NYSE$DLR

Digital Realty Trust Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported mixed results with revenue increase offset by net income decline, strategic investments and partnerships were forged to position for future growth.

Digital Realty reported Q4 2023 results with revenues of $1.4 billion, an 11% increase year-over-year. Net income was $20 million, a significant decrease from the previous quarter. The company signed total bookings expected to generate $110 million in annualized GAAP rental revenue and introduced a 2024 Core FFO per share outlook of $6.60 - $6.75.

  • Reported net income available to common stockholders of $0.08 per share in 4Q23, compared to ($0.02) in 4Q22
  • Reported FFO per share of $1.53 in 4Q23, compared to $1.45 in 4Q22
  • Reported Core FFO per share of $1.63 in 4Q23, compared to $1.65 in 4Q22
  • Signed total bookings during 4Q23 that are expected to generate $110 million of annualized GAAP rental revenue

Headline financials

Total Revenue

$1.37B

Previous: $1.23B+11.1%
EPS (adj)

$1.63

Previous: $1.65-1.2%
Same-capital occupancy at end of quarter

82.7%

No prior period
Net Income

$20M

Previous: $763K+2521.2%
Operating Income

$134M

Previous: $121M+10.8%
Gross Profit

$302M

Previous: $700M-56.9%

Revenue & EPS history

Digital Realty · Revenue · Quarterly

$1.37B

Q4 2023+11.1%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Digital Realty · $12.1M total across 1 segment · Q3 2023

  • Interconnection and other
    $12.1M-87.3%

Forward guidance

Digital Realty introduced its 2024 Core FFO per share and Constant-Currency Core FFO per share outlook of $6.60 - $6.75.

Tailwinds

  • Total revenue: $5.550 - $5.650 billion
  • Adjusted EBITDA: $2.800 - $2.900 billion
  • Cash basis rental rates on renewal leases: 4.0% - 6.0%
  • GAAP basis rental rates on renewal leases: 6.0% - 8.0%
  • Year-end portfolio occupancy: +100 - 200 bps

Headwinds

  • Net non-cash rent adjustments: ($35 - $40 million)
  • G&A: $450 - $460 million
  • Same-Capital cash NOI growth: 2.0% - 3.0%
  • U.S. Dollar / Pound Sterling: $1.25 - $1.30
  • U.S. Dollar / Euro: $1.05 - $1.10

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 Q4 2023

Historical avgQ4 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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