Digital Realty Trust, Inc. (NYSE:DLR) Q3 2023 Earnings Call Transcript

Andrew Power: Thanks, Michael. So I think, I’d point you to our development schedule, which has now been in the double-digits category across the board for the whole portfolio, including an increase in, call it, 65 megawatts quarter-over-quarter. North America, where, I would say, is the current home to the largest deals is in double-digit by itself and has moved up dramatically. I don’t – when we look at the risk award, there’s obviously episodic scenarios where returns for big deals with hyperscalers couldn’t go higher. But I think that the – once you kind of ascend into the double-digits, given the current state of, call it, cost of capital in general, I think you’re in the proverbial end zone in terms of creating value on many ways.

So I wouldn’t bank on incremental stair stiffs of shifts beyond that. But I think, we’re in a time in the world where the demand remains robust and diverse, outpacing supply. That dynamic does not feel to be abating. And I think we’ve got a great hand to support tremendous customers’ growth around the globe and create a lot of value for a lot of stakeholders.

Operator: That concludes the question-and-answer portion of today’s call. I’d now like to turn the call back over to President and CEO, Andy Power, for his closing remarks. Please go ahead.

Andrew Power: Thank you, Andrea. Digital Realty had a strong third quarter. Our results demonstrate that our value proposition is resonating with our customers. We posted another quarter of strengthening organic operating results with record 0-1 megawatt bookings, strong re-leasing spreads and our best same-capital cash and ROI growth in over a decade. During the first nine months of the year, we’ve raised over $3.5 billion of new capital, enabling us to meaningfully delever while reinvesting to support our customers’ growing needs, and we are not done yet. I’d like to thank everyone for joining us today and express my personal gratitude to our dedicated and exceptional team at Digital Realty to keep the digital world spinning. We look forward to updating you on our progress and meeting with many of you at NAREIT in L.A. in a few weeks. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.