Digital Realty Trust (DLR) Q4 2023 earnings summary

Executive summary

• Demand remained healthy across regions and products, with AI cited as a driver and strong 0–1 MW and interconnection signings.

• Priorities included expanding global capacity, strengthening connectivity, integrating and innovating for customers, and diversifying capital sources.

Financial highlights

• Q4 revenue was $1.025B vs. $906.6M YoY; FY revenue was $4.073B vs. $3.560B.

• Q4 net income available to common stockholders was $18.1M vs. a $6.1M loss YoY; FY net income was $908.1M vs. $337.1M.

• Q4 diluted Core FFO was $1.63/share vs. $1.65 YoY; FY Core FFO was $6.59/share vs. $6.70.

• Q4 Adjusted EBITDA was $699.5M vs. $639.0M YoY; FY Adjusted EBITDA was $2.750B vs. $2.473B.

• Q4 AFFO was $407M, or $1.30 per diluted share; dividends were $1.22/share and diluted AFFO payout was 93.6%.

Outlook and guidance

• FY24 revenue guidance was $5.55B–$5.65B; Adjusted EBITDA guidance was $2.80B–$2.90B and G&A guidance was $450M–$460M.

• FY24 Core FFO guidance was $6.60–$6.75/share; same-capital cash NOI growth guidance was 2.0%–3.0%.

• FY24 cash renewal rent growth guidance was 4%–6%, with GAAP growth of 6%–8%; year-end occupancy was expected to rise 100–200 bps from 2023’s 81.7%.

• Dispositions/JV capital guidance was $1.0B–$1.5B at 6%–8% cap rates; development CapEx net of partner contributions was $2.0B–$2.5B, with average stabilized yields of 10%+.