Digital Realty reported third-quarter 2024 revenues of $1.4 billion, marking a 5% increase from the previous quarter and a 2% rise year-over-year. The company delivered Core FFO per share of $1.67, aligning with consensus estimates and showing growth from $1.65 in the prior quarter and $1.62 in the same quarter last year.
Leasing activity reached a record $521 million in annualized GAAP rental revenue from total bookings, with a significant $50 million contribution from the 0-1 megawatt category and $16 million from interconnection. This robust demand drove the backlog of signed-but-not-commenced leases to a new high of $859 million, nearly 60% above the previous record, providing enhanced revenue visibility.
The company also made strategic investments, closing the acquisition of two data centers in Slough, UK, for $200 million, marking its entry into the west London submarket. Additionally, Digital Realty acquired the land and shell of an existing data center in Amsterdam for approximately $48 million. Subsequent to the quarter, it acquired a 6.7-acre parcel in Richardson, Texas, for $15 million to support over 80 megawatts of incremental IT capacity.
Digital Realty raised its full-year 2024 Core FFO per share outlook to $6.65 - $6.75, up from the previous range of $6.60 - $6.75. The company also increased its Adjusted EBITDA guidance to $2.925 - $2.975 billion and raised expectations for cash rental rates on renewal leases to 8.0% - 10.0%, reflecting strong pricing power and continued demand for its data center services.
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