Digital Realty Trust Inc (DLR) Reports Q3 2023 Earnings
Digital Realty Trust Inc (NYSE:DLR) reported Q3 2023 revenues of $1.4 billion, marking an 18% increase from the same quarter last year.
The company delivered net income of $746 million, with net income available to common stockholders of $723 million, or $2.33 per diluted share.
Digital Realty generated Adjusted EBITDA of $686 million in Q3 2023, an 11% increase over the same quarter last year.
The company reported record leasing activity in the 0-1 megawatt plus interconnection category and robust leasing in the greater-than-a-megawatt category.
On October 26, 2023, Digital Realty Trust Inc (NYSE:DLR), a leading provider of data center, colocation, and interconnection solutions, released its financial results for the third quarter of 2023. The company reported a 3% increase in revenues from the previous quarter and an 18% increase from the same quarter last year, with total revenues amounting to $1.4 billion.
Financial Performance
Digital Realty delivered net income of $746 million and net income available to common stockholders of $723 million, or $2.33 per diluted share. This is a significant increase compared to $0.37 per diluted share in the previous quarter and $0.75 per diluted share in the same quarter last year. The company generated Adjusted EBITDA of $686 million, marking a 2% decrease from the previous quarter but an 11% increase over the same quarter last year.
Funds From Operations
The company reported Funds From Operations (FFO) of $482 million in Q3 2023, or $1.55 per share, which is consistent with the same quarter last year and a slight increase from $1.52 per share in the previous quarter. Excluding certain non-core items, Digital Realty delivered Core FFO per share of $1.62 in Q3 2023, compared to $1.68 per share in the previous quarter and $1.67 per share in the same quarter last year.
Leasing Activity and Investment Activity
Digital Realty signed total bookings expected to generate $152 million of annualized GAAP rental revenue in Q3 2023. The company also signed renewal leases representing $157 million of annualized GAAP rental revenue during the quarter. Rental rates on renewal leases signed during Q3 2023 increased 7.4% on a cash basis and 9.5% on a GAAP basis.
As for investment activity, Digital Realty formed joint ventures with GI Partners and TPG Real Estate, and expanded its joint venture in India with Brookfield Infrastructure. The company also secured land near Marseille, France, for future data center development.
Balance Sheet and 2023 Outlook
As of September 30, 2023, Digital Realty had approximately $16.9 billion of total debt outstanding. The company narrowed its 2023 Core FFO per share and constant-currency Core FFO per share outlook to $6.58 - $6.62.
Digital Realty's Q3 2023 results demonstrate strong demand across its product spectrum and robust leasing activity. The company continues to de-lever while reinvesting to meet the needs of its customers.
Explore the complete 8-K earnings release (here) from Digital Realty Trust Inc for further details.
This article first appeared on GuruFocus.
