Uncategorized
DIGITAL REALTY REPORTS SECOND QUARTER 2022 RESULTS
Published
2 years agoon
By
AUSTIN, Texas, July 28, 2022 /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 second quarter of 2022. All per share results are presented on a fully diluted basis.
Highlights
Reported net income available to common stockholders of $0.19 per share in 2Q22, compared to $0.45 in 2Q21Reported FFO per share of $1.55 in 2Q22, compared to $1.78 in 2Q21Reported core FFO per share of $1.72 in 2Q22, compared to $1.54 in 2Q21Signed total bookings during 2Q22 expected to generate $113 million of annualized GAAP rental revenue, including a $12 million contribution from interconnectionUpdated 2022 core FFO per share outlook to $6.75 – $6.85; Reiterated 2022 constant-currency core FFO per share outlook of $6.95 – $7.05
Financial Results
Digital Realty reported revenues for the second quarter of 2022 of $1.1 billion, a 1% increase from the previous quarter and a 4% increase from the same quarter last year.
The company delivered second quarter of 2022 net income of $63.9 million, and net income available to common stockholders of $53.2 million, or $0.19 per diluted share, compared to $0.22 per diluted share in the previous quarter and $0.45 per diluted share in the same quarter last year.
Digital Realty generated second quarter of 2022 Adjusted EBITDA of $611 million, a 1% increase from the previous quarter and a 1% increase over the same quarter last year.
The company reported second quarter of 2022 funds from operations of $452 million, or $1.55 per share, compared to $1.60 per share in the previous quarter and $1.78 per share in the same quarter last year.
Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered second quarter of 2022 core FFO per share of $1.72, compared to $1.67 per share in the previous quarter, and $1.54 per share in the same quarter last year.
Leasing Activity
In the second quarter, Digital Realty signed total bookings expected to generate $113 million of annualized GAAP rental revenue, including a $12 million contribution from interconnection.
“Demand for data center solutions continued to be strong through the second quarter, with healthy contributions from both hyperscale and enterprise segments,” said Digital Realty Chief Executive Officer A. William Stein. “Customers are seeking to secure the capacity they require in advance of availability, as over half of our record development schedule is pre-leased, and tight conditions in many markets around the world are resulting in an improving pricing environment and rising occupancy.”
The weighted-average lag between new leases signed during the second quarter of 2022 and the contractual commencement date was thirteen months.
In addition to new leases signed, Digital Realty also signed renewal leases representing $173 million of annualized GAAP rental revenue during the quarter. Rental rates on renewal leases signed during the second quarter of 2022 rolled up 3.4% on a cash basis and up 5.3% on a GAAP basis.
New leases signed during the second quarter of 2022 are summarized by region as follows:
Annualized GAAP
Base Rent
GAAP Base Rent
GAAP Base Rent
The Americas
(in thousands)
Square Feet
per Square Foot
Megawatts
per Kilowatt
0-1 MW
$15,583
63,303
$246
6.0
$217
> 1 MW
15,537
137,937
113
14.1
92
Other (1)
1,566
63,467
25
—
—
Total
$32,686
264,707
$123
20.1
$129
EMEA (2)
0-1 MW
$18,301
71,568
$256
6.4
$238
> 1 MW
43,760
347,280
126
34.0
107
Other (1)
171
2,409
71
—
—
Total
$62,232
421,257
$148
40.4
$128
Asia Pacific (2)
0-1 MW
$1,544
8,591
$180
0.4
$322
> 1 MW
5,399
27,157
199
3.0
150
Other (1)
25
327
78
—
—
Total
$6,968
36,075
$193
3.4
$170
All Regions (2)
0-1 MW
$35,428
143,461
$247
12.8
$231
> 1 MW
64,695
512,374
126
51.1
105
Other (1)
1,763
66,203
27
—
—
Total
$101,886
722,038
$141
63.9
$131
Interconnection
$11,515
N/A
N/A
N/A
N/A
Grand Total
$113,401
722,038
$141
63.9
$131
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 June 30, 2022.
Investment Activity
During the second quarter, Digital Realty acquired an 8-acre parcel in Dublin for $6 million, which can support up to 40 megawatts of IT load. Digital Realty also acquired 2.4 acres in Barcelona for $11 million, which can support up to 15 megawatts of IT load. Lastly, Digital Realty acquired 34 acres in Frankfurt for $60 million, which can support up to 70 megawatts of IT load.
Also during the second quarter, Digital Realty announced a joint venture with Mivne Real Estate (K.D.) (TASE: MVNE) for entry into the Israeli market. The joint venture, which will operate under the brand name Digital Realty Mivne, will serve as a strategic partnership between Digital Realty and Mivne, a market-leading real estate developer, owner and operator that has developed many large-scale projects across Israel and has an extensive land bank. Digital Realty Mivne expects to develop a multi-tenant data center campus in Petah Tikvah, the primary connectivity hub in Israel. The data center campus will support the development of up to 20 megawatts of IT load. Delivery of the initial phase is anticipated in 2023, subject to customer demand.
Subsequent to the close of the second quarter, Digital Realty acquired 38 acres in Paris for $11 million and 9 acres in Stockholm for $43 million.
Balance Sheet
Digital Realty had approximately $14.3 billion of total debt outstanding as of June 30, 2022, comprised of $14.1 billion of unsecured debt and approximately $0.2 billion of secured debt. At the end of the second quarter of 2022, net debt-to-Adjusted EBITDA was 6.2x, debt-plus-preferred-to-total enterprise value was 28.5% and fixed charge coverage was 6.0x. Pro forma for settlement of the $1 billion forward equity offering, net debt-to-adjusted EBITDA was 5.8x and fixed charge coverage was 6.2x.
During the second quarter of 2022, Digital Realty completed the following financing transactions:
Amended its Global Senior Credit Agreement to increase the size from $3.0 billion to $3.75 billion.Entered into an at-the-market (ATM) equity offering agreement of up to $1.5 billion. The prior program, which had $577.6 million remaining, was terminated.
2022 Outlook
Digital Realty updated its 2022 core FFO per share outlook of $6.75–$6.85 and reiterated its 2022 constant-currency core FFO per share outlook of $6.95 – $7.05. The assumptions underlying the outlook are summarized in the following table.
As of
As of
As of
Top-Line and Cost Structure
February 17, 2022
April 28, 2022
July 28, 2022
Total revenue
$4.700 – $4.800 billion
$4.700 – $4.800 billion
$4.650 – $4.750 billion
Net non-cash rent adjustments (1)
($35 – $40 million)
($45 – $50 million)
($50 – $55 million)
Adjusted EBITDA
$2.475 – $2.525 billion
$2.475 – $2.525 billion
$2.450 – $2.500 billion
G&A
$410 – $420 million
$410 – $420 million
$405 – $415 million
Internal Growth
Rental rates on renewal leases
Cash basis
Flat
Slightly Positive
Slightly Positive
GAAP basis
Slightly positive
Up low-single-digits
Up low-single-digits
Year-end portfolio occupancy
83.0% – 84.0%
83.0% – 84.0%
83.0% – 84.0%
“Same-capital” cash NOI growth (2)
(2.5% – 3.5%)
(2.5% – 3.5%)
(3.5% – 4.5%)
Foreign Exchange Rates
U.S. Dollar / Pound Sterling
$1.30 – $1.38
$1.25 – $1.35
$1.15 – $1.25
U.S. Dollar / Euro
$1.10 – $1.15
$1.05 – $1.10
$1.00 – $1.05
External Growth
Dispositions
Dollar volume
$0.5 – $1.0 billion
$0.5 – $1.0 billion
$0.5 – $1.0 billion
Cap rate
0.0% – 10.0%
0.0% – 10.0%
0.0% – 10.0%
Development
CapEx (3)
$2.3 – $2.5 billion
$2.3 – $2.5 billion
$2.2 – $2.4 billion
Average stabilized yields
9.0% – 15.0%
9.0% – 15.0%
9.0% – 15.0%
Enhancements and other non-recurring CapEx (4)
$5 – $10 million
$5 – $10 million
$5 – $10 million
Recurring CapEx + capitalized leasing costs (5)
$210 – $220 million
$200 – $210 million
$200 – $210 million
Balance Sheet
Long-term debt issuance
Dollar amount
$1.8 – $2.0 billion
$1.8 – $2.0 billion
$1.8 – $2.0 billion
Pricing
1.5% – 2.0%
1.5% – 2.0%
2.0% – 2.5%
Timing
Early & Late 2022
Early & Late 2022
Early & Late 2022
Net income per diluted share
$1.05 – $1.10
$1.05 – $1.10
$1.00 – $1.05
Real estate depreciation and (gain) / loss on sale
$5.35 – $5.35
$5.35 – $5.35
$5.35 – $5.35
Funds From Operations / share (NAREIT-Defined)
$6.40 – $6.45
$6.40 – $6.45
$6.35 – $6.40
Non-core expenses and revenue streams
$0.40 – $0.45
$0.40 – $0.45
$0.40 – $0.45
Core Funds From Operations / share
$6.80 – $6.90
$6.80 – $6.90
$6.75 – $6.85
Foreign currency translation adjustments
$0.10 – $0.10
$0.15 – $0.15
$0.20 – $0.20
Constant-Currency Core Funds From Operations / share
$6.90 – $7.00
$6.95 – $7.05
$6.95 – $7.05
(1)
Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rent 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, 2020 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 2021-2022, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented.
(3)
Includes land acquisitions.
(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.
Non-GAAP Financial Measures
This document contains non-GAAP financial measures, including FFO, core FFO and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to core FFO, and definitions of FFO and core FFO 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.
Investor Conference Call
Prior to Digital Realty’s investor conference call at 5:30 p.m. EDT / 2:30 p.m. PDT on July 28, 2022, 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 second quarter 2022 financial results and operating performance. The conference call will feature Chief Executive Officer A. William Stein and President & Chief Financial Officer Andrew P. Power.
To participate in the live call, investors are invited to dial (888) 317-6003 (for domestic callers) or (412) 317-6061 (for international callers) and reference the conference ID# 6453950 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 August 28, 2022. The telephone replay can be accessed by dialing (877) 344-7529 (for domestic callers) or (412) 317-0088 (for international callers) and providing the conference ID# 1684177. 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 communities that matter to them with a global data center footprint of 290+ facilities in 50+ metros across 26 countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter.
Contact Information
Andrew P. Power
President & Chief Financial Officer
Digital Realty
(737) 281-0101
Jordan Sadler / Jim Huseby
Investor Relations
Digital Realty
(737) 281-0101
Consolidated Quarterly Statements of Operations
Unaudited and Dollars in Thousands, Except Per Share Data
Three Months Ended
Six Months Ended
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
30-Jun-22
30-Jun-21
Rental revenues
$767,313
$751,962
$763,117
$773,195
$768,826
$1,519,275
$1,523,370
Tenant reimbursements – Utilities
218,198
224,547
195,340
189,060
169,743
442,745
354,716
Tenant reimbursements – Other
52,688
51,511
58,528
57,666
60,261
104,198
119,589
Interconnection & other
93,338
93,530
89,850
90,983
90,565
186,868
179,626
Fee income
5,072
5,757
4,133
3,255
3,628
10,829
6,054
Other
2,713
15
200
18,977
165
2,728
224
Total Operating Revenues
$1,139,321
$1,127,323
$1,111,167
$1,133,135
$1,093,189
$2,266,644
$2,183,580
Utilities
$223,426
$241,239
$213,933
$209,585
$185,010
$464,665
$361,057
Rental property operating
198,076
194,354
205,250
196,743
198,206
392,430
383,939
Property taxes
47,213
46,526
42,673
55,915
42,795
93,738
91,800
Insurance
3,836
3,698
3,507
4,718
5,703
7,534
9,201
Depreciation & amortization
376,967
382,132
378,883
369,035
368,981
759,099
738,714
General & administration
101,991
96,435
103,705
97,082
94,956
198,426
192,524
Severance, equity acceleration, and legal expenses
3,786
2,077
1,003
1,377
2,536
5,863
4,963
Transaction and integration expenses
13,586
11,968
12,427
13,804
7,075
25,554
21,195
Impairment of investments in real estate
—
—
18,291
—
—
—
—
Other expenses
70
7,657
(1)
510
2,298
7,727
2,041
Total Operating Expenses
$968,950
$986,087
$979,669
$948,770
$907,561
$1,955,037
$1,805,433
Operating Income
$170,371
$141,236
$131,498
$184,365
$185,627
$311,607
$378,146
Equity in earnings (loss) of unconsolidated joint ventures
(34,088)
60,958
(7,714)
40,884
52,143
26,870
29,112
Gain / (loss) on sale of investments
—
2,770
1,047,011
(635)
499
2,770
334,420
Interest and other income (expense), net
13,008
3,051
(4,349)
(2,947)
10,124
16,059
2,938
Interest (expense)
(69,023)
(66,725)
(71,762)
(71,417)
(75,014)
(135,748)
(150,667)
Income tax (expense)
(16,406)
(13,244)
(3,961)
(13,709)
(47,582)
(29,650)
(55,129)
Loss from early extinguishment of debt
—
(51,135)
(325)
—
—
(51,135)
(18,347)
Net Income
$63,862
$76,911
$1,090,397
$136,541
$125,799
$140,773
$520,474
Net (income) attributable to noncontrolling interests
(436)
(3,629)
(22,587)
(2,266)
(4,544)
(4,065)
(13,298)
Net Income Attributable to Digital Realty Trust, Inc.
$63,426
$73,282
$1,067,811
$134,275
$121,255
$136,708
$507,177
Preferred stock dividends, including undeclared dividends
(10,181)
(10,181)
(10,181)
(10,181)
(11,885)
(20,363)
(25,399)
Gain on / (Issuance costs associated with) redeemed preferred stock
—
—
—
—
18,000
—
18,000
Net Income Available to Common Stockholders
$53,245
$63,101
$1,057,630
$124,094
$127,371
$116,346
$499,777
Weighted-average shares outstanding – basic
284,694,064
284,525,992
283,869,662
283,105,966
281,791,855
284,610,492
281,445,252
Weighted-average shares outstanding – diluted
285,109,903
285,025,099
284,868,184
283,799,538
282,433,857
284,979,709
282,075,611
Weighted-average fully diluted shares and units
290,944,163
290,662,421
290,893,110
290,228,785
289,484,805
290,716,197
289,218,609
Net income per share – basic
$0.19
$0.22
$3.73
$0.44
$0.45
$0.41
$1.78
Net income per share – diluted
$0.19
$0.22
$3.71
$0.44
$0.45
$0.41
$1.77
Funds From Operations and Core Funds From Operations
Unaudited and in Thousands, Except Per Share Data
Three Months Ended
Six Months Ended
Reconciliation of Net Income to Funds From Operations (FFO)
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
30-Jun-22
30-Jun-21
Net Income Available to Common Stockholders
$53,245
$63,101
$1,057,630
$124,094
$127,371
$116,346
$499,777
Adjustments:
Non-controlling interest in operating partnership
1,500
1,600
23,100
3,000
3,200
3,100
13,000
Real estate related depreciation & amortization (1)
369,327
374,162
372,447
362,728
363,640
743,489
728,336
Unconsolidated JV real estate related depreciation & amortization
29,022
29,320
24,146
21,293
20,983
58,341
40,361
(Gain) on real estate transactions (2)
(1,144)
(2,770)
(1,047,010)
(63,798)
(499)
(3,914)
(334,420)
Impairment of investments in real estate
–
–
18,291
–
–
–
–
Funds From Operations – diluted
$451,949
$465,412
$448,602
$447,317
$514,695
$917,362
$947,055
Weighted-average shares and units outstanding – basic
290,528
290,163
289,895
289,542
288,843
290,346
288,588
Weighted-average shares and units outstanding – diluted (3)
290,944
290,662
290,893
290,228
289,485
290,716
289,219
Funds From Operations per share – basic
$1.56
$1.60
$1.55
$1.54
$1.78
$3.16
$3.28
Funds From Operations per share – diluted (3)
$1.55
$1.60
$1.54
$1.54
$1.78
$3.16
$3.27
Three Months Ended
Six Months Ended
Reconciliation of FFO to Core FFO
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
30-Jun-22
30-Jun-21
Funds From Operations – diluted
$451,949
$465,412
$448,602
$447,317
$514,695
$917,362
$947,055
Other non-core revenue adjustments (4)
456
13,916
9,859
(18,066)
(11,122)
14,372
(11,181)
Transaction and integration expenses
13,586
11,968
12,427
13,804
7,075
25,554
21,195
Loss from early extinguishment of debt
–
51,135
325
–
–
51,135
18,347
(Gain on) / Issuance costs associated with redeemed preferred stock
–
–
–
–
(18,000)
–
(18,000)
Severance, equity acceleration, and legal expenses (5)
3,786
2,077
1,003
1,377
2,536
5,863
4,963
(Gain) / Loss on FX revaluation
29,539
(67,676)
14,308
33,773
(51,649)
(38,137)
(17,577)
Other non-core expense adjustments
70
7,657
(1)
1,004
2,298
7,727
(16,942)
Core Funds From Operations – diluted
$499,386
$484,490
$486,525
$479,209
$445,833
$983,875
$927,859
Weighted-average shares and units outstanding – diluted (3)
290,944
290,662
290,893
290,228
289,485
290,716
289,219
Core Funds From Operations per share – diluted (3)
$1.72
$1.67
$1.67
$1.65
$1.54
$3.38
$3.21
(1) Real Estate Related Depreciation & Amortization
Three Months Ended
Six Months Ended
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
30-Jun-22
30-Jun-21
Depreciation & amortization per income statement
$376,967
$382,132
$378,883
$369,035
$368,981
759,099
738,714
Non-real estate depreciation
(7,640)
(7,970)
(6,436)
(6,307)
(5,341)
(15,610)
(10,377)
Real Estate Related Depreciation & Amortization
$369,327
$374,162
$372,447
$362,728
$363,640
$743,489
$728,336
(2)
For the fourth quarter 2021, the gain pertains to the contribution of 10 operating data center properties to Digital Core REIT in connection with the listing of Digital Core REIT as a standalone public company traded on the Singapore Exchange in December 2021. For the third quarter 2021, the gain of $64 million represents Digital Realty’s share of a gain recognized by an unconsolidated joint venture from the sale of a portfolio of assets owned by the entity and is included in equity in earnings of unconsolidated joint ventures in our consolidated income statement.
(3)
For all periods presented, we have excluded the effect of dilutive series C, 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 C, series J, series K and series L preferred stock, as applicable, which we consider highly improbable, and the effect of the physical settlement of our September 2021 forward sales agreements. See above for calculations of diluted 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)
Includes lease termination fees and certain other adjustments that are not core to our business. For the third quarter 2021, includes a $19 million promote received related to a sale of portfolio of assets within an unconsolidated joint venture. The promote is included in Other revenue in our consolidated income statement.
(5)
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
Six Months Ended
Reconciliation of Core FFO to AFFO
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
30-Jun-22
30-Jun-21
Core FFO available to common stockholders and unitholders
$499,386
$484,490
$486,525
$479,209
$445,833
$983,875
$927,859
Adjustments:
Non-real estate depreciation
7,640
7,970
6,436
6,307
5,341
15,610
10,377
Amortization of deferred financing costs
3,330
3,634
3,515
3,625
3,718
6,964
7,256
Amortization of debt discount/premium
1,193
1,214
1,107
1,138
1,166
2,407
2,300
Non-cash stock-based compensation expense
15,799
14,453
15,097
15,082
15,578
30,253
31,675
Straight-line rental revenue
(17,278)
(18,810)
(16,497)
(11,969)
(16,139)
(36,089)
(34,631)
Straight-line rental expense
(2,237)
4,168
5,753
7,862
7,175
1,931
13,884
Above- and below-market rent amortization
196
335
910
1,165
1,857
531
3,994
Deferred tax expense / (benefit)
(769)
(1,604)
(13,731)
2,112
35,522
(2,372)
31,013
Leasing compensation & internal lease commissions
9,411
13,261
9,564
11,142
11,078
22,672
22,120
Recurring capital expenditures (1)
(43,497)
(46,770)
(87,550)
(50,800)
(39,231)
(90,267)
(78,753)
AFFO available to common stockholders and unitholders (2)
$473,173
$462,341
$411,130
$464,872
$471,899
$935,514
$937,095
Weighted-average shares and units outstanding – basic
290,528
290,163
289,895
289,542
288,843
290,346
288,588
Weighted-average shares and units outstanding – diluted (3)
290,944
290,662
290,893
290,228
289,485
290,716
289,219
AFFO per share – diluted (3)
$1.63
$1.59
$1.41
$1.60
$1.63
$3.22
$3.24
Dividends per share and common unit
$1.22
$1.22
$1.16
$1.16
$1.16
$2.44
$2.32
Diluted AFFO Payout Ratio
75.0 %
76.7 %
82.1 %
72.4 %
71.2 %
75.8 %
71.6 %
Three Months Ended
Six Months Ended
Share Count Detail
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
30-Jun-22
30-Jun-21
Weighted Average Common Stock and Units Outstanding
290,528
290,163
289,895
289,542
288,843
290,346
288,588
Add: Effect of dilutive securities
416
499
998
686
642
370
631
Weighted Avg. Common Stock and Units Outstanding – diluted
290,944
290,662
290,893
290,228
289,485
290,716
289,219
(1)
Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and external leasing commissions. Recurring capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty’s operating standards, or internal leasing commissions.
(2)
For a definition and discussion of AFFO, see the definitions section. For a reconciliation of net income available to common stockholders to FFO and core FFO, see above.
(3)
For all periods presented, we have excluded the effect of dilutive series C, 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 C, series J, series K and series L preferred stock, as applicable, which we consider highly improbable, and the effect of the physical settlement of our September 2021 forward sales agreements. See above for calculations of diluted FFO available to common stockholders and unitholders and for calculations of weighted average common stock and units outstanding.
Consolidated Balance Sheets
Unaudited and in Thousands, Except Share and Per Share Data
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
Assets
Investments in real estate:
Real estate
$24,065,933
$23,769,712
$23,625,451
$23,384,809
$23,287,853
Construction in progress
3,362,114
3,523,484
3,213,387
3,238,388
3,270,570
Land held for future development
37,460
107,003
133,683
118,091
143,575
Investments in real estate
$27,465,507
$27,400,199
$26,972,522
$26,741,289
$26,701,998
Accumulated depreciation and amortization
(6,665,118)
(6,467,233)
(6,210,281)
(6,159,294)
(5,919,650)
Net Investments in Properties
$20,800,389
$20,932,966
$20,762,241
$20,581,995
$20,782,348
Investment in unconsolidated joint ventures
1,942,549
2,044,074
1,807,689
1,292,325
1,119,026
Net Investments in Real Estate
$22,742,937
$22,977,040
$22,569,930
$21,874,320
$21,901,374
Cash and cash equivalents
$99,226
$157,964
$142,698
$116,002
$120,482
Accounts and other receivables (1)
797,208
774,579
671,721
610,416
630,086
Deferred rent
554,016
545,666
547,385
552,850
539,379
Customer relationship value, deferred leasing costs & other intangibles, net
2,521,390
2,640,795
2,735,486
2,871,622
2,956,027
Goodwill
7,545,107
7,802,440
7,937,440
8,062,914
8,185,931
Operating lease right-of-use assets
1,310,970
1,361,942
1,405,441
1,442,661
1,452,633
Other assets
385,202
420,119
359,459
316,863
365,308
Total Assets
$35,956,057
$36,680,546
$36,369,560
$35,847,648
$36,151,220
Liabilities and Equity
Global unsecured revolving credit facilities
$1,440,040
$943,325
$398,172
$832,322
$1,026,368
Unsecured senior notes, net of discount
12,695,568
13,284,650
12,903,370
13,012,790
12,659,043
Secured debt and other, net of premiums
158,699
160,240
146,668
242,427
242,410
Operating lease liabilities
1,418,540
1,472,510
1,512,187
1,543,231
1,545,689
Accounts payable and other accrued liabilities
1,619,222
1,572,359
1,543,623
1,341,866
1,367,240
Deferred tax liabilities, net
611,582
649,112
666,451
725,955
742,127
Accrued dividends and distributions
—
—
338,729
—
—
Security deposits and prepaid rent
341,140
346,911
336,578
341,778
362,606
Total Liabilities
$18,284,791
$18,429,107
$17,845,778
$18,040,369
$17,945,483
Redeemable non-controlling interests – operating partnership
41,047
42,734
46,995
40,920
41,490
Equity
Preferred Stock: $0.01 par value per share, 110,000,000 shares authorized:
Series J Cumulative Redeemable Preferred Stock (2)
$193,540
$193,540
$193,540
$193,540
$193,540
Series K Cumulative Redeemable Preferred Stock (3)
203,264
203,264
203,264
203,264
203,264
Series L Cumulative Redeemable Preferred Stock (4)
334,886
334,886
334,886
334,886
334,886
Common Stock: $0.01 par value per share, 392,000,000 shares authorized (5)
2,824
2,824
2,824
2,818
2,806
Additional paid-in capital
21,091,364
21,069,391
21,075,863
21,010,202
20,844,834
Dividends in excess of earnings
(4,211,685)
(3,916,854)
(3,631,929)
(4,359,033)
(4,153,407)
Accumulated other comprehensive income (loss), net
(475,561)
(188,844)
(173,880)
(111,560)
31,733
Total Stockholders’ Equity
$17,138,632
$17,698,207
$18,004,568
$17,274,117
$17,457,656
Noncontrolling Interests
Noncontrolling interest in operating partnership
$432,213
$444,029
$425,337
$459,918
$513,897
Noncontrolling interest in consolidated joint ventures
59,374
66,470
46,882
32,324
192,694
Total Noncontrolling Interests
$491,587
$510,499
$472,219
$492,242
$706,591
Total Equity
$17,630,219
$18,208,706
$18,476,787
$17,766,359
$18,164,247
Total Liabilities and Equity
$35,956,057
$36,680,546
$36,369,560
$35,847,648
$36,151,220
(1)
Net of allowance for doubtful accounts of $37,799 and $28,574 as of June 30, 2022 and December 31, 2021, respectively.
(2)
Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 and $200,000 liquidation preference, respectively ($25.00 per share), 8,000,000 and 8,000,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.
(3)
Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 and $210,000 liquidation preference, respectively ($25.00 per share), 8,400,000 and 8,400,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.
(4)
Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 and $345,000 liquidation preference, respectively ($25.00 per share), 13,800,000 and 13,800,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.
(5)
Common Stock: 284,733,922 and 284,415,013 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios
Unaudited and Dollars in Thousands
Three Months Ended
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1)
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
Net Income Available to Common Stockholders
$53,245
$63,101
$1,057,630
$124,094
$127,371
Interest
69,023
66,725
71,762
71,417
75,014
Loss from early extinguishment of debt
—
51,135
325
—
—
Income tax expense (benefit)
16,406
13,244
3,961
13,709
47,582
Depreciation & amortization
376,967
382,132
378,883
369,035
368,981
EBITDA
$515,642
$576,337
$1,512,561
$578,255
$618,947
Unconsolidated JV real estate related depreciation & amortization
29,023
29,319
24,146
21,293
20,983
Unconsolidated JV interest expense and tax expense
6,708
21,111
15,222
11,008
15,523
Severance, equity acceleration, and legal expenses
3,786
2,077
1,003
1,377
2,536
Transaction and integration expenses
13,586
11,968
12,427
13,804
7,075
(Gain) / loss on sale of investments
—
(2,770)
(1,047,011)
635
(499)
Impairment of investments in real estate
—
—
18,291
—
—
Other non-core adjustments, net
31,633
(48,858)
14,307
(28,745)
(60,308)
Non-controlling interests
436
3,629
22,587
2,266
4,544
Preferred stock dividends, including undeclared dividends
10,181
10,181
10,181
10,181
11,885
(Gain on) / Issuance costs associated with redeemed preferred stock
—
—
—
—
(18,000)
Adjusted EBITDA
$610,994
$602,994
$583,713
$610,074
$602,686
(1) For definitions and discussion of EBITDA and Adjusted EBITDA, see the definitions section.
Three Months Ended
Financial Ratios
30-Jun-22
31-Mar-22
31-Dec-21
30-Sep-21
30-Jun-21
Total GAAP interest expense
$69,023
$66,725
$71,762
$71,417
$75,014
Capitalized interest
14,131
14,751
15,328
15,142
11,558
Change in accrued interest and other non-cash amounts
(43,952)
52,324
(37,974)
17,820
(43,604)
Cash Interest Expense (2)
$39,202
$133,800
$49,116
$104,379
$42,968
Preferred dividends
10,181
10,181
10,181
10,181
11,885
Total Fixed Charges (3)
$93,335
$91,657
$97,271
$96,740
$98,457
Coverage
Interest coverage ratio (4)
6.6x
6.1x
6.0x
6.5x
6.1x
Cash interest coverage ratio (5)
12.6x
4.0x
9.8x
5.4x
10.9x
Fixed charge coverage ratio (6)
6.0x
5.5x
5.4x
5.8x
5.4x
Cash fixed charge coverage ratio (7)
10.4x
3.7x
8.3x
5.0x
9.0x
Leverage
Debt to total enterprise value (8) (9)
27.1 %
25.5 %
20.5 %
24.8 %
23.9 %
Debt plus preferred stock to total enterprise value (10)
28.5 %
26.8 %
21.7 %
26.1 %
25.2 %
Pre-tax income to interest expense (11)
1.9x
2.2x
16.2x
2.9x
2.7x
Net Debt to Adjusted EBITDA (12)
6.2x
6.3x
6.1x
6.0x
6.0x
(2)
Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash based interest expense.
(3)
Fixed charges consist of GAAP interest expense, capitalized interest, and preferred dividends.
(4)
Adjusted EBITDA divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated joint venture interest expense).
(5)
Adjusted EBITDA divided by cash interest expense (including our pro rata share of unconsolidated joint venture interest expense).
(6)
Adjusted EBITDA divided by fixed charges (including our pro rata share of unconsolidated joint venture fixed charges).
(7)
Adjusted EBITDA divided by the sum of cash interest expense, and preferred dividends (including our pro rata share of unconsolidated joint venture cash fixed charges).
(8)
Mortgage debt and other loans divided by market value of common equity plus debt plus preferred stock.
(9)
Total enterprise value defined as market value of common equity plus debt plus preferred stock.
(10)
Same as (8), except numerator includes preferred stock.
(11)
Calculated as net income plus interest expense divided by GAAP interest expense.
(12)
Calculated as total debt at balance sheet carrying value, plus capital lease obligations, plus Digital Realty’s pro rata share of unconsolidated of joint venture debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated joint venture EBITDA), multiplied by four.
Management Statements on Non-GAAP Measures
Unaudited
Definitions
Funds From Operations (FFO):
We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts, or Nareit, in the Nareit Funds From Operations White Paper – 2018 Restatement. FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from real estate transactions, impairment of investment in real estate, real estate related depreciation and amortization (excluding amortization of deferred financing costs), unconsolidated JV real estate related depreciation & amortization, non-controlling interests in operating partnership and after adjustments for unconsolidated partnerships and joint ventures. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions and after adjustments for unconsolidated partnerships and joint ventures, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to other REITs’ FFO. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
Core Funds from Operations (Core FFO):
We present core funds from operations, or core FFO, as a supplemental operating measure because, in excluding certain items that do not reflect core revenue or expense streams, it provides a performance measure that, when compared year over year, captures trends in our core business operating performance. We calculate core FFO by adding to or subtracting from FFO (i) other non-core revenue adjustments, (ii) transaction and integration expenses, (iii) loss from early extinguishment of debt, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration, and legal expenses, (vi) gain/loss on FX revaluation, and (vii) other non-core expense adjustments. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of core FFO as a measure of our performance is limited. Other REITs may calculate core FFO differently than we do and accordingly, our core FFO may not be comparable to other REITs’ core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
Adjusted Funds from Operations (AFFO):
We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from core FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount/premium, (iv) non-cash stock-based compensation expense, (v) straight-line rental revenue, (vi) straight-line rental expense, (vii) above- and below-market rent amortization, (viii) deferred tax expense / (benefit), (ix) leasing compensation and internal lease commissions, and (x) recurring capital expenditures. Other REITs may calculate AFFO differently than we do and, accordingly, our AFFO may not be comparable to other REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
EBITDA and Adjusted EBITDA:
We believe that earnings before interest, loss from early extinguishment of debt, income taxes, and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, unconsolidated joint venture real estate related depreciation & amortization, unconsolidated joint venture interest expense and tax, severance, equity acceleration, and legal expenses, transaction and integration expenses, gain on sale / deconsolidation, impairment of investments in real estate, other non-core adjustments, net, non-controlling interests, preferred stock dividends, including undeclared dividends, and issuance costs associated with redeemed preferred stock. Adjusted EBITDA is EBITDA excluding unconsolidated joint venture real estate related depreciation & amortization, unconsolidated joint venture interest expense and tax, severance, equity acceleration, and legal expenses, transaction and integration expenses, gain on sale / deconsolidation, impairment of investments in real estate, other non-core adjustments, net, non-controlling interests, preferred stock dividends, including undeclared dividends, and gain on / issuance costs associated with redeemed preferred stock. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, exclude capitalized costs, such as leasing commissions, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited. Other REITs may calculate EBITDA and Adjusted EBITDA differently than we do and, accordingly, our EBITDA and Adjusted EBITDA may not be comparable to other REITs’ EBITDA and Adjusted EBITDA. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income computed in accordance with GAAP as a measure of our financial performance.
Net Operating Income (NOI) and Cash NOI:
Net operating income, or NOI, represents rental revenue, tenant reimbursement revenue and interconnection revenue less utilities expense, rental property operating expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. Cash NOI is NOI less straight-line rents and above- and below-market rent amortization. Cash NOI is commonly used by stockholders, company management and industry analysts as a measure of property operating performance on a cash basis. However, because NOI and cash NOI exclude depreciation and amortization and capture neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our results from operations, the utility of NOI and cash NOI as measures of our performance is limited. Other REITs may calculate NOI and cash NOI differently than we do and, accordingly, our NOI and cash NOI may not be comparable to other REITs’ NOI and cash NOI. NOI and cash NOI should be considered only as supplements to net income computed in accordance with GAAP as measures of our performance.
Additional Definitions
Net debt-to-Adjusted EBITDA ratio is calculated using total debt at balance sheet carrying value, plus capital lease obligations, plus our share of unconsolidated JV debt, less unrestricted cash and cash equivalents (including our share of unconsolidated JV cash) divided by the product of Adjusted EBITDA (inclusive of our share of unconsolidated JV EBITDA) multiplied by four.
Debt-plus-preferred-to-total enterprise value is mortgage debt and other loans plus preferred stock divided by mortgage debt and other loans plus the liquidation value of preferred stock and the market value of outstanding Digital Realty Trust, Inc. common stock and Digital Realty Trust, L.P. units, assuming the redemption of Digital Realty Trust, L.P. units for shares of Digital Realty Trust, Inc. common stock.
Fixed charge coverage ratio is Adjusted EBITDA divided by the sum of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred dividends. For the quarter ended June 30, 2022, GAAP interest expense was $69 million, capitalized interest was $14 million and scheduled debt principal payments and preferred dividends was $10 million.
Reconciliation of Net Operating Income (NOI)
Three Months Ended
Six Months Ended
(in thousands)
30-Jun-22
31-Mar-21
30-Jun-21
30-Jun-22
30-Jun-21
Operating income
$170,371
$141,236
$185,627
$311,607
$378,146
Fee income
(5,072)
(5,757)
(3,628)
(10,829)
(6,054)
Other income
(2,713)
(15)
(165)
(2,728)
(224)
Depreciation and amortization
376,967
382,132
368,981
759,099
738,714
General and administrative
101,991
96,435
94,956
198,426
192,524
Severance, equity acceleration, and legal expenses
3,786
2,077
2,536
5,863
4,963
Transaction expenses
13,586
11,968
7,075
25,554
21,195
Other expenses
70
7,657
2,298
7,727
2,041
Net Operating Income
$658,986
$635,734
$657,680
$1,294,720
$1,331,304
Cash Net Operating Income (Cash NOI)
Net Operating Income
$658,986
$635,734
$657,680
$1,294,720
$1,331,304
Straight-line rental revenue
(14,105)
(6,530)
(17,127)
(20,635)
(35,734)
Straight-line rental expense
(2,609)
3,646
7,069
1,037
13,819
Above- and below-market rent amortization
196
335
1,857
531
3,994
Cash Net Operating Income
$642,468
$633,185
$649,480
$1,275,653
$1,313,383
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, our expected physical settlement of the forward sale agreements and use of proceeds from any such settlement, our liquidity, our joint ventures, supply and demand for data center and colocation space, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company’s FFO, core FFO and net income, 2022 outlook and underlying assumptions, information related to trends, our strategy and plans, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and development activity and plans, projected construction costs, estimated yields on investment, expected occupancy, expected square footage and IT load capacity upon completion of development projects, 2022 backlog NOI, NAV components, and other forward-looking financial data. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Some of the risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:
reduced demand for data centers or decreases in information technology spending;increased competition or available supply of data center space;decreased rental rates, increased operating costs or increased vacancy rates;the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services;our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers;our ability to attract and retain customers;breaches of our obligations or restrictions under our contracts with our customers;our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties;the impact of current global and local economic, credit and market conditions;our inability to retain data center space that we lease or sublease from third parties;global supply chain or procurement disruptions, or increased supply chain costs;information security and data privacy breaches;difficulty managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas;our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent acquisitions;our failure to successfully integrate and operate acquired or developed properties or businesses;difficulties in identifying properties to acquire and completing acquisitions;risks related to joint venture investments, including as a result of our lack of control of such investments;risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital;financial market fluctuations and changes in foreign currency exchange rates;adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges;our inability to manage our growth effectively;losses in excess of our insurance coverage;our inability to attract and retain talent;impact on our operations and on the operations of our customers, suppliers and business partners during a pandemic, such as COVID-19;environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;our inability to comply with rules and regulations applicable to our company;Digital Realty Trust, Inc.’s failure to maintain its status as a REIT for federal income tax purposes;Digital Realty Trust, L.P.’s failure to qualify as a partnership for federal income tax purposes;restrictions on our ability to engage in certain business activities;changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates; andthe impact of any financial, accounting, legal or regulatory issues or litigation that may affect us.
The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. Several additional material risks are discussed in our annual report on Form 10‑K for the year ended December 31, 2021 and other filings with the U.S. Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Digital Realty, Digital Realty Trust, the Digital Realty logo, Interxion, Turn-Key Flex, Powered Base Building, and PlatformDIGITAL, Data Gravity Index and Data Gravity Index DGx are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All other names, trademarks and service marks are the property of their respective owners.
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SOURCE Digital Realty
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Vintage Vaults’ State-of-the-Art Deposit Box Service for the UAE
Published
1 year agoon
June 21, 2023By
DUBAI, UAE, June 21, 2023 /PRNewswire/ — As the UAE creates and attracts an ever-growing number of affluent individuals, boosting the region’s investment industry, two Dubai-based entrepreneurs have launched a state-of-the-art luxury service that ensures residents and tourists can protect their valuable physical possessions and their financial assets.
Inspired by the traditional Swiss private bank but updated with cutting edge technology to meet today’s expectations for convenience and security, Vintage Vaults is located in a discreet section of Mall of the Emirates. With seven sizes of premium safety deposit boxes, and flexible rental periods from 3 months to 10 years, Vintage Vaults makes it easy to safeguard jewellery, watches, documents, crypto codes and other important valuables.
Offering a unique experience that combines award-winning art deco-style reception areas with a custom-made reinforced steel vault, Vintage Vaults gives its customers’ unparalleled peace of mind. Unlike a bank, the facility can be accessed from 10am to midnight every day of the year, with options to move items in and out of the vault in person or using armoured home delivery services. Those visiting in person will benefit from private parking, a lift that opens right in front of the store, and stylish private rooms in which to access the contents of their box with full discretion.
“Our journey started when I tried to get a safety deposit box from my bank and had a terrible experience,” said Sherif El Haddad, Co-Founder of Vintage Vaults. “Once I’d waited six years for a box to become available, they demanded a huge cash deposit and then showed me a tiny box in shabby, unsecure room that was only accessible during branch opening hours. I knew I could do much better, and that others would demand much better too, so the idea of Vintage Vaults was born.”
As you would expect, security is of paramount importance. Not only does the Vintage Vaults facility benefit from Mall of the Emirates’ high tech protection measures, its own security measures include multi-stage biometric checkpoints, HD CCTV linked to Dubai Police, night vision cameras, motion and audio sensors, dual key locks, and security guards on the premises 24/7. Each box is automatically insured for AED1m and cover can go up to AED 5mn, so customers can relax in the knowledge that their valuables are far safer than they would be at home.
“Vintage Vaults brings safety deposit services into the 21st century with its premium services, and tailors them to meet the tastes and requirements of both UAE residents as well as tourists,” said Imran Khan, Co-Founder of Vintage Vaults. “We have attracted customers from over 80 nationalities, almost 70% of them long-term UAE residents. As personal wealth grows in and around our region, and as we expand Vintage Vaults to new markets, we’re confident that demand for our services will keep rising.”
Vintage Vault accounts can be managed online and customers must show an Emirates ID or Passport to rent a box. Memberships come in Standard and Premium tiers, the latter offering additional benefits including a private vault, a dedicated relationship manager, a gold deposit box, and additional nominees who can be given access rights.
Vintage Vaults with its unique blend of state-of-the-art security tech and luxury has managed to attract some of the wealthiest clients in the UAE. It has also attracted high net worth individuals globally that take advantage of Dubai as a key investment haven. The firm also now caters to corporates of different sizes and is continuously expanding its premium service offering.
About Vintage Vaults
Vintage Vaults offers a luxurious, secure place to store valuables with complete discretion and privacy. For more information visit www.vintage-vaults.com
Photo – https://mma.prnewswire.com/media/2106573/Vintage_Vaults.jpg
View original content:https://www.prnewswire.co.uk/news-releases/vintage-vaults-state-of-the-art-deposit-box-service-for-the-uae-301855738.html
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Upsurge in International travel amongst Indians, Dubai emerges as hot favourite – Thrillophilia
Published
2 years agoon
September 22, 2022By
JAIPUR, India, Sept. 22, 2022 /PRNewswire/ — As numerous countries have opened up their boundaries to tourists, Indians are enthusiastically planning vacations with an inclination toward international destinations. With the pent-up demands, there’s an uptick in foreign travel throughout the country for all kinds of travellers.
Thrillophilia brings to the fore destinations preferred by Indian travellers to make their trip unique and memorable. The pulse of travel trends shows that Dubai is an obvious choice for Indians in major segments. While Thailand, Singapore, Bali, and Malaysia are considerably popular among travellers due to cheap airfares and connectivity, Italy, the UK, Switzerland and France fall close behind in international destinations that Indians like to explore.
Top Destinations preference by different types of Indian travellers:
Dubai, a forerunner among family-friendly destinations: While choosing to travel with family, Dubai makes a mark among Indians with its numerous theme parks, attractions, and activity spots. Dubai’s numerous attractions appeal to both adults and children, for instance, Dubai Aquarium, Underwater Zoo, Ski Dubai, Wild Wadi, and several others. 36% of travellers picked Dubai over any other destination, when it comes to family travel. Singapore, Thailand, and Bali are the other hotspots frequented by families for relishing their annual international vacations.
Thailand is the top choice of solo travellers: Thailand is the favourite destination for Indians to travel solo considering the diverse and exciting experiences it provides in terms of food and frenetic nightlife, and not to forget, the tropical beaches and islands that make for a perfect getaway. Dubai comes a close second for solo travellers as it offers unique adventure and leisure activities. Singapore, Indonesia, and the UK are other destinations that are preferred for their natural affinity to attract solo travellers resorting to impromptu travel plans.
Couples choose Maldives over other destinations: Serving unparalleled luxury with pristine beaches and lush greenery, Bali and Maldives turn out to be the favourite destination for couples as per Thrillophilia. Travel to Maldives has been on a decline this year compared to last year, as other destinations have opened up in 2022.
Dubai is also preferred by couples for a romantic vacation. From dinner cruises, and exciting desert safaris, to a romantic date on a yacht and endless shopping options, it becomes apparent why this Emirate City is sought after by couples. Thailand also mesmerises Indian couples to be chosen among their favourite international destinations.
Unparalleled gastronomical experience around the world
When it comes to seeking one-of-a-kind experiences, Indians have been loving how Dubai offers some of the most exclusive culinary adventures with global flavours in exquisite venues. Indian travellers choose Dubai’s Dinner in the Sky, Luxury dinner cruise on a Marina Yacht, BBQ at Desert Safari, and rooftop meals at Burj Khalifa – At the Top for the ultimate gastronomic experiences in the city.
In this niche, Thailand, the street food capital of the world is also a favourite among Indians for the quintessential, authentic, and diverse food options at the street markets of Bangkok. Italy attracts numerous Indians to feast on Italian delicacies, roam around the food market or take part in a wine tasting affair. Recognized for its gourmet French cuisine, bakery, and cooking classes, Indians have ranked France fourth among the top destinations for an unforgettable food experience.
Adventure enthusiasts’ preferred choices
As per Thrillophilia’s data, Dubai tops again as the favourite destination for adventurous activities with skydiving, x-line, deep dive, and dune-bashing experience. Hot air balloon rides, quad biking, and skywalk are other activities that draw Indian tourists to the Emirate.
Australia, Turkey, Thailand, Malaysia and Bali make up the rest of the top 5 destinations preferred by Indians for adventure travel as compiled by Thrillophilia.
Flyboarding, parasailing, trekking, and a ride on the giant swing are the favourite activities of Indian tourists when in Bali. A country ripe for adventure, Indians flock to Thailand to engage in ziplining, snorkeling, and scuba diving among other activities in this fun-filled destination. While Turkey is preferred by Indians for a ride on a hot air balloon at Cappadocia, Malaysia is known to attract thousands of tourists countrywide for the numerous adventure activities it offers like ziplining, scuba diving, skydiving, and jet skiing.
Dubai, an ideal theme park destination
For a fun-filled thrilling experience at theme parks around the world, Indians have chosen Dubai, Singapore, Abu Dhabi, California, and the UK as their top 5 international destinations.
With IMG Worlds of Adventure, Wild Wadi Waterpark, Legoland Dubai, Kidzania, Garden glow, and many others, Thrillophilia bookings show that Dubai is the top theme park destination for Indians. WarnerBros World, Yas Waterworld, and Ferrari World are fascinating theme parks that attract Indians to Abu Dhabi. Singapore’s 4D Adventureland Sentosa and Universal Studios are considered a must-visit by kids and adults alike. Indians also visit Universal Studios and Disneyland in California for an exciting theme park experience along with Alton Towers, Thorpe park, and Legoland Windsor in the UK.
Destinations preferred by travellers for Museums and Monuments
For the art and history-loving tourists from India, Rome, London, Abu Dhabi and Paris are preferred as they are home to some of the most famous museums and monuments in the world like The Colosseum, the British Museum, Louvre Museum, Eiffel Tower, and numerous others. With over 80 museums, Turkey is also a major attraction for museum lovers for its exquisite collection of Byzantine art and mosaics.
A significant choice by tourists for an immersive experience has been Dubai’s latest attraction, the Museum of the Future. Indian tourists are flocking to this museum to witness the exquisite culture, as well as the futuristic goals in modern development.
Thailand, the go-to party paradise
Thailand, glittering with lights and a lot of hustle and bustle makes for the ultimate destination for Indian tourists looking for amazing nightlife. With great party destinations each with its own personality, Bangkok, Pattaya, and Phuket are the preferred locations. The Full Moon parties in Thailand also attract Indian tourists to the destination.
Dubai’s vibrant and exotic nightlife with the famous landmarks illuminated in the night sky turned out to be close second according to the trends at Thrillophilia as it has plenty of fine dining places and premier nightclubs. Home to beautiful beaches and hippie parties, Kuta in Bali attracts travellers from India looking to party at famous open-air clubs and beach raves. When looking for a destination with amped-up scenes after sun-down, Malaysia, and Singapore were other top choices for Indians.
Best picks for a luxury affair
Dubai has proven to be a popular choice among travellers looking for luxury experiences. Affluent Indian tourists travelling to the city opt for luxury stays at high-end glittering hotels like Burj al-Arab and Atlantis, The Palm. Booking trends of Thrillophilia show that luxury travellers from India also opt for experiences like premium safari packages, yacht parties, tours in rented luxury cars, and helicopter rides while in Dubai. True luxury affairs like the Saronic Cruise in Greece, and the Grand Canyon Helicopter Rides offer an experience like no other. Among the other chosen luxury experiences from around the world for Indian tourists, Luxury Spa Sessions in Bali entails a traditional yet opulent decadence.
About Thrillophilia:
Thrillophilia is India’s largest online booking platform that enables travellers with hand-picked experiential tours and activities.
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Nala Robotics and Saudi Excellence Co. to Establish First AI-Based Robotic Cloud Kitchen and R&D Center in Saudi Arabia
Published
2 years agoon
September 15, 2022By
NAPERVILLE, Ill. and RIYADH, Saudi Arabia, Sept. 15, 2022 /PRNewswire/ — Nala Robotics, a U.S.-based AI robotics company disrupting the culinary industry with its restaurant-as-a-service platform, and the Saudi Excellence Company, a Riyadh-based tech company, today announced a strategic agreement to develop, market and deliver autonomous food services to Saudi Arabia, one of the most promising and prolific digitally connected markets in the Middle East.
According to a memorandum of understanding signed during the Global AI Summit 2022 this week in Riyadh, both companies will work together to bring advanced and affordable AI robotic solutions to restaurants and food service providers in Saudi Arabia, including establishing the country’s first fully autonomous eatery that will serve a wide variety of Saudi and Middle Eastern dishes.
“We are delighted to be working with the Saudi Excellence Company, a pioneer in bringing emerging technologies to Saudi Arabia,” said Balaji Koneru, general manager, Asia Pacific, Nala Robotics. “Saudi Arabia is an important international trade route connecting Asia, Europe and Africa continents. Our collaboration will help Nala Robotics maximize the strategic geographic position and grow our business across the Middle East and North Africa region.”
The partnership’s immediate and longer-term objectives include:
Establishing a R&D center for artificial intelligence and machine learning roboticsSetting-up Saudi Arabia’s first AI-based robotic cloud kitchen that will prepare and cook Shawarma, Doner, Tamiya and other Middle Eastern cuisineCreating a training center for AI robotics engineers and techniciansBuilding a regional center for sales, marketing and fulfillment across the Middle East and North Africa
“The focus of our collaboration is to bring the latest AI robotics technology to the food service sector throughout Saudi Arabia and beyond,” said Omar Mian, chief innovation advisor, Saudi Excellence Company. “By leveraging both of our company’s strengths in technology innovation, we will be able to further revolutionize the country’ culinary industry while creating new opportunities for entrepreneurial endeavors and enhanced job fulfillment and growth.”
About Nala Robotics
Nala Robotics is an AI technology company disrupting the culinary industry. Its innovations include the world’s first fully automated multi-cuisine chef, a customizable robot that uses machine learning to cook infinite recipes replicated with exact precision anytime, anywhere. The company’s line of autonomous robotic solutions are ideal of multiple cuisines including American, Chinese, Indian and Thai. Based in Arlington Heights, Ill., Nala Robotics has offices in California, India and Ukraine. For more information, visit https://nalarobotics.com or follow the company on LinkedIn and Twitter @nalarobotics.
About the Saudi Excellence Company
Saudi Excellence Company, based in Riyadh, is a technology, artificial intelligence, and fintech company that represents many of the world‘s leading high-tech companies in Saudi Arabia, The unit is a subsidiary of Al-Ramez International Group, a diversified corporation with operations in financial investments, trading, contracting, design consulting, advertising and publicity. For more information, visit https://www.alramez.net.
PRESS CONTACTS
For Nala Robotics:
George Medici
PondelWilkinson Inc.
gmedici@pondel.com
For Saudi Excellence Company:
Omar Mian
Al-Ramez International Group
mian@alramez.net
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SOURCE Nala Robotics
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