Q2 2024 Digital Realty Trust Inc Earnings Call Transcript
Key Points
- Digital Realty Trust Inc (DLR) executed $164 million in new leasing during the second quarter, marking one of the top quarters in its history.
- The company experienced a record level of commencements, leading to meaningful improvements in both total and same capital occupancy.
- Interconnection revenue reached a new record, driven by continued growth in cross-connects.
- Digital Realty Trust Inc (DLR) reduced its leverage to 5.3 times at quarter-end, below its long-term target level.
- The company added 148 new logos in the second quarter, marking a new quarterly record.
- Despite strong leasing activity, there was no contribution from the largest hyperscale market, Northern Virginia.
- The company reported a $168 million impairment related to non-core assets in secondary markets.
- Revenue growth was tempered by a decline in utility expense reimbursements, which is expected to persist throughout the year.
- The weighted average debt maturity is over four years, and the weighted average interest rate is 2.9%, which may pose a risk if interest rates rise.
- The company faces challenges related to the environmental impact of energy-intensive data centers, with data centers consuming almost 2% of global electricity in 2022.
No, good day, and welcome to the Digital Realty Second Quarter 2024 earnings conference call. All participants will be in a listen only mode. Should you need any assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question, you may press star then one on your telephone keypad. I'm sure your question, please press star then two. Please note this event is being recorded.
I would now like to turn the conference over to Mr. Jordan Sadler. Please go ahead.
Thank you, operator, and welcome, everyone, to Digital Realty Second Quarter 2024 earnings conference call. Joining me on today's call are President and CEO, Andy Power, and CFO, Matt Mercier, Chief Investment Officer, Greg Wright, Chief Technology Officer, Chris Sharp, Chief Revenue Officer, Collin McLean, are also on the call and will be available for Q&A.
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