Digital Realty Trust, Inc. Q4 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter & Full-Year Highlights

  • Leasing remained strong across segments, with especially robust activity in the 0–1 MW + interconnection category and record pricing in >1 MW hyperscale deals.
  • Added 134 new logos in Q4 and more than 500 for FY2023, the second‑highest quarter ever for new customer additions.
  • Same‑capital cash NOI growth reached 9.9% year-over-year in Q4 – the strongest in years. FY2023 growth was 7.5% versus 6.5% in FY2022 (constant-currency).
  • Cash renewal spreads rose 8.2% in Q4 (highest of the year). Full‑year renewal spreads were 6.8% cash, or 5.5% normalized for short-term renewals.
  • Record backlog of $495 million in signed but not yet commenced leases (up from $389 million last quarter). Approximately two‑thirds expected to commence in 2024.
  • Interconnection revenue grew 9% year-over-year to $106 million; 220,000 cross‑connects installed, despite ongoing network grooming.
  • Total revenue grew 11% year-over-year, supported by strong organic performance and higher energy reimbursements.

Strategic & Operational Developments

  • $12+ billion in capital raised in 2023 across JVs, equity issuance, and asset sales, reducing pro forma leverage to 5.8× (below the sub‑6× target).

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Good afternoon and welcome to the Digital Realty Fourth Quarter 2023 Earnings Call. Please note, this event is being recorded. During today's presentation, all parties will be placed in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Callers will be limited to one question and we will aim to conclude at the bottom of the hour. 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, operator, and welcome, everyone to Digital Realty's Fourth Quarter 2023 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, Colin McLean, are also on the call and will be available for Q&A. Management will be making 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 also 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 c

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional