DIGITAL REALTY REPORTS SECOND QUARTER 2022 RESULTS

Rhea-AI Summary

Digital Realty (NYSE: DLR) announced its second quarter 2022 financial results, reporting a net income of $53.2 million, or $0.19 per share, a decline from $0.45 in Q2 2021. Funds from Operations (FFO) per share decreased to $1.55 from $1.78 year-over-year, while Core FFO improved to $1.72 from $1.54. Revenues reached $1.1 billion, up 4% year-over-year. The company signed bookings expected to generate $113 million in annualized rental revenue. They updated their 2022 Core FFO guidance to $6.75-$6.85 per share.

Positive

• Core FFO per share increased to $1.72 in Q2 2022 from $1.54 in Q2 2021.
• Total bookings of $113 million expected to generate annualized GAAP rental revenue.
• Renewal lease rates increased by 3.4% cash basis and 5.3% GAAP basis.
• Reiterated 2022 constant-currency Core FFO outlook of $6.95 - $7.05.

Negative

• Net income available to common stockholders decreased from $0.45 in Q2 2021 to $0.19 in Q2 2022.
• FFO per share declined from $1.78 in Q2 2021 to $1.55 in Q2 2022.
• Updated total revenue outlook lowered to $4.650 - $4.750 billion from previous estimates.

AUSTIN, Texas, July 28, 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 second quarter of 2022.  All per share results are presented on a fully diluted basis. 

Highlights

• Reported net income available to common stockholders of $0.19 per share in 2Q22, compared to $0.45 in 2Q21
• Reported FFO per share of $1.55 in 2Q22, compared to $1.78 in 2Q21
• Reported core FFO per share of $1.72 in 2Q22, compared to $1.54 in 2Q21
• Signed total bookings during 2Q22 expected to generate $113 million of annualized GAAP rental revenue, including a $12 million contribution from interconnection
• Updated 2022 core FFO per share outlook to $6.75 - $6.85; Reiterated 2022 constant-currency core FFO per share outlook of $6.95 - $7.05

Financial Results

Digital Realty reported revenues for the second quarter of 2022 of $1.1 billion, a 1% increase from the previous quarter and a 4% increase from the same quarter last year. 

The company delivered second quarter of 2022 net income of $63.9 million, and net income available to common stockholders of $53.2 million, or $0.19 per diluted share, compared to $0.22 per diluted share in the previous quarter and $0.45 per diluted share in the same quarter last year. 

Digital Realty generated second quarter of 2022 Adjusted EBITDA of $611 million, a 1% increase from the previous quarter and a 1% increase over the same quarter last year. 

The company reported second quarter of 2022 funds from operations of $452 million, or $1.55 per share, compared to $1.60 per share in the previous quarter and $1.78 per share in the same quarter last year. 

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered second quarter of 2022 core FFO per share of $1.72, compared to $1.67 per share in the previous quarter, and $1.54 per share in the same quarter last year. 

Leasing Activity

In the second quarter, Digital Realty signed total bookings expected to generate $113 million of annualized GAAP rental revenue, including a $12 million contribution from interconnection. 

"Demand for data center solutions continued to be strong through the second quarter, with healthy contributions from both hyperscale and enterprise segments," said Digital Realty Chief Executive Officer A. William Stein.  "Customers are seeking to secure the capacity they require in advance of availability, as over half of our record development schedule is pre-leased, and tight conditions in many markets around the world are resulting in an improving pricing environment and rising occupancy." 

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

In addition to new leases signed, Digital Realty also signed renewal leases representing $173 million of annualized GAAP rental revenue during the quarter.  Rental rates on renewal leases signed during the second quarter of 2022 rolled up 3.4% on a cash basis and up 5.3% on a GAAP basis. 

New leases signed during the second 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			$15,583		63,303			$246		6.0			$217
> 1 MW			15,537		137,937			113		14.1			92
Other (1)			1,566		63,467			25		—			—
Total			$32,686		264,707			$123		20.1			$129
EMEA (2)
0-1 MW			$18,301		71,568			$256		6.4			$238
> 1 MW			43,760		347,280			126		34.0			107
Other (1)			171		2,409			71		—			—
Total			$62,232		421,257			$148		40.4			$128
Asia Pacific (2)
0-1 MW			$1,544		8,591			$180		0.4			$322
> 1 MW			5,399		27,157			199		3.0			150
Other (1)			25		327			78		—			—
Total			$6,968		36,075			$193		3.4			$170
All Regions (2)
0-1 MW			$35,428		143,461			$247		12.8			$231
> 1 MW			64,695		512,374			126		51.1			105
Other (1)			1,763		66,203			27		—			—
Total			$101,886		722,038			$141		63.9			$131
Interconnection			$11,515		N/A			N/A		N/A			N/A
Grand Total			$113,401		722,038			$141		63.9			$131

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 June 30, 2022.

Investment Activity

During the second quarter, Digital Realty acquired an 8-acre parcel in Dublin for $6 million, which can support up to 40 megawatts of IT load. Digital Realty also acquired 2.4 acres in Barcelona for $11 million, which can support up to 15 megawatts of IT load. Lastly, Digital Realty acquired 34 acres in Frankfurt for $60 million, which can support up to 70 megawatts of IT load.

Also during the second quarter, Digital Realty announced a joint venture with Mivne Real Estate (K.D.) (TASE: MVNE) for entry into the Israeli market. The joint venture, which will operate under the brand name Digital Realty Mivne, will serve as a strategic partnership between Digital Realty and Mivne, a market-leading real estate developer, owner and operator that has developed many large-scale projects across Israel and has an extensive land bank. Digital Realty Mivne expects to develop a multi-tenant data center campus in Petah Tikvah, the primary connectivity hub in Israel.  The data center campus will support the development of up to 20 megawatts of IT load.  Delivery of the initial phase is anticipated in 2023, subject to customer demand.

Subsequent to the close of the second quarter, Digital Realty acquired 38 acres in Paris for $11 million and 9 acres in Stockholm for $43 million.

Balance Sheet

Digital Realty had approximately $14.3 billion of total debt outstanding as of June 30, 2022, comprised of $14.1 billion of unsecured debt and approximately $0.2 billion of secured debt.  At the end of the second quarter of 2022, net debt-to-Adjusted EBITDA was 6.2x, debt-plus-preferred-to-total enterprise value was 28.5% and fixed charge coverage was 6.0x.  Pro forma for settlement of the $1 billion forward equity offering, net debt-to-adjusted EBITDA was 5.8x and fixed charge coverage was 6.2x. 

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

• Amended its Global Senior Credit Agreement to increase the size from $3.0 billion to $3.75 billion.
• Entered into an at-the-market (ATM) equity offering agreement of up to $1.5 billion. The prior program, which had $577.6 million remaining, was terminated.

2022 Outlook

Digital Realty updated its 2022 core FFO per share outlook of $6.75-$6.85 and reiterated its 2022 constant-currency core FFO per share outlook of $6.95 - $7.05.  The assumptions underlying the outlook are summarized in the following table. 

		As of		As of		As of
Top-Line and Cost Structure		February 17, 2022		April 28, 2022		July 28, 2022
Total revenue		$4.700 - $4.800 billion		$4.700 - $4.800 billion		$4.650 - $4.750 billion
Net non-cash rent adjustments (1)		($35 - $40 million)		($45 - $50 million)		($50 - $55 million)
Adjusted EBITDA		$2.475 - $2.525 billion		$2.475 - $2.525 billion		$2.450 - $2.500 billion
G&A		$410 - $420 million		$410 - $420 million		$405 - $415 million
Internal Growth
Rental rates on renewal leases
Cash basis		Flat		Slightly Positive		Slightly Positive
GAAP basis		Slightly positive		Up low-single-digits		Up low-single-digits
Year-end portfolio occupancy		83.0% - 84.0%		83.0% - 84.0%		83.0% - 84.0%
"Same-capital" cash NOI growth (2)		(2.5% - 3.5%)		(2.5% - 3.5%)		(3.5% - 4.5%)
Foreign Exchange Rates
U.S. Dollar / Pound Sterling		$1.30 - $1.38		$1.25 - $1.35		$1.15 - $1.25
U.S. Dollar / Euro		$1.10 - $1.15		$1.05 - $1.10		$1.00 - $1.05
External Growth
Dispositions
Dollar volume		$0.5 - $1.0 billion		$0.5 - $1.0 billion		$0.5 - $1.0 billion
Cap rate		0.0% - 10.0%		0.0% - 10.0%		0.0% - 10.0%
Development
CapEx (3)		$2.3 - $2.5 billion		$2.3 - $2.5 billion		$2.2 - $2.4 billion
Average stabilized yields		9.0% - 15.0%		9.0% - 15.0%		9.0% - 15.0%
Enhancements and other non-recurring CapEx (4)		$5 - $10 million		$5 - $10 million		$5 - $10 million
Recurring CapEx + capitalized leasing costs (5)		$210 - $220 million		$200 - $210 million		$200 - $210 million
Balance Sheet
Long-term debt issuance
Dollar amount		$1.8 - $2.0 billion		$1.8 - $2.0 billion		$1.8 - $2.0 billion
Pricing		1.5% - 2.0%		1.5% - 2.0%		2.0% - 2.5%
Timing		Early & Late 2022		Early & Late 2022		Early & Late 2022
Net income per diluted share		$1.05 - $1.10		$1.05 - $1.10		$1.00 - $1.05
Real estate depreciation and (gain) / loss on sale		$5.35 - $5.35		$5.35 - $5.35		$5.35 - $5.35
Funds From Operations / share (NAREIT-Defined)		$6.40 - $6.45		$6.40 - $6.45		$6.35 - $6.40
Non-core expenses and revenue streams		$0.40 - $0.45		$0.40 - $0.45		$0.40 - $0.45
Core Funds From Operations / share		$6.80 - $6.90		$6.80 - $6.90		$6.75 - $6.85
Foreign currency translation adjustments		$0.10 - $0.10		$0.15 - $0.15		$0.20 - $0.20
Constant-Currency Core Funds From Operations / share		$6.90 - $7.00		$6.95 - $7.05		$6.95 - $7.05

(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 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 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. 

Investor Conference Call

Prior to Digital Realty's investor conference call at 5:30 p.m. EDT / 2:30 p.m. PDT on July 28, 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 second quarter 2022 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# 6453950 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 August 28, 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# 1684177.  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 290+ facilities in 50+ metros across 26 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
(737) 281-0101

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

 

Consolidated Quarterly Statements of Operations
Unaudited and Dollars in Thousands, Except Per Share Data
			Three Months Ended															Six Months Ended
			30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21				30-Jun-22			30-Jun-21
Rental revenues			$767,313			$751,962			$763,117			$773,195			$768,826				$1,519,275			$1,523,370
Tenant reimbursements - Utilities			218,198			224,547			195,340			189,060			169,743				442,745			354,716
Tenant reimbursements - Other			52,688			51,511			58,528			57,666			60,261				104,198			119,589
Interconnection & other			93,338			93,530			89,850			90,983			90,565				186,868			179,626
Fee income			5,072			5,757			4,133			3,255			3,628				10,829			6,054
Other			2,713			15			200			18,977			165				2,728			224
Total Operating Revenues			$1,139,321			$1,127,323			$1,111,167			$1,133,135			$1,093,189				$2,266,644			$2,183,580
Utilities			$223,426			$241,239			$213,933			$209,585			$185,010				$464,665			$361,057
Rental property operating			198,076			194,354			205,250			196,743			198,206				392,430			383,939
Property taxes			47,213			46,526			42,673			55,915			42,795				93,738			91,800
Insurance			3,836			3,698			3,507			4,718			5,703				7,534			9,201
Depreciation & amortization			376,967			382,132			378,883			369,035			368,981				759,099			738,714
General & administration			101,991			96,435			103,705			97,082			94,956				198,426			192,524
Severance, equity acceleration, and legal expenses			3,786			2,077			1,003			1,377			2,536				5,863			4,963
Transaction and integration expenses			13,586			11,968			12,427			13,804			7,075				25,554			21,195
Impairment of investments in real estate			—			—			18,291			—			—				—			—
Other expenses			70			7,657			(1)			510			2,298				7,727			2,041
Total Operating Expenses			$968,950			$986,087			$979,669			$948,770			$907,561				$1,955,037			$1,805,433
Operating Income			$170,371			$141,236			$131,498			$184,365			$185,627				$311,607			$378,146
Equity in earnings (loss) of unconsolidated joint ventures			(34,088)			60,958			(7,714)			40,884			52,143				26,870			29,112
Gain / (loss) on sale of investments			—			2,770			1,047,011			(635)			499				2,770			334,420
Interest and other income (expense), net			13,008			3,051			(4,349)			(2,947)			10,124				16,059			2,938
Interest (expense)			(69,023)			(66,725)			(71,762)			(71,417)			(75,014)				(135,748)			(150,667)
Income tax (expense)			(16,406)			(13,244)			(3,961)			(13,709)			(47,582)				(29,650)			(55,129)
Loss from early extinguishment of debt			—			(51,135)			(325)			—			—				(51,135)			(18,347)
Net Income			$63,862			$76,911			$1,090,397			$136,541			$125,799				$140,773			$520,474
Net (income) attributable to noncontrolling interests			(436)			(3,629)			(22,587)			(2,266)			(4,544)				(4,065)			(13,298)
Net Income Attributable to Digital Realty Trust, Inc.			$63,426			$73,282			$1,067,811			$134,275			$121,255				$136,708			$507,177
Preferred stock dividends, including undeclared dividends			(10,181)			(10,181)			(10,181)			(10,181)			(11,885)				(20,363)			(25,399)
Gain on / (Issuance costs associated with) redeemed preferred stock			—			—			—			—			18,000				—			18,000
Net Income Available to Common Stockholders			$53,245			$63,101			$1,057,630			$124,094			$127,371				$116,346			$499,777
Weighted-average shares outstanding - basic			284,694,064			284,525,992			283,869,662			283,105,966			281,791,855				284,610,492			281,445,252
Weighted-average shares outstanding - diluted			285,109,903			285,025,099			284,868,184			283,799,538			282,433,857				284,979,709			282,075,611
Weighted-average fully diluted shares and units			290,944,163			290,662,421			290,893,110			290,228,785			289,484,805				290,716,197			289,218,609
Net income per share - basic			$0.19			$0.22			$3.73			$0.44			$0.45				$0.41			$1.78
Net income per share - diluted			$0.19			$0.22			$3.71			$0.44			$0.45				$0.41			$1.77

 

Funds From Operations and Core Funds From Operations
Unaudited and in Thousands, Except Per Share Data
		Three Months Ended																Six Months Ended
Reconciliation of Net Income to Funds From Operations (FFO)			30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21				30-Jun-22			30-Jun-21
Net Income Available to Common Stockholders			$53,245			$63,101			$1,057,630			$124,094			$127,371				$116,346			$499,777
Adjustments:
Non-controlling interest in operating partnership			1,500			1,600			23,100			3,000			3,200				3,100			13,000
Real estate related depreciation & amortization (1)			369,327			374,162			372,447			362,728			363,640				743,489			728,336
Unconsolidated JV real estate related depreciation & amortization			29,022			29,320			24,146			21,293			20,983				58,341			40,361
(Gain) on real estate transactions (2)			(1,144)			(2,770)			(1,047,010)			(63,798)			(499)				(3,914)			(334,420)
Impairment of investments in real estate			-			-			18,291			-			-				-			-
Funds From Operations - diluted			$451,949			$465,412			$448,602			$447,317			$514,695				$917,362			$947,055
Weighted-average shares and units outstanding - basic			290,528			290,163			289,895			289,542			288,843				290,346			288,588
Weighted-average shares and units outstanding - diluted (3)			290,944			290,662			290,893			290,228			289,485				290,716			289,219
Funds From Operations per share - basic			$1.56			$1.60			$1.55			$1.54			$1.78				$3.16			$3.28
Funds From Operations per share - diluted (3)			$1.55			$1.60			$1.54			$1.54			$1.78				$3.16			$3.27
		Three Months Ended																Six Months Ended
Reconciliation of FFO to Core FFO			30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21				30-Jun-22			30-Jun-21
Funds From Operations - diluted			$451,949			$465,412			$448,602			$447,317			$514,695				$917,362			$947,055
Other non-core revenue adjustments (4)			456			13,916			9,859			(18,066)			(11,122)				14,372			(11,181)
Transaction and integration expenses			13,586			11,968			12,427			13,804			7,075				25,554			21,195
Loss from early extinguishment of debt			-			51,135			325			-			-				51,135			18,347
(Gain on) / Issuance costs associated with redeemed preferred stock			-			-			-			-			(18,000)				-			(18,000)
Severance, equity acceleration, and legal expenses (5)			3,786			2,077			1,003			1,377			2,536				5,863			4,963
(Gain) / Loss on FX revaluation			29,539			(67,676)			14,308			33,773			(51,649)				(38,137)			(17,577)
Other non-core expense adjustments			70			7,657			(1)			1,004			2,298				7,727			(16,942)
Core Funds From Operations - diluted			$499,386			$484,490			$486,525			$479,209			$445,833				$983,875			$927,859
Weighted-average shares and units outstanding - diluted (3)			290,944			290,662			290,893			290,228			289,485				290,716			289,219
Core Funds From Operations per share - diluted (3)			$1.72			$1.67			$1.67			$1.65			$1.54				$3.38			$3.21
(1) Real Estate Related Depreciation & Amortization		Three Months Ended																Six Months Ended
			30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21				30-Jun-22			30-Jun-21
Depreciation & amortization per income statement			$376,967			$382,132			$378,883			$369,035			$368,981				759,099			738,714
Non-real estate depreciation			(7,640)			(7,970)			(6,436)			(6,307)			(5,341)				(15,610)			(10,377)
Real Estate Related Depreciation & Amortization			$369,327			$374,162			$372,447			$362,728			$363,640				$743,489			$728,336

(2)	For the fourth quarter 2021, the gain pertains to the contribution of 10 operating data center properties to Digital Core REIT in connection with the listing of Digital Core REIT as a standalone public company traded on the Singapore Exchange in December 2021.  For the third quarter 2021, the gain of $64 million represents Digital Realty's share of a gain recognized by an unconsolidated joint venture from the sale of a portfolio of assets owned by the entity and 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 the effect of the 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																Six Months Ended
Reconciliation of Core FFO to AFFO			30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21				30-Jun-22			30-Jun-21
Core FFO available to common stockholders and unitholders			$499,386			$484,490			$486,525			$479,209			$445,833				$983,875			$927,859
Adjustments:
Non-real estate depreciation			7,640			7,970			6,436			6,307			5,341				15,610			10,377
Amortization of deferred financing costs			3,330			3,634			3,515			3,625			3,718				6,964			7,256
Amortization of debt discount/premium			1,193			1,214			1,107			1,138			1,166				2,407			2,300
Non-cash stock-based compensation expense			15,799			14,453			15,097			15,082			15,578				30,253			31,675
Straight-line rental revenue			(17,278)			(18,810)			(16,497)			(11,969)			(16,139)				(36,089)			(34,631)
Straight-line rental expense			(2,237)			4,168			5,753			7,862			7,175				1,931			13,884
Above- and below-market rent amortization			196			335			910			1,165			1,857				531			3,994
Deferred tax expense / (benefit)			(769)			(1,604)			(13,731)			2,112			35,522				(2,372)			31,013
Leasing compensation & internal lease commissions			9,411			13,261			9,564			11,142			11,078				22,672			22,120
Recurring capital expenditures (1)			(43,497)			(46,770)			(87,550)			(50,800)			(39,231)				(90,267)			(78,753)
AFFO available to common stockholders and unitholders (2)			$473,173			$462,341			$411,130			$464,872			$471,899				$935,514			$937,095
Weighted-average shares and units outstanding - basic			290,528			290,163			289,895			289,542			288,843				290,346			288,588
Weighted-average shares and units outstanding - diluted (3)			290,944			290,662			290,893			290,228			289,485				290,716			289,219
AFFO per share - diluted (3)			$1.63			$1.59			$1.41			$1.60			$1.63				$3.22			$3.24
Dividends per share and common unit			$1.22			$1.22			$1.16			$1.16			$1.16				$2.44			$2.32
Diluted AFFO Payout Ratio			75.0 %			76.7 %			82.1 %			72.4 %			71.2 %				75.8 %			71.6 %
		Three Months Ended																Six Months Ended
Share Count Detail			30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21				30-Jun-22			30-Jun-21
Weighted Average Common Stock and Units Outstanding			290,528			290,163			289,895			289,542			288,843				290,346			288,588
Add: Effect of dilutive securities			416			499			998			686			642				370			631
Weighted Avg. Common Stock and Units Outstanding - diluted			290,944			290,662			290,893			290,228			289,485				290,716			289,219

 

(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 the effect of the 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
							30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21
Assets
Investments in real estate:
Real estate								$24,065,933			$23,769,712			$23,625,451			$23,384,809			$23,287,853
Construction in progress								3,362,114			3,523,484			3,213,387			3,238,388			3,270,570
Land held for future development								37,460			107,003			133,683			118,091			143,575
Investments in real estate								$27,465,507			$27,400,199			$26,972,522			$26,741,289			$26,701,998
Accumulated depreciation and amortization								(6,665,118)			(6,467,233)			(6,210,281)			(6,159,294)			(5,919,650)
Net Investments in Properties								$20,800,389			$20,932,966			$20,762,241			$20,581,995			$20,782,348
Investment in unconsolidated joint ventures								1,942,549			2,044,074			1,807,689			1,292,325			1,119,026
Net Investments in Real Estate								$22,742,937			$22,977,040			$22,569,930			$21,874,320			$21,901,374
Cash and cash equivalents								$99,226			$157,964			$142,698			$116,002			$120,482
Accounts and other receivables (1)								797,208			774,579			671,721			610,416			630,086
Deferred rent								554,016			545,666			547,385			552,850			539,379
Customer relationship value, deferred leasing costs & other intangibles, net								2,521,390			2,640,795			2,735,486			2,871,622			2,956,027
Goodwill								7,545,107			7,802,440			7,937,440			8,062,914			8,185,931
Operating lease right-of-use assets								1,310,970			1,361,942			1,405,441			1,442,661			1,452,633
Other assets								385,202			420,119			359,459			316,863			365,308
Total Assets								$35,956,057			$36,680,546			$36,369,560			$35,847,648			$36,151,220
Liabilities and Equity
Global unsecured revolving credit facilities								$1,440,040			$943,325			$398,172			$832,322			$1,026,368
Unsecured senior notes, net of discount								12,695,568			13,284,650			12,903,370			13,012,790			12,659,043
Secured debt and other, net of premiums								158,699			160,240			146,668			242,427			242,410
Operating lease liabilities								1,418,540			1,472,510			1,512,187			1,543,231			1,545,689
Accounts payable and other accrued liabilities								1,619,222			1,572,359			1,543,623			1,341,866			1,367,240
Deferred tax liabilities, net								611,582			649,112			666,451			725,955			742,127
Accrued dividends and distributions								—			—			338,729			—			—
Security deposits and prepaid rent								341,140			346,911			336,578			341,778			362,606
Total Liabilities								$18,284,791			$18,429,107			$17,845,778			$18,040,369			$17,945,483
Redeemable non-controlling interests - operating partnership								41,047			42,734			46,995			40,920			41,490
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)								2,824			2,824			2,824			2,818			2,806
Additional paid-in capital								21,091,364			21,069,391			21,075,863			21,010,202			20,844,834
Dividends in excess of earnings								(4,211,685)			(3,916,854)			(3,631,929)			(4,359,033)			(4,153,407)
Accumulated other comprehensive income (loss), net								(475,561)			(188,844)			(173,880)			(111,560)			31,733
Total Stockholders' Equity								$17,138,632			$17,698,207			$18,004,568			$17,274,117			$17,457,656
Noncontrolling Interests
Noncontrolling interest in operating partnership								$432,213			$444,029			$425,337			$459,918			$513,897
Noncontrolling interest in consolidated joint ventures								59,374			66,470			46,882			32,324			192,694
Total Noncontrolling Interests								$491,587			$510,499			$472,219			$492,242			$706,591
Total Equity								$17,630,219			$18,208,706			$18,476,787			$17,766,359			$18,164,247
Total Liabilities and Equity								$35,956,057			$36,680,546			$36,369,560			$35,847,648			$36,151,220

(1)	Net of allowance for doubtful accounts of $37,799 and $28,574 as of June 30, 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 June 30, 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 June 30, 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 June 30, 2022 and December 31, 2021, respectively.
(5)	Common Stock: 284,733,922 and 284,415,013 shares issued and outstanding as of June 30, 2022 and December 31, 2021, 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)			30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21
Net Income Available to Common Stockholders			$53,245			$63,101			$1,057,630			$124,094			$127,371
Interest			69,023			66,725			71,762			71,417			75,014
Loss from early extinguishment of debt			—			51,135			325			—			—
Income tax expense (benefit)			16,406			13,244			3,961			13,709			47,582
Depreciation & amortization			376,967			382,132			378,883			369,035			368,981
EBITDA			$515,642			$576,337			$1,512,561			$578,255			$618,947
Unconsolidated JV real estate related depreciation & amortization			29,023			29,319			24,146			21,293			20,983
Unconsolidated JV interest expense and tax expense			6,708			21,111			15,222			11,008			15,523
Severance, equity acceleration, and legal expenses			3,786			2,077			1,003			1,377			2,536
Transaction and integration expenses			13,586			11,968			12,427			13,804			7,075
(Gain) / loss on sale of investments			—			(2,770)			(1,047,011)			635			(499)
Impairment of investments in real estate			—			—			18,291			—			—
Other non-core adjustments, net			31,633			(48,858)			14,307			(28,745)			(60,308)
Non-controlling interests			436			3,629			22,587			2,266			4,544
Preferred stock dividends, including undeclared dividends			10,181			10,181			10,181			10,181			11,885
(Gain on) / Issuance costs associated with redeemed preferred stock			—			—			—			—			(18,000)
Adjusted EBITDA			$610,994			$602,994			$583,713			$610,074			$602,686
(1) For definitions and discussion of EBITDA and Adjusted EBITDA, see the definitions section.
		Three Months Ended
Financial Ratios			30-Jun-22			31-Mar-22			31-Dec-21			30-Sep-21			30-Jun-21
Total GAAP interest expense			$69,023			$66,725			$71,762			$71,417			$75,014
Capitalized interest			14,131			14,751			15,328			15,142			11,558
Change in accrued interest and other non-cash amounts			(43,952)			52,324			(37,974)			17,820			(43,604)
Cash Interest Expense (2)			$39,202			$133,800			$49,116			$104,379			$42,968
Preferred dividends			10,181			10,181			10,181			10,181			11,885
Total Fixed Charges (3)			$93,335			$91,657			$97,271			$96,740			$98,457
Coverage
Interest coverage ratio (4)			6.6x			6.1x			6.0x			6.5x			6.1x
Cash interest coverage ratio (5)			12.6x			4.0x			9.8x			5.4x			10.9x
Fixed charge coverage ratio (6)			6.0x			5.5x			5.4x			5.8x			5.4x
Cash fixed charge coverage ratio (7)			10.4x			3.7x			8.3x			5.0x			9.0x
Leverage
Debt to total enterprise value (8) (9)			27.1 %			25.5 %			20.5 %			24.8 %			23.9 %
Debt plus preferred stock to total enterprise value (10)			28.5 %			26.8 %			21.7 %			26.1 %			25.2 %
Pre-tax income to interest expense (11)			1.9x			2.2x			16.2x			2.9x			2.7x
Net Debt to Adjusted EBITDA (12)			6.2x			6.3x			6.1x			6.0x			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 June 30, 2022, GAAP interest expense was $69 million, capitalized interest was $14 million and scheduled debt principal payments and preferred dividends was $10 million.

Reconciliation of Net Operating Income (NOI)		Three Months Ended										Six Months Ended
(in thousands)		30-Jun-22			31-Mar-21			30-Jun-21				30-Jun-22			30-Jun-21
Operating income			$170,371			$141,236			$185,627				$311,607			$378,146
Fee income			(5,072)			(5,757)			(3,628)				(10,829)			(6,054)
Other income			(2,713)			(15)			(165)				(2,728)			(224)
Depreciation and amortization			376,967			382,132			368,981				759,099			738,714
General and administrative			101,991			96,435			94,956				198,426			192,524
Severance, equity acceleration, and legal expenses			3,786			2,077			2,536				5,863			4,963
Transaction expenses			13,586			11,968			7,075				25,554			21,195
Other expenses			70			7,657			2,298				7,727			2,041
Net Operating Income			$658,986			$635,734			$657,680				$1,294,720			$1,331,304
Cash Net Operating Income (Cash NOI)
Net Operating Income			$658,986			$635,734			$657,680				$1,294,720			$1,331,304
Straight-line rental revenue			(14,105)			(6,530)			(17,127)				(20,635)			(35,734)
Straight-line rental expense			(2,609)			3,646			7,069				1,037			13,819
Above- and below-market rent amortization			196			335			1,857				531			3,994
Cash Net Operating Income			$642,468			$633,185			$649,480				$1,275,653			$1,313,383

Forward-Looking Statements
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 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 Q2 2022 earnings per share?

Digital Realty reported earnings per share of $0.19 in Q2 2022.

How much did Digital Realty's FFO per share decrease in Q2 2022?

FFO per share decreased to $1.55 in Q2 2022, down from $1.78 in Q2 2021.

What is Digital Realty's updated 2022 Core FFO guidance?

Digital Realty updated its 2022 Core FFO guidance to a range of $6.75 to $6.85 per share.

How much rental revenue did Digital Realty expect from bookings in Q2 2022?

Digital Realty signed bookings expected to generate $113 million in annualized GAAP rental revenue.