Digital Realty Trust, Inc. Q3 FY2025 earnings call

• Strong earnings results: Core FFO per share was a quarterly record, other profitability metrics surged. - Strong visibility: Near-record backlog and 8% same capital cash NOI growth. - Execution across product spectrum: Over $200 million of bookings at 100% share, near record 0-1 megawatt plus interconnection bookings, and added near-record 156 new logos. - AI-related activity: 50% of bookings related to AI use cases in Q3, 5 gigawatts of IT load in power bank weighted toward AI. - Sustainability: Received EcoVadis Gold rating, expanded renewable energy commitments.

Digital Realty posted $1.89 in core FFO per share, a quarterly record and 13% higher than the third quarter of last year. Constant currency core FFO per share was $1.85, 11% higher than last year. AFFO per share and adjusted EBITDA were up 16% and 14% year-over-year, respectively. Backlog grew to $852 million. Organic growth showed 8% same capital cash NOI growth year-over-year. Bookings in the third quarter were $201 million at 100% share or $162 million at Digital Realty share. The 0-1 megawatt plus interconnection category had $85 million in new leases, and the greater than a megawatt leasing was $76 million.

• Increased core FFO guidance range for full year 2025 to $7.32 to $7.38 per share at the midpoint. - Increased midpoint of constant currency core FFO guidance range to $7.25 to $7.30 per share. - Fourth quarter core FFO per share tempered by seasonally higher repairs and maintenance expenses, non-core asset sale, and lower interest income. - Target 10% top line growth in 2026 supported by healthy backlog.

Q: Frank Louthan asks about average enterprise deployment size and AI inferencing bookings.

A: Andrew Power says about 50% of signings are AI related, 0-1 megawatt signings have 18% AI-related, average deal size is getting bigger and more power dense.

Q: Joseph Osha asks about spreads on 1 megawatt plus side.

A: Matt Mercier says it's a robust supply-constrained market, mark-to-market opportunity is good.

Q: Cameron McVeigh asks about future CapEx spend.

A: Andrew Power says CapEx is likely to inflect higher, dollars going towards new capacity, prioritizing enterprise colo customers.

Q: Maher Yaghi asks about projects moving to private developers and credit quality of mega projects.

A: Andrew Power says they're leaning towards bigger projects in major markets with aligned counterparty risk, focusing on investment grade counterparties.