10-KPeriod: FY2020

DIGITAL REALTY TRUST, INC. Annual Report, Year Ended Dec 31, 2020

Filed March 1, 2021For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) reported its 2020 full-year results, highlighting continued global expansion and operational resilience. The company's extensive portfolio of 291 data centers across 49 metro areas and 24 countries provides a robust platform for digital infrastructure services. DLR completed the significant Interxion Combination in March 2020, enhancing its European and African presence and demonstrating its capacity for large-scale integration. The company's strategy focuses on delivering superior risk-adjusted returns by prudently allocating capital, leveraging technology for diverse product offerings, and accelerating global reach. Financially, DLR demonstrated strong revenue growth, driven by its expanding data center footprint and the increasing demand for digital infrastructure. Despite economic uncertainties related to the COVID-19 pandemic, the company maintained high occupancy levels and focused on operational efficiencies. DLR's commitment to sustainability, including investments in green bonds and renewable energy, further solidifies its appeal to a broad investor base. Key financial highlights include significant investments in development projects and a strong focus on maintaining a conservative capital structure with clear debt leverage targets.

Financial Highlights

35 data points
Beta

Revenue

$3.90B

Net Income

$356.40M

9.1% Net Margin

EPS (Diluted)

$1.00

Total Assets

$36.08B

Cash & Equivalents

$108.50M

Free Cash Flow

$1.71B

Financial Statements
Beta
Revenue$3.90B
Operating Expenses$3.35B
Operating Income$557.53M
Interest Expense$333.02M
Net Income$356.40M
EPS (Basic)$1.01
EPS (Diluted)$1.00
Shares Outstanding (Basic)260K
Shares Outstanding (Diluted)263K

Key Highlights

  • 1Completed the significant Interxion Combination in March 2020, significantly expanding European and African presence and solidifying global data center capabilities.
  • 2Operates a diversified global portfolio of 291 data centers across 49 metro areas and 24 countries, serving over 4,000 customers.
  • 3Demonstrated strong revenue growth, with total operating revenues of $3.9 billion for the year ended December 31, 2020, a 21.6% increase year-over-year.
  • 4Maintained a robust development pipeline, with approximately 5.4 million square feet of space under active development and 2.3 million square feet held for future development as of December 31, 2020.
  • 5Maintained a strong liquidity position with approximately $1.9 billion available under its global revolving credit facilities as of February 24, 2021.
  • 6Reported a portfolio occupancy rate of 86.3% as of December 31, 2020, excluding space under development.
  • 7Committed to sustainability with $3.23 billion in green bond issuances and a global carbon reduction target, showcasing a focus on ESG principles.

Frequently Asked Questions

The Interxion Combination, completed in March 2020, significantly expanded Digital Realty's presence across Europe and Africa, adding 107 data centers and enhancing its colocation and interconnection platform globally. This strategic move contributed substantially to the company's revenue growth and operational scale.

Digital Realty demonstrated resilience during the COVID-19 pandemic, with all facilities remaining operational and deemed essential. The company collected rent at consistent levels and managed its business continuity plans effectively. While acknowledging potential future impacts, the company did not experience significant disruptions in 2020.

Digital Realty's strategy focuses on maximizing sustainable long-term growth in earnings and funds from operations, cash flow, and returns to stockholders. This involves achieving superior risk-adjusted returns, prudent capital allocation, diversifying product offerings, accelerating global reach and scale, and driving revenue growth and operating efficiencies, primarily through the development and acquisition of data centers.

Digital Realty is committed to maintaining a conservative capital structure, targeting a debt-to-Adjusted EBITDA ratio at or below 5.5x and fixed charge coverage greater than three times. The company aims to maximize its sources of capital while minimizing costs, and as of December 31, 2020, approximately 89.8% of its debt was at fixed rates or subject to interest rate swaps.