Digital Realty Trust, Inc. Q4 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Key Highlights

  • Record annual leasing of $1 billion in 2024, including a second consecutive quarterly record in the 0–1 MW + interconnection segment.
  • Liquidity exceeds $6 billion after raising over $2 billion in new debt and equity and over $500 million from asset sales and joint ventures.
  • Leverage reduced to 4.8x, down from 6.2x at the start of 2024.
  • Core FFO per share up 6% year-over-year in Q4 2024, supported by 8% data center revenue growth and 7.4% adjusted EBITDA growth.
  • Development pipeline expanded 75% to more than $7 billion of projects, 70% pre-leased, with over 200 MW delivered during 2024.
  • Massive industry momentum driven by AI demand; 2024 leases were 80% higher than the previous record year.

Operational Performance

  • Q4 2024 new leasing totaled $100 million, including a record $76 million in the 0–1 MW + interconnection segment (up 16% sequentially).
  • Interconnection bookings nearly matched the prior quarter’s record at $15 million.
  • 166 new customer logos added in the quarter; nearly 600 added for the full year.
  • Backlog at year-end 2024: $797 million (down slightly as commencements exceeded new bookings).
  • Renewals in Q4: $250 million, with blended cash rent increases of 4.7%; full-year renewal spreads averaged 9%, well above the initial 4–6% guidance.
  • Churn well controlled at 2% in Q4.

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Operator: Good afternoon, and welcome to the Digital Realty Fourth Quarter 2024 Earnings Call. Please note this event is being recorded. During today's presentation, all parties will be in 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 top 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 2024 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 contain certain 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

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