Digital Realty Trust (DLR 0.97%), a major player in the data center sector, released its fourth quarter 2024 earnings on February 13, 2025. The company reported earnings that surpassed expectations, reflecting strong operational performance, but faced a revenue shortfall.
DLR's Q4 results reflect steady leasing activity amid high demand and better rental rates, though elevated operating expenses affected the performance to an extent.
Digital Realty Trust, Inc. (NYSE:DLR ) Q4 2024 Earnings Conference Call February 13, 2025 5:00 PM ET Company Participants Jordan Sadler - SVP of Public and Private IR Andy Power - President and CEO Matt Mercier - CFO Chris Sharp - CTO Greg Wright - CIO Colin McLean - CRO Conference Call Participants David Barden - Bank of America Richard Choe - JPMorgan Irvin Liu - Evercore ISI Jonathan Atkin - RBC Michael Rollins - Citi Matt Niknam - Deutsche Bank Ari Klein - BMO David Guarino - Green Street Frank Louthan - Raymond James Jim Schneider - Goldman Sachs Eric Luebchow - Wells Fargo Erik Rasmussen - Stifel Vikram Malhotra - Mizuho Simon Flannery - Morgan Stanley Nick Del Deo - MoffettNathanson Michael Elias - TD Cowen Brandon Nispel - KeyBanc Operator Good afternoon, and welcome to the Digital Realty Fourth Quarter 2024 Earnings Call. Please note this event is being recorded.
The headline numbers for Digital Realty Trust (DLR) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Digital Realty Trust (DLR) came out with quarterly funds from operations (FFO) of $1.73 per share, beating the Zacks Consensus Estimate of $1.70 per share. This compares to FFO of $1.63 per share a year ago.
Digital Realty Trust forecast annual revenue below Wall Street estimates on Thursday, expecting cautious spending by clients on data center services amid economic uncertainty.
Besides Wall Street's top -and-bottom-line estimates for Digital Realty Trust (DLR), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.
The stock market was having a rough day on Monday, with the S&P 500 (^GSPC -1.73%) benchmark index down by about 1.7% at 11 a.m. ET. However, real estate was one of the biggest exceptions, with the Vanguard Real Estate ETF (VNQ 0.66%) slightly higher for the day.
Investors love dividend stocks because they provide dependable income, passive income streams, and an excellent opportunity for solid total return.
Real estate investment trust (REIT) Digital Realty Trust Inc (NYSE:DLR) is up 3% at $179.15 at last glance, after an upgrade from Deutsche Bank to "buy" from "hold.
DLR is well-poised to gain from its unmatched global footprint of data centers with the growth in cloud computing, the Internet of Things and Big Data.
Digital Realty has shown strong performance but is now overvalued, trading at nearly 29x P/AFFO, which is unsustainable given its low growth projections. Despite record leasing and backlog activity, Digital Realty's occupancy rates remain concerning, and its AFFO growth is not matching expectations. I'm shifting my rating to "Hold" and trimming shares, redeploying capital into American Tower and Prologis, which offer better valuation and growth prospects.