Digital Realty Reports Fourth Quarter 2023 Results

Published

AUSTIN, Texas, Feb. 15, 2024  /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today financial results for the fourth quarter of 2023. All per share results are presented on a fully diluted basis.

Digital Realty (PRNewsfoto/Digital Realty)

Highlights

  • Reported net income available to common stockholders of $0.08 per share in 4Q23, compared to ($0.02) in 4Q22
  • Reported FFO per share of $1.53 in 4Q23, compared to $1.45 in 4Q22
  • Reported Core FFO per share of $1.63 in 4Q23, compared to $1.65 in 4Q22
  • Reported Constant-Currency Core FFO per share of $1.62 in 4Q23 and $6.57 per share for the twelve months ended December 31, 2023
  • Reported "Same-Capital" cash NOI growth of 9.9% in 4Q23
  • Reported rental rate increases on renewal leases of 8.2% on a cash basis in 4Q23
  • Signed total bookings during 4Q23 that are expected to generate $110 million of annualized GAAP rental revenue, including a $39 million contribution from the 0–1 megawatt category and $13 million contribution from interconnection
  • Introduced 2024 Core FFO per share outlook of $6.60 - $6.75

Financial Results

Digital Realty reported revenues of $1.4 billion in the fourth quarter of 2023, a 2% decrease from the previous quarter and an 11% increase from the same quarter last year. 

The company delivered net income of $20 million in the fourth quarter of 2023, and net income available to common stockholders of $18 million, or $0.08 per diluted share, compared to $2.33 per diluted share in the previous quarter and ($0.02) per diluted share in the same quarter last year. 

Digital Realty generated Adjusted EBITDA of $700 million in the fourth quarter of 2023, a 2% increase from the previous quarter and 9% increase over the same quarter last year. 

The company reported Funds From Operations (FFO) of $484 million in the fourth quarter of 2023, or $1.53 per share, compared to $1.55 per share in the previous quarter and $1.45 per share in the same quarter last year. 

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered Core FFO per share of $1.63 in the fourth quarter of 2023, compared to $1.62 per share in the previous quarter and $1.65 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share of $1.62 for the fourth quarter of 2023 and $6.57 per share for the twelve-month period ended December 31, 2023.

"Our fourth quarter results marked the culmination of a transformative year for Digital Realty.  We delivered on our strategic priorities and positioned the company for the growing opportunity that lies ahead," said Digital Realty President & Chief Executive Officer Andy Power. "During the fourth quarter, we bolstered and diversified our capital sources through the formation of two new development joint ventures, while continuing to evolve our portfolio to capture the tremendous opportunities created by AI."

Leasing Activity

In the fourth quarter, Digital Realty signed total bookings that are expected to generate $110 million of annualized GAAP rental revenue, including a $39 million contribution from the 0–1 megawatt category and a $13 million contribution from interconnection.

The weighted-average lag between new leases signed during the fourth quarter of 2023 and the contractual commencement date was 16 months.

In addition to new leases signed, Digital Realty also signed renewal leases representing $210 million of annualized rental revenue during the quarter. Rental rates on renewal leases signed during the fourth quarter of 2023 increased 8.2% on a cash basis and 10.6% on a GAAP basis.

New leases signed during the fourth quarter of 2023 are summarized by region and product as follows:

Annualized GAAP

Base Rent

Square Feet

GAAP Base Rent

GAAP Base Rent

 Americas

(in thousands)

(in thousands)

per Square Foot

Megawatts

per Kilowatt

 0-1 MW

$13,068

57

$228

4.5

$241

 > 1 MW

7,520

66

115

3.9

160

 Other (1)

300

5

62

Total

$20,887

128

$163

8.4

$204

 EMEA (2)

 0-1 MW

$17,189

87

$198

6.3

$226

 > 1 MW

44,669

306

146

25.7

145

 Other (1)

49

2

28

Total

$61,908

395

$157

32.0

$161

 Asia Pacific (2)

 0-1 MW

$9,225

27

$343

2.8

$273

 > 1 MW

4,453

28

158

3.0

124

 Other (1)

128

4

30

Total

$13,806

59

$233

5.8

$196

 All Regions (2)

 0-1 MW

$39,482

171

$231

13.7

$241

 > 1 MW

56,642

400

142

32.6

145

 Other (1)

477

11

44

Total

$96,601

582

$166

46.3

$173

Interconnection

$13,483

N/A

N/A

N/A

N/A

Grand Total

$110,084

582

$166

46.3

$173

Note:  Totals may not foot due to rounding differences.

(1)       Other includes Powered Base Building® shell capacity as well as storage and office space within fully improved data center facilities.

(2)       Based on quarterly average exchange rates during the three months ended December 31, 2023.

Investment Activity

During the fourth quarter, Digital Realty signed definitive agreements with Brookfield Infrastructure Partners L.P., Cyxtera Technologies and Digital Core REIT to successfully resolve the relationship with Cyxtera. These agreements were completed in conjunction with Brookfield's announced agreement to acquire Cyxtera, pursuant to its Plan of Reorganization under its Chapter 11 proceedings. As part of the agreements, Brookfield would acquire Digital Realty's interest in four data centers for approximately $275 million, Digital Realty would redeploy $55 million to buy out Cyxtera's leases in three Digital Realty data centers in Singapore and Frankfurt, Brookfield would grant Digital Realty a purchase option to acquire a data center outside of London, UK, Brookfield would assume the leases in three data centers previously leased to Cyxtera, and Brookfield would amend the leases in these three data centers in New Jersey and Los Angeles, accelerating the expiration date to September 2024. Subsequent to year end, Digital Realty closed on the transactions and exercised its purchase option to acquire the data center outside of London, UK, which is expected to close at the end of the first quarter.

As previously disclosed, in mid-November, Digital Realty and Realty Income Corporation established a joint venture to support the development of two build-to-suit data centers in Northern Virginia. Realty Income initially invested approximately $200 million to acquire an 80% equity interest in the venture, while Digital Realty maintains a 20% interest. Each partner will fund its pro rata share of the remaining development costs for the two facilities. The build-to-suit facilities are 100% pre-leased and are expected to generate a 6.9% initial cash lease yield upon lease commencement in mid-2024.

Also previously disclosed, in December, Digital Realty and Blackstone Inc. announced a $7 billion joint venture to develop four hyperscale data center campuses across Frankfurt, Paris and Northern Virginia. The campuses are planned to support the construction of 10 data centers with approximately 500 megawatts of potential IT load capacity. Blackstone will initially invest approximately $700 million to acquire an 80% equity interest in the joint venture, while Digital Realty maintains a 20% interest. Digital Realty will manage the development and day-to-day operations of the joint venture, for which it will receive customary fees. Subsequent to year end, the first phase of the joint venture closed on hyperscale data center campuses in Paris and Northern Virginia, while the second phase is scheduled to close later this year, upon obtaining the required regulatory approvals.

Additionally, Digital Realty completed the sale of an option maintained on a second parcel of land in Sydney, Australia with an area of 21 acres for approximately AU$29 million or $20 million.

Further during the fourth quarter, Digital Realty exercised its option to purchase approximately 19 acres of land (PAR 8 – 11) in Paris, France for approximately €70 million or $77 million. The parcel of land, previously leased to Digital Realty, is currently under development to support up to 77 megawatts of IT load. Subsequent to year end, Digital Realty closed on PAR 8 – 11.

In addition, during the fourth quarter, Digital Realty closed on the acquisition of approximately three acres adjacent to its existing campus near Athens, Greece for approximately €6 million or $6 million. This land can support the development of an additional data center (ATH5) with up to 15 megawatts of IT load.

Subsequent to year end, GI Partners executed its option to acquire an additional 15% interest in two stabilized hyperscale data center buildings in Chicago, increasing their interest from the 65% interest acquired in the third quarter to 80%. The top-up, completed at the same terms as the initial closing, resulted in approximately $68 million of gross proceeds to Digital Realty.

Balance Sheet

Digital Realty had approximately $17.4 billion of total debt outstanding as of December 31, 2023, comprised of $16.8 billion of unsecured debt and approximately $0.6 billion of secured debt and other. At the end of the fourth quarter of 2023, net debt-to-Adjusted EBITDA was 6.2x, debt-plus-preferred-to-total enterprise value was 29.8% and fixed charge coverage was 3.8x. Pro forma for the completion of the Blackstone development joint ventures announced in December 2023, the completion of asset sales, and the issuance of common stock subsequent to year end, net debt-to-Adjusted EBITDA was 5.8x.

During the quarter, Digital Realty sold 8.7 million shares of its common stock at a weighted average price of $133.21 per share through its ATM program, for net proceeds of approximately $1.1 billion. Subsequent to year end, the company sold 0.6 million shares of its common stock at a weighted average price of $133.43 per share for net proceeds of approximately $84 million

Subsequent to year end, the company retired $240 million of the $740 million U.S. dollar term loan.

2024 Outlook

Digital Realty introduced its 2024 Core FFO per share and Constant-Currency Core FFO per share outlooks of $6.60 - $6.75. The assumptions underlying the outlook are summarized in the following table. 

As of

 Top-Line and Cost Structure

February 15, 2024

Total revenue

$5.550 - $5.650 billion

Net non-cash rent adjustments (1)

($35 - $40 million)

Adjusted EBITDA

$2.800 - $2.900 billion

G&A

$450 - $460 million

 Internal Growth

Rental rates on renewal leases

Cash basis

4.0% - 6.0%

GAAP basis

6.0% - 8.0%

Year-end portfolio occupancy

+100 - 200 bps

"Same-Capital" cash NOI growth (2)

2.0% - 3.0%

Foreign Exchange Rates

U.S. Dollar / Pound Sterling

$1.25 - $1.30

U.S. Dollar / Euro

$1.05 - $1.10

 External Growth

Dispositions / Joint Venture Capital

Dollar volume

$1,000 - $1,500 million

Cap rate

6.0% - 8.0%

Development

CapEx (Net of Partner Contributions) (3)

$2,000 - $2,500 million

Average stabilized yields

10.0%+

Enhancements and other non-recurring CapEx (4)

$15 - $20 million

Recurring CapEx + capitalized leasing costs (5)

$260 - $275 million

 Balance Sheet

Long-term debt issuance

Dollar amount

$0 - $1,000 million

Pricing

5.0% - 5.5%

Timing

Mid-Year

 Net income per diluted share

$1.80 - $1.95

Real estate depreciation and (gain) / loss on sale

$4.40 - $4.40

 Funds From Operations / share (NAREIT-Defined)

$6.20 - $6.35

Non-core expenses and revenue streams

$0.40 - $0.40

 Core Funds From Operations / share

$6.60 - $6.75

Foreign currency translation adjustments

$0.00 - $0.00

 Constant-Currency Core Funds From Operations / share

$6.60 - $6.75

(1)

Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments). 

(2)

The "Same-Capital" pool includes properties owned as of December 31, 2022 with less than 5% of total rentable square feet under development.  It excludes properties that were undergoing, or were expected to undergo, development activities in 2023-2024, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented.

(3)

Excludes land acquisitions and includes Digital Realty's share of JV contributions. Figure is net of JV partner contributions.

(4)

Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs.

(5)

Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.

Note: The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures, including FFO, Core FFO, Adjusted FFO, Net Operating Income (NOI), "Same-Capital" Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO to Adjusted FFO, reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Adjusted FFO, NOI and "Same-Capital" Cash NOI are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Investor Conference Call

Prior to Digital Realty's investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on February 15, 2024, a presentation will be posted to the Investors section of the company's website at https://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company's fourth quarter 2023 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.

To participate in the live call, investors are invited to dial +1 (888) 317-6003 (for domestic callers) or +1 (412) 317-6061 (for international callers) and reference the conference ID# 0216634 at least five minutes prior to start time. A live webcast of the call will be available via the Investors section of Digital Realty's website at https://investor.digitalrealty.com.

Telephone and webcast replays will be available after the call until March 15, 2024. The telephone replay can be accessed by dialing +1 (877) 344-7529 (for domestic callers) or +1 (412) 317-0088 (for international callers) and providing the conference ID# 4147003. The webcast replay can be accessed on Digital Realty's website.

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

Contact Information

Matt MercierChief Financial OfficerDigital Realty(737) 281-0101

Jordan Sadler / Jim HusebyInvestor RelationsDigital Realty(737) 281-0101

Consolidated Quarterly Statements of Operations

Financial Supplement

Unaudited and in Thousands, Except Per Share Data

Fourth Quarter 2023

Three Months Ended

Twelve Months Ended

31-Dec-23

30-Sep-23

30-Jun-23

31-Mar-23

31-Dec-22

31-Dec-23

31-Dec-22

Rental revenues

$885,694

$886,960

$869,298

$870,975

$834,374

$3,512,926

$3,141,488

Tenant reimbursements - Utilities

316,634

335,477

330,416

317,148

247,725

1,299,676

941,891

Tenant reimbursements - Other

46,418

64,876

46,192

40,150

46,045

197,636

199,663

Interconnection & other

106,413

107,305

104,521

101,695

97,286

419,934

379,641

Fee income

14,330

7,819

14,908

7,868

7,508

44,926

24,506

Other

144

932

887

168

1,963

4,645

Total Operating Revenues

$1,369,633

$1,402,437

$1,366,267

$1,338,724

$1,233,108

$5,477,061

$4,691,834

Utilities

$366,083

$384,455

$374,934

$346,364

$268,561

$1,471,836

$1,005,070

Rental property operating

237,118

223,089

224,762

224,861

222,430

909,830

820,746

Property taxes

40,161

72,279

46,718

40,424

42,032

199,581

175,631

Insurance

3,794

4,289

4,385

4,355

4,578

16,823

16,114

Depreciation & amortization

420,475

420,613

432,573

421,198

430,130

1,694,859

1,577,933

General & administration

109,235

108,039

105,964

107,766

104,452

431,004

398,669

Severance, equity acceleration and legal expenses

7,565

2,682

3,652

4,155

15,980

18,054

23,498

Transaction and integration expenses

40,226

14,465

17,764

12,267

17,350

84,722

68,766

Provision for impairment

5,363

113,000

3,000

118,363

3,000

Other expenses

5,580

1,295

655

3,615

7,529

12,438

Total Operating Expenses

$1,235,598

$1,344,206

$1,211,407

$1,161,388

$1,112,127

$4,952,600

$4,101,865

Operating Income

$134,035

$58,231

$154,860

$177,335

$120,981

$524,461

$589,969

Equity in earnings / (loss) of unconsolidated joint ventures

(29,955)

(19,793)

5,059

14,897

(28,112)

(29,791)

(13,496)

Gain / (loss) on sale of investments

(103)

810,688

89,946

(6)

900,531

176,754

Interest and other income / (expense), net

50,269

24,812

(6,930)

280

(22,894)

68,431

8,918

Interest (expense)

(113,638)

(110,767)

(111,116)

(102,220)

(86,882)

(437,741)

(299,132)

Income tax benefit / (expense)

(20,724)

(17,228)

(16,173)

(21,454)

17,676

(75,579)

(31,551)

Loss from early extinguishment of debt

(51,135)

Net Income

$19,884

$745,941

$115,647

$68,839

$763

$950,311

$380,327

Net income / (loss) attributable to noncontrolling interests

8,419

(12,320)

2,538

(111)

3,326

(1,474)

(2,455)

Net Income Attributable to Digital Realty Trust, Inc.

$28,304

$733,621

$118,185

$68,728

$4,089

$948,838

$377,872

Preferred stock dividends

(10,181)

(10,181)

(10,181)

(10,181)

(10,181)

(40,725)

(40,725)

Net Income / (Loss) Available to Common Stockholders

$18,122

$723,440

$108,003

$58,547

($6,093)

$908,113

$337,147

Weighted-average shares outstanding - basic

305,781

301,827

295,390

291,219

289,365

298,603

286,334

Weighted-average shares outstanding - diluted

314,995

311,341

306,819

303,065

301,712

309,065

297,919

Weighted-average fully diluted shares and units

321,173

317,539

313,021

309,026

307,546

315,113

303,708

Net income / (loss) per share - basic

$0.06

$2.40

$0.37

$0.20

($0.02)

$3.04

$1.18

Net income / (loss) per share - diluted

$0.08

$2.33

$0.37

$0.19

($0.02)

$3.00

$1.13

 

Funds From Operations and Core Funds From Operations

Unaudited and in Thousands, Except Per Share Data

Three Months Ended

Twelve Months Ended

Reconciliation of Net Income to Funds From Operations (FFO)

31-Dec-23

30-Sep-23

30-Jun-23

31-Mar-23

31-Dec-22

31-Dec-23

31-Dec-22

Net Income / (Loss)  Available to Common Stockholders

$18,122

$723,440

$108,003

$58,547

($6,093)

$908,112

$337,147

Adjustments:

Non-controlling interest in operating partnership

410

16,300

2,500

1,500

(586)

20,710

7,914

Real estate related depreciation & amortization (1)

410,167

410,836

424,044

412,192

422,951

1,657,239

1,547,865

Reconciling items related to non-controlling interests

(15,377)

(14,569)

(14,144)

(13,388)

(13,856)

(57,477)

(22,110)

Unconsolidated JV real estate related depreciation & amortization

64,833

43,215

35,386

33,719

33,927

177,153

123,099

(Gain) / loss on real estate transactions

103

(810,688)

(89,946)

(7,825)

572

(908,356)

(177,332)

Provision for impairment

5,363

113,000

3,000

118,363

3,000

Funds From Operations

$483,621

$481,535

$465,844

$484,745

$439,915

$1,915,745

$1,819,583

Weighted-average shares and units outstanding - basic

311,960

308,024

301,593

297,180

295,199

304,651

292,123

Weighted-average shares and units outstanding - diluted (2)(3)

321,173

317,539

313,021

309,026

307,546

315,113

303,708

Funds From Operations per share - basic

$1.55

$1.56

$1.54

$1.63

$1.49

$6.29

$6.23

Funds From Operations per share - diluted (2)(3)

$1.53

$1.55

$1.52

$1.60

$1.45

$6.20

$6.03

Three Months Ended

Twelve Months Ended

Reconciliation of FFO to Core FFO

31-Dec-23

30-Sep-23

30-Jun-23

31-Mar-23

31-Dec-22

31-Dec-23

31-Dec-22

Funds From Operations

$483,621

$481,535

$465,844

$484,745

$439,915

$1,915,745

$1,819,583

Other non-core revenue adjustments

(146)

(27)

27,454

(887)

(3,786)

26,393

8,768

Transaction and integration expenses

40,226

14,465

17,764

12,267

17,350

84,722

68,766

Loss from early extinguishment of debt

51,135

Severance, equity acceleration and legal expenses (4)

7,565

2,682

3,652

4,155

15,980

18,054

23,498

(Gain) / Loss on FX revaluation

(24,804)

451

(7,868)

(6,778)

14,564

(39,000)

(24,694)

Other non-core expense adjustments

1,956

1,295

655

3,615

3,905

12,388

Core Funds From Operations

$508,417

$500,402

$507,501

$493,500

$487,638

$2,009,820

$1,959,444

Weighted-average shares and units outstanding - diluted (2)(3)

312,356

308,539

301,806

297,382

295,519

305,138

292,528

Core Funds From Operations per share - diluted (2)

$1.63

$1.62

$1.68

$1.66

$1.65

$6.59

$6.70

(1)          Real Estate Related Depreciation & Amortization

Three Months Ended

Twelve Months Ended

31-Dec-23

30-Sep-23

30-Jun-23

31-Mar-23

31-Dec-22

31-Dec-23

31-Dec-22

Depreciation & amortization per income statement

$420,475

$420,613

$432,573

$421,198

$430,130

$1,694,859

$1,577,933

Non-real estate depreciation

(10,308)

(9,777)

(8,529)

(9,006)

(7,179)

(37,619)

(30,068)

Real Estate Related Depreciation & Amortization

$410,167

$410,836

$424,044

$412,192

$422,951

$1,657,239

$1,547,865

(2)

Certain of Teraco's minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. US GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO. When calculating diluted FFO, Teraco related minority interest is added back to the FFO numerator as the denominator assumes all shares have been put back to Digital Realty.

 

Three Months Ended

Twelve Months Ended

31-Dec-23

30-Sep-23

30-Jun-23

31-Mar-23

31-Dec-22

31-Dec-23

31-Dec-22

Teraco noncontrolling share of FFO

$7,135

$11,537

$9,645

$11,069

$7,213

$39,386

$11,919

Teraco related minority interest

$7,135

$11,537

$9,645

$11,069

$7,213

$39,386

$11,919

(3)

For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and the share count detail section that follows the reconciliation of Core FFO to AFFO for calculations of weighted average common stock and units outstanding. For definitions and discussion of FFO and Core FFO, see the Definitions section.

(4)

Relates to severance and other charges related to the departure of company executives and integration-related severance.

 

Adjusted Funds From Operations (AFFO)

Unaudited and in Thousands, Except Per Share Data

Three Months Ended

Twelve Months Ended

 Reconciliation of Core FFO to AFFO

31-Dec-23

30-Sep-23

30-Jun-23

31-Mar-23

31-Dec-22

31-Dec-23

31-Dec-22

 Core FFO available to common stockholders and unitholders

$508,417

$500,402

$507,501

$493,500

$487,638

$2,009,820

$1,959,444

Adjustments:

Non-real estate depreciation

10,308

9,777

8,529

9,006

7,179

37,619

30,068

Amortization of deferred financing costs

5,744

5,776

5,984

4,072

3,753

21,575

13,987

Amortization of debt discount/premium

973

1,360

1,339

1,301

1,276

4,973

4,829

Non-cash stock-based compensation expense

9,226

14,062

13,893

13,056

16,042

50,238

62,242

Straight-line rental revenue

(21,992)

(14,080)

(16,151)

(16,194)

(29,392)

(68,417)

(83,604)

Straight-line rental expense

(4,999)

1,427

520

(515)

(208)

(3,567)

4,401

Above- and below-market rent amortization

(856)

(1,127)

(1,195)

(1,226)

(762)

(4,404)

(696)

Deferred tax (benefit) / expense

33,448

(8,539)

1,339

(9,795)

(4,885)

16,452

(12,491)

Leasing compensation & internal lease commissions

9,848

12,515

11,611

11,067

9,578

45,040

42,117

Recurring capital expenditures (1)

(142,808)

(90,251)

(53,498)

(40,465)

(109,999)

(327,022)

(266,466)

AFFO available to common stockholders and unitholders (2)

$407,306

$431,322

$479,873

$463,807

$380,220

$1,782,308

$1,753,831

Weighted-average shares and units outstanding - basic

311,960

308,024

301,593

297,180

295,199

304,651

292,123

Weighted-average shares and units outstanding - diluted (3)

312,356

308,539

301,806

297,382

295,519

305,138

292,528

AFFO per share - diluted (3)

$1.30

$1.40

$1.59

$1.56

$1.29

$5.84

$6.00