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Digital Realty Reports Fourth Quarter 2022 Results
Press Releases

Digital Realty Reports Fourth Quarter 2022 Results

AUSTIN, Texas, Feb. 16, 2023 /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 2022.  All per share results are presented on a fully diluted basis. 

Highlights

  • Reported net (loss) / income available to common stockholders of ($0.02) per share in 4Q22, compared to $3.71 in 4Q21
  • Reported FFO per share of $1.45 in 4Q22, compared to $1.54 in 4Q21
  • Reported Core FFO per share of $1.65 in 4Q22, compared to $1.67 in 4Q21
  • Reported Constant-Currency Core FFO per share of $1.71 in 4Q22 and $6.91 per share for the twelve months ended December 31, 2022
  • Signed total bookings during 4Q22 that are expected to generate $117 million of annualized GAAP rental revenue, including a $14 million contribution from interconnection
  • Introduced 2023 Core FFO per share outlook of $6.65$6.75

Financial Results

Digital Realty reported revenues for the fourth quarter of 2022 of $1.2 billion, a 3% increase from the previous quarter and a 11% increase from the same quarter last year. 

The company delivered fourth quarter of 2022 net income of $1 million, and net (loss) / income available to common stockholders of ($6) million, or ($0.02) per diluted share, compared to $0.75 per diluted share in the previous quarter and $3.71 per diluted share in the same quarter last year. 

Digital Realty generated fourth quarter of 2022 Adjusted EBITDA of $639 million, a 3% increase from the previous quarter and a 9% increase over the same quarter last year. 

The company reported fourth quarter of 2022 funds from operations (FFO) of $440 million, or $1.45 per share, compared to $1.55 per share in the previous quarter and $1.54 per share in the same quarter last year. 

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered fourth quarter of 2022 Core FFO per share of $1.65, compared to $1.67 per share in the previous quarter, and $1.67 per share in the same quarter last year.  Digital Realty delivered Constant-Currency Core FFO per share of $1.71 for the fourth quarter of 2022 and $6.91 per share for the twelve-month period ended December 31, 2022.

Leasing Activity

In the fourth quarter, Digital Realty signed total bookings that are expected to generate $117 million of annualized GAAP rental revenue, including a $14 million contribution from interconnection.

“Our fourth quarter results demonstrate the strengthening value proposition of PlatformDIGITAL and the growing momentum in our core business,” said Digital Realty President and Chief Executive Officer Andy Power.  “The Digital Realty team will continue to focus on delivering innovative and sustainable data center solutions while evolving to efficiently enable our customers to transform their businesses and succeed in the digital world.”

The weighted-average lag between new leases signed during the fourth quarter of 2022 and the contractual commencement date was fifteen months. 

In addition to new leases signed, Digital Realty also signed renewal leases representing $195 million of annualized GAAP rental revenue during the quarter.  Rental rates on renewal leases signed during the fourth quarter of 2022 rolled up 0.8% on a cash basis and up 1.1% on a GAAP basis. 

New leases signed during the fourth quarter of 2022 are summarized by region as follows:

















Annualized GAAP













Base Rent




GAAP Base Rent




GAAP Base Rent

 The Americas


(in thousands)


Square Feet


per Square Foot


Megawatts


per Kilowatt

 0-1 MW



$10,437


39



$266


3.5



$251

 > 1 MW



23,311


217



107


18.6



104

 Other (1)



11


0



52




  Total



$33,759


257



$132


22.1



$127















 EMEA (2)














 0-1 MW



$20,492


49



$415


6.5



$264

 > 1 MW



24,291


224



109


16.4



123

 Other (1)



304


12



25




  Total



$45,087


285



$158


22.9



$163















 Asia Pacific (2)














 0-1 MW



$2,240


5



$409


0.4



$463

 > 1 MW



22,455


114



197


14.0



134

 Other (1)



93


2



55




  Total



$24,788


121



$204


14.4



$143















All Regions (2)














 0-1 MW



$33,169


94



$353


10.4



$267

 > 1 MW



70,057


555



126


49.0



119

 Other (1)



409


14



29




  Total



$103,634


663



$156


59.4



$145















  Interconnection



$13,564


N/A



N/A


N/A



N/A















  Grand Total



$117,198


663



$156


59.4



$145


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, 2022. 

Investment Activity

During the fourth quarter, Digital Realty closed on the sale of a 25% interest in a data center facility in Frankfurt, Germany to Digital Core REIT (SGX: DCRU) in a transaction that valued the facility at €558 million, or approximately $596 million (at 100% share). The transaction generated net proceeds to Digital Realty of €139.6 million, or approximately $150 million. Digital Core REIT has an option to acquire up to an 89.9% interest in the Frankfurt facility, subject to market conditions.

Also during the fourth quarter, Digital Realty acquired four sites  totaling 65 acres that will support the future development of up to 84 megawatts of IT load for $55 million, or approximately $0.8 million per acre. Separately, Digital Realty entered into a ground lease with an option to purchase a 4.6-acre land parcel adjacent to its Dugny campus in Paris, France for a total expected investment of €34.3 million, or approximately $36.6 million.  

Balance Sheet

Digital Realty had approximately $16.6 billion of total debt outstanding as of December 31, 2022, comprised of $16.1 billion of unsecured debt and approximately $0.5 billion of secured debt and other.  At the end of the fourth quarter of 2022, net debt-to-Adjusted EBITDA was 6.9x, debt-plus-preferred-to-total enterprise value was 36.8% and fixed charge coverage was 4.9x.

During the fourth quarter of 2022, Digital Realty completed the following financing transactions:

  • In mid-November, completed physical settlement of the remaining $0.5 billion under our September 2021 forward equity sale agreements.
  • In early December, closed an offering of $350 million of additional 5.550% notes due 2028.

Subsequent to quarter end, Digital Realty closed a $740 million two-year US dollar term loan with an initial maturity date of March 31, 2025 and a one-year extension option.

2023 Outlook

Digital Realty introduced its 2023 Core FFO per share outlook of $6.65$6.75 and provided its 2023 constant-currency Core FFO per share outlook of $6.65$6.75.  The assumptions underlying the outlook are summarized in the following table. 






As of

 Top-Line and Cost Structure


February 16, 2023

  Total revenue


$5.700 – $5.800 billion

  Net non-cash rent adjustments (1)


($55 – $60 million)

  Adjusted EBITDA


$2.675 – $2.725 billion

  G&A


$425 – $435 million




 Internal Growth



  Rental rates on renewal leases



    Cash basis


Greater than 3.0%

    GAAP basis


Greater than 3.0%

  Year-end portfolio occupancy


85.0% – 86.0%

  “Same-capital” cash NOI growth (2)


3.0% – 4.0%




  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


$1.5 – $2.5 billion

    Cap rate


0.0% – 10.0%

  Development



    CapEx (3)


$2.3 – $2.5 billion

    Average stabilized yields


9.0% – 15.0%

  Enhancements and other non-recurring CapEx (4)


$15 – $20 million

  Recurring CapEx + capitalized leasing costs (5)


$230 – $240 million




 Balance Sheet



  Long-term debt issuance



    Dollar amount


$1.0 – $1.5 billion

    Pricing


4.5% – 5.5%

    Timing


First Half 2023




 Net income per diluted share


$1.15 – $1.25

  Real estate depreciation and (gain) / loss on sale


$5.25 – $5.25

 Funds From Operations / share (NAREIT-Defined)


$6.40 – $6.50

  Non-core expenses and revenue streams


$0.25 – $0.25

 Core Funds From Operations / share


$6.65 – $6.75

  Foreign currency translation adjustments


$0.00 – $0.00

 Constant-Currency Core Funds From Operations / share


$6.65 – $6.75



(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, 2021 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 2022-2023, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented. 

(3)

Includes land acquisitions. 

(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.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures, including FFO, Core FFO and Adjusted EBITDA.  A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, and definitions of FFO and Core FFO 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 / 2:00 p.m. PT on February 16, 2023, 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 2022 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# 6468514 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 16, 2023.  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# 6581304.  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 communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 28 countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter.

Contact Information

Matt Mercier

Chief Financial Officer

Digital Realty

(737) 281-0101

Jordan Sadler / Jim Huseby

Investor Relations

Digital Realty

(737) 281-0101

 

Consolidated Quarterly Statements of Operations

Financial Supplement

Unaudited and Dollars in Thousands, Except Per Share Data

Fourth Quarter 2022




Three Months Ended



Twelve Months Ended




31-Dec-22



30-Sep-22



30-Jun-22



31-Mar-22



31-Dec-21




31-Dec-22



31-Dec-21

Rental revenues



$834,374



$787,839



$767,313



$751,962



$763,117




$3,141,488



$3,059,682

Tenant reimbursements – Utilities



247,725



251,420



218,198



224,547



195,340




941,891



739,116

Tenant reimbursements – Other



46,045



49,419



52,688



51,511



58,528




199,663



235,783

Interconnection & other



97,286



95,486



93,338



93,530



89,850




379,641



360,459

Fee income



7,508



6,169



5,072



5,757



4,133




24,506



13,442

Other



168



1,749



2,713



15



200




4,645



19,401

Total Operating Revenues



$1,233,108



$1,192,082



$1,139,321



$1,127,323



$1,111,167




$4,691,834



$4,427,883
























Utilities



$268,561



$271,844



$223,426



$241,239



$213,933




$1,005,070



$784,574

Rental property operating



222,430



205,886



198,076



194,354



205,250




820,746



785,931

Property taxes



42,032



39,860



47,213



46,526



42,673




175,631



190,388

Insurance



4,578



4,002



3,836



3,698



3,507




16,114



17,425

Depreciation & amortization



430,130



388,704



376,967



382,132



378,883




1,577,933



1,486,632

General & administration



104,451



95,792



101,991



96,435



103,705




398,669



393,311

Severance, equity acceleration, and legal expenses



15,980



1,655



3,786



2,077



1,003




23,498



7,343

Transaction and integration expenses



17,350



25,862



13,586



11,968



12,427




68,766



47,426

Impairment of investments in real estate



3,000









18,291




3,000



18,291

Other expenses



3,615



1,096



70



7,657



(1)




12,438



2,550

Total Operating Expenses



$1,112,127



$1,034,701



$968,950



$986,087



$979,669




$4,101,865



$3,733,874
























Operating Income



$120,981



$157,381



$170,371



$141,236



$131,498




$589,969



$694,009
























Equity in earnings (loss) of unconsolidated joint ventures



(28,112)



(12,254)



(34,088)



60,958



(7,714)




(13,496)



62,282

Gain / (loss) on sale of investments



(6)



173,990





2,770



1,047,011




176,754



1,380,796

Interest and other income (expense), net



(22,894)



15,752



13,008



3,051



(4,349)




8,918



(4,358)

Interest (expense)



(86,882)



(76,502)



(69,023)



(66,725)



(71,762)




(299,132)



(293,846)

Income tax benefit / (expense)



17,676



(19,576)



(16,406)



(13,244)



(3,961)




(31,551)



(72,799)

Loss from early extinguishment of debt









(51,135)



(325)




(51,135)



(18,672)

Net Income



$763



$238,791



$63,862



$76,911



$1,090,397




$380,327



$1,747,412
























Net loss / (income) attributable to noncontrolling interests



3,326



(1,716)



(436)



(3,629)



(22,587)




(2,455)



(38,153)

Net (Loss) / Income Attributable to Digital Realty Trust, Inc.



$4,089



$237,075



$63,426



$73,282



$1,067,811




$377,872



$1,709,259
























Preferred stock dividends, including undeclared dividends



(10,181)



(10,181)



(10,181)



(10,181)



(10,181)




(40,725)



(45,761)

Gain on / (Issuance costs associated with) redeemed preferred stock
















18,000

Net (Loss) / Income Available to Common Stockholders



($6,093)



$226,894



$53,245



$63,101



$1,057,630




$337,147



$1,681,498
























Weighted-average shares outstanding – basic



289,364,739



286,693,071



284,694,064



284,525,992



283,869,662




286,333,747



282,474,927

Weighted-average shares outstanding – diluted



301,712,082



296,414,726



285,109,903



285,025,099



284,868,184




297,919,336



283,221,968

Weighted-average fully diluted shares and units



307,546,353



302,257,518



290,944,163



290,662,421



290,893,110




303,708,327



289,912,489
























Net (loss) / income per share – basic



($0.02)



$0.79



$0.19



$0.22



$3.73




$1.18



$5.95

Net (loss) / income per share – diluted



($0.02)



$0.75



$0.19



$0.22



$3.71




$1.13



$5.94

 

Funds From Operations and Core Funds From Operations

Financial Supplement

Unaudited and in Thousands, Except Per Share Data

Fourth Quarter 2022



Three Months Ended



Twelve Months Ended

Reconciliation of Net Income to Funds From Operations (FFO)



31-Dec-22



30-Sep-22



30-Jun-22



31-Mar-22



31-Dec-21




31-Dec-22



31-Dec-21
























Net (Loss) / Income Available to Common Stockholders



($6,093)



$226,894



$53,245



$63,101



$1,057,630




$337,147



$1,681,498

Adjustments:























Non-controlling interest in operating partnership



(586)



5,400



1,500



1,600



23,100




7,914



39,100

Real estate related depreciation & amortization (1)



422,951



381,425



369,327



374,162



372,447




1,547,865



1,463,512

Depreciation related to non-controlling interests



(13,856)



(8,254)










(22,110)



Unconsolidated JV real estate related depreciation & amortization



33,927



30,831



29,022



29,320



24,146




123,099



85,800

(Gain) / loss on real estate transactions



572



(173,990)



(1,144)



(2,770)



(1,047,010)




(177,332)



(1,445,229)

Impairment of investments in real estate



3,000









18,291




3,000



18,291

Funds From Operations – diluted



$439,915



$462,306



$451,949



$465,412



$448,602




$1,819,583



$1,842,971
























Weighted-average shares and units outstanding – basic



295,199



292,536



290,528



290,163



289,895




292,123



289,165

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



307,546



302,258



290,944



290,662



290,893




303,708



289,912
























Funds From Operations per share – basic



$1.49



$1.58



$1.56



$1.60



$1.55




$6.23



$6.37
























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



$1.45



$1.55



$1.55



$1.60



$1.54




$6.03



$6.36


























Three Months Ended



Twelve Months Ended

Reconciliation of FFO to Core FFO



31-Dec-22



30-Sep-22



30-Jun-22



31-Mar-22



31-Dec-21




31-Dec-22



31-Dec-21
























Funds From Operations – diluted



$439,915



$462,306



$451,949



$465,412



$448,602




$1,819,583



$1,842,971

Other non-core revenue adjustments



(3,786)



(1,818)



456



13,916



9,859




8,768



(19,388)

Transaction and integration expenses



17,350



25,862



13,586



11,968



12,427




68,766



47,426

Loss from early extinguishment of debt









51,135



325




51,135



18,672

(Gain on) / Issuance costs associated with redeemed preferred stock
















(18,000)

Severance, equity acceleration, and legal expenses (4)



15,980



1,655



3,786



2,077



1,003




23,498



7,343

(Gain) / Loss on FX revaluation



14,564



(1,120)



29,539



(67,676)



14,308




(24,694)



30,505

Other non-core expense adjustments



3,615



1,046



70



7,657



(1)




12,388



(15,939)

Core Funds From Operations – diluted



$487,638



$487,931



$499,386



$484,490



$486,525




$1,959,444



$1,893,590
























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



295,519



292,830



290,944



290,662



290,893




292,528



289,912
























Core Funds From Operations per share – diluted (3)



$1.65



$1.67



$1.72



$1.67



$1.67




$6.70



$6.53















































(1)        Real Estate Related Depreciation & Amortization


Three Months Ended



Twelve Months Ended




31-Dec-22



30-Sep-22



30-Jun-22



31-Mar-22



31-Dec-21




31-Dec-22



31-Dec-21
























Depreciation & amortization per income statement



$430,130



$388,704



$376,967



$382,132



$378,883




1,577,933



1,486,632

Non-real estate depreciation



(7,179)



(7,279)



(7,640)



(7,970)



(6,436)




(30,068)



(23,120)

Real Estate Related Depreciation & Amortization



$422,951



$381,425



$369,327



$374,162



$372,447




$1,547,865



1,463,512



(2)

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

(3)

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.

(4)

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

 

Adjusted Funds From Operations (AFFO)



Financial Supplement

Unaudited and in Thousands, Except Per Share Data



Fourth Quarter 2022



Three Months Ended



Twelve Months Ended

 Reconciliation of Core FFO to AFFO



31-Dec-22



30-Sep-22



30-Jun-22



31-Mar-22



31-Dec-21




31-Dec-22



31-Dec-21
























 Core FFO available to common stockholders and unitholders



$487,638



$487,931



$499,386



$484,490



$486,525




$1,959,444



$1,893,590

Adjustments:























Non-real estate depreciation



7,179



7,279



7,640



7,970



6,436




30,068



23,120

Amortization of deferred financing costs



3,753



3,270



3,330



3,634



3,515




13,987



14,397

Amortization of debt discount/premium



1,276



1,146



1,193



1,214



1,107




4,829



4,545

Non-cash stock-based compensation expense



16,042



15,948



15,799



14,453



15,097




62,242



61,855

Straight-line rental revenue



(29,392)



(18,123)



(17,278)



(18,810)



(16,497)




(83,604)



(63,096)

Straight-line rental expense



(208)



2,679



(2,237)



4,168



5,753




4,401



27,499

Above- and below-market rent amortization



(762)



(465)



196



335



910




(696)



6,070

Deferred tax expense / (benefit)



(4,885)



(5,233)



(769)



(1,604)



(13,731)




(12,491)



19,394

Leasing compensation & internal lease commissions



9,578



9,866



9,411



13,261



9,564




42,117



42,826

Recurring capital expenditures (1)



(109,999)



(66,200)



(43,497)



(46,770)



(87,550)




(266,466)



(217,103)
























AFFO available to common stockholders and unitholders (2)



$380,220



$438,097



$473,173



$462,341



$411,130




$1,753,831



$1,813,096
























Weighted-average shares and units outstanding – basic



295,199



292,536



290,528



290,163



289,895




292,123



289,165

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



295,519



292,830



290,944



290,662



290,893




292,528



289,912
























AFFO per share – diluted (3)



$1.29



$1.50



$1.63



$1.59



$1.41




$6.00



$6.25
























 Dividends per share and common unit



$1.22



$1.22



$1.22



$1.22



$1.16




$4.88



$4.64




















.




Diluted AFFO Payout Ratio



94.8 %



81.5 %



75.0 %



76.7 %



82.1 %




81.4 %



74.2 %


























Three Months Ended



Twelve Months Ended

Share Count Detail



31-Dec-22



30-Sep-22



30-Jun-22



31-Mar-22



31-Dec-21




31-Dec-22



31-Dec-21
























Weighted Average Common Stock and Units Outstanding



295,199



292,536



290,528



290,163



289,895




292,123



289,165

Add: Effect of dilutive securities



320



294



416



499



998




405



747

Weighted Avg. Common Stock and Units Outstanding – diluted



295,519



292,830



290,944



290,662



290,893




292,528



289,912



(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 C, 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 C, series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of diluted FFO available to common stockholders and unitholders and for calculations of weighted average common stock and units outstanding.

 

Consolidated Balance Sheets

Financial Supplement

Unaudited and in Thousands, Except Share and Per Share Data

Fourth Quarter 2022








31-Dec-22


30-Sep-22


30-Jun-22


31-Mar-22


31-Dec-21

Assets





















Investments in real estate:
















Real estate



$26,136,057



$24,876,600



$24,065,933



$23,769,712



$23,625,451

Construction in progress



4,789,134



4,222,142



3,362,114



3,523,484



3,213,387

Land held for future development



118,452



34,713



37,460



107,003



133,683

Investments in real estate



$31,043,643



$29,133,455



$27,465,507



$27,400,199



$26,972,522

Accumulated depreciation and amortization



(7,268,981)



(6,826,918)



(6,665,118)



(6,467,233)



(6,210,281)

Net Investments in Properties



$23,774,662



$22,306,537



$20,800,389



$20,932,966



$20,762,241

Investment in unconsolidated joint ventures



1,991,426



1,912,958



1,942,549



2,044,074



1,807,689

Net Investments in Real Estate



$25,766,088



$24,219,495



$22,742,937



$22,977,040



$22,569,930

















Cash and cash equivalents



$141,773



$176,969



$99,226



$157,964



$142,698

Accounts and other receivables (1)



969,292



861,117



797,208



774,579



671,721

Deferred rent



601,590



556,198



554,016



545,666



547,385

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



3,092,627



3,035,861



2,521,390



2,640,795



2,735,486

Goodwill



9,208,497



8,728,105



7,545,107



7,802,440



7,937,440

Operating lease right-of-use assets



1,351,329



1,253,393



1,310,970



1,361,942



1,405,441

Other assets



353,802



384,079



385,202



420,119



359,459

Total Assets



$41,484,998



$39,215,217



$35,956,057



$36,680,546



$36,369,560

















Liabilities and Equity
















Global unsecured revolving credit facilities



$2,150,451



$2,255,139



$1,440,040



$943,325



$398,172

Unsecured term loans



797,449



729,976







Unsecured senior notes, net of discount



13,120,033



12,281,410



12,695,568



13,284,650



12,903,370

Secured debt and other, net of premiums



528,870



491,984



158,699



160,240



146,668

Operating lease liabilities



1,471,044



1,363,712



1,418,540



1,472,510



1,512,187

Accounts payable and other accrued liabilities



1,868,884



1,621,406



1,619,222



1,572,359



1,543,623

Deferred tax liabilities, net



1,192,752



1,145,097



611,582



649,112



666,451

Accrued dividends and distributions



363,716









338,729

Security deposits and prepaid rent



369,654



341,552



341,140



346,911



336,578

Total Liabilities



$21,862,853



$20,230,276



$18,284,791



$18,429,107



$17,845,778

















Redeemable non-controlling interests – operating partnership



1,514,680



1,429,920



41,047



42,734



46,995

















Equity
















Preferred Stock:  $0.01 par value per share, 110,000,000 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, 392,000,000 shares authorized (5)



2,887



2,851



2,824



2,824



2,824

Additional paid-in capital



22,142,868



21,528,384



21,091,364



21,069,391



21,075,863

Dividends in excess of earnings



(4,698,313)



(4,336,201)



(4,211,685)



(3,916,854)



(3,631,929)

Accumulated other comprehensive income (loss), net



(595,798)



(862,804)



(475,561)



(188,844)



(173,880)

Total Stockholders’ Equity



$17,583,334



$17,063,920



$17,138,632



$17,698,207



$18,004,568

















Noncontrolling Interests
















Noncontrolling interest in operating partnership



$419,317



$421,484



$432,213



$444,029



$425,337

Noncontrolling interest in consolidated joint ventures



104,814



69,617



59,374



66,470



46,882

















Total Noncontrolling Interests



$524,131



$491,101



$491,587



$510,499



$472,219

















Total Equity



$18,107,465



$17,555,021



$17,630,219



$18,208,706



$18,476,787

















Total Liabilities and Equity



$41,484,998



$39,215,217



$35,956,057



$36,680,546



$36,369,560


























(1)

Net of allowance for doubtful accounts of $33,048 and $28,574 as of December 31, 2022 and December 31, 2021, respectively.

(2)

Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 and $200,000 liquidation preference, respectively ($25.00 per share), 8,000,000 and 8,000,000 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively.

(3)

Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 and $210,000 liquidation preference, respectively ($25.00 per share), 8,400,000 and 8,400,000  shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively.

(4)

Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 and $345,000 liquidation preference, respectively ($25.00 per share), 13,800,000 and 13,800,000  shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively.

(5)

Common Stock: 291,148,222 and 284,415,013 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively.

 

Reconciliation of Earnings Before Interest, Taxes, Depreciation &



Amortization and Financial Ratios


Financial Supplement

Unaudited and Dollars in Thousands


Fourth Quarter 2022



Three Months Ended

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



31-Dec-22



30-Sep-22



30-Jun-22



31-Mar-22



31-Dec-21

















Net (Loss) / Income Available to Common Stockholders



($6,093)



$226,894



$53,245



$63,101



$1,057,630

Interest



86,882



76,502



69,023



66,725



71,762

Loss from early extinguishment of debt









51,135



325

Income tax expense (benefit)



(17,676)



19,576



16,406



13,244



3,961

Depreciation & amortization



430,130



388,704



376,967



382,132



378,883

EBITDA



$493,244



$711,676



$515,642



$576,337



$1,512,561

Unconsolidated JV real estate related depreciation & amortization



33,927



30,831



29,023



29,319



24,146

Unconsolidated JV interest expense and tax expense



53,481



11,948



6,708



21,111



15,222

Severance, equity acceleration, and legal expenses



15,980



1,655



3,786



2,077



1,003

Transaction and integration expenses



17,350



25,862



13,586



11,968



12,427

(Gain) / loss on sale of investments



6



(173,990)





(2,770)



(1,047,011)

Impairment of investments in real estate



3,000









18,291

Other non-core adjustments, net



15,127



(94)



31,633



(48,858)



14,307

Non-controlling interests



(3,326)



1,716



436



3,629



22,587

Preferred stock dividends, including undeclared dividends



10,181



10,181



10,181



10,181



10,181

(Gain on) / Issuance costs associated with redeemed preferred stock











Adjusted EBITDA



$638,969



$619,786



$610,994



$602,994



$583,713



















(1)  For definitions and discussion of EBITDA and Adjusted EBITDA, see the definitions section.




Three Months Ended

Financial Ratios



31-Dec-22



30-Sep-22



30-Jun-22



31-Mar-22



31-Dec-21

















Total GAAP interest expense



$86,882



$76,502



$69,023



$66,725



$71,762

Capitalized interest



24,581



17,304



14,131



14,751



15,328

Change in accrued interest and other non-cash amounts



(67,909)



31,860



(43,952)



52,324



(37,974)

Cash Interest Expense (2)



$43,554



$125,666



$39,202



$133,800



$49,116

















Preferred dividends



10,181



10,181



10,181



10,181



10,181

Total Fixed Charges (3)



$121,644



$103,987



$93,335



$91,657



$97,271

































Coverage
















Interest coverage ratio (4)



 5.3x



 6.1x



 6.6x



 6.1x



 6.0x

Cash interest coverage ratio (5)



 11.9x



 4.6x



 12.6x



 4.0x



 9.8x

Fixed charge coverage ratio (6)



 4.9x



 5.5x



 6.0x



 5.5x



 5.4x

Cash fixed charge coverage ratio (7)



 10.0x



 4.3x



 10.4x



 3.7x



 8.3x

















Leverage
















Debt to total enterprise value (8) (9)



35.2 %



34.5 %



27.1 %



25.5 %



20.5 %

Debt plus preferred stock to total enterprise value (10)



36.8 %



36.2 %



28.5 %



26.8 %



21.7 %

Pre-tax income to interest expense (11)



 1.0x



 4.1x



 1.9x



 2.2x



 16.2x

Net Debt to Adjusted EBITDA (12)



 6.9x



 6.7x



 6.2x



 6.3x



 6.1x



(2)

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.

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

(8)

Mortgage debt and other loans divided by market value of common equity plus debt plus preferred stock.

(9)

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

(10)

Same as (8), except numerator includes preferred stock.

(11)

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

(12)

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.

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, or Nareit, in the Nareit Funds From Operations White Paper – 2018 Restatement. FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from real estate transactions, impairment of investment in real estate, real estate related depreciation and amortization (excluding amortization of deferred financing costs), unconsolidated JV real estate related depreciation & amortization, non-controlling interests in operating partnership and after adjustments for unconsolidated partnerships and joint ventures. 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 from early extinguishment of debt, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration, and legal expenses, (vi) gain/loss on FX 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 from early extinguishment of debt, 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, unconsolidated joint venture real estate related depreciation & amortization, unconsolidated joint venture interest expense and tax, severance, equity acceleration, and legal expenses, transaction and integration expenses, gain on sale / deconsolidation, impairment of investments in real estate, other non-core adjustments, net, non-controlling interests, preferred stock dividends, including undeclared dividends, and issuance costs associated with redeemed preferred stock. Adjusted EBITDA is EBITDA excluding unconsolidated joint venture real estate related depreciation & amortization, unconsolidated joint venture interest expense and tax, severance, equity acceleration, and legal expenses, transaction and integration expenses, gain on sale / deconsolidation, impairment of investments in real estate, other non-core adjustments, net, non-controlling interests, preferred stock dividends, including undeclared dividends, and 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.

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. 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 mortgage debt and other loans plus preferred stock divided by mortgage debt and other loans 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, scheduled debt principal payments and preferred dividends. For the quarter ended December 31, 2022, GAAP interest expense was $87 million, capitalized interest was $25 million and scheduled debt principal payments and preferred dividends was $10 million.

Reconciliation of Net Operating Income (NOI)


Three Months Ended



Twelve Months Ended

(in thousands)


31-Dec-22


30-Sep-22


31-Dec-21



31-Dec-22


31-Dec-21


















  Operating income



$120,981



$157,381



$131,498




$589,969



$694,009


















 Fee income



(7,508)



(6,169)



(4,133)




(24,506)



(13,442)

 Other income



(168)



(1,749)



(200)




(4,645)



(19,401)

 Depreciation and amortization



430,130



388,704



378,883




1,577,933



1,486,632

 General and administrative



104,451



95,792



103,705




398,669



393,311

 Severance, equity acceleration, and legal expenses



15,980



1,655



1,003




23,498



7,343

 Transaction expenses



17,350



25,862



12,427




68,766



47,426

 Other expenses



3,615



1,096



(1)




12,438



2,550


















  Net Operating Income



$687,830



$662,572



$641,472




$2,645,122



$2,616,720



































 Cash Net Operating Income (Cash NOI)


































  Net Operating Income



$687,830



$662,572



$641,472




$2,645,122



$2,616,720


















 Straight-line rental revenue



(32,226)



(17,505)



(16,345)




(70,394)



(64,107)

 Straight-line rental expense



(680)



2,499



5,453




2,857



27,050

 Above- and below-market rent amortization



(762)



(465)



910




(696)



6,069


















  Cash Net Operating Income



$654,163



$647,101



$631,490




$2,576,887



$2,585,732




















































Constant Currency CFFO Reconciliation


Three Months Ended



Twelve Months Ended

(in thousands)


31-Dec-22


30-Sep-22


31-Dec-21



31-Dec-22


31-Dec-21


















Core FFO (1)



$487,638






$486,525




$1,959,444



$1,893,590

 Core FFO impact of holding ’21 Exchange Rates Constant (2)



16,867









62,128




















  Constant Currency Core FFO



$504,505






$486,525




$2,021,572



$1,893,590

 Weighted-average shares and units outstanding – diluted



295,519






290,893




292,528



289,912

  Constant Currency CFFO Per Share



$1.71






$1.67




$6.91



$6.53



1)

As reconciled to net income on page 13.

2)

Adjustment calculated by holding currency translation rates for 2022 constant with average currency translation rates that were applicable to the same periods in 2021.

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 and net income, 2023 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;
  • increased competition or available supply of data center space;
  • decreased rental rates, increased operating costs or increased vacancy rates;
  • 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;
  • 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;
  • our ability to attract and retain customers;
  • 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;
  • our inability to retain data center space that we lease or sublease from third parties;
  • global supply chain or procurement disruptions, or increased supply chain costs;
  • information security and data privacy breaches;
  • difficulty 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 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;
  • impact on our operations and on the operations of our customers, suppliers and business partners during a pandemic, such as COVID-19;
  • environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;
  • 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; and
  • the 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, 2021 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 very 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, and PlatformDIGITAL, 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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SOURCE Digital Realty

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