Earnings per Common Share or Unit

9 Months Ended

Sep. 30, 2023

Earnings per Common Share or Unit

Earnings per Common Share or Unit

10. Earnings per Common Share or Unit

The following is a summary of basic and diluted income per share/unit (in thousands, except per share/unit amounts):

Digital Realty Trust, Inc. Earnings per Common Share

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income available to common stockholders	$	723,437	$	226,894	$	889,985	$	343,240
Plus: Loss attributable to redeemable noncontrolling interest (1)		(3,032)		(3,548)		(9,851)		(3,548)
Net income available to common stockholders - diluted EPS		726,469		223,346		899,836		339,692
Denominator:
Weighted average shares outstanding—basic		301,827		286,693		296,184		285,312
Potentially dilutive common shares:
Unvested incentive units		97		195		78		213
Unvested restricted stock		43		13		3		53
Forward equity offering		209		—		253		—
Market performance-based awards		166		86		90		112
Redeemable noncontrolling interest shares (1)		8,999		9,428		10,127		8,568
Weighted average shares outstanding—diluted		311,341		296,415		306,735		294,257
Income per share:
Basic	$	2.40	$	0.79	$	3.00	$	1.20
Diluted	$	2.33	$	0.75	$	2.93	$	1.15

Digital Realty Trust, L.P. Earnings per Unit

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income available to common unitholders	$	739,737	$	232,294	$	910,285	$	351,740
Plus: Loss attributable to redeemable noncontrolling interest (1)		(3,032)		(3,548)		(9,851)		(3,548)
Net income available to common unitholders - diluted EPS		742,769		228,746		920,136		348,192
Denominator:
Weighted average units outstanding—basic		308,024		292,536		302,316		291,084
Potentially dilutive common units:
Unvested incentive units		97		195		78		213
Unvested restricted units		43		13		3		53
Forward equity offering		209		—		253		—
Market performance-based awards		166		86		90		112
Redeemable noncontrolling interest shares (1)		8,999		9,428		10,127		8,568
Weighted average units outstanding—diluted		317,538		302,258		312,867		300,028
Income per unit:
Basic	$	2.40	$	0.79	$	3.00	$	1.20
Diluted	$	2.33	$	0.75	$	2.93	$	1.15

(1) Pursuant to the Put/Call Agreement with the Rollover Shareholders who remained after the Teraco Acquisition, the Rollover Shareholders have a put right on the Remaining Interest of Teraco that can be settled by the Company in Digital Realty Trust, Inc. shares, in cash, or a combination of cash and shares. Under U.S. GAAP, diluted earnings per share must be reflected in a manner that assumes such put right was exercised at the beginning of the respective periods and settled entirely in shares. The amounts shown represent the redemption value of the Remaining Interest of Teraco divided by Digital Realty Trust, Inc.’s average share price for the respective periods. The put right is exercisable by the Rollover Shareholders for a two-year period commencing on February 1, 2026.

The below table shows the securities that would be antidilutive or not dilutive to the calculation of earnings per share and unit. Common units of the Operating Partnership not owned by Digital Realty Trust, Inc. were excluded only from the calculation of earnings per share as they are not applicable to the calculation of earnings per unit. All other securities shown below were excluded from the calculation of both earnings per share and earnings per unit (in thousands).

	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Shares subject to Forward Equity Offering	3,454	3,591	3,454	5,364
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	6,197	5,843	6,132	5,771
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,647	1,932	1,891	1,640
Potentially dilutive Series K Cumulative Redeemable Preferred Stock	1,732	2,032	1,988	1,725
Potentially dilutive Series L Cumulative Redeemable Preferred Stock	2,841	3,333	3,261	2,829
Total	15,871	16,731	16,726	17,329