Cover and table of contents

133K characters. Original on sec.gov · Markdown

Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2025

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period From to .

Commission file number 001-32336 (Digital Realty Trust, Inc.)

000-54023 (Digital Realty Trust, L.P.)

DIGITAL REALTY TRUST, INC.

DIGITAL REALTY TRUST, L.P.

(Exact name of registrant as specified in its charter)



Maryland (Digital Realty Trust, Inc.)			26-0081711
Maryland (Digital Realty Trust, L.P.)			20-2402955
(State or other jurisdiction of			(IRS employer
incorporation or organization)			identification number)

2323 Bryan Street, Suite 1800
Dallas, Texas 75201
(Address of principal executive offices)

(214) 231-1350

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	DLR	New York Stock Exchange
Series J Cumulative Redeemable Preferred Stock	DLR Pr J	New York Stock Exchange
Series K Cumulative Redeemable Preferred Stock	DLR Pr K	New York Stock Exchange
Series L Cumulative Redeemable Preferred Stock	DLR Pr L	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Digital Realty Trust, Inc.		Yes ⌧ No ◻
Digital Realty Trust, L.P.		Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Digital Realty Trust, Inc.		Yes ⌧ No ◻
Digital Realty Trust, L.P.		Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Digital Realty Trust, Inc.:


Large accelerated filer ⌧		Accelerated filer ◻

Non-accelerated filer ◻		Smaller reporting company ☐

		Emerging growth company ☐

Digital Realty Trust, L.P.:


Large accelerated filer ◻		Accelerated filer ◻

Non-accelerated filer ⌧		Smaller reporting company ☐

		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Digital Realty Trust, Inc.		◻
Digital Realty Trust, L.P.		◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Digital Realty Trust, Inc.		Yes ☐ No ⌧
Digital Realty Trust, L.P.		Yes ☐ No ⌧

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Digital Realty Trust, Inc.:



Class		Outstanding at April 28, 2025
Common Stock, $.01 par value per share		336,791,489

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the quarter ended March 31, 2025 of Digital Realty Trust, Inc., a Maryland corporation, and Digital Realty Trust, L.P., a Maryland limited partnership, of which Digital Realty Trust, Inc. is the sole general partner. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “we,” “us,” “our,” “our Company”, or “the Company” refer to Digital Realty Trust, Inc. together with its consolidated subsidiaries, including Digital Realty Trust, L.P. In statements regarding qualification as a REIT, such terms refer solely to Digital Realty Trust, Inc. Unless otherwise indicated or unless the context requires otherwise, all references to the “Parent” refer to Digital Realty Trust, Inc., and all references to “our Operating Partnership,” “the Operating Partnership” or “the OP” refer to Digital Realty Trust, L.P. together with its consolidated subsidiaries.

The Parent is a real estate investment trust, or REIT, for U.S. federal income tax purposes and the sole general partner of the OP. As of March 31, 2025, the Parent owned an approximate 98.1% common general partnership interest in Digital Realty Trust, L.P. The remaining approximate 1.9% of the common limited partnership interests of Digital Realty Trust, L.P. are owned by non-affiliated third parties and certain directors and officers of the Parent. As of March 31, 2025, the Parent owned all of the preferred limited partnership interests of Digital Realty Trust, L.P. As the sole general partner of Digital Realty Trust, L.P., the Parent has the full, exclusive and complete responsibility for the OP’s day-to-day management and control.

We believe combining the quarterly reports on Form 10-Q of the Parent and the OP into this single report results in the following benefits:

	●	enhancing investors’ understanding of the Parent and the OP by enabling investors to view the business as a whole in the same manner as management views and operates the business;

	●	eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Parent and the OP; and

	●	creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.

It is important to understand the few differences between the Parent and the OP in the context of how we operate the Company. The Parent does not conduct business itself, other than acting as the sole general partner of the OP and issuing public equity from time to time and guaranteeing certain unsecured debt of the OP and certain of its subsidiaries and affiliates. The OP holds substantially all the assets of the business, directly or indirectly. The OP conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent, which are generally contributed to the OP in exchange for partnership units, the OP generates capital required by the business through the OP’s operations, incurrence of indebtedness and issuance of partnership units to third parties.

The presentation of noncontrolling interests, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of the Parent and those of the OP. The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity and capital issuances in the Parent and in the OP.

To highlight the differences between the Parent and the OP, separate sections in this report, as applicable, individually discuss the Parent and the OP, including separate financial statements and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure of the Parent and the OP, this report refers to actions or holdings as being actions or holdings of the Company.

As general partner with control of the OP, the Parent consolidates the OP for financial reporting purposes, and it does not have significant assets other than its investment in the OP. Therefore, the assets and liabilities of the Parent and the OP are the same on their respective condensed consolidated financial statements. The separate discussions of the Parent and the OP in this report should be read in conjunction with each other to understand the results of the Company on a consolidated basis and how management operates the Company.

In this report, “properties” and “buildings” refer to all or any of the buildings in our portfolio, including data centers and non-data centers, and “data centers” refers only to the properties or buildings in our portfolio that contain data center space. In this report, “Global Revolving Credit Facility” refers to our Operating Partnership’s $4.1 billion equivalent senior unsecured revolving credit facility and global senior credit agreement; “Yen Revolving Credit Facility” refers to our Operating Partnership’s ¥42,511,000,000 (approximately $283 million based on exchange rates at March 31, 2025) senior unsecured revolving credit facility and Yen credit agreement; and “Global Revolving Credit Facilities” refer to our Global Revolving Credit Facility and our Yen Revolving Credit Facility, collectively.

In this report, the “Euro Term Loan Agreement” refers to a term loan agreement which governs a €375,000,000 five-year senior unsecured term loan facility (the “Euro Term Loan Facility”), comprised of €125,000,000 of initial term loans, the entire amount of which was funded on such date, and €250,000,000 of delayed draw term loan commitments that were funded on September 9, 2023.

In this report, Digital Core REIT (“DCREIT”) is a standalone real estate investment trust formed under Singapore law, which is publicly traded on the Singapore Exchange under the ticker symbol “DCRU”.

DIGITAL REALTY TRUST, INC. AND DIGITAL REALTY TRUST, L.P.

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2025

TABLE OF CONTENTS

		Page Number
PART I.	FINANCIAL INFORMATION

ITEM 1.	Condensed Consolidated Financial Statements of Digital Realty Trust, Inc.:

	Condensed Consolidated Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024 (unaudited)	5

	Condensed Consolidated Income Statements for the three months ended March 31, 2025 and 2024 (unaudited)	6

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 (unaudited)	7

	Condensed Consolidated Statement of Equity for the three months ended March 31, 2025 and 2024 (unaudited)	8

	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)	10

	Condensed Consolidated Financial Statements of Digital Realty Trust, L.P.:

	Condensed Consolidated Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024 (unaudited)	11

	Condensed Consolidated Income Statements for the three months ended March 31, 2025 and 2024 (unaudited)	12

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 (unaudited)	13

	Condensed Consolidated Statement of Capital for the three months ended March 31, 2025 and 2024 (unaudited)	14

	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)	16

	Notes to Condensed Consolidated Financial Statements of Digital Realty Trust, Inc. and Digital Realty Trust, L.P. (unaudited)	17

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	61

ITEM 4.	Controls and Procedures (Digital Realty Trust, Inc.)	62

	Controls and Procedures (Digital Realty Trust, L.P.)	63

PART II.	OTHER INFORMATION	64

ITEM 1.	Legal Proceedings	64

ITEM 1A.	Risk Factors	64

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64

ITEM 3.	Defaults Upon Senior Securities	64

ITEM 4.	Mine Safety Disclosures	64

ITEM 5.	Other Information	64

ITEM 6.	Exhibits	65

	Signatures	66

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except per share data)


	March 31,		December 31,
	2025		2024
ASSETS
Investments in real estate:
Investments in properties, net	$	24,133,784	$	24,120,782
Investments in unconsolidated entities		2,702,847		2,639,800
Net investments in real estate		26,836,631		26,760,582
Operating lease right-of-use assets, net		1,165,924		1,178,853
Cash and cash equivalents		2,321,885		3,870,891
Accounts and other receivables, net		1,373,521		1,257,464
Deferred rent, net		641,290		642,456
Goodwill		9,174,165		8,929,431
Customer relationship value, deferred leasing costs and other intangibles, net		2,124,989		2,178,054
Assets held for sale and contribution		953,236		—
Other assets		488,921		465,885
Total assets	$	45,080,562	$	45,283,616
LIABILITIES AND EQUITY
Global revolving credit facilities, net	$	1,096,931	$	1,611,308
Unsecured term loans, net		404,335		386,903
Unsecured senior notes, net of discount		14,744,063		13,962,852
Secured and other debt, net of discount		770,950		753,314
Operating lease liabilities		1,281,572		1,294,219
Accounts payable and other accrued liabilities		1,927,611		2,056,215
Deferred tax liabilities		1,109,294		1,084,562
Accrued dividends and distributions		—		418,661
Security deposits and prepaid rents		559,768		539,802
Obligations associated with assets held for sale and contribution		7,882		—
Total liabilities		21,902,406		22,107,836

Redeemable noncontrolling interests		1,459,322		1,433,185
Commitments and contingencies
Equity:
Stockholders’ Equity:
Preferred Stock: $0.01 par value per share, 110,000 shares authorized; $755,000 liquidation preference ($25.00 per share), 30,200 shares issued and outstanding as of March 31, 2025 and December 31, 2024		731,690		731,690
Common Stock: $0.01 par value per share, 502,000 shares authorized; 336,743 and 336,637 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		3,338		3,337
Additional paid-in capital		28,091,661		28,079,738
Accumulated dividends in excess of earnings		(6,604,217)		(6,292,085)
Accumulated other comprehensive loss, net		(926,874)		(1,182,283)
Total stockholders’ equity		21,295,598		21,340,397
Noncontrolling interests		423,236		402,198
Total equity		21,718,834		21,742,595
Total liabilities and equity	$	45,080,562	$	45,283,616

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(unaudited, in thousands, except per share data)


	Three Months Ended March 31,
	2025		2024
Operating Revenues:
Rental and other services	$	1,386,861	$	1,317,271
Fee income and other		20,776		13,872
Total operating revenues		1,407,637		1,331,143
Operating Expenses:
Rental property operating and maintenance		551,985		548,939
Property taxes and insurance		53,339		43,850
Depreciation and amortization		443,009		431,102
General and administrative		123,540		115,210
Transactions and integration		39,902		31,839
Other		112		10,836
Total operating expenses		1,211,887		1,181,776
Operating income		195,750		149,367
Other Income (Expenses):
Equity in loss of unconsolidated entities		(7,640)		(16,008)
Gain on disposition of properties, net		1,111		277,787
Other income, net		32,773		9,709
Interest expense		(98,464)		(109,535)
Loss on debt extinguishment and modifications		—		(1,070)
Income tax expense		(17,135)		(22,413)
Net income		106,395		287,837
Net loss (income) attributable to noncontrolling interests		3,579		(6,329)
Net income attributable to Digital Realty Trust, Inc.		109,974		281,508
Preferred stock dividends		(10,181)		(10,181)
Net income available to common stockholders	$	99,793	$	271,327
Net income per share available to common stockholders:
Basic	$	0.30	$	0.87
Diluted	$	0.27	$	0.82
Weighted average common shares outstanding:
Basic		336,683		312,292
Diluted		344,721		320,798

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in thousands)


	Three Months Ended March 31,
	2025		2024
Net income	$	106,395	$	287,837
Other comprehensive income (loss):
Foreign currency translation adjustments		286,406		(200,004)
Increase in fair value of derivatives		22,321		69,035
Reclassification to interest expense from derivatives		(8,656)		(10,330)
Other comprehensive income (loss)		300,071		(141,299)
Comprehensive income		406,466		146,538
Comprehensive (income) loss attributable to noncontrolling interests		(41,083)		34,769
Comprehensive income attributable to Digital Realty Trust, Inc.	$	365,383	$	181,307

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

(unaudited, in thousands, except share data)


										Accumulated		Accumulated
	Redeemable				Number of			Additional		Dividends in		Other
	Noncontrolling		Preferred		Common	Common		Paid-in		Excess of		Comprehensive		Noncontrolling
Three Months Ended March 31, 2025	Interests		Stock		Shares	Stock		Capital		Earnings		Loss, Net		Interests		Total Equity

Balance as of December 31, 2024	$	1,433,185	$	731,690	336,636,742	$	3,337	$	28,079,738	$	(6,292,085)	$	(1,182,283)	$	402,198	$	21,742,595
Conversion of common units to common stock		—		—	4,403		—		370		—		—		(370)		—
Vesting of restricted stock, net		—		—	53,159		—		—		—		—		—		—
Common stock offering costs		—		—	—		—		984		—		—		—		984
Shares issued under equity plans, net of share settlement to satisfy tax withholding upon vesting		—		—	49,157		1		2,554		—		—		—		2,555
Reclassification of vested share-based awards		—		—	—		—		(19,941)		—		—		19,941		—
Amortization of unearned compensation regarding share-based awards		—		—	—		—		22,458		—		—		—		22,458
Adjustment to redeemable noncontrolling interests		(5,498)		—	—		—		5,498		—		—		—		5,498
Dividends declared on preferred stock		—		—	—		—		—		(10,181)		—		—		(10,181)
Dividends and distributions on common stock and common and incentive units		(190)		—	—		—		—		(411,925)		—		(7,656)		(419,581)
Contributions from (distributions to) noncontrolling interests		—		—	—		—		—		—		—		(135)		(135)
Net income (loss)		(6,145)		—	—		—		—		109,974		—		2,566		112,540
Other comprehensive income (loss)		37,970		—	—		—		—		—		255,409		6,692		262,101
Balance as of March 31, 2025	$	1,459,322	$	731,690	336,743,461	$	3,338	$	28,091,661	$	(6,604,217)	$	(926,874)	$	423,236	$	21,718,834

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

(unaudited, in thousands, except share data)


										Accumulated		Accumulated
	Redeemable				Number of			Additional		Dividends in		Other
	Noncontrolling		Preferred		Common	Common		Paid-in		Excess of		Comprehensive		Noncontrolling
Three Months Ended March 31, 2024	Interests		Stock		Shares	Stock		Capital		Earnings		Loss, Net		Interests		Total Equity

Balance as of December 31, 2023	$	1,394,814	$	731,690	311,607,580	$	3,088	$	24,396,797	$	(5,262,648)	$	(751,393)	$	483,973	$	19,601,507
Conversion of common units to common stock		—		—	71,938		—		5,300		—		—		(5,300)		—
Vesting of restricted stock, net		—		—	55,243		—		—		—		—		—		—
Issuance of common stock, net of costs		—		—	637,980		9		98,038		—		—		—		98,047
Shares issued under equity plans, net of share settlement to satisfy tax withholding upon vesting		—		—	47,918		—		2,902		—		—		—		2,902
Reclassification of vested share-based awards		—		—	—		—		(9,752)		—		—		9,752		—
Amortization of unearned compensation regarding share-based awards		—		—	—		—		18,377		—		—		—		18,377
Adjustment to redeemable noncontrolling interests		1,476		—	—		—		(1,476)		—		—		—		(1,476)
Dividends declared on preferred stock		—		—	—		—		—		(10,181)		—		—		(10,181)
Dividends and distributions on common stock and common and incentive units		(190)		—	—		—		—		(382,208)		—		(7,958)		(390,166)
Contributions from (distributions to) noncontrolling interests		—		—	—		—		—		—		—		(21,426)		(21,426)
Net income (loss)		(7,509)		—	—		—		—		281,508		—		13,838		295,346
Other comprehensive income (loss)		(37,855)		—	—		—		(1,503)		—		(98,698)		(3,242)		(103,443)
Balance as of March 31, 2024	$	1,350,736	$	731,690	312,420,659	$	3,097	$	24,508,683	$	(5,373,529)	$	(850,091)	$	469,637	$	19,489,487

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income	$	106,395	$	287,837
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on disposition of properties, net		(1,111)		(277,787)
Equity in loss of unconsolidated entities		7,640		16,008
Distributions from unconsolidated entities		60,020		45,797
Depreciation and amortization		443,009		431,102
Amortization of share-based compensation		20,878		16,736
Loss on debt extinguishment and modifications		—		1,070
Straight-lined rents and amortization of above and below market leases		(16,552)		4,699
Amortization of deferred financing costs and debt discount / premium		7,581		6,931
Other operating activities, net		9,266		473
Changes in assets and liabilities:
Increase in accounts receivable and other assets		(104,248)		(33,034)
Decrease in accounts payable and other liabilities		(133,793)		(147,557)
Net cash provided by operating activities		399,085		352,275
Cash flows from investing activities:
Improvements to investments in real estate		(787,303)		(659,315)
Cash paid for business combination / asset acquisitions, net of cash acquired		(36,382)		(80,581)
Investments in and advances to unconsolidated entities		(168,384)		(121,357)
Return of investment from unconsolidated entities		74,900		85,586
Proceeds from sale of assets		62,082		814,101
Other investing activities, net		(48,093)		(31,815)
Net cash (used in) provided by investing activities		(903,180)		6,619
Cash flows from financing activities:
Proceeds from credit facilities		466,116		447,018
Payments on credit facilities		(1,007,655)		(311,174)
Borrowings on secured / unsecured debt		871,286		5,568
Repayments on secured / unsecured debt		(495,800)		(240,000)
Capital (distribution to) contributions from noncontrolling interests, net		(135)		(21,426)
Proceeds from issuance of common stock, net		984		98,047
Payments of dividends and distributions		(848,613)		(788,525)
Other financing activities, net		(4,180)		778
Net cash used in financing activities		(1,017,997)		(809,714)
Net decrease in cash, cash equivalents and restricted cash		(1,522,092)		(450,820)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(26,438)		13,438
Cash, cash equivalents and restricted cash at beginning of period		3,876,700		1,636,470
Cash, cash equivalents and restricted cash at end of period	$	2,328,170	$	1,199,088

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except per unit data)


	March 31,		December 31,
	2025		2024
ASSETS
Investments in real estate:
Investments in properties, net	$	24,133,784	$	24,120,782
Investments in unconsolidated entities		2,702,847		2,639,800
Net investments in real estate		26,836,631		26,760,582
Operating lease right-of-use assets, net		1,165,924		1,178,853
Cash and cash equivalents		2,321,885		3,870,891
Accounts and other receivables, net		1,373,521		1,257,464
Deferred rent, net		641,290		642,456
Goodwill		9,174,165		8,929,431
Customer relationship value, deferred leasing costs and other intangibles, net		2,124,989		2,178,054
Assets held for sale and contribution		953,236		—
Other assets		488,921		465,885
Total assets	$	45,080,562	$	45,283,616
LIABILITIES AND CAPITAL
Global revolving credit facilities, net	$	1,096,931	$	1,611,308
Unsecured term loans, net		404,335		386,903
Unsecured senior notes, net of discount		14,744,063		13,962,852
Secured and other debt, net of discount		770,950		753,314
Operating lease liabilities		1,281,572		1,294,219
Accounts payable and other accrued liabilities		1,927,611		2,056,215
Deferred tax liabilities		1,109,294		1,084,562
Accrued dividends and distributions		—		418,661
Security deposits and prepaid rents		559,768		539,802
Obligations associated with assets held for sale and contribution		7,882		—
Total liabilities		21,902,406		22,107,836

Redeemable noncontrolling interests		1,459,322		1,433,185
Commitments and contingencies
Capital:
Partners’ capital:
General Partner:
Preferred units, $755,000 liquidation preference ($25.00 per unit), 30,200 units issued and outstanding as of March 31, 2025 and December 31, 2024		731,690		731,690
Common units, 336,743 and 336,637 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		21,490,782		21,790,990
Limited Partners, 6,349 and 6,135 units issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		441,048		426,183
Accumulated other comprehensive loss		(951,966)		(1,212,367)
Total partners’ capital		21,711,554		21,736,496
Noncontrolling interests in consolidated entities		7,280		6,099
Total capital		21,718,834		21,742,595
Total liabilities and capital	$	45,080,562	$	45,283,616

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(unaudited, in thousands, except per unit data)


	Three Months Ended March 31,
	2025		2024
Operating Revenues:
Rental and other services	$	1,386,861	$	1,317,271
Fee income and other		20,776		13,872
Total operating revenues		1,407,637		1,331,143
Operating Expenses:
Rental property operating and maintenance		551,985		548,939
Property taxes and insurance		53,339		43,850
Depreciation and amortization		443,009		431,102
General and administrative		123,540		115,210
Transactions and integration		39,902		31,839
Other		112		10,836
Total operating expenses		1,211,887		1,181,776
Operating income		195,750		149,367
Other Income (Expenses):
Equity in loss of unconsolidated entities		(7,640)		(16,008)
Gain on disposition of properties, net		1,111		277,787
Other income, net		32,773		9,709
Interest expense		(98,464)		(109,535)
Loss on debt extinguishment and modifications		—		(1,070)
Income tax expense		(17,135)		(22,413)
Net income		106,395		287,837
Net loss (income) attributable to noncontrolling interests		6,579		(129)
Net income attributable to Digital Realty Trust, L.P.		112,974		287,708
Preferred units distributions		(10,181)		(10,181)
Net income available to common unitholders	$	102,793	$	277,527
Net income per unit available to common unitholders:
Basic	$	0.30	$	0.87
Diluted	$	0.28	$	0.82
Weighted average common units outstanding:
Basic		342,594		318,469
Diluted		350,632		326,975

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in thousands)


	Three Months Ended March 31,
	2025		2024
Net income	$	106,395	$	287,837
Other comprehensive income (loss):
Foreign currency translation adjustments		286,406		(200,004)
Increase in fair value of derivatives		22,321		69,035
Reclassification to interest expense from derivatives		(8,656)		(10,330)
Other comprehensive income (loss)		300,071		(141,299)
Comprehensive income	$	406,466	$	146,538
Comprehensive (income) loss attributable to noncontrolling interests		(33,091)		38,755
Comprehensive income attributable to Digital Realty Trust, L.P.	$	373,375	$	185,293

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CAPITAL

(unaudited, in thousands, except unit data)


												Accumulated
	Redeemable		General Partner						Limited Partners			Other
	Limited Partner		Preferred Units			Common Units			Common Units			Comprehensive		Noncontrolling
Three Months Ended March 31, 2025	Common Units		Units	Amount		Units	Amount		Units	Amount		Loss, Net		Interests		Total Capital

Balance as of December 31, 2024	$	1,433,185	30,200,000		731,690	336,636,742		21,790,990	6,134,812		426,183		(1,212,367)		6,099		21,742,595
Conversion of limited partner common units to general partner common units		—	—		—	4,403		370	(4,403)		(370)		—		—		—
Vesting of restricted common units, net		—	—		—	53,159		—	—		—		—		—		—
Common unit offering costs		—	—		—	—		984	—		—		—		—		984
Issuance of limited partner common units, net		—	—		—	—		—	218,586		—		—		—		—
Units issued under equity plans, net of unit settlement to satisfy tax withholding upon vesting		—	—		—	49,157		2,555	—		—		—		—		2,555
Amortization of share-based compensation		—	—		—	—		22,458	—		—		—		—		22,458
Reclassification of vested share-based awards		—	—		—	—		(19,941)	—		19,941		—		—		—
Adjustment to redeemable partnership units		(5,498)	—		—	—		5,498	—		—		—		—		5,498
Distributions		(190)	—		(10,181)	—		(411,925)	—		(7,656)		—		—		(429,762)
Contributions from (distributions to) noncontrolling interests in consolidated entities		—	—		—	—		—	—		—		—		(135)		(135)
Net income (loss)		(6,145)	—		10,181	—		99,793	—		2,950		—		(384)		112,540
Other comprehensive income (loss)		37,970	—		—	—		—	—		—		260,401		1,700		262,101
Balance as of March 31, 2025	$	1,459,322	30,200,000	$	731,690	336,743,461	$	21,490,782	6,348,995	$	441,048	$	(951,966)	$	7,280	$	21,718,834

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CAPITAL

(unaudited, in thousands, except unit data)


												Accumulated
	Redeemable		General Partner						Limited Partners			Other
	Limited Partner		Preferred Units			Common Units			Common Units			Comprehensive		Noncontrolling
Three Months Ended March 31, 2024	Common Units		Units	Amount		Units	Amount		Units	Amount		Loss, Net		Interests		Total Capital

Balance as of December 31, 2023	$	1,394,814	30,200,000	$	731,690	311,607,580	$	19,137,237	6,448,987	$	459,356	$	(772,668)	$	45,892	$	19,601,507
Conversion of limited partner common units to general partner common units		—	—		—	71,938		5,300	(71,938)		(5,300)		—		—		—
Vesting of restricted common units, net		—	—		—	55,243		—	—		—		—		—		—
Common stock offering costs		—	—		—	—		—	—		—		—		—		—
Issuance of common units, net of costs		—	—		—	637,980		98,047	—		—		—		—		98,047
Issuance of limited partner common units, net		—	—		—	—		—	210,909		—		—		—		—
Units issued under equity plans, net of unit settlement to satisfy tax withholding upon vesting		—	—		—	47,918		2,902	—		—		—		—		2,902
Amortization of share-based compensation		—	—		—	—		18,377	—		—		—		—		18,377
Reclassification of vested share-based awards		—	—		—	—		(9,752)	—		9,752		—		—		—
Adjustment to redeemable partnership units		1,476	—		—	—		(1,476)	—		—		—		—		(1,476)
Distributions		(190)	—		(10,181)	—		(382,208)	—		(7,958)		—		—		(400,347)
Contributions from (distributions to) noncontrolling interests in consolidated entities		—	—		—	—		—	—		—		—		(21,426)		(21,426)
Net income (loss)		(5,207)	—		10,181	—		271,327	—		3,758		—		7,778		293,044
Other comprehensive income (loss)		(37,855)	—		—	—		(1,503)	—		—		(100,911)		(1,029)		(103,443)
Balance as of March 31, 2024	$	1,353,038	30,200,000	$	731,690	312,420,659	$	19,138,251	6,587,958	$	459,608	$	(873,579)	$	31,215	$	19,487,185

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income	$	106,395	$	287,837
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on disposition of properties, net		(1,111)		(277,787)
Equity in loss of unconsolidated entities		7,640		16,008
Distributions from unconsolidated entities		60,020		45,797
Depreciation and amortization		443,009		431,102
Amortization of share-based compensation		20,878		16,736
Loss on debt extinguishment and modifications		—		1,070
Straight-lined rents and amortization of above and below market leases		(16,552)		4,699
Amortization of deferred financing costs and debt discount / premium		7,581		6,931
Other operating activities, net		9,266		473
Changes in assets and liabilities:
Increase in accounts receivable and other assets		(104,248)		(33,034)
Decrease in accounts payable and other liabilities		(133,793)		(147,557)
Net cash provided by operating activities		399,085		352,275
Cash flows from investing activities:
Improvements to investments in real estate		(787,303)		(659,315)
Cash paid for business combination / asset acquisitions, net of cash acquired		(36,382)		(80,581)
Investments in and advances to unconsolidated entities		(168,384)		(121,357)
Return of investment from unconsolidated entities		74,900		85,586
Proceeds from sale of assets		62,082		814,101
Other investing activities, net		(48,093)		(31,815)
Net cash (used in) provided by investing activities		(903,180)		6,619
Cash flows from financing activities:
Proceeds from credit facilities		466,116		447,018
Payments on credit facilities		(1,007,655)		(311,174)
Borrowings on secured / unsecured debt		871,286		5,568
Repayments on secured / unsecured debt		(495,800)		(240,000)
Capital (distribution to) contributions from noncontrolling interests, net		(135)		(21,426)
General partner contributions		984		98,047
Payments of dividends and distributions		(848,613)		(788,525)
Other financing activities, net		(4,180)		778
Net cash used in financing activities		(1,017,997)		(809,714)
Net decrease in cash, cash equivalents and restricted cash		(1,522,092)		(450,820)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(26,438)		13,438
Cash, cash equivalents and restricted cash at beginning of period		3,876,700		1,636,470
Cash, cash equivalents and restricted cash at end of period	$	2,328,170	$	1,199,088

See accompanying notes to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

General

Organization and Description of Business. Digital Realty Trust, Inc. (the Parent), through its controlling interest in Digital Realty Trust, L.P. (the Operating Partnership or the OP) and the subsidiaries of the OP (collectively, we, our, us or the Company), is a leading global provider of data center (including colocation and interconnection) solutions for customers across a variety of industry verticals ranging from cloud and information technology services, social networking and communications to financial services, manufacturing, energy, healthcare, and consumer products. The OP, a Maryland limited partnership, is the entity through which the Parent, a Maryland corporation, conducts its business of owning, acquiring, developing and operating data centers. The Parent operates as a REIT for U.S. federal income tax purposes.

The Parent’s only material asset is its ownership of partnership interests of the OP. The Parent generally does not conduct business itself, other than acting as the sole general partner of the OP, issuing public securities from time to time and guaranteeing certain unsecured debt of the OP and certain of its subsidiaries and affiliates. The Parent has not issued any debt but guarantees the unsecured debt of the OP and certain of its subsidiaries and affiliates.

The OP holds substantially all the assets of the Company. The OP conducts the operations of the business and has no publicly traded equity. Except for net proceeds from public equity issuances by the Parent, which are generally contributed to the OP in exchange for partnership units, the OP generally generates capital required by the Company’s business primarily through the OP’s operations, by the OP’s or its affiliates’ direct or indirect incurrence of indebtedness or through the issuance of partnership units.

Accounting Principles and Basis of Presentation. The accompanying unaudited interim condensed consolidated financial statements and accompanying notes (the “Financial Statements”) are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and are presented in our reporting currency, the U.S. dollar. All of the accounts of the Parent, the OP, and the subsidiaries of the OP are included in the accompanying Financial Statements. All material intercompany transactions with consolidated entities have been eliminated. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. Interim results are not always indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”), as filed with the U.S. Securities and Exchange Commission (“SEC”) and other filings with the SEC.

Management Estimates and Assumptions. U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of revenue and expenses during the reporting period, reported amounts for assets and liabilities as of the date of the financial statements, and disclosures of contingent assets and liabilities as of the date of the financial statements. Although we believe the estimates and assumptions we made are reasonable and appropriate, as discussed in the applicable sections throughout the consolidated financial statements, different assumptions and estimates could materially impact our reported results. Actual results and outcomes may differ from our assumptions.

New Accounting Pronouncements. Recently issued accounting pronouncements that have yet to be adopted by the Company are not expected to have a material impact to the condensed consolidated financial statements.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Investments in Properties

A summary of our investments in properties is below (in thousands):


Property Type	As of March 31, 2025		As of December 31, 2024
Land	$	1,114,015	$	1,108,251
Acquired ground lease		89		86
Buildings and improvements		25,940,229		25,567,155
Tenant improvements		893,631		883,502
		27,947,964		27,558,994
Accumulated depreciation and amortization		(8,856,535)		(8,641,331)
Investments in operating properties, net		19,091,429		18,917,663
Construction in progress and space held for development		4,973,266		5,164,334
Land held for future development		69,089		38,785
Investments in properties, net	$	24,133,784	$	24,120,782

Acquisitions

During the quarter, we closed on two land acquisitions in Charlotte, North Carolina. The first acquisition was approximately 48 acres for $20.0 million, adjacent to our existing campus that was acquired in the fourth quarter of 2024. The second acquisition was for two parcels adjacent to our existing connectivity hub in Uptown Charlotte for approximately $16.1 million.

Contributions

During the three months ended March 31, 2025, Digital Realty launched its first U.S. hyperscale data center fund (the “Fund”), successfully raising approximately $1.4 billion of equity commitments, from a broad array of global limited partners (“LP”). As of April 22, 2025, Fund commitments totaled approximately $1.7 billion. The Fund is targeting $2.5 billion of LP equity commitments, representing up to an 80% ownership interest, while Digital Realty will maintain at least a 20% stake in the assets. The Fund will be comprised of operating hyperscale data centers and development sites, located across leading U.S. data center markets, including Northern Virginia, Dallas, Atlanta, Charlotte, New York metro and Silicon Valley. The initial portfolio includes five operating data centers plus four land sites with access to power for data center development. Digital Realty expects to contribute a share of the assets to the Fund in the second quarter and will serve as general partner, maintaining operational and management responsibilities for the assets. The disposition of a portion of our interest in the data centers met the criteria under ASC 360 for the assets to qualify as held for sale and contribution. However, the operations are not classified as discontinued operations as a result of our continuing interest in the Fund. These data centers were not representative of a significant component of our portfolio, nor will the contribution represent a significant shift in our strategy.

As of March 31, 2025, real estate assets, including those mentioned above, that qualified as held for sale had an aggregate carrying value of $953.2 million within total assets and $7.9 million within total liabilities and are shown within Assets held for sale and contribution and Obligations associated with assets held for sale and contribution, respectively, on the condensed consolidated balance sheet.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Leases

Lessor Accounting

We generate most of our revenue by leasing operating properties to customers under operating lease agreements. We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term if we determine that it is probable that substantially all of the lease payments will be collected over the lease term. Otherwise, rental revenue is recognized based on the amount contractually due. Generally, under the terms of our leases, some of our rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from our customers. We record amounts reimbursed by customers in the period the applicable expenses are incurred, which is generally ratably throughout the term of the lease. Reimbursements are recognized in rental and other services revenue in the condensed consolidated income statements as we are the primary obligor with respect to purchasing and selecting goods and services from third-party vendors and bearing the associated credit risk. Our largest customer’s total revenue approximates 12% of our total revenue base. No other individual customer makes up more than 7% of our total revenue.

Lessee Accounting

We lease space at certain of our data centers from third parties and certain equipment under noncancelable lease agreements. Leases for our data centers expire at various dates through 2069. As of March 31, 2025, certain of our data centers, primarily in Europe and Singapore, are subject to ground leases. As of March 31, 2025, the termination dates of these ground leases generally range from 2038 to 2073. In addition, our corporate headquarters along with several regional office locations are subject to leases with termination dates ranging from 2025 to 2036.

The leases generally require us to make fixed rental payments that increase at defined intervals during the term of the lease, plus pay our share of common area, real estate and utility expenses as incurred. The leases neither contain residual value guarantees nor impose material restrictions or covenants on us. Further, the leases have been classified and accounted for as either operating or finance leases. Rent expense related to operating leases included in rental property operating and maintenance expense in the condensed consolidated income statements amounted to approximately $38.2 million and $37.0 million for the three months ended March 31, 2025 and 2024, respectively.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Receivables

Accounts and Other Receivables, Net

Accounts and Other Receivables, net is primarily comprised of contractual rents and other lease-related obligations currently due from customers. These amounts (net of an allowance for estimated uncollectible amounts) are shown in the subsequent table as Accounts receivable – trade, net. The other receivables shown separately from Accounts receivable – trade, net consist primarily of value-added tax receivables, various management fees for functions provided to managed joint ventures, as well as amounts that have not yet been billed to customers, such as for utility reimbursements and installation fees.


	Balance as of		Balance as of
(Amounts in thousands):	March 31, 2025		December 31, 2024
Accounts receivable – trade	$	664,161	$	629,250
Allowance for doubtful accounts		(62,803)		(59,224)
Accounts receivable – trade, net		601,358		570,026

Accounts receivable – customer recoveries		191,573		178,827
Value-added tax receivables		166,886		160,369
Accounts receivable – installation fees		169,804		157,409
Other receivables		243,900		190,833
Accounts and other receivables, net	$	1,373,521	$	1,257,464

Deferred Rent, Net

Deferred rent, net represents rental income that has been recognized as revenue under ASC 842, but which is not yet due from customers under their existing rental agreements. The Company recognizes an allowance against deferred rent receivables to the extent it becomes no longer probable that a customer or group of customers will be able to make substantially all of their required cash rental payments over the entirety of their respective lease terms.


	Balance as of		Balance as of
(Amounts in thousands):	March 31, 2025		December 31, 2024
Deferred rent receivables	$	643,081	$	644,566
Allowance for deferred rent receivables		(1,791)		(2,110)
Deferred rent, net	$	641,290	$	642,456

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Investments in Unconsolidated Entities

A summary of the Company’s investments in unconsolidated entities accounted for under the equity method of accounting is shown below (in thousands):


	Balance as of		Balance as of
		March 31, 2025		December 31, 2024
Americas (1)	$	1,311,882	$	1,311,950
APAC (2)		731,500		615,687
EMEA (3)		203,216		252,791
Global (4)		456,249		459,372
Total	$	2,702,847	$	2,639,800

Includes the following unconsolidated entities along with our ownership percentage as of March 31, 2025:

(1)	Ascenty (49%), Blackstone (20%), Clise (50%), GI Partners (ranging from 20% to 25%), Mapletree (20%), Menlo (20%), Mitsubishi (20%), Realty Income (20%), TPG Real Estate (20%), and Walsh (87%).

(2)	Digital Connexion (33%), Digital Realty Bersama (50%), Lumen (50%), and MC Digital Realty (50%).

(3)	Blackstone (20%), Medallion (60%), and Mivne (50%).

(4)	Digital Core REIT (39%).

Generally, we serve as the managing member responsible for operations in the ordinary course of business of the joint ventures. We perform the day-to-day accounting and property management functions for the joint ventures and, as such, will earn management fees. However, certain approval rights are granted through the terms of the joint venture agreements and require unanimous consent of both members with respect to any major decisions. Generally, major decisions are defined to include the annual plan which sets out joint venture and property level budgets, including lease revenues, operating expenses, and capital expenditures. As such, we concluded we do not own a controlling interest and accounted for our interest in the joint ventures under the equity method of accounting.

Digital Realty Bersama Joint Venture – On March 18, 2025, we formed a joint venture with Bersama Digital Infrastructure Asia (BDIA) to develop and operate data centers across Indonesia. We acquired a 50% interest in the joint venture, which consists of two land parcels and two buildings in Jakarta, Indonesia for approximately $94.7 million. The 6 acres of land and two buildings can support up to approximately 32 megawatts of IT load.

Mitsubishi Joint Venture - On March 1, 2024, we formed a joint venture with Mitsubishi Corporation, or Mitsubishi, to support the development of two data centers in the Dallas metro area. We retained a 35% interest in the joint venture. Each partner funded its pro rata share of the remaining $140 million estimated development cost for the first phase of the project, of which one project was completed in June 2024 and another was completed in October 2024. On January 31, 2025, Mitsubishi made an additional cash capital contribution in the amount of $62 million, resulting in an additional 15% ownership in the joint venture. The transaction resulted in a gain of approximately $5.1 million. Currently, Mitsubishi has an 80% interest in the joint venture, and we have retained a 20% interest.

DCREIT – Digital Core REIT is a standalone real estate investment trust formed under Singapore law, which is publicly traded on the Singapore Exchange under the ticker symbol “DCRU”. DCREIT owns 10 operating data center properties. The Company has ownership interest in the units of DCREIT, as well as ownership interests in the operating properties of DCREIT.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of March 31, 2025, the Company held 32% of the outstanding DCREIT units and separately owned a 10% direct retained interest in the underlying North American operating properties and a 35% direct retained interest in a Frankfurt asset.

The Company’s 32% interest in DCREIT consisted of 415 million units and 418 million units as of March 31, 2025 and December 31, 2024, respectively. Based on the closing price per unit of $0.53 and $0.58 as of March 31, 2025 and December 31, 2024, respectively, the fair value of the units the Company owned in DCREIT was approximately $220 million and $242 million as of March 31, 2025 and December 31, 2024, respectively.

Pursuant to contractual agreements with DCREIT and its operating properties, the Company will earn fees for asset and property management services as well as fees for aiding in future acquisition, disposition and development activities. Certain of these fees are payable to the Company in the form of additional units in DCREIT or in cash. The Company earned fees pursuant to these contractual agreements of approximately $2.9 million and $2.9 million for the three months ended March 31, 2025 and 2024, respectively, which is recorded as fee income and other on the condensed consolidated income statement.

Ascenty – In addition to the Company’s 49% ownership interest in Ascenty, there is also an approximate 2% interest held by one of the Company’s noncontrolling interest holders. This 2% interest had a carrying value of approximately $23 million and $23 million as of March 31, 2025 and December 31, 2024, respectively. Ascenty is a variable interest entity (“VIE”) and the Company’s maximum exposure to loss related to this VIE is limited to our equity investment in the entity.

Debt – The debt of our unconsolidated entities generally is non-recourse to us, except for customary exceptions pertaining to matters such as intentional misuse of funds, environmental conditions, and material misrepresentations.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired in a business combination. Changes in the value of goodwill at March 31, 2025 as compared to December 31, 2024 were primarily driven by changes in exchange rates associated with goodwill balances denominated in foreign currencies.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Acquired Intangible Assets and Liabilities

The following table summarizes our acquired intangible assets and liabilities:


	Balance as of
	March 31, 2025						December 31, 2024
(Amounts in thousands)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationship value	$	2,762,907	$	(1,104,529)	$	1,658,378	$	2,783,428	$	(1,080,547)	$	1,702,881
Acquired in-place lease value		1,010,690		(842,938)		167,752		1,043,706		(863,021)		180,685
Other		133,096		(38,223)		94,873		122,638		(36,038)		86,600
Acquired above-market leases		112,256		(109,331)		2,925		126,322		(122,714)		3,608
Acquired below-market leases		(259,211)		222,055		(37,156)		(258,243)		219,672		(38,571)
Total	$	3,759,738	$	(1,872,966)	$	1,886,772	$	3,817,851	$	(1,882,648)	$	1,935,203

Amortization of customer relationship value, acquired in-place lease value and other intangibles (a component of depreciation and amortization expense) was approximately $57.1 million and $59 million for the three months ended March 31, 2025 and 2024, respectively.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase in rental and other services revenue of $1.2 million and $1.4 million for the three months ended March 31, 2025 and 2024, respectively.

Estimated annual amortization for each of the five succeeding years and thereafter, commencing April 1, 2025 is as follows:


(Amounts in thousands)		Customer relationship value		Acquired in-place lease value		Other (1)		Acquired above-market leases		Acquired below-market leases
2025	$	176,782	$	35,976	$	2,097	$	463	$	(4,713)
2026		206,319		46,740		2,796		431		(6,522)
2027		206,094		37,987		2,796		431		(5,934)
2028		185,165		20,827		2,814		431		(5,861)
2029		153,224		11,972		2,868		398		(5,861)
Thereafter		730,794		14,250		3,566		771		(8,265)
Total	$	1,658,378	$	167,752	$	16,937	$	2,925	$	(37,156)

(1)	Excludes power grid rights in the amount of approximately $77.9 million that are currently not being amortized. Amortization of these assets will begin once the data centers associated with the power grid rights are placed into service.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Debt of the Operating Partnership

All debt is currently held by the OP or its consolidated subsidiaries, and the Parent is the guarantor or co-guarantor of the Global Revolving Credit Facility and the Yen Revolving Credit Facility, the unsecured term loans and the unsecured senior notes. A summary of outstanding indebtedness is as follows (in thousands):


	March 31, 2025				December 31, 2024
	Weighted-				Weighted-
	average		Amount		average		Amount
	interest rate		Outstanding		interest rate		Outstanding
Global Revolving Credit Facilities	3.04	%	$	1,121,628	3.81	%	$	1,637,922
Unsecured term loans	3.23	%		405,600	3.23	%		388,275
Unsecured senior notes	2.28	%		14,849,815	2.26	%		14,059,415
Secured and other debt	8.70	%		778,767	8.52	%		761,263
Total	2.65	%	$	17,155,810	2.72	%	$	16,846,875

The weighted-average interest rates shown represent interest rates at the end of the periods for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rates on certain variable rate debt, along with cross-currency interest rate swaps, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt in order to hedge the currency exposure associated with our net investment in foreign subsidiaries.

We primarily borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies (in thousands, U.S. dollars):


	March 31, 2025				December 31, 2024
	Amount				Amount
Denomination of Draw	Outstanding		% of Total		Outstanding		% of Total
U.S. dollar ($)	$	2,915,593	17.0	%	$	2,852,102	16.9	%
British pound sterling (£)		1,162,620	6.8	%		1,627,080	9.7	%
Euro (€)		10,919,928	63.7	%		10,327,404	61.3	%
Other		2,157,669	12.5	%		2,040,289	12.1	%
Total	$	17,155,810			$	16,846,875

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The table below summarizes debt maturities and principal payments as of March 31, 2025 (in thousands):


	Global Revolving		Unsecured		Unsecured		Secured and
	Credit Facilities (1)(2)		Term Loans(3)		Senior Notes(4)		Other Debt		Total Debt
2025	$	—	$	405,600	$	703,040	$	605	$	1,109,245
2026		—		—		1,473,694		117,746		1,591,440
2027		—		—		1,169,622		236,824		1,406,446
2028		—		—		2,090,800		365,079		2,455,879
2029		1,121,628		—		2,807,449		14,387		3,943,464
Thereafter		—		—		6,605,210		44,126		6,649,336
Subtotal	$	1,121,628	$	405,600	$	14,849,815	$	778,767	$	17,155,810
Unamortized net discounts		—		—		(33,220)		(3,762)		(36,982)
Unamortized deferred financing costs		(24,697)		(1,265)		(72,532)		(4,055)		(102,549)
Total	$	1,096,931	$	404,335	$	14,744,063	$	770,950	$	17,016,279

(1)	Includes amounts outstanding for the Global Revolving Credit Facilities.

(2)	The Global Revolving Credit Facilities are subject to two six-month extension options exercisable by us; provided that the Operating Partnership must pay a 0.0625% extension fee based on each lender’s revolving commitments then outstanding (whether funded or unfunded).

(3)	The €375.0 million Euro Term Loan Facility is subject to two maturity extension options of one year each, provided that the Operating Partnership must pay a 0.125% extension fee based on the then-outstanding principal amount of such facility commitments then outstanding.

(4)	The £400 million 4.250% unsecured senior notes were paid at maturity on January 17, 2025.

On September 24, 2024, we refinanced our Global Revolving Credit Facilities. Below are key terms for our Global Revolving Credit Facility and Yen Revolving Credit Facility.

Global Revolving Credit Facility

We have a Global Revolving Credit Facility under which we may draw up to $4.1 billion equivalent on a revolving basis (subject to currency fluctuations). The Global Revolving Credit Facility can be drawn in Australian dollars, British pounds sterling, Canadian dollars, Euros, Hong Kong dollars, Indonesian rupiah, Japanese yen, Korean won, Singapore dollars, Swiss francs and U.S. dollars (with the ability to add other currencies in the future). As of March 31, 2025, approximately $117.6 million of letters of credit were issued.

We have the ability to increase the size of the Global Revolving Credit Facility by up to $1.8 billion, subject to the receipt of lender commitments and the satisfaction of certain customary conditions precedent. Other key terms of the Global Revolving Credit Facility are as follows:

	●	Maturity date: January 24, 2029, with two six-month extension options available. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the Global Revolving Credit Facilities.

	●	Interest rate: the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 85 basis points (subject to a sustainability-linked pricing component).

	●	Annual facility fee: based on the total commitment amount of the facility and the credit ratings of our long-term debt is currently 20 basis points (subject to a sustainability-linked pricing component) and is payable quarterly.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	●	Sustainability-linked pricing component: pricing can increase by up to 5 basis points or decrease by up to 5 basis points depending on whether or not the OP or its subsidiaries meet certain sustainability performance targets.

Yen Revolving Credit Facility

In addition to the Global Revolving Credit Facility, we have a revolving credit facility that provides for borrowings in Japanese Yen of up to ¥42.5 billion (approximately $283.5 million based on the exchange rate on March 31, 2025), hereafter referred to as the “Yen Revolving Credit Facility”. We have the ability from time to time to increase the size of the Yen Revolving Credit Facility to up to ¥102.5 billion, subject to receipt of lender commitments and other conditions precedent. Other key terms of the Yen Revolving Credit Facility are as follows:

	●	Maturity date: January 24, 2029, with two six-month extension options available. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the Global Revolving Credit Facilities.

	●	Interest rate: the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 50 basis points (subject to a sustainability-linked pricing component).

	●	Quarterly unused commitment fee: currently is 10 basis points (subject to a sustainability-linked pricing component), calculated using the average daily unused revolving credit commitment and is based on the credit ratings of our long-term debt.

	●	Sustainability-linked pricing component: pricing can increase by up to 5 basis points or decrease by up to 5 basis points depending on whether or not the OP or its subsidiaries meet certain sustainability performance targets.

Restrictive Covenants in Global Revolving Credit Facility and Yen Revolving Credit Facility

The Global Revolving Credit Facility and the Yen Revolving Credit Facility both contain various restrictive covenants, including limitations on our ability to incur additional indebtedness, make certain investments, or merge with another company. In addition, we are required to maintain financial coverage ratios, including with respect to unencumbered assets. After the occurrence of and during the continuance of any event of default, these credit facilities restrict the Parent’s ability to make distributions to stockholders or redeem or otherwise repurchase shares of its capital stock, except in limited circumstances (such as those necessary to enable Digital Realty Trust, Inc. to maintain its qualification as a REIT and to minimize the payment of income or excise tax). As of March 31, 2025, we were in compliance with all of such covenants for both of these revolving credit facilities.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Unsecured Senior Notes

The following table provides details of our unsecured senior notes (balances in thousands):


	Aggregate Principal Amount at Issuance					Balance as of
	Borrowing Currency		USD		Maturity Date	March 31, 2025		December 31, 2024
4.250% notes due 2025 (1)	£	400,000	$	634,480	Jan 17, 2025	$	—		500,640
0.625% notes due 2025	€	650,000	$	720,980	Jul 15, 2025		703,040		673,010
2.500% notes due 2026	€	1,075,000	$	1,224,640	Jan 16, 2026		1,162,720		1,113,055
0.200% notes due 2026	CHF	275,000	$	298,404	Dec 15, 2026		310,974		302,987
1.700% notes due 2027	CHF	150,000	$	162,465	Mar 30, 2027		169,622		165,265
3.700% notes due 2027 (2)	$	1,000,000	$	1,000,000	Aug 15, 2027		1,000,000		1,000,000
5.550% notes due 2028 (2)	$	900,000	$	900,000	Jan 15, 2028		900,000		900,000
1.125% notes due 2028	€	500,000	$	548,550	Apr 09, 2028		540,800		517,700
4.450% notes due 2028	$	650,000	$	650,000	Jul 15, 2028		650,000		650,000
0.550% notes due 2029	CHF	270,000	$	292,478	Apr 16, 2029		305,319		297,478
3.600% notes due 2029	$	900,000	$	900,000	Jul 01, 2029		900,000		900,000
3.300% notes due 2029	£	350,000	$	454,895	Jul 19, 2029		452,130		438,060
1.875% notes due 2029 (2)	$	1,150,000	$	1,150,000	Nov 15, 2029		1,150,000		1,150,000
1.500% notes due 2030	€	750,000	$	831,900	Mar 15, 2030		811,200		776,550
3.750% notes due 2030	£	550,000	$	719,825	Oct 17, 2030		710,490		688,380
1.250% notes due 2031	€	500,000	$	560,950	Feb 01, 2031		540,800		517,700
0.625% notes due 2031	€	1,000,000	$	1,220,700	Jul 15, 2031		1,081,600		1,035,400
1.000% notes due 2032	€	750,000	$	874,500	Jan 15, 2032		811,200		776,550
1.375% notes due 2032	€	750,000	$	849,375	Jul 18, 2032		811,200		776,550
3.875% notes due 2033	€	850,000	$	941,375	Sep 13, 2033		919,360		880,090
3.875% notes due 2035	€	850,000		876,180	Mar 15, 2035		919,360		—
						$	14,849,815	$	14,059,415
Unamortized discounts, net of premiums							(33,220)		(27,476)
Deferred financing costs, net							(72,532)		(69,087)
Total unsecured senior notes, net of discount and deferred financing costs						$	14,744,063	$	13,962,852

(1)	Paid at maturity on January 17, 2025.

(2)	Subject to cross-currency swaps.

Issuance of Unsecured Senior Notes

On January 14, 2025, Digital Dutch Finco B.V., an indirect wholly owned finance subsidiary of the Operating Partnership, issued and sold €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2035. Net proceeds from the offering were approximately €838 million (approximately $864 million based on the exchange rate on January 14, 2025) after deducting managers’ discounts and estimated offering expenses.

Restrictive Covenants in Unsecured Senior Notes

The indentures governing our senior notes contain certain covenants, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50. The covenants also require us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At March 31, 2025, we were in compliance with each of these financial covenants.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9. Earnings per Common Share or Unit

The following is a summary of basic and diluted earnings per share (“EPS”) / earnings per unit (“EPU”) (in thousands, except per share/unit amounts):

Digital Realty Trust, Inc. Earnings per Common Share


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income available to common stockholders	$	99,793	$	271,327
Loss attributable to redeemable noncontrolling interest (1)		(6,195)		(7,649)
Net income available to common stockholders - diluted EPS		93,598		263,678

Denominator:
Weighted average shares outstanding—basic		336,683		312,292
Potentially dilutive common shares:
Unvested incentive units		138		196
Unvested restricted stock		96		112
Market performance-based awards		222		361
Redeemable noncontrolling interest shares (1)		7,582		7,837
Weighted average shares outstanding—diluted		344,721		320,798
Income per share:
Basic	$	0.30	$	0.87
Diluted	$	0.27	$	0.82

Digital Realty Trust, L.P. Earnings per Unit


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income available to common unitholders	$	102,793	$	277,527
Loss attributable to redeemable noncontrolling interest (1)		(6,195)		(7,649)
Net income available to common unitholders - diluted EPS		96,598		269,878

Denominator:
Weighted average units outstanding—basic		342,594		318,469
Potentially dilutive common units:
Unvested incentive units		138		196
Unvested restricted units		96		112
Market performance-based awards		222		361
Redeemable noncontrolling interest shares (1)		7,582		7,837
Weighted average units outstanding—diluted		350,632		326,975
Income per unit:
Basic	$	0.30	$	0.87
Diluted	$	0.28	$	0.82

(1)	As part of the acquisition of Teraco in 2022, certain of Teraco's minority indirect shareholders (“Rollover Shareholders”) have the right to put their shares in an upstream parent company of Teraco (“Remaining Interest”) to

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

the Company in exchange for cash or the equivalent value of shares of the Company common stock, or a combination thereof. Under U.S. GAAP, diluted earnings per share must be reflected in a manner that assumes such put right was exercised at the beginning of the respective periods and settled entirely in shares. The amounts shown represent the redemption value of the Remaining Interest of Teraco divided by Digital Realty Trust, Inc.’s average share price for the respective periods. The put right is exercisable by the Rollover Shareholders for a two-year period commencing on February 1, 2026.

In November 2024, Digital Realty Trust, L.P. issued $1,150,000,000 principal amount of its 1.875% Exchangeable Senior Notes due 2029 (the “Exchangeable Notes”). Net proceeds from the offering were approximately $1.13 billion after deducting managers’ discounts and offering expenses. As of March 31, 2025, the holders of the Exchangeable Notes will have an option on or after August 15, 2029, or at an earlier date under certain circumstances, to exchange the notes. The Company must always cash settle the principal amount of the Exchangeable Notes, while any excess may be settled via cash, common shares or a combination at the election of the Company. Accordingly, the Company applies the if converted method to determine the dilutive impact on EPS related to the Exchangeable Notes. There is no interest expense adjustment to the numerator as the principal will always be cash settled. In order to compute the dilutive effect, the number of shares included in the denominator of diluted EPS is determined by dividing the “conversion spread value” of the share-settled portion (value above principal and interest component) of the instrument by the average share price during the period. The “conversion spread value” is the value that would be delivered to the holders in shares based on the terms of the Exchangeable Notes upon an assumed conversion. As of March 31, 2025, the conversion spread value is currently zero, since the weighted average price of our common stock does not exceed the conversion rate (strike price) and is “out-of-the-money”, resulting in no impact on diluted EPS.

The table below shows the securities that would be antidilutive or not dilutive to the calculation of earnings per share and unit. Common units of the Operating Partnership not owned by Digital Realty Trust, Inc. were excluded only from the calculation of earnings per share as they are not applicable to the calculation of earnings per unit. All other securities shown below were excluded from the calculation of both earnings per share and earnings per unit (in thousands).


	Three Months Ended March 31,
	2025	2024
Exchangeable Notes	6,624	—
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	5,911	6,176
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,354	1,438
Potentially dilutive Series K Cumulative Redeemable Preferred Stock	1,424	1,512
Potentially dilutive Series L Cumulative Redeemable Preferred Stock	2,335	2,481
Total	17,648	11,607

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Equity and Capital

Equity Distribution Agreement

Digital Realty Trust, Inc. and Digital Realty Trust, L.P. are parties to an ATM Equity OfferingSM Sales Agreement dated December 23, 2024 (the “2024 Sales Agreement”). Pursuant to the 2024 Sales Agreement, Digital Realty Trust, Inc. can issue and sell common stock having an aggregate offering price of up to $3.0 billion through various named agents from time to time. For the three months ended March 31, 2025, we had no sales under the 2024 Sales Agreement and $3.0 billion remain available.

The sales of common stock made under the 2024 Sales Agreement will be made in “at the market” offerings as defined in Rule 415 of the Securities Act. Our Parent has used and intends to use the net proceeds from the program to temporarily repay borrowings under our Operating Partnership’s Global Revolving Credit Facilities, to acquire additional properties or businesses, to fund development opportunities and for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption or retirement of outstanding debt securities.

Noncontrolling Interests in Operating Partnership

Noncontrolling interests in the Operating Partnership relate to the proportion of entities consolidated by the Company that are owned by third parties. The following table shows the ownership interest in the Operating Partnership as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025			December 31, 2024
	Number of	Percentage of		Number of	Percentage of
(Units in thousands)	units	total		units	total
Digital Realty Trust, Inc.	336,743	98.1	%	336,637	98.2	%
Noncontrolling interests consist of:
Common units held by third parties	4,049	1.2	%	4,049	1.2	%
Incentive units held by employees and directors (see Note 12. ''Incentive Plans'')	2,300	0.7	%	2,086	0.6	%
	343,092	100.0	%	342,772	100.0	%

Limited partners have the right to require the Operating Partnership to redeem all or a portion of their common units for cash based on the fair market value of an equivalent number of shares of Digital Realty Trust, Inc. common stock at the time of redemption. Alternatively, Digital Realty Trust, Inc. may elect to acquire those common units in exchange for shares of its common stock on a one-for-one basis, subject to adjustment in the event of stock splits, stock dividends, issuance of stock rights, specified extraordinary distributions and similar events. The common units and incentive units of the Operating Partnership are classified within equity, except for certain common units issued to certain former DuPont Fabros Technology, L.P. unitholders in the Company’s acquisition of DuPont Fabros Technology, Inc., which are subject to certain restrictions and, accordingly, are not presented as permanent equity in the condensed balance sheet.

The redemption value of the noncontrolling Operating Partnership common units and the vested incentive units was approximately $902.1 million and $1,090.4 million based on the closing market price of Digital Realty Trust, Inc. common stock on March 31, 2025 and December 31, 2024, respectively.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table shows activity for noncontrolling interests in the Operating Partnership for the three months ended March 31, 2025 (in thousands):


(Units in thousands)	Common Units	Incentive Units	Total
As of December 31, 2024	4,049	2,086	6,135
Conversion of incentive units held by employees and directors for shares of Digital Realty Trust, Inc. common stock (1)	—	(4)	(4)
Incentive units issued upon achievement of market performance condition	—	67	67
Grant of incentive units to employees and directors	—	154	154
Cancellation / forfeitures of incentive units held by employees and directors	—	(3)	(3)
As of March 31, 2025	4,049	2,300	6,349

(1)	These redemptions and conversions were recorded as a reduction to noncontrolling interests in the Operating Partnership and an increase to common stock and additional paid-in capital based on the book value per unit in the accompanying consolidated balance sheet of Digital Realty Trust, Inc.

Dividends and Distributions

Digital Realty Trust, Inc. Dividends

We have declared and paid the following dividends on our common and preferred stock for the three months ended March 31, 2025 (in thousands, except per share data):


		Series J		Series K		Series L
		Preferred		Preferred		Preferred		Common
Date dividend declared	Dividend payment date	Stock		Stock		Stock		Stock
February 26, 2025	March 31, 2025	$	2,625	$	3,071	$	4,485	$	411,925
Annual rate of dividend per share		$	1.31250	$	1.46250	$	1.30000	$	4.88000

Digital Realty Trust, L.P. Distributions

All distributions on the Operating Partnership’s units are at the discretion of Digital Realty Trust, Inc.’s Board of Directors. The table below shows the distributions declared and paid by the Operating Partnership on its common and preferred units for the three months ended March 31, 2025 (in thousands, except for per unit data):


		Series J		Series K		Series L
		Preferred		Preferred		Preferred		Common
Date distribution declared	Distribution payment date	Units		Units		Units		Units
February 26, 2025	March 31, 2025	$	2,625	$	3,071	$	4,485	$	419,771
Annual rate of distribution per unit		$	1.31250	$	1.46250	$	1.30000	$	4.88000

For U.S. federal income tax purposes, distributions out of Digital Realty Trust, Inc.’s current or accumulated earnings and profits are generally classified as dividends whereas distributions in excess of its current and accumulated earnings and profits, to the extent of a stockholder’s tax basis in Digital Realty Trust, Inc.’s stock, are generally classified as a return of capital. Such distributions in excess of a stockholder’s tax basis in Digital Realty Trust, Inc.’s stock are generally characterized as capital gain. Cash provided by operating activities has generally been sufficient to fund all distributions; however, in the future we may also need to utilize borrowings under the Global Revolving Credit Facility to fund all or a portion of distributions.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Accumulated Other Comprehensive Income (Loss), Net

The accumulated balances for each item within accumulated other comprehensive income (loss) are shown below (in thousands) for Digital Realty Trust, Inc. and separately for Digital Realty Trust, L.P.:

Digital Realty Trust, Inc.


	Foreign currency		Increase (decrease) in		Accumulated other
	translation		fair value of derivatives,		comprehensive
	adjustments		net of reclassification		income (loss), net
Balance as of December 31, 2024	$	(1,189,649)	$	7,366	$	(1,182,283)
Net current period change		242,011		13,398		255,409
Balance as of March 31, 2025	$	(947,638)	$	20,764	$	(926,874)

Digital Realty Trust, L.P.


	Foreign currency		Increase (decrease) in		Accumulated other
	translation		fair value of derivatives,		comprehensive
	adjustments		net of reclassification		income (loss)
Balance as of December 31, 2024	$	(1,218,412)	$	6,045	$	(1,212,367)
Net current period change		246,736		13,665		260,401
Balance as of March 31, 2025	$	(971,676)	$	19,710	$	(951,966)

Incentive Plans

2014 Incentive Award Plan

The Company provides incentive awards in the form of common stock or awards convertible into common stock pursuant to the Digital Realty Trust, Inc., Digital Services, Inc. and Digital Realty Trust, L.P. 2014 Incentive Award Plan, as amended (the “Incentive Plan”). The major categories of awards that have been issued under the Incentive Plan include:

Long-Term Incentive Units (“LTIP Units”): LTIP Units, in the form of profits interest units of the Operating Partnership, may be issued to eligible participants for the performance of services to or for the benefit of the Operating Partnership. LTIP Units (other than Class D units), whether vested or not, receive the same quarterly per-unit distributions as Operating Partnership common units. Initially, LTIP Units do not have full parity with common units with respect to liquidating distributions. However, if such parity is reached, vested LTIP Units may be converted into an equal number of common units of the Operating Partnership at any time. The awards generally vest over periods between two and four years.

Service-Based Restricted Stock Units: Service-based Restricted Stock Units covering shares of Digital Realty Trust, Inc. common stock, which vest over periods between two and four years, are settled in shares of Digital Realty Trust, Inc.’s common stock upon vesting.

Performance-Based Awards (“the Performance Awards”): Performance-based Class D units of the Operating Partnership and performance-based Restricted Stock Units of Digital Realty Trust, Inc.’s common stock may be issued to officers and employees of the Company. The Performance Awards include performance-based and time-based vesting criteria. Depending on the type of award, the total number of units that qualify to fully vest is determined based on either a market performance criterion (“Market-Based Performance Awards”) or financial performance criterion (“Financial-Based Performance Awards”), in each case, subject to time-based vesting.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Market-Based Performance Awards.

The market performance criterion compares Digital Realty Trust, Inc.’s total shareholder return (“TSR”) relative to the MSCI US REIT Index (“RMS”) over a three-year performance period (“Market Performance Period”), subject to continued service, in order to determine the percentage of the total eligible pool of units that qualifies to be awarded. Following the completion of the Market Performance Period, the awards then have a time-based vesting element pursuant to which 50% of the performance-vested units will fully vest in the February immediately following the end of the Market Performance Period and 50% of the performance-vested units will fully vest in the subsequent February.

Vesting with respect to the market condition is measured based on the difference between Digital Realty Trust, Inc.’s TSR percentage and the TSR percentage of the RMS as is shown in the subsequent table (the “RMS Relative Market Performance”).


		Market
		Performance
	RMS Relative	Vesting
Level	Market Performance	Percentage
Below Threshold Level	≤ -500 basis points	0	%
Threshold Level	-500 basis points	25	%
Target Level	0 basis points	50	%
High Level	≥ 500 basis points	100	%

If the RMS Relative Market Performance falls between the levels specified in the above table, the percentage of the award that will vest with respect to the market condition will be determined using straight-line linear interpolation between such levels.

2022 Awards

	●	In January 2025, the RMS Relative Market Performance was achieved at the high level of performance for the 2022 awards and, accordingly, 61,661 Class D units and 5,654 Restricted Stock Units performance vested and qualified for time-based vesting.

	●	The Class D units included 6,997 distribution equivalent units that immediately vested on December 31, 2024.

	●	On February 27, 2025, 50% of the 2022 awards vested and the remaining 50% will vest on February 27, 2026, subject to continued employment through the vesting date.

The grant date fair value of the Market-Based Performance Awards was approximately $12.3 million and $9.8 million for the three months ended March 31, 2025 and 2024, respectively. This amount will be recognized as compensation expense on a straight-line basis over the expected service period of approximately four years.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Financial-Based Performance Awards.

On January 1, 2025, the Company granted Financial-Based Performance Awards, which vest based on growth in same-store cash net operating income during the three-year period commencing on January 1, 2025. The awards have a time-based vesting element consistent with the Market-Based Performance Awards discussed above. For these awards, fair value is based on market value on the date of grant and compensation cost is recognized based on the probable achievement of the performance condition at each reporting period. The grant date fair value of these awards was $12.3 million, based on Digital Realty Trust, Inc.’s closing stock price at the grant date.

As of March 31, 2025, approximately 2.9 million shares of common stock, including awards that can be converted to or exchanged for shares of common stock, remained available for future issuance under the Incentive Plan.

Each LTIP unit and each Class D unit issued under the Incentive Plan counts as one share of common stock for purposes of calculating the limit on shares that may be issued under the Incentive Plan and the individual award limits set forth therein.

Below is a summary of our compensation expense and our unearned compensation (in millions):


													Expected
													period to
	Deferred Compensation								Unearned Compensation				recognize
	Expensed				Capitalized				As of		As of		unearned

	Three Months Ended March 31,								March 31,		December 31,		compensation
Type of incentive award	2025		2024		2025		2024		2025		2024		(in years)
Long-term incentive units	$	4.7	$	3.7	$	—	$	—	$	42.6	$	22.1	2.8
Performance-based awards		3.3		2.2		0.1		—		39.6		24.1	2.9
Service-based restricted stock units		9.5		7.6		1.5		1.5		121.8		70.3	3.1

Activity for LTIP Units and Service-based Restricted Stock Units for the three months ended March 31, 2025 is shown below.


		Weighted-Average
		Grant Date Fair
Unvested LTIP Units	Units	Value
Unvested, beginning of period	263,130	$	129.93
Granted	153,578		166.48
Vested	(95,245)		126.58
Cancelled or expired	(2,988)		131.88
Unvested, end of period	318,475	$	148.54


		Weighted-Average
		Grant Date Fair
Unvested Restricted Stock Units	Shares	Value
Unvested, beginning of period	591,797	$	145.15
Granted	403,762		147.61
Vested	(76,656)		131.41
Cancelled or expired	(3,912)		148.48
Unvested, end of period	914,991	$	147.37

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Derivative Instruments

Derivatives Designated as Hedging Instruments

Net Investment Hedges

In September 2022 and November 2024, we entered into cross-currency interest rate swaps, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt in order to hedge the currency exposure associated with our net investment in foreign subsidiaries. As of March 31, 2025 and December 31, 2024, we had cross-currency interest rate swaps outstanding with notional amounts of $2.1 billion and maturity dates ranging through 2029.

The effect of these net investment hedges on accumulated other comprehensive loss and the condensed consolidated income statements for the three months ended March 31, 2025 and 2024 was as follows (in thousands):


		Three Months Ended March 31,
		2025		2024
Cross-currency interest rate swaps (included component) (1)		$	(92,339)	$	(52,030)
Cross-currency interest rate swaps (excluded component) (2)			28,406		5,649
Total		$	(63,933)	$	(46,381)

	Location of	Three Months Ended March 31,
	gain or (loss)	2025		2024
Cross-currency interest rate swaps (excluded component) (2)	Interest expense	$	7,599	$	6,103

(1)	Included component represents foreign exchange spot rates.

(2)	Excluded component represents cross-currency basis spread and interest rates.

Cash Flow Hedges

As of March 31, 2025, we had a derivative designated as cash flow hedge on the Euro Term Loan Facility (€375 million notional amount). Amounts reported in Accumulated other comprehensive loss related to interest rate swaps are reclassified to interest expense as interest payments are made on our debt. As of March 31, 2025, we estimate that an additional $0.1 million will be reclassified as a decrease to interest expense during the twelve months ended March 31, 2026, when the hedged forecasted transactions impact earnings.

The effect of these cash flow hedges on accumulated other comprehensive income and the condensed consolidated income statements for the three months ended March 31, 2025 and 2024 was as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Interest rate swaps	$	8,127	$	(12,324)


	Location of	Three Months Ended March 31,
	gain or (loss)	2025		2024
Interest rate swaps	Interest expense	$	1,058	$	4,227

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Fair Value of Derivative Instruments

The subsequent table presents the fair value of derivative instruments recognized in our condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025				December 31, 2024
	Assets (1)		Liabilities (2)		Assets (1)		Liabilities (2)
Cross-currency interest rate swaps	$	16,157	$	122,805	$	32,883	$	75,597
Interest rate swaps		5,735		18,109		6,130		11,253
	$	21,892	$	140,914	$	39,013	$	86,850

(1)	As presented in our condensed consolidated balance sheets within Other assets.

(2)	As presented in our condensed consolidated balance sheets within Accounts payable and other accrued liabilities.

Fair Value

There have been no significant changes in our policy for fair value measurements from what was disclosed in our 2024 Form 10-K.

The carrying amounts for cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable and other accrued liabilities, accrued dividends and distributions, security deposits and prepaid rents approximate fair value because of the short-term nature of these instruments. The carrying value of our Global Revolving Credit Facilities and the Euro Term Loan Facility approximates the estimated fair value, because these liabilities have variable interest rates and our credit ratings have remained stable. Differences between the carrying value and the fair value of our unsecured senior notes and secured and other debt are caused by differences in interest rates or borrowing spreads that were available to us on March 31, 2025 and December 31, 2024 as compared to those in effect when the debt was issued or assumed. As described in Note 13. "Derivative Instruments", outstanding derivative contracts are recorded at fair value.

We calculate the fair value of our secured and other debt and unsecured senior notes based on currently available market rates assuming the loans are outstanding through maturity and considering the collateral and other loan terms. In determining the current market rate for fixed rate debt, a market spread is added to the quoted yields on federal government treasury securities with similar maturity dates to our debt.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The aggregate estimated fair value and carrying value of our Global Revolving Credit Facilities, Euro Term Loan Facilities and USD Term Loan Facility, unsecured senior notes and secured and other debt as of the respective periods are shown below (in thousands):


	Categorization	As of March 31, 2025				As of December 31, 2024
	under the fair value	Estimated Fair		Amount		Estimated Fair		Amount
	hierarchy	Value		Outstanding		Value		Outstanding
Global Revolving Credit Facilities (1)	Level 2	$	1,121,628	$	1,121,628	$	1,637,922	$	1,637,922
Unsecured term loans (1)	Level 2		405,600		405,600		388,275		388,275
Unsecured senior notes (2)	Level 2		14,005,614		14,849,815		13,370,897		14,059,415
Secured and other debt (2)	Level 2		772,039		778,767		752,732		761,263
		$	16,304,881	$	17,155,810	$	16,149,826	$	16,846,875

(1)	The carrying value of our Global Revolving Credit Facilities and unsecured term loans approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.

(2)	Valuations for our unsecured senior notes and secured and other debt are determined based on the expected future payments discounted at risk-adjusted rates and quoted market prices.

15. Commitments and Contingencies

Our properties require periodic investments of capital for tenant-related capital expenditures and for general capital improvements and from time to time in the normal course of our business, we enter into various construction contracts with third parties that may obligate us to make payments. At March 31, 2025, we had open commitments, including amounts reimbursable by customers of approximately $103.6 million, related to construction contracts of approximately $2.3 billion.

Legal Proceedings – Although the Company is involved in legal proceedings arising in the ordinary course of business, as of March 31, 2025, the Company is not currently a party to any legal proceedings nor, to its knowledge, is any legal proceeding threatened against it that it believes would have a material adverse effect on its financial position, results of operations or liquidity.

As disclosed previously, the Division of Enforcement of the U.S. Securities and Exchange Commission (SEC) is conducting an investigation into the adequacy of our disclosures of cybersecurity risks and our related disclosure controls and procedures. We are cooperating with the SEC and are not aware of any cybersecurity issue or event that caused the Staff to open this matter. Responding to an investigation of this type can be costly and time-consuming. While we are unable to predict the likely outcome of this matter or the potential cost or exposure or duration of the process, based on the information we currently possess, we do not expect the total potential cost to be material to our financial condition. If the SEC believes that violations occurred, it could seek remedies including, but not limited to, civil monetary penalties and injunctive relief, and/or file litigation against the Company.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Insurance – In September 2024, an incident at one of our Singapore data centers resulted in damages to the facility. We believe this incident is substantially covered by our insurance policies, including coverage for the repair cost of the building, business interruption loss and potential third-party claims, subject to deductibles. Initial costs, including direct costs related to the incident and an estimated write-off of damage caused to existing fixed assets, totaling approximately $16 million were incurred during 2024. After factoring our expected insurance coverage and related deductible, we reported net expenses of approximately $5.0 million related to this incident for 2024. We received insurance proceeds of $7.3 million since the date of the incident through March 31, 2025. We had insurance receivable balances of $16.1 million and $11.6 million, respectively, as of March 31, 2025 and December 31, 2024 for known losses for which insurance reimbursement is probable, which is included in Other assets in the condensed consolidated balance sheets. No gain contingencies have been recognized as our ability to realize those gains remains uncertain.

Supplemental Cash Flow Information

Cash, cash equivalents, and restricted cash balances as of March 31, 2025, and December 31, 2024:


	Balance as of
(Amounts in thousands)	March 31, 2025		December 31, 2024
Cash and cash equivalents	$	2,321,885	$	3,870,891
Restricted cash (included in Other assets)		6,285		5,809
Total	$	2,328,170	$	3,876,700

We paid $143.9 million and $165.0 million for interest, net of amounts capitalized, for the three months ended March 31, 2025 and 2024, respectively.

We paid $43.0 million and $8.5 million for income taxes, net of refunds, for the three months ended March 31, 2025 and 2024, respectively.

Accrued construction related costs totaled $474.9 million and $469.3 million as of March 31, 2025 and 2024, respectively.

17. Segment and Geographic Information

A majority of the Company’s largest customers are global entities that transact with the Company across multiple geographies worldwide. In order to better address the needs of these global customers, the Company manages critical decisions around development, operations, and leasing globally based on customer demand considerations. In this regard, the Company manages customer relationships globally in order to achieve consistent sales and delivery experience of our products for our customers throughout the global portfolio. The Company has reiterated its commitment to and implemented strategies to align itself as one global team to help power customers’ digital ambitions.

In order to best accommodate the needs of global customers (and customers that might one day become global), the Company manages its operations as a single global business – with one operating segment and therefore one reporting segment.

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who uses net income as a primary measure of operating results on a consolidated basis in making decisions. Net income is computed in accordance with U.S. GAAP. Significant expense categories, including Rental property operating and maintenance, Property taxes and insurance, General and administrative and Interest expense, are regularly provided to the Company’s CODM as components of net income, which are reflected on the condensed consolidated income statement.

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The financial information disclosed herein represents all of the financial information related to our one reportable segment, and the segmental presentation is consistent with the information provided to our CODM. These metrics are collectively used to evaluate the performance of the Company’s investments in real estate assets, its operating results and to allocate resources.


	Operating Revenues
	Three Months Ended March 31,
(Amounts in millions)	2025			2024
Inside the United States	$	761.6		$	704.8
Outside the United States		646.0			626.3
Revenue Outside of U.S. %		45.9	%		47.1	%


	Investments in Properties, net				Operating lease right-of-use assets, net
	As of March 31,		As of December 31,		As of March 31,		As of December 31,
(Amounts in millions)	2025		2024		2025		2024
Inside the United States	$	9,925.4	$	10,592.3	$	535.6	$	552.3
Outside the United States		14,208.4		13,528.5		630.3		626.6

Net Assets in Foreign Operations	$	8,553.4	$	7,744.8

Next: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS