DIGITAL REALTY TRUST, INC. Q1 FY2025 earnings call

• Strong overall leasing in Q1 was $242 million, driving backlog of booked not billed leases to a record $919 million. • Core FFO per share growth accelerated, with record backlog providing strong visibility for 2025 and growing momentum for 2026. • Further evolved funding model with successful formation of first US hyperscale fund. • Added 119 new logos in Q1, including various leading companies in different sectors. • Expanded global presence with entrance into Indonesia, launch of Heracleion One data center in Crete, and strategic collaborations. • Focused on sustainability with 100% renewable energy coverage in Singapore and other green building initiatives.

In the first quarter, Digital Realty Trust saw strong leasing across segments. The zero to one megawatt plus interconnection segment had leasing of $69 million, including $15 million of interconnection bookings. The greater than a megawatt category had leasing of $172 million at Digital Realty Trust's share. The zero to one megawatt segment had nearly $127 million of renewals at a 3.8% uplift, while greater than a megawatt renewals were $5 million with a 4.6% uplift.

• Increased core FFO guidance range for full-year 2025 to $7.05 to $7.15 per share, reflecting updated FX assumptions. • Maintained normalized and constant currency guidance for total revenue and adjusted EBITDA growth of more than 10% in 2025. • Increased revenue and adjusted EBITDA guidance ranges for 2025 by $25 million each, with G and A assumption increased by $5 million. • 2026 backlog is more than double the 2025 backlog at this time last year.

• Macro and geopolitical uncertainty posing risks to business. • Capital markets volatility. • Potential impact of supply chain and tariff changes on development costs, with current impact seen as modest but monitored.

Q: How do you see the leasing environment over the next several quarters given recent market volatility?

A: Pipeline of deals across customer segments remains robust. Enterprise pipeline is at record level, and hyperscale pipeline has numerous sites with quotes requested. Our strategy of focusing on robust and diverse markets, operational excellence, and boots-on-the-ground experience positions us well.

Q: When should we expect supply chain and tariff impacts on development costs to be seen and how to mitigate?

A: Very modest impact (less than 5%) currently seen, with supply chain team proactively pulling forward components. Impact likely to be seen in several quarters, with development cycles and contractual orders for equipment monitored.

Q: Color on land acquisitions in Atlanta and Charlotte?

A: Charlotte and Atlanta are attractive markets with low vacancies, competitive power, and proximity to highly connected facilities. Charlotte has a campus within 10 miles of a highly connected facility with many networks and customers, and Atlanta has a parcel of land with mix of hyperscale and colocation within 10 miles of downtown with low vacancies and competitive power.

Q: Evolution of hyperscale and AI revenue use cases?

A: AI is over two-thirds of signings, with hyperscale driven in recent quarter and enterprise AI use cases growing in size and power density. Focus on enabling inference and interconnectivity in portfolio. DeepSeek is an example of efficiency advancements in AI models.

Q: Backlog and current leasing environment impact on sustaining strong quarters?

A: Record backlog of signed but not commenced contracts at $1.3 billion total, $919 million at Digital Realty Trust's share. 2026 backlog up 40% since start of year. Actively engaging with customers requesting quotes for large capacity blocks, with strong momentum continuing in zero to one megawatt and greater than one megawatt segments.