Digital Realty Trust reported a solid finish to 2024 with a revenue base of $1.4356 billion for Q4, up 4.8% year over year and flat on a quarter-to-quarter basis. The quarter delivered robust gross profitability, with gross profit of $773.2 million and a gross margin of approximately 53.8%, underscoring the high-margin nature of the data center leasing model. EBITDA stood at $750.7 million, yielding an EBITDAR margin of about 52.3%, while operating income was $144.3 million (operating margin ~10.1%). Net income rose to $189.6 million, producing a net margin of roughly 13.2% and an earnings per share (EPS) of $0.54 (diluted $0.51). Free cash flow and cash flow from operations were strong at $769.5 million and $769.5 million respectively, with cash at period end of $3.88 billion. These cash flows supported a disciplined capital allocation approach, including debt management and moderate capital return activity.
Balance sheet and leverage remained substantial, with total assets of $45.28 billion and total liabilities of $22.11 billion. Net debt stood at approximately $14.14 billion, driven by a long-term debt burden of $16.40 billion and short-term debt of $1.61 billion. The company maintains a sizable stockholders’ equity base (~$21.34 billion) and a strong liquidity buffer, yet leverage remains a key consideration given the scale of the data center platform. From a valuation standpoint, the enterprise value multiple appears elevated, reflecting the company’s scale and long-duration earnings profile in a secular growth market.
Overall, the QQ4 results reinforce Digital Realty’s position as a leading platform in the data center sector, with durable cash generation, healthy occupancy dynamics, and a clear growth runway through PlatformDIGITALR and global expansion. The main considerations for investors are the sustainability of occupancy and rent growth in a competitive environment, the organization’s ability to refinance and manage rising financing costs, and how the market values a high-capital-intensity REIT tied to hyperscale demand.