DIGITAL REALTY TRUST, INC. Quarterly Report for Q1 Ended Mar 31, 2025

Summary

Digital Realty Trust, Inc. (DLR) reported its first quarter 2025 financial results, showcasing continued revenue growth and strategic initiatives. Total operating revenues increased by 5.7% year-over-year, reaching $1.41 billion, driven by a 5.3% rise in rental and other services and a significant 49.8% increase in fee income. This growth was bolstered by strong leasing activity, with new leases and renewals across various regions, and the successful completion of development projects contributing to revenue. The company also made significant strides in its capital management and strategic partnerships. The formation of its first U.S. hyperscale data center fund, targeting $2.5 billion in commitments, signals a strategic move to leverage external capital for growth while maintaining significant ownership. Furthermore, Digital Realty successfully issued €850 million in senior notes, strengthening its liquidity position. The company maintains a strong liquidity position with over $2.3 billion in cash and cash equivalents and access to its revolving credit facilities.

Key Highlights

• 1Total operating revenues increased by 5.7% to $1.41 billion compared to Q1 2024.
• 2Rental and other services revenue grew by 5.3% to $1.39 billion, driven by new leasing and renewals.
• 3Significant growth was observed in fee income, increasing by 49.8% to $20.8 million.
• 4Launched the first U.S. hyperscale data center fund, raising approximately $1.4 billion (targeting $2.5 billion) with Digital Realty retaining at least a 20% stake.
• 5Issued €850 million (approximately $864 million) in 3.875% Guaranteed Notes due 2035, enhancing liquidity.
• 6Maintained a strong balance sheet with $2.32 billion in cash and cash equivalents and over $3.1 billion available under revolving credit facilities as of April 28, 2025.
• 7Average remaining lease term stood at approximately five years as of March 31, 2025.

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