Digital Realty Reports Third Quarter 2020 Results

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SAN FRANCISCO, Oct. 29, 2020 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today financial results for the third quarter of 2020. All per-share results are presented on a fully-diluted share and unit basis.

Highlights

  • Reported net loss available to common stockholders of ($0.14) per share in 3Q20, compared to net income available to common stockholders of $0.24 in 3Q19

  • Reported FFO per share of $1.19 in 3Q20, compared to $1.59 in 3Q19

  • Reported core FFO per share of $1.54 in 3Q20, compared to $1.67 in 3Q19

  • Signed total bookings during 3Q20 expected to generate $89 million of annualized GAAP rental revenue, including a $14 million contribution from interconnection

  • Raised 2020 core FFO per share outlook from $6.00-$6.10 to $6.10-$6.15

Financial Results

Digital Realty reported revenues for the third quarter of 2020 of $1.0 billion, a 3% increase from the previous quarter and a 27% increase from the same quarter last year.

The company delivered third quarter of 2020 net loss of ($1) million, and a net loss available to common stockholders of ($37) million, or ($0.14) per diluted share, compared to $0.20 per diluted share in the previous quarter and $0.24 per diluted share in the same quarter last year.

Digital Realty generated third quarter of 2020 Adjusted EBITDA of $568 million, a 2% increase from the previous quarter and a 17% increase over the same quarter last year.

The company reported third quarter of 2020 funds from operations of $336 million, or $1.19 per share, compared to $1.49 per share in the previous quarter and $1.59 per share in the same quarter last year.

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered third quarter of 2020 core FFO per share of $1.54, unchanged from $1.54 per share in the previous quarter, and an 8% decrease from $1.67 per share in the same quarter last year.

Leasing Activity

In the third quarter, Digital Realty signed total bookings expected to generate $89 million of annualized GAAP rental revenue, including a $14 million contribution from interconnection.

"We delivered solid third-quarter results, driven by consistent execution and growth across the business," said Digital Realty Chief Executive Officer A. William Stein. "Our new logo growth and heightened deal velocity reflect the power of our global platform and the resiliency of our business. As we close out the year, we remain focused on delivering for our customers, maintaining our momentum, and investing in our global platform to support long-term growth."

The weighted-average lag between leases signed during the third quarter of 2020 and the contractual commencement date was seven months.

In addition to new leases signed, Digital Realty also signed renewal leases representing $161 million of annualized GAAP rental revenue during the quarter. Rental rates on renewal leases signed during the third quarter of 2020 rolled down 0.2% on a cash basis and up 0.4% on a GAAP basis.

New leases signed during the third quarter of 2020 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



$14,491


67,724



$214


6.1



$199

> 1 MW



12,340


99,141



124


9.6



107

Other (1)



62


1,394



45




Total



$26,894


168,259



$160


15.7



$143















Europe (2)














0-1 MW



$12,116


47,928



$253


4.1



$245

> 1 MW



19,715


117,021



168


12.4



133

Other (1)



281


1,056



266




Total



$32,112


166,004



$193


16.5



$161















Asia Pacific (2)














0-1 MW



$2,563


13,492



$190


1.0



$220

> 1 MW



13,476


73,238



184


9.0



125

Other (1)



93


2,733






Total



$16,133


89,463



$180


10.0



$134















All Regions (2)














0-1 MW



$29,171


129,144



$226


11.1



$218

> 1 MW



45,532


289,400



157


31.0



123

Other (1)



436


5,183



84




Total



$75,138


423,726



$177


42.1



$148















Interconnection



$13,576


N/A



N/A


N/A



N/A















Grand Total



$88,714


423,726



$177


42.1



$148


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 September 30, 2020.

Investment Activity

During the third quarter of 2020, Digital Realty closed on the previously announced acquisition of the freehold to the land under its Hanauer Landstraße campus in Frankfurt for €185 million, or approximately $217 million. The site includes nine Interxion data centers previously subject to leasehold agreements with approximately nine years of remaining lease term, along with Interxion's German headquarters office as well as several buildings currently leased to other customers. Interxion now owns the freehold to all 15 data centers on its Frankfurt campus.

During the third quarter of 2020, Digital Realty acquired Altus IT, the leading carrier-neutral data center provider in Croatia, for approximately €11 million, or approximately $13 million. Altus IT's highly-connected data center provides access to more than 100 customers, approximately 50 connectivity providers – including five tier-one carriers – and two main internet exchanges, establishing it as one of the most interconnected communities within Southeastern Europe.

Digital Realty also closed on the previously announced sale of a property in Gronigen, the Netherlands for €20 million, or approximately $23 million. The property is expected to generate 2020 cash net operating income of approximately €1.3 million, or approximately $1.6 million, representing a 6.7% cap rate.

During the third quarter of 2020, Digital Realty acquired the freehold to a parcel of land within approximately one kilometer of its existing campus in Vienna, Austria for €17 million, or approximately $19 million. The expansion parcel totals 22,000 square meters that will support the development of up to 40 megawatts of additional IT capacity. The parcel will be fully connected to the existing campus, the most highly connected in the Central and Eastern European region with 120 carriers, four Internet Exchanges and direct access to seven global cloud platforms.

Balance Sheet

Digital Realty completed the following financing transactions during the third quarter of 2020.

  • In early August, Digital Realty issued approximately 1.6 million shares of common stock under the company's at-the-market equity offering program at a weighted average price of $160.15 per share, generating gross proceeds of approximately $249 million.

  • Also in early August, Digital Realty redeemed all $300 million of its outstanding 3.625% notes due 2022 and all $500 million of its outstanding 3.950% notes due 2022.

  • In early September, Digital Realty redeemed all $250 million of its 6.350% Series I preferred stock.

  • In late September, Digital Realty closed an offering of €750 million, or approximately $880 million, of 1.0% Euro bonds due 2032 as well as €300 million, or approximately $350 million, of floating rate notes due 2022.

  • Likewise in late September, Digital Realty settled the remaining 9.775 million shares subject to the forward sale agreements originally entered into during the third quarter of 2018, generating net proceeds of approximately $1 billion.

  • Subsequent to quarter-end, Digital Realty redeemed all £300 million of its 4.750% notes due 2023 as well as all $250 million of its 5.875% Series G preferred stock.

Digital Realty had approximately $12.9 billion of total debt outstanding as of September 30, 2020, comprised of $12.7 billion of unsecured debt and approximately $0.2 billion of secured debt. At the end of the third quarter of 2020, net debt-to-Adjusted EBITDA was 5.6x, debt plus-preferred-to-total enterprise value was 25.0% and fixed charge coverage was 4.4x.

COVID-19

Throughout the COVID-19 global pandemic, Digital Realty's data centers around the world have remained fully operational in accordance with business continuity and pandemic response plans, prioritizing the health and safety of employees, customers and partners while ensuring service levels are maintained. Digital Realty data centers have been deemed essential operations, allowing for critical personnel to remain in place and continue to provide services and support for customers. Construction activity has been somewhat delayed in a few markets due to government restrictions in certain locations and/or limited availability of labor. In some instances, these delays have impacted scheduled delivery dates. We are monitoring the situation closely and remain in frequent communication with customers, contractors and suppliers. We have proactively managed our supply chain, and we believe we have acquired the vast majority of the equipment needed to complete our 2020 development activities. We believe we have ample liquidity to fund our business needs, given the $971 million of cash on the balance sheet and $2.5 billion of availability under our global revolving credit facilities as of September 30, 2020. While we have not experienced any significant business disruptions from the COVID-19 pandemic to date, we cannot predict what impact the COVID-19 pandemic may have on our future financial condition, results of operations or cash flows due to numerous uncertainties.

2020 Outlook

Digital Realty raised its 2020 core FFO per share outlook from $6.00-$6.10 to $6.10-$6.15. The assumptions underlying the outlook are summarized in the following table.










As of


As of


As of

Top-Line and Cost Structure


May 7, 2020


July 30, 2020


October 29, 2020

Total revenue


$3.725 - $3.825 billion


$3.775 - $3.825 billion


$3.850 - $3.875 billion

Net non-cash rent adjustments (1)


($20 - $30 million)


($20 - $30 million)


($20 - $30 million)

Adjusted EBITDA


$2.075 - $2.125 billion


$2.100 - $2.125 billion


$2.150 - $2.175 billion

G&A


$320 - $330 million


$320 - $330 million


$325 - $335 million








Internal Growth







Rental rates on renewal leases







Cash basis


Down low single-digits


Down low single-digits


Slightly negative

GAAP basis


Unchanged


Unchanged


Slightly positive

Year-end portfolio occupancy (2)


85.0% - 86.0%


85.0% - 86.0%


85.0% - 86.0%

"Same-capital" cash NOI growth (3)


(2.5%) - (3.5%)


(2.5%) - (3.5%)


(1.5%) - (2.5%)








Foreign Exchange Rates







U.S. Dollar / Pound Sterling


$1.20 - $1.25


$1.20 - $1.25


$1.20 - $1.30

U.S. Dollar / Euro


$1.05 - $1.10


$1.05 - $1.15


$1.10 - $1.15








External Growth







Dispositions







Dollar volume


$0.6 - $1.0 billion


$0.6 - $1.0 billion


$0.6 - $1.0 billion

Cap rate


0.0% - 12.0%


0.0% - 12.0%


0.0% - 12.0%

Development







CapEx (4)


$1.9 - $2.2 billion


$1.9 - $2.2 billion


$1.9 - $2.2 billion

Average stabilized yields


9.0% - 15.0%


9.0% - 15.0%


9.0% - 15.0%

Enhancements and other non-recurring CapEx (5)


$5 - $10 million


$5 - $10 million


$5 - $10 million

Recurring CapEx + capitalized leasing costs (6)


$220 - $230 million


$220 - $230 million


$200 - $210 million








Balance Sheet







Long-term debt issuance







Dollar amount


$1.9 billion


$2.5 billion


$3.7 billion

Pricing


1.00%


1.00% - 1.25%


1.00%

Timing


Early 2020


Early-to-mid 2020


Early-to-mid 2020








Net income per diluted share


$1.60 - $1.75


$1.20 - $1.25


$1.25 - $1.30

Real estate depreciation and (gain) / loss on sale


$3.50 - $3.50


$3.90 - $3.90


$3.90 - $3.90

Funds From Operations / share (NAREIT-Defined)


$5.10 - $5.25


$5.10 - $5.15


$5.15 - $5.20

Non-core expenses and revenue streams


$0.80 - $0.85


$0.90 - $0.95


$0.95 - $0.95

Core Funds From Operations / share


$5.90 - $6.10


$6.00 - $6.10


$6.10 - $6.15

Foreign currency translation adjustments


$0.05 - $0.15


$0.05 - $0.15


$0.00 - $0.15

Constant-Currency Core FFO / share


$5.95 - $6.25


$6.05 - $6.25


$6.10 - $6.30



(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)

Reflects inclusion of the Interxion portfolio, which was approximately 75% occupied as of September 30, 2020.

(3)

The "same-capital"pool includes properties owned as of December 31, 2018 with less than 5% of total rentable square feet under development. It also excludes properties that were undergoing, or were expected to undergo, development activities in 2019–2020, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented.

(4)

Includes land acquisitions.

(5)

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.

(6)

Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.

Non-GAAP Financial Measures

This press release 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 October 29, 2020, 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 third quarter 2020 financial results and operating performance. The conference call will feature Chief Executive Officer A. William Stein and 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# 1657717 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 November 29, 2020. 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# 10148191. The webcast replay can be accessed on Digital Realty's website.

About Digital Realty

Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture PDx™ solution methodology for scaling digital business and efficiently managing data gravity challenges. Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with more than 284 facilities in 48 metros across 23 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
Chief Financial Officer
Digital Realty
(415) 738–6500

John J. Stewart / Jim Huseby
Investor Relations
Digital Realty
(415) 738–6500

Consolidated Quarterly Statements of Operations

Unaudited and Dollars in Thousands, Except Per Share Data



























Three Months Ended



Nine Months Ended




30-Sep-20



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19




30-Sep-20



30-Sep-19

Rental revenues



$726,441



$698,041



$579,774



$549,733



$564,975




$2,004,256



$1,716,325

Tenant reimbursements - Utilities



155,111



141,576



113,520



107,518



114,719




410,207



323,697

Tenant reimbursements - Other



53,654



62,630



56,943



59,641



57,466




173,227



176,154

Interconnection & other



85,725



85,428



69,835



65,576



65,312




240,988



197,712

Fee income



3,687



4,353



2,452



4,814



3,994




10,492



6,840

Other



50



967



813



181






1,830



1,050

Total Operating Revenues



$1,024,668



$992,995



$823,337



$787,463



$806,466




$2,841,000



$2,421,778
























Utilities



$177,925



$160,173



$129,526



$125,127



$132,565




$467,623



$380,297

Rental property operating



180,755



172,474



136,182



129,034



126,866




489,411



386,120

Property taxes



39,732



45,071



42,123



42,541



38,255




126,926



117,052

Insurance



2,926



3,370



3,547



3,055



3,103




9,843



9,535

Depreciation & amortization



365,842



349,165



291,457



275,008



286,718




1,006,464



888,766

General & administration



90,431



90,649



62,266



53,540



49,862




243,346



154,156

Severance, equity acceleration, and legal expenses



920



3,642



1,272



1,130



123




5,834



2,271

Transaction and integration expenses



14,953



15,618



56,801



17,106



4,115




87,372



10,819

Impairment of investments in real estate



6,482












6,482



5,351

Other expenses



297



22



114



1,989



92




433



12,129

Total Operating Expenses



$880,263



$840,184



$723,288



$648,530



$641,699




$2,443,734



$1,966,496
























Operating Income



$144,405



$152,811



$100,049



$138,933



$164,767




$397,266



$455,282
























Equity in (loss) earnings of unconsolidated joint ventures



(2,056)



(7,632)



(78,996)



11,157



(19,269)




(88,684)



(3,090)

Gain on sale / deconsolidation



10,410





304,801



267,651






315,211



67,497

Interest and other income (expense), net



4,348



22,163



(3,542)



10,734



16,842




22,969



55,266

Interest (expense)



(89,499)



...

(79,874)



(85,800)



(80,880)



(84,574)




(255,173)



(272,177)

Income tax benefit (expense)



(16,053)



(11,490)



(7,182)



1,731



(4,826)




(34,725)



(13,726)

Loss from early extinguishment of debt



(53,007)





(632)





(5,366)




(53,639)



(39,157)

Net (Loss) / Income



($1,452)



$75,978



$228,698



$349,326



$67,574




$303,225



$249,895
























Net (income) loss attributable to noncontrolling interests



1,316



(1,147)



(4,684)



(13,042)



(1,077)




(4,515)



(6,418)

Net Income Attributable to Digital Realty Trust, Inc.



($136)



$74,831



$224,014



$336,284



$66,497




$298,710



$243,477
























Preferred stock dividends, including undeclared dividends



(20,712)



(21,155)



(21,155)



(20,707)



(16,670)




(63,022)



(54,283)

Issuance costs associated with redeemed preferred stock



(16,520)












(16,520)



(11,760)

Net (Loss) / Income Available to Common Stockholders



($37,368)



$53,676



$202,859



$315,577



$49,827




$219,168



$177,434
























Weighted-average shares outstanding - basic



270,214,413



267,569,823



222,163,324



208,776,355



208,421,470




253,377,527



208,173,995

Weighted-average shares outstanding - diluted



270,214,413



270,744,408



224,474,295



210,286,278



209,801,771




256,362,579



209,199,535

Weighted-average fully diluted shares and units



281,523,515



278,719,109



232,753,630



218,901,078



218,755,597




264,401,464



218,280,351
























Net (loss) / income per share - basic



($0.14)



$0.20



$0.91



$1.51



$0.24




$0.86



$0.85

Net (loss) / income per share - diluted



($0.14)



$0.20



$0.90



$1.50



$0.24




$0.85



$0.85

Funds From Operations and Core Funds From Operations

Unaudited and in Thousands, Except Per Share Data


























Three Months Ended



Nine Months Ended

Reconciliation of Net Income to Funds From Operations (FFO)



30-Sep-20



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19




30-Sep-20



30-Sep-19
























Net (Loss) / Income Available to Common Stockholders



($37,368)



$53,676



$202,859



$315,577



$49,827




$219,167



$177,434

Adjustments:























Non-controlling interest operating partnership



(1,000)



1,400



7,800



13,100



2,300




8,200



8,000

Real estate related depreciation & amortization (1)



358,619



342,334



286,517



271,371



283,090




987,470



877,869

Unconsolidated JV real estate related depreciation & amortization



19,213



17,123



19,923



21,631



13,612




56,259



31,086

(Gain) on real estate transactions



(10,410)



-



(304,801)



(267,651)



-




(315,211)



-

Impairment of investments in real estate



6,482



-



-



-



-




6,482



5,351

Funds From Operations



$335,536



$414,533



$212,298



$354,028



$348,829




$962,367



$1,099,740
























Funds From Operations - diluted



$335,536



$414,533



$212,298



$354,028



$348,829




$962,367



$1,099,740
























Weighted-average shares and units outstanding - basic



278,079



275,545



230,443



217,391



217,375




261,416



217,255

Weighted-average shares and units outstanding - diluted (2)



281,524



278,719



232,754



218,901



218,756




264,401



218,280
























Funds From Operations per share - basic



$1.21



$1.50



$0.92



$1.63



$1.60




$3.68



$5.06
























Funds From Operations per share - diluted (2)



$1.19



$1.49



$0.91



$1.62



$1.59




$3.64



$5.04




Three Months Ended



Nine Months Ended

Reconciliation of FFO to Core FFO



30-Sep-20



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19




30-Sep-20



30-Sep-19
























Funds From Operations - diluted



$335,536



$414,533



$212,298



$354,028



$348,829




$962,367



$1,099,740

Termination fees and other non-core revenues (3)



(5,713)



(21,908)



(2,425)



(5,634)



(16,792)




(30,046)



(48,063)

Transaction and integration expenses



14,953



15,618



56,801



17,106



4,115




87,372



10,819

Loss from early extinguishment of debt



53,007



-



632



-



5,366




53,639



39,157

Issuance costs associated with redeemed preferred stock



16,520



-



-



-



-




16,520



11,760

Severance, equity acceleration, and legal expenses (4)



920



3,642



1,272



1,130



123




5,834



2,271

(Gain) / Loss on FX revaluation



10,312



17,526



81,288



(10,422)



23,136




109,126



28,489

(Gain) on contribution to unconsolidated JV, net of related tax



-



-



-



-



-




-



(58,497)

Other non-core expense adjustments



6,697



22



5,509



(1,511)



92




12,228



12,129

Core Funds From Operations - diluted



$432,232



$429,433



$355,375



$354,697



$364,869




$1,217,040



$1,097,805
























Weighted-average shares and units outstanding - diluted (2)



281,524



278,719



232,754



218,901



218,756




264,401



218,280
























Core Funds From Operations per share - diluted (2)



$1.54



$1.54



$1.53



$1.62



$1.67




$4.60



$5.03

























(1) Real Estate Related Depreciation & Amortization


Three Months Ended



Nine Months Ended




30-Sep-20



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19




30-Sep-20



30-Sep-19
























Depreciation & amortization per income statement



$365,842



$349,165



$291,457



$275,008



$286,718




1,006,464



888,766

Non-real estate depreciation



(7,223)



(6,831)



(4,940)



(3,637)



(3,628)




(18,994)



(10,897)

Real Estate Related Depreciation & Amortization



$358,619



$342,334



$286,517



$271,371



$283,090




$987,470



$877,869



(2)

For all periods presented, we have excluded the effect of dilutive series C, series G, series H, series I, 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 G, series H, series I, series J, series K and series L preferred stock, as applicable, which we consider highly improbable. 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 definition section.

(3)

Includes lease termination fees and certain other adjustments that are not core to our business.

(4)

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



Nine Months Ended

Reconciliation of Core FFO to AFFO



30-Sep-20



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19




30-Sep-20



30-Sep-19
























Core FFO available to common stockholders and unitholders



$432,232



$429,433



$355,375



$354,697



$364,869




$1,217,040



$1,097,805

Adjustments:























Non-real estate depreciation



7,223



6,831



4,940



3,637



3,628




18,994



10,897

Amortization of deferred financing costs



3,655



3,661



4,260



3,064



2,900




11,576



10,298

Amortization of debt discount/premium



987



1,011



943



612



466




2,941



1,741

Non-cash stock-based compensation expense



15,969



15,060



12,153



8,937



8,906




43,182



25,966

Straight-line rental revenue



(10,017)



(10,928)



(15,404)



(13,994)



(12,764)




(36,349)



(41,776)

Straight-line rental expense



3,934



7,373



1,460



(342)



(209)




12,767



1,342

Above- and below-market rent amortization



2,360



3,794



3,294



4,109



2,824




9,448



12,988

Deferred tax expense



6,421



(150)



(792)



(998)



(1,418)




5,479



(17,794)

Leasing compensation & internal lease commissions (1)



6,052



1,739



2,793



3,646



3,254




10,584



10,860

Recurring capital expenditures (2)



(53,683)



(38,796)



(34,677)



(54,731)



(48,408)




(127,156)



(125,982)
























AFFO available to common stockholders and unitholders (3)



$415,133



$419,028



$334,345



$308,637



$324,048




$1,168,506



$986,345
























Weighted-average shares and units outstanding - basic



278,079



275,545



230,443



217,391



217,375




261,416



217,255

Weighted-average shares and units outstanding - diluted (4)



281,524



278,719



232,754



218,901



218,756




264,401



218,280
























AFFO per share - diluted (4)



$1.47



$1.50



$1.44



$1.41



$1.48




$4.42



$4.52
























Dividends per share and common unit



$1.12



$1.12



$1.12



$1.08



$1.08




$3.36



$3.24
























Diluted AFFO Payout Ratio



76.0%



74.5%



78.0%



76.6%



72.9%




76.0%



71.7%



























Three Months Ended



Nine Months Ended

Share Count Detail



30-Sep-20



30-Jun-20



31-Mar-20



31-Dec-19



30-Sep-19




30-Sep-20



30-Sep-19
























Weighted Average Common Stock and Units Outstanding



278,079



275,545



230,443



217,391



217,375




261,416



217,255

Add: Effect of dilutive securities



3,445



3,174



2,311



1,510



1,381




2,985



1,025

Weighted Avg. Common Stock and Units Outstanding - diluted



281,524



278,719



232,754



218,901



218,756




264,401



218,280



(1)

The company adopted ASC 842 in the first quarter of 2019.

(2)

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.

(3)

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.

(4)

For all periods presented, we have excluded the effect of dilutive series C, series G, series H, series I, 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 G, series H, series I, series J, series K and series L preferred stock, as applicable, which we consider highly improbable. 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-Sep-20


30-Jun-20


31-Mar-20


31-Dec-19


30-Sep-19

Assets





















Investments in real estate:
















Real estate



$22,125,486



$20,843,273



$20,477,290



$16,886,592



$16,407,080

Construction in progress



2,328,654



2,514,324



2,204,869



1,732,555



1,647,130

Land held for future development



198,536



175,209



137,447



147,597



150,265

Investments in real estate



$24,652,676



$23,532,806



$22,819,606



$18,766,744