NYSE$DLR

Digital Realty Trust Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Digital Realty's second quarter results demonstrated positive momentum, with improved fundamentals highlighted by strong enterprise leasing activity, robust renewal spreads, and healthy organic growth. Two capital recycling transactions were completed, generating over $2 billion in gross proceeds.

Digital Realty reported revenues for the second quarter of 2023 of $1.4 billion, a 2% increase from the previous quarter and a 20% increase from the same quarter last year. The company delivered second quarter of 2023 net income of $116 million, and net income available to common stockholders of $108 million, or $0.37 per diluted share.

  • Reported net income available to common stockholders of $0.37 per share in 2Q23, compared to $0.19 in 2Q22
  • Reported FFO per share of $1.52 in 2Q23, compared to $1.55 in 2Q22
  • Reported Core FFO per share of $1.68 in 2Q23, compared to $1.72 in 2Q22
  • Reported rental rate increases on renewal leases of 6.9% on a cash basis in 2Q23

Headline financials

Total Revenue

$1.37B

Previous: $1.14B+19.9%
EPS (adj)

$1.68

Previous: $1.72-2.3%
Capital Expenditures

-$1.37B

Previous: -$1.07B-28.3%
Free Cash Flow

-$1.25B

Previous: -$1B-24.6%
Net Income

$118M

Previous: $63.4M+86.3%
Operating Income

$155M

Previous: $170M-9.1%
Gross Profit

$1.37B

Previous: $1.14B+19.9%
Cash & Equivalents

$125M

Previous: $99.2M+25.5%
Total Assets

$42.4B

Previous: $36B+17.9%

Revenue & EPS history

Digital Realty · Revenue · Quarterly

$1.37B

Q2 2023+19.9%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Digital Realty · $105M total across 1 segment · Q2 2023

  • Interconnection and other
    $105M+12.0%

Forward guidance

Digital Realty adjusted its 2023 Core FFO per share and constant-currency Core FFO per share outlook to $6.55 - $6.65.

Tailwinds

  • Total revenue: $5.500 - $5.600 billion
  • Adjusted EBITDA: $2.675 - $2.725 billion
  • G&A: $425 - $435 million
  • Rental rates on renewal leases (Cash basis): Greater than 4.0%
  • Rental rates on renewal leases (GAAP basis): Greater than 8.0%

Headwinds

  • Net income per diluted share: $1.05 - $1.15
  • Funds From Operations / share (NAREIT-Defined): $6.30 - $6.40
  • Non-core expenses and revenue streams: $0.25 - $0.25
  • Year-end portfolio occupancy: 84.0% - 85.0%
  • Long-term debt issuance: $740 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.4%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+0.8%

Avg return

30 days after

48%

32 / 67 earnings

Positive

+9.2%

Q3 2024

Best reaction

-15.6%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%+0.5%-3.9%
Q4 2025+0.0%-2.7%-3.9%
Q3 2025+2.2%-4.7%-10.4%
Q2 2025+0.4%-0.5%+4.4%
Q1 2025+4.0%+4.4%+9.3%
Q4 2024-0.3%+2.9%-9.9%
Q3 2024+9.2%+10.3%+14.5%
Q2 2024-4.0%-4.4%+0.3%
Q1 2024+6.5%+4.8%+5.3%
Q4 2023-4.2%-5.0%-1.0%
Q3 2023+4.6%+6.3%+16.7%
Q2 2023+3.5%+4.0%+6.2%
Q1 2023+1.5%-3.0%+1.2%
Q4 2022-2.5%-4.6%-11.4%
Q3 2022-1.6%-1.3%+9.6%
Q2 2022+2.5%+0.0%-3.0%
Q1 2022-1.4%-4.0%-4.5%
Q4 2021+0.4%+1.0%+3.3%
Q3 2021+0.1%+0.7%+6.1%
Q2 2021+0.0%+0.6%+3.9%
Q1 2021+4.9%+4.0%+3.0%
Q4 2020-5.1%-7.0%-9.0%
Q3 2020-3.7%-2.7%-8.8%
Q2 2020+2.1%+2.5%-1.9%
Q1 2020-3.1%-11.2%-5.6%
Q4 2019+3.5%+4.8%+12.8%
Q3 2019-2.2%-4.1%-8.4%
Q2 2019+2.8%+5.4%+11.1%
Q1 2019-2.1%-1.3%+0.6%
Q4 2018-1.3%+2.8%+3.1%
Q3 2018-8.4%-10.1%-5.4%
Q2 2018+3.5%+3.8%+5.7%
Q1 2018+6.2%+3.5%+5.0%
Q4 2017-2.9%-5.4%+1.0%
Q3 2017-4.4%-3.0%-3.0%
Q2 2017-0.1%+3.8%+4.3%
Q1 2017+3.3%+1.4%+5.9%
Q4 2016-0.3%+0.3%-1.5%
Q3 2016-4.1%-7.0%-5.8%
Q2 2016-0.9%-0.7%-5.6%
Q1 2016+0.4%
Q4 2015-1.9%
Q3 2015+2.0%
Q2 2015-0.8%
Q1 2015-0.7%
Q4 2014-1.3%
Q3 2014-0.6%
Q2 2014+2.0%
Q1 2014+3.0%
Q4 2013+0.1%
Q3 2013-15.6%
Q2 2013-9.0%
Q1 2013-2.7%
Q4 2012-1.1%
Q3 2012-4.2%
Q2 2012+2.7%
Q1 2012+0.8%
Q4 2011+2.3%
Q3 2011+1.5%
Q2 2011-10.2%
Q1 2011+1.1%
Q4 2009+1.1%
Q4 2010+1.1%
Q3 2010-0.9%
Q2 2010+1.2%
Q2 2009+1.2%
Q1 2010-4.6%

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