Early Access

10-QPeriod: Q2 FY2021

DIGITAL REALTY TRUST, INC. Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 6, 2021For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) reported its financial results for the quarter ended June 30, 2021. The company demonstrated strong top-line growth, with total operating revenues increasing by 10.1% year-over-year for the three-month period and 20.2% for the six-month period, largely driven by the Interxion Combination and new leasing activity. Profitability also saw an increase, with net income available to common stockholders growing significantly. Despite increased operating expenses, including higher utility costs and depreciation, the company managed its financials effectively. DLR's balance sheet remains robust, supported by substantial investments in real estate and a well-managed debt structure. The company also continues to invest heavily in development projects, signaling a commitment to future growth.

Financial Statements
Beta
Revenue$1.09B
Operating Expenses$907.56M
Operating Income$185.63M
Interest Expense$75.01M
Net Income$121.25M
EPS (Basic)$0.45
EPS (Diluted)$0.45
Shares Outstanding (Basic)281.79M
Shares Outstanding (Diluted)282.43M

Key Highlights

  • 1Total operating revenues increased by 10.1% to $1.09 billion for the three months ended June 30, 2021, and by 20.2% to $2.18 billion for the six months ended June 30, 2021, compared to the prior year periods.
  • 2Net income available to common stockholders showed strong growth, rising to $127.4 million for the three months ended June 30, 2021, from $53.7 million in the prior year period, and to $499.8 million for the six months ended June 30, 2021, from $256.5 million in the prior year period.
  • 3The company continues to invest significantly in its development pipeline, with capital expenditures for development projects increasing by 29% year-over-year for the six-month period to $945.7 million.
  • 4Digital Realty Trust, Inc. redeemed all outstanding shares of its Series C cumulative redeemable perpetual preferred stock on May 17, 2021, resulting in a gain on redemption of $18.0 million.
  • 5The company maintained compliance with its debt covenants, including leverage ratio, secured debt leverage ratio, and interest coverage ratio.
  • 6Operating expenses, particularly property operating and maintenance and depreciation and amortization, increased due to the Interxion Combination and higher utility costs.
  • 7The company has an available balance of approximately $672.2 million under its at-the-market (ATM) equity offering program as of June 30, 2021, providing flexibility for future funding.

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