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Digital Realty Reports Fourth Quarter 2024 Results

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DALLAS, Feb. 13, 2025 /PRNewswire/ — Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today financial results for the fourth quarter of 2024. All per share results are presented on a fully diluted basis.

Highlights

Reported net income available to common stockholders of $0.51 per share in 4Q24, compared to $0.03 in 4Q23Reported FFO per share of $1.61 in 4Q24, compared to $1.53 in 4Q23Reported Core FFO per share of $1.73 in 4Q24, compared to $1.63 in 4Q23Reported rental rate increases on renewal leases of 4.7% on a cash basis in 4Q24Signed total bookings during 4Q24 that are expected to generate $100 million of annualized GAAP rental revenue, including a record $76 million contribution from the 0–1 megawatt plus interconnection categoryReported backlog of $797 million of annualized GAAP base rent at the end of 4Q24Introduced 2025 Constant-Currency Core FFO per share outlook of $7.05$7.15

Financial Results

Digital Realty reported revenues of $1.4 billion in the fourth quarter of 2024, a slight increase from the previous quarter and a 5% increase from the same quarter last year.

The company delivered net income of $186 million in the fourth quarter of 2024, and net income available to common stockholders of $179 million, or $0.51 per share, compared to $0.09 per share in the previous quarter and $0.03 per share in the same quarter last year.

Digital Realty generated Adjusted EBITDA of $751 million in the fourth quarter of 2024, a 1% decrease from the previous quarter and a 7% increase over the same quarter last year.

The company reported Funds From Operations (FFO) of $545 million in the fourth quarter of 2024, or $1.61 per share, compared to $1.55 per share in the previous quarter and $1.53 per share in the same quarter last year. 

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered Core FFO per share of $1.73 in the fourth quarter of 2024, compared to $1.67 per share in the previous quarter and $1.63 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share of $1.73 for the fourth quarter of 2024 and $6.72 per share for the twelve-month period ended December 31, 2024.

“2024 was a remarkable year for Digital Realty, with record leasing driving impressive growth in our revenue backlog, and providing compelling visibility into our accelerating earnings growth,” said Digital Realty President & Chief Executive Officer Andy Power. “In the fourth quarter, we achieved multiple milestones across our growing 0-1 megawatt plus interconnection segment, eclipsing last quarter’s bookings record and adding a record 166 new customers to the platform, demonstrating the continued success of our global, full spectrum data center strategy.”

Leasing Activity

In the fourth quarter, Digital Realty signed total bookings that are expected to generate $100 million of annualized GAAP rental revenue, including a $62 million contribution from the 0–1 megawatt category and a $15 million contribution from interconnection.

The weighted-average lag between new leases signed during the fourth quarter of 2024 and the contractual commencement date was six months. The backlog of signed-but-not-commenced leases at quarter-end was $797 million of annualized GAAP base rent at Digital Realty’s share.

In addition to new leases signed, Digital Realty also signed renewal leases representing $250 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the fourth quarter of 2024 increased 4.7% on a cash basis and 9.1% on a GAAP basis.

1

New leases signed during the fourth quarter of 2024 are summarized by region and product as follows: 

Annualized GAAP

Base Rent

Square Feet

GAAP Base Rent

GAAP Base Rent

 Americas

(in thousands)

(in thousands)

per Square Foot

Megawatts

per Kilowatt

 0-1 MW

$29,612

90

$329

8.9

$277

 > 1 MW

3,978

20

197

2.2

154

 Other (1)

409

7

58

Total

$33,999

117

$290

11.1

$253

 EMEA (2)

 0-1 MW

$25,997

100

$259

9.4

$232

 > 1 MW

9,121

63

146

5.6

136

 Other (1)

91

1

97

Total

$35,209

164

$215

15.0

$196

 Asia Pacific (2)

 0-1 MW

$6,139

19

$322

1.5

$352

 > 1 MW

9,474

48

196

5.8

136

 Other (1)

100

1

70

Total

$15,713

69

$229

7.3

$179

 All Regions (2)

 0-1 MW

$61,748

209

$295

19.7

$261

 > 1 MW

22,573

131

172

13.6

139

 Other (1)

599

9

64

Total

$84,920

350

$243

33.3

$211

Interconnection

$14,587

N/A

N/A

N/A

N/A

Grand Total

$99,507

350

$243

33.3

$211

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 December 31, 2024.

Investment Activity

As previously disclosed, during the quarter, Digital Realty closed on the acquisition of a 6.7-acre parcel in Richardson, Texas, adjacent to its existing campus, for approximately $15 million, which can support the development of up to 100 megawatts of incremental IT capacity.

During the quarter, Digital Realty also closed on the following acquisitions:

156 acres of land in Charlotte, North Carolina for $160 million, which can support up to 400 megawatts of IT capacityThree acres of land in Madrid, Spain for approximately €25 million or $26 million, which can support up to 24 megawatts of IT capacity

During the quarter, Digital Realty closed on the following dispositions:

A facility in San Jose, California for approximately $10 millionA facility in Trumbull, Connecticut for approximately $10 millionA facility in Redhill, United Kingdom for approximately £64 million or $80 million

Also, during the quarter, Digital Realty closed on the sale to Digital Core REIT (SGX: DCRU) of an additional 15.1% interest in a data center located in Frankfurt, Germany for approximately €71 million or $74 million. The transaction valued the Frankfurt facility at €470 million or $508 million (at 100% share). Including two prior investments, Digital Core REIT now owns a 65% interest in this Frankfurt data center.

Further during the quarter, Digital Realty and Blackstone Inc. closed on the second phase of their $7 billion hyperscale data center development joint venture. The second phase includes portions of data center campuses in Frankfurt and Northern Virginia, which will support the growth of existing hyperscale data center capacity in the regions.

2

Balance Sheet

Digital Realty had approximately $16.7 billion of total debt outstanding as of December 31, 2024, comprised of $16.0 billion of unsecured debt and approximately $0.7 billion of secured debt and other. At the end of the fourth quarter of 2024, net debt-to-Adjusted EBITDA was 4.8x, debt-plus-preferred-to-total enterprise value was 22.3% and fixed charge coverage was 4.2x.

Digital Realty completed the following financing transactions during the fourth quarter:

In November, the company issued $1.15 billion of 1.875% exchangeable notes due 2029, for net proceeds of approximately $1.13 billion;In November, the company repaid a $500 million term loan; andThe company also sold 5.0 million shares of common stock under its At-The-Market (ATM) equity issuance program at a weighted average price of $185.63 per share, for net proceeds of approximately $923 million.

Subsequent to quarter end, the company issued €850 million of 3.875% notes due 2035, for net proceeds of approximately €841 million ($867 million). In January, the company also repaid £400 million ($501 million) of 4.25% senior notes.

3

2025 Outlook

Digital Realty introduced its 2025 Constant-Currency Core FFO per share outlook of $7.05$7.15. The assumptions underlying the outlook are summarized in the following table. 

As of

 Top-Line and Cost Structure

February 13, 2025

  Total revenue

$5.800 – $5.900 billion

  Net non-cash rent adjustments (1)

($45 – $50 million)

  Adjusted EBITDA

$3.100 – $3.200 billion

  G&A

$500 – $510 million

 Internal Growth

  Rental rates on renewal leases

    Cash basis

4.0% – 6.0%

    GAAP basis

6.0% – 8.0%

  Year-end portfolio occupancy

+100 – 200 bps

  “Same-Capital” cash NOI growth (2)

3.5% – 4.5%

  Foreign Exchange Rates

    U.S. Dollar / Pound Sterling

$1.20 – $1.25

    U.S. Dollar / Euro

$1.00 – $1.05

 External Growth

  Dispositions / Joint Venture Capital

    Dollar volume

$500 – $1,000 million

    Cap rate

0.0% – 10.0%

  Development

    CapEx (Net of Partner Contributions) (3)

$3,000 – $3,500 million

    Average stabilized yields

10.0%+

  Enhancements and other non-recurring CapEx (4)

$30 – $35 million

  Recurring CapEx + capitalized leasing costs (5)

$320 – $335 million

 Balance Sheet

  Long-term debt issuance

    Dollar amount

$900 – $1,500 million

    Pricing

5.0% – 5.5%

 Net income per diluted share

$2.10 – $2.20

  Real estate depreciation and (gain) / loss on sale

$4.50 – $4.50

 Funds From Operations / share (NAREIT-Defined)

$6.60 – $6.70

  Non-core expenses and revenue streams

$0.40 – $0.40

 Core Funds From Operations / share

$7.00 – $7.10

  Foreign currency translation adjustments

$0.05 – $0.05

 Constant-Currency Core Funds From Operations / share

$7.05 – $7.15

(1)

Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments).

(2)

The “Same-Capital” pool includes properties owned as of December 31, 2023 with less than 5% of total rentable square feet under development.  It excludes properties that were undergoing, or were expected to undergo, development activities in 2024-2025, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented. The 2025 “Same-Capital” cash NOI growth outlook is presented on a constant currency basis.

(3)

Excludes land acquisitions and includes Digital Realty’s share of JV contributions. Figure is net of JV partner contributions.

(4)

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.

(5)

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

Note: The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.

4

Non-GAAP Financial Measures

This document contains non-GAAP financial measures, including FFO, Core FFO, Constant Currency Core FFO, Adjusted FFO, Net Operating Income (NOI), “Same-Capital” Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO to Adjusted FFO, reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Constant Currency Core FFO, Adjusted FFO, NOI and “Same-Capital” Cash NOI 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.

The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the company’s control and/or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Investor Conference Call

Prior to Digital Realty’s investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on February 13, 2025, 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 fourth quarter 2024 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.

To participate in the live call, investors are invited to dial +1 (888) 317-6003 (for domestic callers) or +1 (412) 317-6061 (for international callers) and reference the conference ID# 5600611 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 March 13, 2025. The telephone replay can be accessed by dialing +1 (877) 344-7529 (for domestic callers) or +1 (412) 317-0088 (for international callers) and providing the conference ID# 3368293. The webcast replay can be accessed on Digital Realty’s website.

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

Contact Information

Matt Mercier
Chief Financial Officer
Digital Realty
(415) 874-2803

Jordan Sadler / Jim Huseby
Investor Relations 
Digital Realty
(415) 275-5344

5

 

Consolidated Quarterly Statements of Operations

Fourth Quarter 2024

Unaudited and in Thousands, Except Per Share Data

Three Months Ended

Twelve Months Ended

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

31-Dec-24

31-Dec-23

Rental revenues

$958,892

$956,351

$912,994

$894,409

$885,694

$3,722,646

$3,512,926

Tenant reimbursements – Utilities

302,664

305,097

274,505

276,357

316,634

1,158,623

1,299,676

Tenant reimbursements – Other

38,591

39,624

41,964

38,434

46,418

158,612

197,636

Interconnection & other

112,360

112,655

109,505

108,071

106,413

442,591

419,934

Fee income

23,316

12,907

15,656

13,010

14,330

64,888

44,926

Other

40

4,581

2,125

862

144

7,608

1,963

Total Operating Revenues

$1,435,862

$1,431,214

$1,356,749

$1,331,143

$1,369,633

$5,554,968

$5,477,061

Utilities

$337,534

$356,063

$315,248

$324,571

$366,083

$1,333,416

$1,471,836

Rental property operating

273,104

249,796

237,653

224,369

237,118

984,921

909,830

Property taxes

46,044

45,633

49,620

41,156

40,161

182,453

199,581

Insurance

6,007

4,869

4,755

2,694

3,794

18,325

16,823

Depreciation & amortization

455,355

459,997

425,343

431,102

420,475

1,771,797

1,694,859

General & administration

124,470

115,120

119,511

114,419

109,235

473,521

431,004

Severance, equity acceleration and legal expenses

2,346

2,481

884

791

7,565

6,502

18,054

Transaction and integration expenses

11,797

24,194

26,072

31,839

40,226

93,902

84,722

Provision for impairment

22,881

168,303

5,363

191,184

118,363

Other expenses

12,002

4,774

(529)

10,836

5,580

27,083

7,529

Total Operating Expenses

$1,291,540

$1,262,928

$1,346,860

$1,181,776

$1,235,598

$5,083,104

$4,952,600

Operating Income

$144,322

$168,286

$9,889

$149,367

$134,035

$471,864

$524,461

Equity in earnings / (loss) of unconsolidated joint ventures

(36,201)

(26,486)

(41,443)

(16,008)

(29,955)

(120,138)

(29,791)

Gain / (loss) on sale of investments

144,885

(556)

173,709

277,787

(103)

595,825

900,531

Interest and other income / (expense), net

44,517

37,756

62,261

9,709

50,269

154,243

68,431

Interest (expense)

(104,742)

(123,803)

(114,756)

(109,535)

(113,638)

(452,836)

(437,741)

Income tax benefit / (expense)

(4,928)

(12,427)

(14,992)

(22,413)

(20,724)

(54,760)

(75,579)

Loss on debt extinguishment and modifications

(2,165)

(2,636)

(1,070)

(5,871)

Net Income

$185,688

$40,134

$74,668

$287,837

$19,884

$588,327

$950,311

Net (income) / loss attributable to noncontrolling interests

3,881

11,059

5,552

(6,329)

8,419

14,163

(1,474)

Net Income Attributable to Digital Realty Trust, Inc.

$189,569

$51,193

$80,220

$281,508

$28,304

$602,490

$948,838

Preferred stock dividends

(10,181)

(10,181)

(10,181)

(10,181)

(10,181)

(40,725)

(40,725)

Net Income / (Loss) Available to Common Stockholders

$179,388

$41,012

$70,039

$271,327

$18,122

$561,766

$908,113

Weighted-average shares outstanding – basic

333,376

327,977

319,537

312,292

305,781

323,336

298,603

Weighted-average shares outstanding – diluted

340,690

336,249

327,946

320,798

314,995

331,547

309,065

Weighted-average fully diluted shares and units

346,756

342,374

334,186

326,975

321,173

337,697

315,113

Net income / (loss) per share – basic

$0.54

$0.13

$0.22

$0.87

$0.06

$1.74

$3.04

Net income / (loss) per share – diluted

$0.51

$0.09

$0.20

$0.82

$0.03

$1.61

$2.88

6

 

Funds From Operations and Core Funds From Operations

Fourth Quarter 2024

Unaudited and in Thousands, Except Per Share Data

Three Months Ended

Twelve Months Ended

Reconciliation of Net Income to Funds From Operations (FFO)

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

31-Dec-24

31-Dec-23

Net Income / (Loss) Available to Common Stockholders

$179,388

$41,012

$70,039

$271,327

$18,122

$561,766

$908,113

Adjustments:

Non-controlling interest in operating partnership

4,000

1,000

1,500

6,200

410

12,700

20,710

Real estate related depreciation & amortization (1)

445,462

449,086

414,920

420,591

410,167

1,730,059

1,657,239

Reconciling items related to non-controlling interests

(19,531)

(19,746)

(17,317)

(8,017)

(15,377)

(64,612)

(57,477)

Unconsolidated JV real estate related depreciation & amortization

49,463

48,474

47,117

47,877

64,833

192,931

177,153

(Gain) / loss on real estate transactions

(137,047)

556

(173,709)

(286,704)

103

(596,904)

(908,356)

Provision for impairment

22,881

168,303

5,363

191,185

118,363

Funds From Operations

$544,616

$520,382

$510,852

$451,273

$483,621

$2,027,122

$1,915,745

Weighted-average shares and units outstanding – basic

339,442

334,103

325,777

318,469

311,960

329,485

304,651

Weighted-average shares and units outstanding – diluted (2) (3)

346,756

342,374

334,186

326,975

321,173

337,697

315,113

Funds From Operations per share – basic

$1.60

$1.56

$1.57

$1.42

$1.55

$6.15

$6.29

Funds From Operations per share – diluted (2) (3)

$1.61

$1.55

$1.57

$1.41

$1.53

$6.14

$6.20

Three Months Ended

Twelve Months Ended

Reconciliation of FFO to Core FFO

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

31-Dec-24

31-Dec-23

Funds From Operations

$544,616

$520,382

$510,852

$451,273

$483,621

$2,027,122

$1,915,745

Other non-core revenue adjustments (4)

4,537

(4,583)

(33,818)

3,525

(146)

(30,339)

26,393

Transaction and integration expenses

11,797

24,194

26,072

31,839

40,226

93,902

84,722

Loss on debt extinguishment and modifications

2,165

2,636

1,070

5,871

Severance, equity acceleration and legal expenses (5)

2,346

2,481

884

791

7,565

6,502

18,054

(Gain) / Loss on FX and derivatives revaluation

7,127

1,513

32,222

33,602

(24,804)

74,464

(39,000)

Other non-core expense adjustments (6)

14,229

11,120

2,271

10,052

1,956

37,671

3,905

Core Funds From Operations

$586,816

$557,744

$538,482

$532,153

$508,417

$2,215,194

$2,009,820

Weighted-average shares and units outstanding – diluted (2) (3)

339,982

334,476

326,181

319,138

312,356

329,899

305,138

Core Funds From Operations per share – diluted (2)

$1.73

$1.67

$1.65

$1.67

$1.63

$6.71

$6.59

(1)  Real Estate Related Depreciation & Amortization

Three Months Ended

Twelve Months Ended

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

31-Dec-24

31-Dec-23

Depreciation & amortization per income statement

$455,355

$459,997

$425,343

$431,102

$420,475

$1,771,798

$1,694,859

Non-real estate depreciation

(9,894)

(10,911)

(10,424)

(10,511)

(10,308)

(41,739)

(37,619)

Real Estate Related Depreciation & Amortization

$445,462

$449,086

$414,920

$420,591

$410,167

$1,730,059

$1,657,239

(2)

Certain of Teraco’s minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. US GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO. When calculating diluted FFO, Teraco related minority interest is added back to the FFO numerator as the denominator assumes all shares have been put back to Digital Realty.

Three Months Ended

Twelve Months Ended

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

31-Dec-24

31-Dec-23

Teraco noncontrolling share of FFO

$14,905

$9,828

$12,453

$9,768

$7,135

$46,954

$39,386

Teraco related minority interest

$14,905

$9,828

$12,453

$9,768

$7,135

$46,954

$39,386

(3)

For all periods presented, we have excluded the effect of dilutive 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 J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of 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 Definitions section.

(4)

Includes deferred rent adjustments related to a customer bankruptcy, joint venture development fees included in gains, lease termination fees and gain on sale of equity investment included in other income.

(5)

Relates to severance and other charges related to the departure of company executives and integration-related severance.

(6)

Includes write-offs associated with bankrupt or terminated customers, non-recurring legal and insurance expenses and adjustments to reflect our proportionate share of transaction costs associated with noncontrolling interests.

7

Adjusted Funds From Operations (AFFO)

Fourth Quarter 2024

Unaudited and in Thousands, Except Per Share Data

Three Months Ended

Twelve Months Ended

 Reconciliation of Core FFO to AFFO

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

31-Dec-24

31-Dec-23

 Core FFO available to common stockholders and unitholders

$586,816

$557,744

$538,482

$532,153

$508,417

$2,215,194

$2,009,820

Adjustments:

Non-real estate depreciation

9,894

10,911

10,424

10,511

10,308

41,739

37,619

Amortization of deferred financing costs

5,697

4,853

5,072

5,576

5,744

21,198

21,575

Amortization of debt discount/premium

1,324

1,329

1,321

1,832

973

5,805

4,973

Non-cash stock-based compensation expense

13,386

15,026

14,464

12,592

9,226

55,468

50,238

Straight-line rental revenue

(18,242)

(17,581)

334

9,976

(21,992)

(25,513)

(68,417)

Straight-line rental expense

(136)

1,690

782

1,111

(4,999)

3,447

(3,567)

Above- and below-market rent amortization

(269)

(742)

(1,691)

(854)

(856)

(3,555)

(4,404)

Deferred tax (benefit) / expense

(15,048)

(9,366)

(9,982)

(3,437)

33,448

(37,834)

16,452

Leasing compensation & internal lease commissions

10,505

10,918

10,519

13,291

9,848

45,233

45,040

Recurring capital expenditures (1)

(130,245)

(67,308)

(60,483)

(47,676)

(142,808)

(305,712)

(327,022)

AFFO available to common stockholders and unitholders (2)

$463,682

$507,474

$509,241

$535,073

$407,306

$2,015,471

$1,782,308

Weighted-average shares and units outstanding – basic

339,442

334,103

325,777

318,469

311,960

329,485

304,651

Weighted-average shares and units outstanding – diluted (3)

339,982

334,476

326,181

319,138

312,356

329,899

305,138

AFFO per share – diluted (3)

$1.36

$1.52

$1.56

$1.68

$1.30

$6.11

$5.84

 Dividends per share and common unit

$1.22

$1.22

$1.22

$1.22

$1.22

$4.88

$4.88

Diluted AFFO Payout Ratio

89.5 %

80.4 %

78.1 %

72.8 %

93.6 %

79.9 %

83.5 %

Three Months Ended

Twelve Months Ended

Share Count Detail

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

31-Dec-24

31-Dec-23

Weighted Average Common Stock and Units Outstanding

339,442

334,103

325,777

318,469

311,960

329,485

304,651

Add: Effect of dilutive securities

540

373

404

669

396

413

487

Weighted Avg. Common Stock and Units Outstanding – diluted

339,982

334,476

326,181

319,138

312,356

329,899

305,138

(1)

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.

(2)

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.

(3)

For all periods presented, we have excluded the effect of dilutive 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 J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and for calculations of weighted average common stock and units outstanding.

8

 

Consolidated Balance Sheets

Fourth Quarter 2024

Unaudited and in Thousands, Except Per Share Data

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

Assets

Investments in real estate:

Real estate

$27,558,993

$28,808,770

$27,470,635

$27,122,796

$27,306,369

Construction in progress

5,164,334

5,175,054

4,676,012

4,496,840

4,635,215

Land held for future development

38,785

23,392

93,938

114,240

118,190

Investments in Real Estate

$32,762,112

$34,007,216

$32,240,584

$31,733,877

$32,059,773

Accumulated depreciation and amortization

(8,641,331)

(8,777,002)

(8,303,070)

(7,976,093)

(7,823,685)

Net Investments in Properties

$24,120,781

$25,230,214

$23,937,514

$23,757,784

$24,236,089

Investment in unconsolidated joint ventures

2,639,800

2,456,448

2,332,698

2,365,821

2,295,889

Net Investments in Real Estate

$26,760,582

$27,686,662

$26,270,212

$26,123,605

$26,531,977

Operating lease right-of-use assets, net

$1,178,853

$1,228,507

$1,211,003

$1,233,410

$1,414,256

Cash and cash equivalents

3,870,891

2,175,605

2,282,062

1,193,784

1,625,495

Accounts and other receivables, net (1)

1,257,464

1,274,460

1,222,403

1,217,276

1,278,110

Deferred rent, net

642,456

641,778

613,749

611,670

624,427

Goodwill

8,929,431

9,395,233

9,128,811

9,105,026

9,239,871

Customer relationship value, deferred leasing costs & other intangibles, net

2,178,054

2,367,467

2,315,143

2,359,380

2,500,237

Assets held for sale

287,064

478,503

Other assets

465,885

525,679

563,500

501,875

420,382

Total Assets

$45,283,616

$45,295,392

$43,606,883

$42,633,089

$44,113,257

Liabilities and Equity

Global unsecured revolving credit facilities, net

$1,611,308

$1,786,921

$1,848,167

$1,901,126

$1,812,287

Unsecured term loans, net

386,903

913,733

1,297,893

1,303,263

1,560,305

Unsecured senior notes, net of discount

13,962,852

13,528,061

12,507,551

13,190,202

13,422,342

Secured and other debt, net of discount

753,314

757,831

686,135

625,750

630,973

Operating lease liabilities

1,294,219

1,343,903

1,336,839

1,357,751

1,542,094

Accounts payable and other accrued liabilities

2,056,215

2,140,764

1,973,798

1,870,344

2,168,983

Deferred tax liabilities, net

1,084,562

1,223,771

1,132,090

1,121,224

1,151,096

Accrued dividends and distributions

418,661

387,988

Security deposits and prepaid rents

539,802

423,797

416,705

413,225

401,867

Obligations associated with assets held for sale

9,981

39,001

Total Liabilities

$22,107,836

$22,118,781

$21,199,178

$21,792,866

$23,116,936

Redeemable non-controlling interests

1,433,185

1,465,636

1,399,889

1,350,736

1,394,814

Equity

Preferred Stock:  $0.01 par value per share, 110,000 shares authorized:

Series J Cumulative Redeemable Preferred Stock (2)

$193,540

$193,540

$193,540

$193,540

$193,540

Series K Cumulative Redeemable Preferred Stock (3)

203,264

203,264

203,264

203,264

203,264

Series L Cumulative Redeemable Preferred Stock (4)

334,886

334,886

334,886

334,886

334,886

Common Stock: $0.01 par value per share, 502,000 shares authorized (5)

3,337

3,285

3,231

3,097

3,088

Additional paid-in capital

28,079,738

27,229,143

26,388,393

24,508,683

24,396,797

Dividends in excess of earnings

(6,292,085)

(6,060,642)

(5,701,096)

(5,373,529)

(5,262,648)

Accumulated other comprehensive (loss), net

(1,182,283)

(657,364)

(884,715)

(850,091)

(751,393)

Total Stockholders’ Equity

$21,340,397

$21,246,112

$20,537,503

$19,019,850

$19,117,535

Noncontrolling Interests

Noncontrolling interest in operating partnership

$396,099

$427,930

$434,253

$438,422

$438,081

Noncontrolling interest in consolidated joint ventures

6,099

36,933

36,060

31,215

45,892

Total Noncontrolling Interests

$402,198

$464,863

$470,313

$469,637

$483,972

Total Equity

$21,742,595

$21,710,975

$21,007,816

$19,489,487

$19,601,507

Total Liabilities and Equity

$45,283,616

$45,295,392

$43,606,883

$42,633,089

$44,113,257

(1)

Net of allowance for doubtful accounts of $59,224 and $41,204 as of December 31, 2024 and December 31, 2023, respectively.

(2)

Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 liquidation preference ($25.00 per share), 8,000 shares issued and outstanding as of December 31, 2024 and December 31, 2023.

(3)

Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 liquidation preference ($25.00 per share), 8,400 shares issued and outstanding as of December 31, 2024 and December 31, 2023.

(4)

Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 liquidation preference ($25.00 per share), 13,800 shares issued and outstanding as of December 31, 2024 and December 31, 2023.

(5)

Common Stock: 336,637 and 311,608 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively.

9

 

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios

Fourth Quarter 2024

Unaudited and Dollars in Thousands

Three Months Ended

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1)

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

Net Income / (Loss) Available to Common Stockholders

$179,388

$41,012

$70,039

$271,327

$18,122

Interest

104,742

123,803

114,756

109,535

113,638

Loss on debt extinguishment and modifications

2,165

2,636

1,070

Income tax expense (benefit)

4,928

12,427

14,992

22,413

20,724

Depreciation & amortization

455,355

459,997

425,343

431,102

420,475

EBITDA

$746,578

$639,875

$625,130

$835,446

$572,958

Unconsolidated JV real estate related depreciation & amortization

49,463

48,474

47,117

47,877

64,833

Unconsolidated JV interest expense and tax expense

32,255

34,951

27,704

34,271

42,140

Severance, equity acceleration and legal expenses

2,346

2,481

884

791

7,565

Transaction and integration expenses

11,797

24,194

26,072

31,839

40,226

(Gain) / loss on sale of investments

(144,885)

556

(173,709)

(277,787)

103

Provision for impairment

22,881

168,303

5,363

Other non-core adjustments, net (2)

24,539

8,642

743

21,608

(35,439)

Non-controlling interests

(3,881)

(11,059)

(5,552)

6,329

(8,419)

Preferred stock dividends

10,181

10,181

10,181

10,181

10,181

Adjusted EBITDA

$751,276

$758,296

$726,874

$710,556

$699,509

(1)

For definitions and discussion of EBITDA and Adjusted EBITDA, see the Definitions section.

(2)

Includes foreign exchange net unrealized gains/losses attributable to remeasurement, deferred rent adjustments related to a customer bankruptcy, write offs associated with bankrupt or terminated customers, non-recurring legal and insurance expenses, gain on sale of land option and lease termination fees.

 

Three Months Ended

Financial Ratios

31-Dec-24

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

Total GAAP interest expense

$104,742

$123,803

$114,756

$109,535

$113,638

Capitalized interest

34,442

28,312

27,592

28,522

33,032

Change in accrued interest and other non-cash amounts

(58,137)

43,720

(55,605)

55,421

(66,013)

Cash Interest Expense (3)

$81,046

$195,835

$86,743

$193,479

$80,657

Preferred stock dividends

10,181

10,181

10,181

10,181

10,181

Total Fixed Charges (4)

$149,364

$162,296

$152,529

$148,239

$156,851

Coverage

Interest coverage ratio (5)

 4.5x

 4.3x

 4.3x

 4.3x

 4.2x

Cash interest coverage ratio (6)

 6.9x

 3.4x

 6.4x

 6.3x

 3.2x

Fixed charge coverage ratio (7)

 4.2x

 4.1x

 4.1x

 4.0x

 4.0x

Cash fixed charge coverage ratio (8)

 6.3x

 3.3x

 5.9x

 3.1x

 5.9x

Leverage

Debt to total enterprise value (9)(10)

21.4 %

23.5 %

24.2 %

24.2 %

26.7 %

Debt-plus-preferred-stock-to-total-enterprise-value (10)(11)

22.3 %

24.5 %

25.3 %

25.3 %

27.9 %

Pre-tax income to interest expense (12)

 2.8x

 1.3x

 1.7x

 3.5x

 1.2x

Net Debt-to-Adjusted EBITDA (13)

 4.8x

 5.4x

 5.3x

 5.7x

 6.0x

(3)

Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash-based interest expense.

(4)

Fixed charges consist of GAAP interest expense, capitalized interest, and preferred stock dividends.

(5)

Adjusted EBITDA divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated joint venture interest expense).

(6)

Adjusted EBITDA divided by cash interest expense (including our pro rata share of unconsolidated joint venture interest expense).

(7)

Adjusted EBITDA divided by fixed charges (including our pro rata share of unconsolidated joint venture fixed charges).

(8)

Adjusted EBITDA divided by the sum of cash interest expense and preferred stock dividends (including our pro rata share of unconsolidated joint venture cash fixed charges).

(9)

Total debt divided by market value of common equity plus debt plus preferred stock.

(10)

Total enterprise value defined as market value of common equity plus debt plus preferred stock.

(11)

Same as (9), except numerator includes preferred stock.

(12)

Calculated as net income plus interest expense divided by GAAP interest expense.

(13)

Calculated as total debt at balance sheet carrying value, plus capital lease obligations, plus Digital Realty’s pro rata share of unconsolidated joint venture debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated joint venture EBITDA), multiplied by four.

10

Definitions

Funds From Operations (FFO):

We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts (Nareit) in the Nareit Funds From Operations White Paper – 2018 Restatement. FFO is a non-GAAP financial measure and represents net income (loss) (computed in accordance with GAAP), excluding gain (loss) from the disposition of real estate assets, provision for impairment, real estate related depreciation and amortization (excluding amortization of deferred financing costs), our share of unconsolidated JV real estate related depreciation & amortization, net income attributable to non-controlling interests in operating partnership and reconciling items related to non-controlling interests. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions and after adjustments for unconsolidated partnerships and joint ventures, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the Nareit definition and, accordingly, our FFO may not be comparable to other REITs’ FFO. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Core Funds from Operations (Core FFO):

We present core funds from operations, or Core FFO, as a supplemental operating measure because, in excluding certain items that do not reflect core revenue or expense streams, it provides a performance measure that, when compared year over year, captures trends in our core business operating performance. We calculate Core FFO by adding to or subtracting from FFO (i) other non-core revenue adjustments, (ii) transaction and integration expenses, (iii) loss on debt extinguishment and modifications, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration and legal expenses, (vi) gain/loss on FX and derivatives revaluation, and (vii) other non-core expense adjustments. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO as a measure of our performance is limited. Other REITs may calculate Core FFO differently than we do and accordingly, our Core FFO may not be comparable to other REITs’ Core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Adjusted Funds from Operations (AFFO):

We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from Core FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount/premium, (iv) non-cash stock-based compensation expense, (v) straight-line rental revenue, (vi) straight-line rental expense, (vii) above- and below-market rent amortization, (viii) deferred tax expense / (benefit), (ix) leasing compensation and internal lease commissions, and (x) recurring capital expenditures. Other REITs may calculate AFFO differently than we do and, accordingly, our AFFO may not be comparable to other REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

EBITDA and Adjusted EBITDA:

We believe that earnings before interest, loss on debt extinguishment and modifications, income taxes, and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, (i) unconsolidated joint venture real estate related depreciation & amortization, (ii) unconsolidated joint venture interest expense and tax, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) non-controlling interests, (ix) preferred stock dividends, and (x) issuance costs associated with redeemed preferred stock. Adjusted EBITDA is EBITDA excluding (i) unconsolidated joint venture real estate related depreciation & amortization, (ii) unconsolidated joint venture interest expense and tax, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) non-controlling interests, (ix) preferred stock dividends, and (x) gain on / issuance costs associated with redeemed preferred stock. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs. Because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, exclude capitalized costs, such as leasing commissions, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited. Other REITs may calculate EBITDA and Adjusted EBITDA differently than we do and, accordingly, our EBITDA and Adjusted EBITDA may not be comparable to other REITs’ EBITDA and Adjusted EBITDA. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income computed in accordance with GAAP as a measure of our financial performance.

11

Net Operating Income (NOI) and Cash NOI:

Net operating income, or NOI, represents rental revenue, tenant reimbursement revenue and interconnection revenue less utilities expense, rental property operating expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. Cash NOI is NOI less straight-line rents and above- and below-market rent amortization. Cash NOI is commonly used by stockholders, company management and industry analysts as a measure of property operating performance on a cash basis. Same-Capital Cash NOI represents buildings owned as of December 31, 2022 of the prior year with less than 5% of total rentable square feet under development and excludes buildings that were undergoing, or were expected to undergo, development activities in 2023-2024, buildings classified as held for sale, and buildings sold or contributed to joint ventures for all periods presented (prior period numbers adjusted to reflect current same-capital pool). However, because NOI and cash NOI exclude depreciation and amortization and capture neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our results from operations, the utility of NOI and cash NOI as measures of our performance is limited. Other REITs may calculate NOI and cash NOI differently than we do and, accordingly, our NOI and cash NOI may not be comparable to other REITs’ NOI and cash NOI. NOI and cash NOI should be considered only as supplements to net income computed in accordance with GAAP as measures of our performance.

Additional Definitions

Net debt-to-Adjusted EBITDA ratio is calculated as total debt at balance sheet carrying value, plus capital lease obligations, plus Digital Realty’s pro rata share of unconsolidated joint venture debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated joint venture EBITDA), multiplied by four.

Debt-plus-preferred-to-total enterprise value is total debt plus preferred stock divided by total debt plus the liquidation value of preferred stock and the market value of outstanding Digital Realty Trust, Inc. common stock and Digital Realty Trust, L.P. units, assuming the redemption of Digital Realty Trust, L.P. units for shares of Digital Realty Trust, Inc. common stock.

Fixed charge coverage ratio is Adjusted EBITDA divided by the sum of GAAP interest expense, capitalized interest and preferred stock dividends. For the quarter ended December 31, 2024, GAAP interest expense was $105 million, capitalized interest was $34 million and preferred stock dividends was $10 million.

Reconciliation of Net Operating Income (NOI)

Three Months Ended

Twelve Months Ended

(in thousands)

31-Dec-24

30-Sep-24

31-Dec-23

31-Dec-24

31-Dec-23

  Operating income

$144,322

$168,286

$134,035

$471,864

$524,461

 Fee income

(23,316)

(12,907)

(14,330)

(64,888)

(44,926)

 Other income

(40)

(4,581)

(144)

(7,608)

(1,963)

 Depreciation and amortization

455,355

459,997

420,475

1,771,797

1,694,859

 General and administrative

124,470

115,120

109,235

473,521

431,004

 Severance, equity acceleration and legal expenses

2,346

2,481

7,565

6,502

18,054

 Transaction expenses

11,797

24,194

40,226

93,902

84,722

 Provision for impairment

22,881

5,363

191,184

118,363

 Other expenses

12,002

4,774

5,580

27,083

7,529

  Net Operating Income

$749,818

$757,365

$708,003

$2,963,357

$2,832,102

 Cash Net Operating Income (Cash NOI)

  Net Operating Income

$749,818

$757,365

$708,003

$2,963,357

$2,832,102

 Straight-line rental revenue

(22,577)

(18,423)

(22,085)

(46,395)

(40,480)

 Straight-line rental expense

51

1,683

(4,745)

4,061

(2,901)

 Above- and below-market rent amortization

(269)

(742)

(856)

(3,555)

(4,404)

  Cash Net Operating Income

$727,022

$739,883

$680,317

$2,917,467

$2,784,317

Constant Currency CFFO Reconciliation

Three Months Ended

Twelve Months Ended

(in thousands, except per share data)

31-Dec-24

31-Dec-23

31-Dec-24

31-Dec-23

  Core FFO (1)

$586,816

$508,417

$2,215,194

$2,009,820

 Core FFO impact of holding ’23 Exchange Rates Constant (2)

(318)

1,732

  Constant Currency Core FFO

$586,498

$508,417

$2,216,926

$2,009,820

 Weighted-average shares and units outstanding – diluted

339,982

312,356

329,899

305,138

  Constant Currency CFFO Per Share

$1.73

$1.63

$6.72

$6.59

1)

As reconciled to net income above.

2)

Adjustment calculated by holding currency translation rates for 2024 constant with average currency translation rates that were applicable to the same periods in 2023.

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This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, anticipated continued demand for our products and service, our liquidity, our joint ventures, supply and demand for data center and colocation space, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company’s FFO, Core FFO, constant currency Core FFO, adjusted FFO, and net income, 2025 outlook and underlying assumptions, information related to trends, our strategy and plans, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and development activity and plans, projected construction costs, estimated yields on investment, expected occupancy, expected square footage and IT load capacity upon completion of development projects, backlog NOI, NAV components, and other forward-looking financial data. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

reduced demand for data centers or decreases in information technology spending;decreased rental rates, increased operating costs or increased vacancy rates;increased competition or available supply of data center space;the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services;breaches of our obligations or restrictions under our contracts with our customers;our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties;the impact of current global and local economic, credit and market conditions;global supply chain or procurement disruptions, or increased supply chain costs;the impact from periods of heightened inflation on our costs, such as operating and general and administrative expenses, interest expense and real estate acquisition and construction costs;the impact on our customers’ and our suppliers’ operations during an epidemic, pandemic, or other global events;our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers;changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate;our inability to retain data center space that we lease or sublease from third parties;information security and data privacy breaches;difficulties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas;our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions;our failure to successfully integrate and operate acquired or developed properties or businesses;difficulties in identifying properties to acquire and completing acquisitions;risks related to joint venture investments, including as a result of our lack of control of such investments;risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital;financial market fluctuations and changes in foreign currency exchange rates;adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges;our inability to manage our growth effectively;losses in excess of our insurance coverage;our inability to attract and retain talent;environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations;our inability to comply with rules and regulations applicable to our company;Digital Realty Trust, Inc.’s failure to maintain its status as a REIT for federal income tax purposes;Digital Realty Trust, L.P.’s failure to qualify as a partnership for federal income tax purposes;restrictions on our ability to engage in certain business activities;changes in local, state, federal and international laws, and regulations, including related to taxation, real estate, and zoning laws, and increases in real property tax rates; andthe impact of any financial, accounting, legal or regulatory issues or litigation that may affect us.

The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. Several additional material risks are discussed in our annual report on Form 10‑K for the year ended December 31, 2023, and other filings with the U.S. Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.  We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Digital Realty, Digital Realty Trust, the Digital Realty logo, Interxion, Turn-Key Flex, Powered Base Building, ServiceFabric, AnyScale Colo, Pervasive Data Center Architecture, PlatformDIGITAL, PDx, Data Gravity Index and Data Gravity Index DGx are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All other names, trademarks and service marks are the property of their respective owners.

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Care Career Announces Acquisition of MAS Medical Staffing, Completing Its First Acquisition Phase and Expanding Annual Revenue Beyond $150 Million, with a Path to Exceed a Quarter Billion by the End of 2026 Through Additional Acquisitions and Organic Growth

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WOODBRIDGE, N.J., July 24, 2026 /PRNewswire/ — Care Career, a rapidly growing healthcare workforce technology organization, today announced the acquisition of MAS Medical Staffing, one of the Northeast’s leading healthcare workforce organizations. Financial terms of the transaction were not disclosed.

The acquisition represents Care Career’s seventh strategic acquisition in the past 24 months, further strengthening the company’s position as one of the largest healthcare workforce organizations in the United States while accelerating its strategy to redefine the future of healthcare workforce management through artificial intelligence, enterprise technology, and workforce innovation.

MAS Medical Staffing has built an outstanding reputation for delivering high-quality workforce solutions through strong client relationships, exceptional clinician engagement, and deep regional expertise throughout the Northeastern United States. The acquisition significantly expands Care Career’s geographic footprint while broadening its access to healthcare professionals, client relationships, workforce data, and regional market intelligence.

Care Career is building a technology-enabled workforce ecosystem powered by its AI-powered workforce platform, where every acquisition contributes not only additional market presence, but also expanded data, enhanced artificial intelligence capabilities, digital innovation, and operational scale that continuously improve the experience for clients and clinicians alike. As the platform grows, every clinician engagement, client interaction, credential, placement, and workforce trend strengthens the intelligence of Career’s technology, creating a continuously improving ecosystem designed to deliver faster, smarter, and more effective workforce solutions.

The acquisition also brings MAS Medical Staffing’s MAESTRA® engagement technology, along with its client relationships and clinician network, directly onto Career’s AI-powered workforce platform. MAESTRA’s scheduling, credentialing, and communication capabilities will be integrated into Care Career’s existing technology stack, further enhancing clinician engagement across onboarding, scheduling, and career management while providing healthcare organizations with greater workforce visibility and operational efficiency.

“Our vision is to build the AI-powered infrastructure that modernizes healthcare workforce management,” said Siva Konatham, Group President and Chief Executive Officer of Care Career. “Under my leadership, Care Career is focused on transforming a fragmented, labor-intensive industry into a data-driven, technology-enabled ecosystem that improves speed, efficiency, and workforce visibility for healthcare providers. Each acquisition strengthens our platform intelligence, expands our scale, and enhances our margin potential. By integrating advanced analytics, AI automation, and digital engagement tools, we are not just growing revenue—we are building a smarter, more scalable model positioned to lead the next era of healthcare workforce solutions.”

The combined organization will leverage expanded recruiting resources, centralized credentialing, advanced workforce analytics, AI-enabled automation, and digital engagement technologies—all powered by Care Career’s AI-powered workforce platform—to deliver broader recruiting capabilities, faster response times, enhanced workforce insights, and expanded national coverage. Clinicians will benefit from a seamless digital experience that simplifies every stage of their careers—from job discovery and credentialing to onboarding, scheduling, communication, and long-term career development.

With seven strategic acquisitions completed in less than two years, representing the first round of acquisitions now totaling more than $150 million in annual revenue, Care Career has rapidly expanded its national presence while executing a disciplined growth strategy focused on technology integration, operational excellence, and workforce innovation. The company has also signed additional Letters of Intent with other entities with expected close dates in the third quarter of 2026. Upon completion of these transactions, coupled with organic growth, Care Career expects consolidated annual revenue to exceed a quarter of a billion dollars by the end of 2026.

The addition of MAS Medical Staffing further strengthens the organization’s ability to serve healthcare systems, hospitals, long-term care providers, outpatient facilities, and other healthcare organizations across an increasingly diverse geographic footprint.

“The healthcare workforce industry is entering a new era where technology, artificial intelligence, and data-driven decision-making will define the market leaders,” Konatham added. “Every acquisition we complete expands the intelligence of our AI-powered workforce platform, enhances the value we deliver to our clients, and creates more opportunities for clinicians. We believe the combination of exceptional people, innovative technology, and strategic scale positions Care Career to lead the next generation of healthcare workforce solutions.”

About Care Career

Care Career is a technology-enabled healthcare workforce solutions company dedicated to transforming how healthcare organizations recruit, engage, credential, deploy, and retain clinical talent. Powered by its proprietary AI-powered workforce platform and supported by advanced artificial intelligence, enterprise technology, and workforce analytics, Care Career is building an intelligent healthcare workforce ecosystem that connects providers and clinicians more efficiently while improving workforce performance, operational effectiveness, and patient care. Following seven strategic acquisitions over the past 24 months the first round of acquisitions totaling more than $150 million in annual revenue and with additional signed LOIs under contract expected to complete shortly, positioning the company to surpass a quarter of a billion dollars in consolidated annual revenue by the end of 2026, Care Career has become one of the nation’s largest and fastest-growing healthcare workforce organizations, serving healthcare providers and clinicians across the United States.

About MAS Medical Staffing

MAS Medical Staffing is a premier healthcare workforce organization recognized for exceptional service, strong client partnerships, and a commitment to connecting healthcare professionals with rewarding career opportunities. With an established presence throughout the Northeastern United States, MAS Medical Staffing has earned a reputation for quality, responsiveness, and delivering workforce solutions that help healthcare providers meet their evolving workforce needs while supporting clinicians throughout every stage of their careers.

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PointsKash Demonstrates How Businesses Can Build on Bitcoin Without Burdening the Blockchain

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As industry debate surrounding Bitcoin Improvement Proposal (BIP-110) intensifies, PointsKash unveils an architecture designed to work regardless of the proposal’s outcome.

SCOTTSDALE, Ariz., July 24, 2026 /PRNewswire/ — As the global Bitcoin community debates Bitcoin Improvement Proposal 110 (BIP-110) and the future of data stored on the Bitcoin blockchain, PointsKash, Inc. today announced that its next-generation kiosk infrastructure was intentionally designed to operate efficiently under any outcome of the proposal.

Rather than storing operational data directly on the Bitcoin blockchain, PointsKash utilizes a layered architecture that combines Bitcoin‘s unmatched security with modern decentralized communications technology. Every transaction, machine event, system update, and operational record generated across the PointsKash network is cryptographically verified, securely maintained off-chain, and anchored to the Bitcoin blockchain through a single immutable cryptographic proof.

This approach allows thousands of operational events to be permanently verified while utilizing only a minimal amount of blockchain data.

As discussion surrounding BIP-110 has intensified across the digital asset industry, PointsKash believes the debate does not require choosing between innovation and responsible blockchain stewardship.

“The industry has been debating whether businesses can build meaningful applications on Bitcoin without unnecessarily consuming blockchain space,” said Michael Herron, Chief Executive Officer of PointsKash. “We believe we’ve demonstrated that the answer is yes. Bitcoin provides the world’s most trusted immutable timestamp and security layer, while higher-volume operational data belongs on technologies specifically designed to manage it. By combining both, we’ve built an architecture that is scalable, transparent, and future-ready regardless of how the BIP-110 discussion ultimately evolves.”

The company’s infrastructure assigns every kiosk its own unique cryptographic identity, allowing each machine to securely authenticate every transaction and operational event. Those records are then independently verifiable through cryptographic proofs while remaining resistant to alteration or manipulation—even by PointsKash itself.

According to the company, this architecture delivers several significant advantages:

Mathematically verifiable transaction records for regulators, banking partners, auditors, and enterprise customers.Improved network reliability, allowing kiosks to continue operating during temporary connectivity interruptions without losing transaction history.Enhanced cybersecurity, with every machine maintaining its own authenticated identity and secure communications.A scalable blockchain architecture that minimizes on-chain data while preserving complete auditability.

Bitcoin was created to provide trust, security, and permanence—not to become a storage system for every piece of application data,” Herron added. “Our philosophy has always been simple: use Bitcoin for what it does better than anyone else—creating immutable proof that records have never been altered—and leverage modern decentralized technologies for everything else. We believe that’s the future of enterprise blockchain infrastructure.”

PointsKash believes this architecture positions the company among a new generation of fintech innovators utilizing Bitcoin as a secure trust layer while developing scalable financial applications for enterprise deployment.

The technology also establishes the foundation for future blockchain-based financial products currently under development, including enhanced digital audit capabilities, verifiable financial records, enterprise licensing opportunities, and next-generation digital asset infrastructure.

As the Bitcoin ecosystem continues to mature, PointsKash believes its technology demonstrates that responsible innovation and blockchain scalability can successfully coexist—providing enterprise organizations with the confidence to build on Bitcoin without contributing unnecessary data to the network.

About PointsKash, Inc.

PointsKash, Inc. is a financial technology company developing an integrated ecosystem of AI-enabled self-service financial centers, digital banking, digital payment solutions, cryptocurrency services, loyalty rewards, enterprise merchant technologies, and mobile financial applications. Through proprietary software, Artificial Intelligence, and strategic partnerships, PointsKash is building innovative financial solutions designed to empower consumers, merchants, and enterprise organizations throughout North America.

For more information, visit www.pointskash.com.

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PointsKash, Inc.
Investor Relations
info@pointskash.com
www.pointskash.com

Forward-Looking Statements

This press release contains forward-looking statements regarding anticipated technology integrations, Artificial Intelligence initiatives, product development, future commercialization plans, expected operational efficiencies, business strategy, and future growth. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Factors that could affect actual results include, but are not limited to, technology development timelines, integration efforts, financing, regulatory developments, market conditions, and other risks facing the Company. PointsKash undertakes no obligation to update any forward-looking statements except as required by applicable law.

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As ADA Anniversary Approaches, University of Phoenix Survey Highlights AI’s Potential to Advance Accessibility in Work and Learning

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Survey conducted by The Harris Poll on behalf of University of Phoenix finds among those already using AI in the workplace, 60% say AI has improved their knowledge of and ability to use accessibility standards and guidelines.

PHOENIX, July 24, 2026 /PRNewswire/ — As artificial intelligence becomes part of how people work, learn and solve problems, a new University of Phoenix survey conducted by The Harris Poll finds that recent working learners see meaningful opportunities for AI to support accessibility. The survey was designed to understand the impact of AI in the workplace and learning environments on accessibility, defined as ensuring digital content, tools and resources, including AI tools and output, are usable by people with different abilities through inclusive design, use of assistive technology or conformance with accessibility standards, such as the Web Content Accessibility Guidelines (WCAG). The findings are being released ahead of the 36th anniversary of the Americans with Disabilities Act (ADA) on July 26.

The survey, conducted among 1,019 U.S. employed adults who completed a professionally presented training or school course in the past 12 months (“recent working learners”), found that, among workers already using AI in the workplace, 3 in 5 (60%) say AI has improved their knowledge of and ability to use accessibility standards and guidelines, including nearly 1 in 5 (19%) who report significant improvement. 

While the findings point to optimism about AI’s accessibility potential, they also reveal an opportunity for clearer organizational guidance: 45% of respondents say accessibility is absent from, unclear in, or they are uncertain whether it is covered by their workplace AI policies.

“The reality is that accessibility benefits everyone,” shares Kelly Hermann, Vice President of Accessibility and Student Affairs at University of Phoenix. “If accessibility is built in from the beginning, organizations are more likely to create AI-enabled environments that are universally usable. Clearer content, better summaries, accurate captions, and multiple formats can help workers and learners with disabilities, but they also help busy adults, multilingual learners, mobile users, and anyone trying to absorb information quickly.”

Key findings from the survey include:

Workers see AI’s accessibility potential: 89% of recent working learners identify workflows that could benefit from AI and accessibility tools, especially creating accessible documents, presentations, websites or learning materials (38%), presenting information in different formats such as plain language, audio, summaries or translations (33%), and training employees or learners on accessibility practices (30%).AI may help build accessibility awareness: Among those already using AI in the workplace, 60% say AI has improved their knowledge of and ability to use accessibility standards and guidelines.Accessibility is not always clear in workplace AI policies: 45% of recent working learners say accessibility is absent from, unclear in, or they are uncertain whether it is covered by their workplace AI policies.AI tools may not yet fully support different access needs: Among those who use workplace AI tools, only about a quarter of survey respondents (27%) say AI tools available through their workplace or professional learning environment support people with disabilities very well.Human oversight remains important: 36% of recent working learners say human review for important decisions or high-impact work should be part of responsible AI use at work or school.Workers also recognize how AI and accessibility can have an impact on their own career journey: 90% of recent working learners identify AI and accessibility skills that would be valuable in their current or desired career field, including 45% who see value in understanding when AI-generated content needs human review.

Why accessibility is essential to responsible AI adoption

As AI tools are used to draft documents, summarize information, generate captions and transcripts, create image descriptions, support learning and assist with workplace tasks, accessibility becomes central to responsible use. Poorly implemented AI can also create or amplify barriers, including inaccessible content, inaccurate summaries, biased outputs and tools that do not work effectively with assistive technologies.

“Responsible AI is not only about productivity,” Hermann said. “It is about whether the technology works for the people who need to use it. AI can help create more accessible materials and more flexible ways to engage with information, but it still requires clear policies, practical training and human judgment to make sure the outputs are accurate, applicable and usable.”

What the findings mean for employers and educators

The survey suggests that organizations have an opportunity to align AI adoption with supportive design, accessibility practices and workforce training. Employers and educators can take immediate steps by:

Naming accessibility directly in AI policies and guidance.Choosing AI tools with accessibility and assistive technology compatibility in mind.Training workers and learners to create, check and improve accessible AI-generated content.Making support pathways clear for people who experience barriers using AI tools.Keeping human review in place for important decisions, high-impact work and accessibility-sensitive outputs.

The survey also found workers want practical AI training. The most helpful resources identified by recent working learners include real-world examples from their field or industry (36%), hands-on practice using realistic workplace scenarios (34%) and step-by-step demonstrations of common tasks (33%).

Accessibility insights from University of Phoenix

Hermann shared the survey findings ahead of the ADA anniversary in recent media interviews. Hermann oversees the University’s accessibility initiative, including evaluation and remediation of curricular resources, the Center for Access, Resources, Engagement and Support Services (CARES), and the Office of Collaborative Learning and Educational Engagement. Her work focuses on fostering accessible and welcoming educational environments for students, faculty and staff.

Hermann’s office at University of Phoenix also convenes accessibility conversations through initiatives such as Access Amplified™, a free, annual virtual event focused on advancing digital accessibility in web development. The event brings together engineers, developers, designers, content authors and digital strategists for practical strategies and human-centered conversations that address the gap between coding practices and how users with assistive technology experience the web.

About the survey

The survey was conducted online within the United States by The Harris Poll on behalf of University of Phoenix from June 22–29, 2026, among 1,019 employed adults ages 18 and older who have taken a professionally presented training or a school course in the past 12 months, referred to as “recent working learners.” Data were weighted where necessary by age, gender, race/ethnicity, region, education, employment, marital status, household size, household income and smoking status to bring them in line with their actual proportions in the population.

Respondents for this survey were selected from among those who have agreed to participate in surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 3.8 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

Review the complete survey at phoenix.edu/aiaccessibility.

About University of Phoenix

University of Phoenix is Built for Real Life. 50 Years Strong. The University innovates to help working adults enhance their careers and develop skills in a rapidly changing world through flexible online learning, relevant courses, academic AI pillars, and skills-mapped curriculum for associate, bachelor’s and master’s degree programs. Active students and alumni have access to Career Services for Life® resources including career guidance and tools. For more information, visit phoenix.edu. 

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