Digital Realty Trust (DLR) Q4 2024 earnings summary

Executive summary

• Achieved record full-year leasing exceeding $1 billion, with strong performance in the zero to one megawatt and interconnection segments, and nearly 600 new customers added in 2024.

• Expanded portfolio capacity by over 200 megawatts, with 42MW delivered and 42MW started in 4Q24, and scaled the development pipeline by over 75% to $7+ billion, 70% pre-leased.

• Rolled out new products and services, including High-Density Colo 2.0 and ServiceFabric expansion, supporting AI and high-density workloads.

• Strengthened sustainability leadership with 1.5GW contracted renewable energy, $7.2B in green bonds, and new solar projects in South Africa and Chicago, plus an AI-driven water conservation initiative in 35 U.S. data centers.

• Raised over $2 billion in new debt and equity, plus $500 million from asset sales and JV contributions in Q4, boosting liquidity to over $6 billion and reducing leverage to 4.8x.

Financial highlights

• Full-year 2024 total revenue reached $5.55 billion, up from $5.48 billion in 2023; Adjusted EBITDA was $2.95 billion, up from $2.75 billion.

• Fourth quarter Core FFO per share was $1.73, up 6.1% year-over-year; full-year Core FFO per share was $6.71, with constant currency Core FFO per share at $6.72.

• Same-Capital Cash NOI increased 1.4% year-over-year in Q4 and 2.8% for the full year.

• Signed $100 million in new leases in Q4, with $76 million from the zero to one megawatt segment (up 16% sequentially), and $23 million from greater-than-a-megawatt deals.

• Renewal leases in Q4 totaled $250 million at a blended 4.7% cash increase; full-year renewal spreads were 9%, or 5.2% excluding package deals.

Outlook and guidance

• 2025 Core FFO per share guidance is $7.05–$7.15 (constant currency), implying 5.7% year-over-year growth.

• 2025 revenue guidance: $5.8–$5.9 billion; Adjusted EBITDA: $3.1–$3.2 billion.

• Same-Capital Cash NOI projected to grow 3.5%–4.5% in 2025.

• Cash renewals expected to rise 4%–6%; occupancy to improve by 100–200 basis points.

• Net CapEx (after partner contributions) expected at $3–$3.5 billion; gross CapEx at $4.5 billion; $500 million–$1 billion in dispositions/JV capital planned.