Q4 2024 Digital Realty Trust Inc Earnings Call Transcript
Key Points
- Digital Realty Trust Inc (DLR) achieved a record $1 billion in total leasing for 2024, with significant contributions from the 0-1 megawatt plus interconnection segment.
- The company raised over $2 billion in new debt and equity capital, boosting liquidity to over $6 billion and reducing leverage to 4.8 times by year-end.
- Digital Realty Trust Inc (DLR) reported a 6% growth in core FFO per share in the fourth quarter, indicating strong financial performance.
- The company expanded its development pipeline by over 75% to $7 billion, with 70% of projects pre-leased, ensuring future growth.
- Digital Realty Trust Inc (DLR) made significant progress in ESG initiatives, including the construction of a 120-megawatt solar power plant in South Africa and community solar agreements in Chicago.
- Greater-than-a-megawatt bookings dipped sequentially, indicating potential volatility in larger capacity block demand.
- The company faces challenges in maintaining consistent cash renewal spreads, with a forecast of 4% to 6% for 2025, down from 9% in 2024.
- Supply chain constraints, particularly in power delivery, remain a concern, potentially impacting project timelines and costs.
- The company's reliance on capital recycling and joint ventures for funding may introduce variability in financial outcomes.
- Despite strong leasing activity, the lumpiness in bookings, especially in larger capacity blocks, could lead to uneven revenue recognition.
Good afternoon, and welcome to the Digital Realty fourth quarter 2024 earnings call. Please note, this event is being recorded. (Operator Instructions)
I would now like to turn the call over to Jordan Sadler, Digital Realty's Senior Vice President of Public & Private Investor Relations. Jordan, please go ahead.
Thank you, operator, and welcome, everyone, to Digital Realty's fourth quarter 2024 earnings conference call. Joining me on today's call are President and CEO, Andy Power; and CFO, Matt Mercier; Chief Investment Officer, Greg Wright; Chief Technology Officer, Chris Sharp; and Chief Revenue Officer, Colin McLean, are also on the call and will be available for Q&A.
Management will be making forward-looking statements, including guidance and underlying assumptions on today's call. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a
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