Digital Realty Trust Maintains Its 2024 Core FFO Per Share And Constant-Currency Core FFO Per Share Outlook Of $6.60-$6.75
Author: Benzinga Newsdesk | May 02, 2024 04:15pm
2024 Outlook
Digital Realty maintained its 2024 Core FFO per share and Constant-Currency Core FFO per share outlook of $6.60 - $6.75. The assumptions underlying the outlook are summarized in the following table.
As of
As of
Top-Line and Cost Structure
February 15, 2024
May 2, 2024
Total revenue
$5.550 - $5.650 billion
$5.550 - $5.650 billion
Net non-cash rent adjustments (1)
($35 - $40 million)
($35 - $40 million)
Adjusted EBITDA
$2.800 - $2.900 billion
$2.800 - $2.900 billion
G&A
$450 - $460 million
$450 - $460 million
Internal Growth
Rental rates on renewal leases
Cash basis
4.0% - 6.0%
5.0% - 7.0%
GAAP basis
6.0% - 8.0%
7.0% - 9.0%
Year-end portfolio occupancy
+100 - 200 bps
+100 - 200 bps
"Same-Capital" cash NOI growth (2)
2.0% - 3.0%
2.5% - 3.5%
Foreign Exchange Rates
U.S. Dollar / Pound Sterling
$1.25 - $1.30
$1.25 - $1.30
U.S. Dollar / Euro
$1.05 - $1.10
$1.05 - $1.10
External Growth
Dispositions / Joint Venture Capital
Dollar volume
$1,000 - $1,500 million
$1,000 - $1,500 million
Cap rate
6.0% - 8.0%
6.0% - 8.0%
Development
CapEx (Net of Partner Contributions) (3)
$2,000 - $2,500 million
$2,000 - $2,500 million
Average stabilized yields
10.0%+
10.0%+
Enhancements and other non-recurring CapEx (4)
$15 - $20 million
$15 - $20 million
Recurring CapEx + capitalized leasing costs (5)
$260 - $275 million
$260 - $275 million
Balance Sheet
Long-term debt issuance
Dollar amount
$0 - $1,000 million
$0 - $1,000 million
Pricing
5.0% - 5.5%
5.0% - 5.5%
Timing
Mid-Year
Mid-Year
Net income per diluted share
$1.80 - $1.95
$1.80 - $1.95
Real estate depreciation and (gain) / loss on sale
$4.40 - $4.40
$4.40 - $4.40
Funds From Operations / share (NAREIT-Defined)
$6.20 - $6.35
$6.20 - $6.35
Non-core expenses and revenue streams
$0.40 - $0.40
$0.40 - $0.40
Core Funds From Operations / share
$6.60 - $6.75
$6.60 - $6.75
Foreign currency translation adjustments
$0.00 - $0.00
$0.00 - $0.00
Constant-Currency Core Funds From Operations / share
$6.60 - $6.75
$6.60 - $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, 2022 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 2023-2024, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented.
(3)
Excludes land acquisitions and includes Digital Realty's share of JV contributions. Figure is net of JV partner contributions.
(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.
