Core FFO per share of $1.71 in 4Q22 and $6.91 per share for the twelve months ended December 31, 2022
• Signed total bookings during 4Q22 that are expected to generate $117 million of annualized GAAP rental revenue, including a $14 million contribution from interconnection
• Introduced 2023 Core FFO per share outlook of $6.65 - $6.75

Financial Results

Digital Realty reported revenues for the fourth quarter of 2022 of $1.2 billion, a 3% increase from the previous quarter and a 11% increase from the same quarter last year. 

The company delivered fourth quarter of 2022 net income of $1 million, and net (loss) / income available to common stockholders of ($6) million, or ($0.02) per diluted share, compared to $0.75 per diluted share in the previous quarter and $3.71 per diluted share in the same quarter last year. 

Digital Realty generated fourth quarter of 2022 Adjusted EBITDA of $639 million, a 3% increase from the previous quarter and a 9% increase over the same quarter last year. 

The company reported fourth quarter of 2022 funds from operations (FFO) of $440 million, or $1.45 per share, compared to $1.55 per share in the previous quarter and $1.54 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 2022 Core FFO per share of $1.65, compared to $1.67 per share in the previous quarter, and $1.67 per share in the same quarter last year.  Digital Realty delivered Constant-Currency Core FFO per share of $1.71 for the fourth quarter of 2022 and $6.91 per share for the twelve-month period ended December 31, 2022.

Leasing Activity

In the fourth quarter, Digital Realty signed total bookings that are expected to generate $117 million of annualized GAAP rental revenue, including a $14 million contribution from interconnection.

"Our fourth quarter results demonstrate the strengthening value proposition of PlatformDIGITAL and the growing momentum in our core business," said Digital Realty President and Chief Executive Officer Andy Power.  "The Digital Realty team will continue to focus on delivering innovative and sustainable data center solutions while evolving to efficiently enable our customers to transform their businesses and succeed in the digital world."

The weighted-average lag between new leases signed during the fourth quarter of 2022 and the contractual commencement date was fifteen months. 

In addition to new leases signed, Digital Realty also signed renewal leases representing $195 million of annualized GAAP rental revenue during the quarter.  Rental rates on renewal leases signed during the fourth quarter of 2022 rolled up 0.8% on a cash basis and up 1.1% on a GAAP basis. 

New leases signed during the fourth quarter of 2022 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			$10,437		39			$266		3.5			$251
> 1 MW			23,311		217			107		18.6			104
Other (1)			11		0			52		—			-
Total			$33,759		257			$132		22.1			$127
EMEA (2)
0-1 MW			$20,492		49			$415		6.5			$264
> 1 MW			24,291		224			109		16.4			123
Other (1)			304		12			25		—			-
Total			$45,087		285			$158		22.9			$163
Asia Pacific (2)
0-1 MW			$2,240		5			$409		0.4			$463
> 1 MW			22,455		114			197		14.0			134
Other (1)			93		2			55		—			-
Total			$24,788		121			$204		14.4			$143
All Regions (2)
0-1 MW			$33,169		94			$353		10.4			$267
> 1 MW			70,057		555			126		49.0			119
Other (1)			409		14			29		—			-
Total			$103,634		663			$156		59.4			$145
Interconnection			$13,564		N/A			N/A		N/A			N/A
Grand Total			$117,198		663			$156		59.4			$145

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, 2022.

Investment Activity

During the fourth quarter, Digital Realty closed on the sale of a 25% interest in a data center facility in Frankfurt, Germany to Digital Core REIT (SGX: DCRU) in a transaction that valued the facility at €558 million, or approximately $596 million (at 100% share). The transaction generated net proceeds to Digital Realty of €139.6 million, or approximately $150 million. Digital Core REIT has an option to acquire up to an 89.9% interest in the Frankfurt facility, subject to market conditions.

Also during the fourth quarter, Digital Realty acquired four sites  totaling 65 acres that will support the future development of up to 84 megawatts of IT load for $55 million, or approximately $0.8 million per acre. Separately, Digital Realty entered into a ground lease with an option to purchase a 4.6-acre land parcel adjacent to its Dugny campus in Paris, France for a total expected investment of €34.3 million, or approximately $36.6 million.  

Balance Sheet

Digital Realty had approximately $16.6 billion of total debt outstanding as of December 31, 2022, comprised of $16.1 billion of unsecured debt and approximately $0.5 billion of secured debt and other.  At the end of the fourth quarter of 2022, net debt-to-Adjusted EBITDA was 6.9x, debt-plus-preferred-to-total enterprise value was 36.8% and fixed charge coverage was 4.9x.

During the fourth quarter of 2022, Digital Realty completed the following financing transactions:

• In mid-November, completed physical settlement of the remaining $0.5 billion under our September 2021 forward equity sale agreements.
• In early December, closed an offering of $350 million of additional 5.550% notes due 2028.

Subsequent to quarter end, Digital Realty closed a $740 million two-year US dollar term loan with an initial maturity date of March 31, 2025 and a one-year extension option.

2023 Outlook

Digital Realty introduced its 2023 Core FFO per share outlook of $6.65-$6.75 and provided its 2023 constant-currency Core FFO per share outlook of $6.65 - $6.75.  The assumptions underlying the outlook are summarized in the following table. 

		As of
Top-Line and Cost Structure		February 16, 2023
Total revenue		$5.700 - $5.800 billion
Net non-cash rent adjustments (1)		($55 - $60 million)
Adjusted EBITDA		$2.675 - $2.725 billion
G&A		$425 - $435 million
Internal Growth
Rental rates on renewal leases
Cash basis		Greater than 3.0%
GAAP basis		Greater than 3.0%
Year-end portfolio occupancy		85.0% - 86.0%
"Same-capital" cash NOI growth (2)		3.0% - 4.0%
Foreign Exchange Rates
U.S. Dollar / Pound Sterling		$1.20 - $1.25
U.S. Dollar / Euro		$1.00 - $1.05
External Growth
Dispositions / Joint Venture Capital
Dollar volume		$1.5 - $2.5 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)		$15 - $20 million
Recurring CapEx + capitalized leasing costs (5)		$230 - $240 million
Balance Sheet
Long-term debt issuance
Dollar amount		$1.0 - $1.5 billion
Pricing		4.5% - 5.5%
Timing		First Half 2023
Net income per diluted share		$1.15 - $1.25
Real estate depreciation and (gain) / loss on sale		$5.25 - $5.25
Funds From Operations / share (NAREIT-Defined)		$6.40 - $6.50
Non-core expenses and revenue streams		$0.25 - $0.25
Core Funds From Operations / share		$6.65 - $6.75
Foreign currency translation adjustments		$0.00 - $0.00
Constant-Currency Core Funds From Operations / share		$6.65 - $6.75

(1)	Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments).
(2)	The "same-capital" pool includes properties owned as of December 31, 2021 with less than 5% of total rentable square feet under development.  It excludes properties that were undergoing, or were expected to undergo, development activities in 2022-2023, 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.
Note: The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.  Please see Non-GAAP Financial Measures in this document for further discussion.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures, including FFO, Core FFO 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. 

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items, such as debt issuances, that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Investor Conference Call

Prior to Digital Realty's investor conference call at 5:00 p.m. ET / 2:00 p.m. PT on February 16, 2023, 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 2022 financial results and operating performance.  The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier. 

To participate in the live call, investors are invited to dial +1 (888) 317-6003 (for domestic callers) or +1 (412) 317-6061 (for international callers) and reference the conference ID# 6468514 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 16, 2023.  The telephone replay can be accessed by dialing +1 (877) 344-7529 (for domestic callers) or +1 (412) 317-0088 (for international callers) and providing the conference ID# 6581304.  The webcast replay can be accessed on Digital Realty's website. 

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data "meeting place" and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 28 countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter.

Contact Information

Matt Mercier
Chief Financial Officer
Digital Realty
(737) 281-0101

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

 

Consolidated Quarterly Statements of Operations																				Financial Supplement
Unaudited and Dollars in Thousands, Except Per Share Data																				Fourth Quarter 2022
			Three Months Ended																	Twelve Months Ended
			31-Dec-22				30-Sep-22			30-Jun-22				31-Mar-22			31-Dec-21				31-Dec-22			31-Dec-21
Rental revenues			$834,374				$787,839			$767,313				$751,962			$763,117				$3,141,488			$3,059,682
Tenant reimbursements - Utilities			247,725				251,420			218,198				224,547			195,340				941,891			739,116
Tenant reimbursements - Other			46,045				49,419			52,688				51,511			58,528				199,663			235,783
Interconnection & other			97,286				95,486			93,338				93,530			89,850				379,641			360,459
Fee income			7,508				6,169			5,072				5,757			4,133				24,506			13,442
Other			168				1,749			2,713				15			200				4,645			19,401
Total Operating Revenues			$1,233,108				$1,192,082			$1,139,321				$1,127,323			$1,111,167				$4,691,834			$4,427,883
Utilities			$268,561				$271,844			$223,426				$241,239			$213,933				$1,005,070			$784,574
Rental property operating			222,430				205,886			198,076				194,354			205,250				820,746			785,931
Property taxes			42,032				39,860			47,213				46,526			42,673				175,631			190,388
Insurance			4,578				4,002			3,836				3,698			3,507				16,114			17,425
Depreciation & amortization			430,130				388,704			376,967				382,132			378,883				1,577,933			1,486,632
General & administration			104,451				95,792			101,991				96,435			103,705				398,669			393,311
Severance, equity acceleration, and legal expenses			15,980				1,655			3,786				2,077			1,003				23,498			7,343
Transaction and integration expenses			17,350				25,862			13,586				11,968			12,427				68,766			47,426
Impairment of investments in real estate			3,000				—			—				—			18,291				3,000			18,291
Other expenses			3,615				1,096			70				7,657			(1)				12,438			2,550
Total Operating Expenses			$1,112,127				$1,034,701			$968,950				$986,087			$979,669				$4,101,865			$3,733,874
Operating Income			$120,981				$157,381			$170,371				$141,236			$131,498				$589,969			$694,009
Equity in earnings (loss) of unconsolidated joint ventures			(28,112)				(12,254)			(34,088)				60,958			(7,714)				(13,496)			62,282
Gain / (loss) on sale of investments			(6)				173,990			—				2,770			1,047,011				176,754			1,380,796
Interest and other income (expense), net			(22,894)				15,752			13,008				3,051			(4,349)				8,918			(4,358)
Interest (expense)			(86,882)				(76,502)			(69,023)				(66,725)			(71,762)				(299,132)			(293,846)
Income tax benefit / (expense)			17,676				(19,576)			(16,406)				(13,244)			(3,961)				(31,551)			(72,799)
Loss from early extinguishment of debt			—				—			—				(51,135)			(325)				(51,135)			(18,672)
Net Income			$763				$238,791			$63,862				$76,911			$1,090,397				$380,327			$1,747,412
Net loss / (income) attributable to noncontrolling interests			3,326				(1,716)			(436)				(3,629)			(22,587)				(2,455)			(38,153)
Net (Loss) / Income Attributable to Digital Realty Trust, Inc.			$4,089				$237,075			$63,426				$73,282			$1,067,811				$377,872			$1,709,259
Preferred stock dividends, including undeclared dividends			(10,181)				(10,181)			(10,181)				(10,181)			(10,181)				(40,725)			(45,761)
Gain on / (Issuance costs associated with) redeemed preferred stock			—				—			—				—			—				—			18,000
Net (Loss) / Income Available to Common Stockholders			($6,093)				$226,894			$53,245				$63,101			$1,057,630				$337,147			$1,681,498
Weighted-average shares outstanding - basic			289,364,739				286,693,071			284,694,064				284,525,992			283,869,662				286,333,747			282,474,927
Weighted-average shares outstanding - diluted			301,712,082				296,414,726			285,109,903				285,025,099			284,868,184				297,919,336			283,221,968
Weighted-average fully diluted shares and units			307,546,353				302,257,518			290,944,163				290,662,421			290,893,110				303,708,327			289,912,489
Net (loss) / income per share - basic			($0.02)				$0.79			$0.19				$0.22			$3.73				$1.18			$5.95
Net (loss) / income per share - diluted			($0.02)				$0.75			$0.19				$0.22			$3.71				$1.13			$5.94

 

Funds From Operations and Core Funds From Operations																				Financial Supplement
Unaudited and in Thousands, Except Per Share Data																				Fourth Quarter 2022
		Three Months Ended																		Twelve Months Ended
Reconciliation of Net Income to Funds From Operations (FFO)			31-Dec-22				30-Sep-22			30-Jun-22				31-Mar-22			31-Dec-21				31-Dec-22			31-Dec-21
Net (Loss) / Income Available to Common Stockholders			($6,093)				$226,894			$53,245				$63,101			$1,057,630				$337,147			$1,681,498
Adjustments:
Non-controlling interest in operating partnership			(586)				5,400			1,500				1,600			23,100				7,914			39,100
Real estate related depreciation & amortization (1)			422,951				381,425			369,327				374,162			372,447				1,547,865			1,463,512
Depreciation related to non-controlling interests			(13,856)				(8,254)			-				-			-				(22,110)			-
Unconsolidated JV real estate related depreciation & amortization			33,927				30,831			29,022				29,320			24,146				123,099			85,800
(Gain) / loss on real estate transactions			572				(173,990)			(1,144)				(2,770)			(1,047,010)				(177,332)			(1,445,229)
Impairment of investments in real estate			3,000				-			-				-			18,291				3,000			18,291
Funds From Operations - diluted			$439,915				$462,306			$451,949				$465,412			$448,602				$1,819,583			$1,842,971
Weighted-average shares and units outstanding - basic			295,199				292,536			290,528				290,163			289,895				292,123			289,165
Weighted-average shares and units outstanding - diluted (2)(3)			307,546				302,258			290,944				290,662			290,893				303,708			289,912
Funds From Operations per share - basic			$1.49				$1.58			$1.56				$1.60			$1.55				$6.23			$6.37
Funds From Operations per share - diluted (2)(3)			$1.45				$1.55			$1.55				$1.60			$1.54				$6.03			$6.36
		Three Months Ended																		Twelve Months Ended
Reconciliation of FFO to Core FFO			31-Dec-22				30-Sep-22			30-Jun-22				31-Mar-22			31-Dec-21				31-Dec-22			31-Dec-21
Funds From Operations - diluted			$439,915				$462,306			$451,949				$465,412			$448,602				$1,819,583			$1,842,971
Other non-core revenue adjustments			(3,786)				(1,818)			456				13,916			9,859				8,768			(19,388)
Transaction and integration expenses			17,350				25,862			13,586				11,968			12,427				68,766			47,426
Loss from early extinguishment of debt			-				-			-				51,135			325				51,135			18,672
(Gain on) / Issuance costs associated with redeemed preferred stock			-				-			-				-			-				-			(18,000)
Severance, equity acceleration, and legal expenses (4)			15,980				1,655			3,786				2,077			1,003				23,498			7,343
(Gain) / Loss on FX revaluation			14,564				(1,120)			29,539				(67,676)			14,308				(24,694)			30,505
Other non-core expense adjustments			3,615				1,046			70				7,657			(1)				12,388			(15,939)
Core Funds From Operations - diluted			$487,638				$487,931			$499,386				$484,490			$486,525				$1,959,444			$1,893,590
Weighted-average shares and units outstanding - diluted (2)(3)			295,519				292,830			290,944				290,662			290,893				292,528			289,912
Core Funds From Operations per share - diluted (3)			$1.65				$1.67			$1.72				$1.67			$1.67				$6.70			$6.53
(1)        Real Estate Related Depreciation & Amortization		Three Months Ended																		Twelve Months Ended
			31-Dec-22				30-Sep-22			30-Jun-22				31-Mar-22			31-Dec-21				31-Dec-22			31-Dec-21
Depreciation & amortization per income statement			$430,130				$388,704			$376,967				$382,132			$378,883				1,577,933			1,486,632
Non-real estate depreciation			(7,179)				(7,279)			(7,640)				(7,970)			(6,436)				(30,068)			(23,120)
Real Estate Related Depreciation & Amortization			$422,951				$381,425			$369,327				$374,162			$372,447				$1,547,865			1,463,512

(2)	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. 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)	Certain of Teraco's minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. US GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO.
(4)	Relates to severance and other charges related to the departure of company executives and integration-related severance.

 

Adjusted Funds From Operations (AFFO)																				Financial Supplement
Unaudited and in Thousands, Except Per Share Data																				Fourth Quarter 2022
		Three Months Ended																		Twelve Months Ended
Reconciliation of Core FFO to AFFO			31-Dec-22				30-Sep-22			30-Jun-22				31-Mar-22			31-Dec-21				31-Dec-22			31-Dec-21
Core FFO available to common stockholders and unitholders			$487,638				$487,931			$499,386				$484,490			$486,525				$1,959,444			$1,893,590
Adjustments:
Non-real estate depreciation			7,179				7,279			7,640				7,970			6,436				30,068			23,120
Amortization of deferred financing costs			3,753				3,270			3,330				3,634			3,515				13,987			14,397
Amortization of debt discount/premium			1,276				1,146			1,193				1,214			1,107				4,829			4,545
Non-cash stock-based compensation expense			16,042				15,948			15,799				14,453			15,097				62,242			61,855
Straight-line rental revenue			(29,392)				(18,123)			(17,278)				(18,810)			(16,497)				(83,604)			(63,096)
Straight-line rental expense			(208)				2,679			(2,237)				4,168			5,753				4,401			27,499
Above- and below-market rent amortization			(762)				(465)			196				335			910				(696)			6,070
Deferred tax expense / (benefit)			(4,885)				(5,233)			(769)				(1,604)			(13,731)				(12,491)			19,394
Leasing compensation & internal lease commissions			9,578				9,866			9,411				13,261			9,564				42,117			42,826
Recurring capital expenditures (1)			(109,999)				(66,200)			(43,497)				(46,770)			(87,550)				(266,466)			(217,103)
AFFO available to common stockholders and unitholders (2)			$380,220				$438,097			$473,173				$462,341			$411,130				$1,753,831			$1,813,096
Weighted-average shares and units outstanding - basic			295,199				292,536			290,528				290,163			289,895				292,123			289,165
Weighted-average shares and units outstanding - diluted (3)			295,519				292,830			290,944				290,662			290,893				292,528			289,912
AFFO per share - diluted (3)			$1.29				$1.50			$1.63				$1.59			$1.41				$6.00			$6.25
Dividends per share and common unit			$1.22				$1.22			$1.22				$1.22			$1.16				$4.88			$4.64
																					.
Diluted AFFO Payout Ratio			94.8 %				81.5 %			75.0 %				76.7 %			82.1 %				81.4 %			74.2 %
		Three Months Ended																		Twelve Months Ended
Share Count Detail			31-Dec-22				30-Sep-22			30-Jun-22				31-Mar-22			31-Dec-21				31-Dec-22			31-Dec-21
Weighted Average Common Stock and Units Outstanding			295,199				292,536			290,528				290,163			289,895				292,123			289,165
Add: Effect of dilutive securities			320				294			416				499			998				405			747
Weighted Avg. Common Stock and Units Outstanding - diluted			295,519				292,830			290,944				290,662			290,893				292,528			289,912

(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. 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																		Financial Supplement
Unaudited and in Thousands, Except Share and Per Share Data																		Fourth Quarter 2022
							31-Dec-22				30-Sep-22				30-Jun-22			31-Mar-22			31-Dec-21
Assets
Investments in real estate:
Real estate								$26,136,057				$24,876,600				$24,065,933			$23,769,712			$23,625,451
Construction in progress								4,789,134				4,222,142				3,362,114			3,523,484			3,213,387
Land held for future development								118,452				34,713				37,460			107,003			133,683
Investments in real estate								$31,043,643				$29,133,455				$27,465,507			$27,400,199			$26,972,522
Accumulated depreciation and amortization								(7,268,981)				(6,826,918)				(6,665,118)			(6,467,233)			(6,210,281)
Net Investments in Properties								$23,774,662				$22,306,537				$20,800,389			$20,932,966			$20,762,241
Investment in unconsolidated joint ventures								1,991,426				1,912,958				1,942,549			2,044,074			1,807,689
Net Investments in Real Estate								$25,766,088				$24,219,495				$22,742,937			$22,977,040			$22,569,930
Cash and cash equivalents								$141,773				$176,969				$99,226			$157,964			$142,698
Accounts and other receivables (1)								969,292				861,117				797,208			774,579			671,721
Deferred rent								601,590				556,198				554,016			545,666			547,385
Customer relationship value, deferred leasing costs & other intangibles, net								3,092,627				3,035,861				2,521,390			2,640,795			2,735,486
Goodwill								9,208,497				8,728,105				7,545,107			7,802,440			7,937,440
Operating lease right-of-use assets								1,351,329				1,253,393				1,310,970			1,361,942			1,405,441
Other assets								353,802				384,079				385,202			420,119			359,459
Total Assets								$41,484,998				$39,215,217				$35,956,057			$36,680,546			$36,369,560
Liabilities and Equity
Global unsecured revolving credit facilities								$2,150,451				$2,255,139				$1,440,040			$943,325			$398,172
Unsecured term loans								797,449				729,976				—			—			—
Unsecured senior notes, net of discount								13,120,033				12,281,410				12,695,568			13,284,650			12,903,370
Secured debt and other, net of premiums								528,870				491,984				158,699			160,240			146,668
Operating lease liabilities								1,471,044				1,363,712				1,418,540			1,472,510			1,512,187
Accounts payable and other accrued liabilities								1,868,884				1,621,406				1,619,222			1,572,359			1,543,623
Deferred tax liabilities, net								1,192,752				1,145,097				611,582			649,112			666,451
Accrued dividends and distributions								363,716				—				—			—			338,729
Security deposits and prepaid rent								369,654				341,552				341,140			346,911			336,578
Total Liabilities								$21,862,853				$20,230,276				$18,284,791			$18,429,107			$17,845,778
Redeemable non-controlling interests - operating partnership								1,514,680				1,429,920				41,047			42,734			46,995
Equity
Preferred Stock:  $0.01 par value per share, 110,000,000 shares authorized:
Series J Cumulative Redeemable Preferred Stock (2)								$193,540				$193,540				$193,540			$193,540			$193,540
Series K Cumulative Redeemable Preferred Stock (3)								203,264				203,264				203,264			203,264			203,264
Series L Cumulative Redeemable Preferred Stock (4)								334,886				334,886				334,886			334,886			334,886
Common Stock: $0.01 par value per share, 392,000,000 shares authorized (5)								2,887				2,851				2,824			2,824			2,824
Additional paid-in capital								22,142,868				21,528,384				21,091,364			21,069,391			21,075,863
Dividends in excess of earnings								(4,698,313)				(4,336,201)				(4,211,685)			(3,916,854)			(3,631,929)
Accumulated other comprehensive income (loss), net								(595,798)				(862,804)				(475,561)			(188,844)			(173,880)
Total Stockholders' Equity								$17,583,334				$17,063,920				$17,138,632			$17,698,207			$18,004,568
Noncontrolling Interests
Noncontrolling interest in operating partnership								$419,317				$421,484				$432,213			$444,029			$425,337
Noncontrolling interest in consolidated joint ventures								104,814				69,617				59,374			66,470			46,882
Total Noncontrolling Interests								$524,131				$491,101				$491,587			$510,499			$472,219
Total Equity								$18,107,465				$17,555,021				$17,630,219			$18,208,706			$18,476,787
Total Liabilities and Equity								$41,484,998				$39,215,217				$35,956,057			$36,680,546			$36,369,560

(1)	Net of allowance for doubtful accounts of $33,048 and $28,574 as of December 31, 2022 and December 31, 2021, respectively.
(2)	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, 2022 and December 31, 2021, respectively.
(3)	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, 2022 and December 31, 2021, respectively.
(4)	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 December 31, 2022 and December 31, 2021, respectively.
(5)	Common Stock: 291,148,222 and 284,415,013 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively.

 

Reconciliation of Earnings Before Interest, Taxes, Depreciation &
Amortization and Financial Ratios			Financial Supplement
Unaudited and Dollars in Thousands			Fourth Quarter 2022
			Three Months Ended
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1)				31-Dec-22				30-Sep-22			30-Jun-22			31-Mar-22			31-Dec-21
Net (Loss) / Income Available to Common Stockholders				($6,093)				$226,894			$53,245			$63,101			$1,057,630
Interest				86,882				76,502			69,023			66,725			71,762
Loss from early extinguishment of debt				—				—			—			51,135			325
Income tax expense (benefit)				(17,676)				19,576			16,406			13,244			3,961
Depreciation & amortization				430,130				388,704			376,967			382,132			378,883
EBITDA				$493,244				$711,676			$515,642			$576,337			$1,512,561
Unconsolidated JV real estate related depreciation & amortization				33,927				30,831			29,023			29,319			24,146
Unconsolidated JV interest expense and tax expense				53,481				11,948			6,708			21,111			15,222
Severance, equity acceleration, and legal expenses				15,980				1,655			3,786			2,077			1,003
Transaction and integration expenses				17,350				25,862			13,586			11,968			12,427
(Gain) / loss on sale of investments				6				(173,990)			—			(2,770)			(1,047,011)
Impairment of investments in real estate				3,000				—			—			—			18,291
Other non-core adjustments, net				15,127				(94)			31,633			(48,858)			14,307
Non-controlling interests				(3,326)				1,716			436			3,629			22,587
Preferred stock dividends, including undeclared dividends				10,181				10,181			10,181			10,181			10,181
(Gain on) / Issuance costs associated with redeemed preferred stock				—				—			—			—			—
Adjusted EBITDA				$638,969				$619,786			$610,994			$602,994			$583,713
(1)  For definitions and discussion of EBITDA and Adjusted EBITDA, see the definitions section.
			Three Months Ended
Financial Ratios				31-Dec-22				30-Sep-22			30-Jun-22			31-Mar-22			31-Dec-21
Total GAAP interest expense				$86,882				$76,502			$69,023			$66,725			$71,762
Capitalized interest				24,581				17,304			14,131			14,751			15,328
Change in accrued interest and other non-cash amounts				(67,909)				31,860			(43,952)			52,324			(37,974)
Cash Interest Expense (2)				$43,554				$125,666			$39,202			$133,800			$49,116
Preferred dividends				10,181				10,181			10,181			10,181			10,181
Total Fixed Charges (3)				$121,644				$103,987			$93,335			$91,657			$97,271
Coverage
Interest coverage ratio (4)				5.3x				6.1x			6.6x			6.1x			6.0x
Cash interest coverage ratio (5)				11.9x				4.6x			12.6x			4.0x			9.8x
Fixed charge coverage ratio (6)				4.9x				5.5x			6.0x			5.5x			5.4x
Cash fixed charge coverage ratio (7)				10.0x				4.3x			10.4x			3.7x			8.3x
Leverage
Debt to total enterprise value (8) (9)				35.2 %				34.5 %			27.1 %			25.5 %			20.5 %
Debt plus preferred stock to total enterprise value (10)				36.8 %				36.2 %			28.5 %			26.8 %			21.7 %
Pre-tax income to interest expense (11)				1.0x				4.1x			1.9x			2.2x			16.2x
Net Debt to Adjusted EBITDA (12)				6.9x				6.7x			6.2x			6.3x			6.1x

(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 joint venture debt, less cash and cash equivalents (including Digital Realty's pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty's pro rata share of unconsolidated joint venture EBITDA), multiplied by four.

Definitions

Funds From Operations (FFO):
We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts, or Nareit, in the Nareit Funds From Operations White Paper - 2018 Restatement. FFO represents net income (loss) (computed in accordance with GAAP), excluding 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 as total debt at balance sheet carrying value, plus capital lease obligations, plus Digital Realty's pro rata share of unconsolidated joint venture debt, less cash and cash equivalents (including Digital Realty's pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty's pro rata share of unconsolidated joint venture EBITDA), multiplied by four.

Debt-plus-preferred-to-total enterprise value is 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, 2022, GAAP interest expense was $87 million, capitalized interest was $25 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-22			30-Sep-22			31-Dec-21				31-Dec-22			31-Dec-21
Operating income			$120,981			$157,381			$131,498				$589,969			$694,009
Fee income			(7,508)			(6,169)			(4,133)				(24,506)			(13,442)
Other income			(168)			(1,749)			(200)				(4,645)			(19,401)
Depreciation and amortization			430,130			388,704			378,883				1,577,933			1,486,632
General and administrative			104,451			95,792			103,705				398,669			393,311
Severance, equity acceleration, and legal expenses			15,980			1,655			1,003				23,498			7,343
Transaction expenses			17,350			25,862			12,427				68,766			47,426
Other expenses			3,615			1,096			(1)				12,438			2,550
Net Operating Income			$687,830			$662,572			$641,472				$2,645,122			$2,616,720
Cash Net Operating Income (Cash NOI)
Net Operating Income			$687,830			$662,572			$641,472				$2,645,122			$2,616,720
Straight-line rental revenue			(32,226)			(17,505)			(16,345)				(70,394)			(64,107)
Straight-line rental expense			(680)			2,499			5,453				2,857			27,050
Above- and below-market rent amortization			(762)			(465)			910				(696)			6,069
Cash Net Operating Income			$654,163			$647,101			$631,490				$2,576,887			$2,585,732
Constant Currency CFFO Reconciliation		Three Months Ended										Twelve Months Ended
(in thousands)		31-Dec-22			30-Sep-22			31-Dec-21				31-Dec-22			31-Dec-21
Core FFO (1)			$487,638						$486,525				$1,959,444			$1,893,590
Core FFO impact of holding '21 Exchange Rates Constant (2)			16,867						—				62,128			—
Constant Currency Core FFO			$504,505						$486,525				$2,021,572			$1,893,590
Weighted-average shares and units outstanding - diluted			295,519						290,893				292,528			289,912
Constant Currency CFFO Per Share			$1.71						$1.67				$6.91			$6.53

1)	As reconciled to net income on page 13.
2)	Adjustment calculated by holding currency translation rates for 2022 constant with average currency translation rates that were applicable to the same periods in 2021.

This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, anticipated continued demand for our products and service, our liquidity, our joint ventures, supply and demand for data center and colocation space, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company's FFO, Core FFO, constant currency Core FFO and net income, 2023 outlook and underlying assumptions, information related to trends, our strategy and plans, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and development activity and plans, projected construction costs, estimated yields on investment, expected occupancy, expected square footage and IT load capacity upon completion of development projects, backlog NOI, NAV components, and other forward-looking financial data. Such statements are based on management's beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Some of the risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

• reduced demand for data centers or decreases in information technology spending;
• 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 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, 2021 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.

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SOURCE Digital Realty

FAQ

What were Digital Realty's financial results for Q4 2022?

Digital Realty reported a net loss of $0.02 per share with revenue of $1.2 billion, an 11% increase year-over-year.

What is the 2023 Core FFO per share outlook for Digital Realty?

Digital Realty has projected a 2023 Core FFO per share outlook of $6.65 to $6.75.

How much annualized GAAP rental revenue is generated from new bookings in Q4 2022?

Total bookings signed in Q4 2022 are expected to generate $117 million in annualized GAAP rental revenue.

What was the change in FFO per share for Digital Realty in Q4 2022?

FFO per share decreased to $1.45 in Q4 2022 from $1.54 in Q4 2021.

What strategic transactions did Digital Realty complete in Q4 2022?

Digital Realty sold a 25% interest in a data center facility in Frankfurt for approximately $596 million and acquired sites for future development.