Earnings per Common Share or Unit

12 Months Ended

Dec. 31, 2023

Earnings per Common Share or Unit

Earnings per Common Share or Unit

12. 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

	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income available to common stockholders	$	908,114	$	336,960	$	1,681,498
Plus: Loss attributable to redeemable noncontrolling interest (1)		(18,093)		4,839		—
Net income available to common stockholders - diluted EPS		926,207		332,121		1,681,498
Denominator:
Weighted average shares outstanding—basic		298,603		286,334		282,475
Potentially dilutive common shares:
Unvested incentive units		118		257		253
Unvested restricted stock		9		45		192
Forward equity offering		248		—		—
Market performance-based awards		112		103		302
Redeemable noncontrolling interest shares (1)		9,975		11,180		—
Weighted average shares outstanding—diluted		309,065		297,919		283,222
Income per share:
Basic	$	3.04	$	1.18	$	5.95
Diluted	$	3.00	$	1.11	$	5.94

Digital Realty Trust, L.P. Earnings per Unit

	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income available to common unitholders	$	928,824	$	345,060	$	1,720,598
Plus: Loss attributable to redeemable noncontrolling interest (1)		(18,093)		4,839		—
Net income available to common unitholders - diluted EPS		946,917		340,221		1,720,598
Denominator:
Weighted average units outstanding—basic		304,651		292,123		289,165
Potentially dilutive common units:
Unvested incentive units		118		257		253
Unvested restricted units		9		45		192
Forward equity offering		248		—		—
Market performance-based awards		112		103		302
Redeemable noncontrolling interest shares (1)		9,975		11,180		—
Weighted average units outstanding—diluted		315,113		303,708		289,912
Income per unit:
Basic	$	3.05	$	1.18	$	5.95
Diluted	$	3.01	$	1.12	$	5.94

(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. For additional information regarding the Teraco Acquisition and the defined terms used above, see Note 3. “Business Combinations” to Consolidated Financial Statements contained herein.

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).

	Year Ended December 31,
	2023	2022	2021
Shares subject to Forward Equity Offering	—	—	6,250
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	6,048	5,789	6,691
Potentially dilutive Series C Cumulative Redeemable Perpetual Preferred Stock	—	—	541
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,794	1,736	1,318
Potentially dilutive Series K Cumulative Redeemable Preferred Stock	1,887	1,825	1,386
Potentially dilutive Series L Cumulative Redeemable Preferred Stock	3,095	2,993	2,274
Total	12,824	12,343	18,460