Digital Realty Trust, Inc. Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Digital Realty reported Q4 2022 results in line with expectations, demonstrating strengthening demand, improving pricing trends, and stabilization across its global data center portfolio.
  • Core FFO per share for Q4 was $1.65, down 1% sequentially and year-over-year, but up 2% year-over-year on a constant-currency basis.
  • 2022 full-year constant currency core FFO per share was $6.91, representing 6% growth over 2021.
  • Record backlog of $477 million in signed-but-not‑commenced leases (up significantly, partly due to the Teraco acquisition).
  • Continued strong customer additions: 106 new logos in Q4, maintaining the streak of 100+ new customers per quarter for nearly 3 years.

Business Performance and Demand Trends

  • Q4 leasing totaled $117 million, supported by a rebound in sub‑1MW enterprise deals and record interconnection bookings.
  • Interconnection accounted for 40% of total bookings; strong demand across Americas, EMEA, and APAC.
  • 0–1MW segment delivered its second‑best quarter of 2022 at the highest average rate of the year.
  • Large-scale hyperscale demand remains robust despite market commentary suggesting softening cloud revenue growth.
  • New logos included major enterprises: Avnet, global automotive manufacturers, several top European financial institutions, and a global asset manager using Digital's HPE GreenLake alliance.

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Operator: Good afternoon and welcome to the Digital Realty Fourth Quarter 2022 Earnings Call. Please note this event is being recorded. [Operator Instructions] I would now like to turn the call over to Jordan Sadler, Digital Realty’s Senior Vice President of Public and Private Investor Relations. Jordan, please go ahead. Jordan Sadler: Thank you, Andrea and welcome everybody to Digital Realty’s fourth quarter 2022 earnings conference call. Joining me on today’s call are President and CEO, Andy Power; and CFO, Matt Mercier. Chief Investment Officer, Greg Wright; Chief Technology Officer, Chris Sharp; and Chief Revenue Officer, Corey Dyer are also on the call and will be available for Q&A. Management may make forward-looking statements, including guidance and underlying assumptions on today’s call. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our 10-K and subsequent filings with the SEC. This call will contain non-GAAP financial information. Reconciliations to net income are included in the supplemental package furnished to the SEC and available on our website. Before I turn the call over to Andy, let me offer a few key takeaways from our fourth quarter. First, the combination of strong demand and tightening levels of supply are translating into broad-based price improvements, which is reflected in the increased re-lea

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