Earnings per Common Share or Unit

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings per Common Share or Unit

9. 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Numerator:
Net income available to common stockholders	$	70,039	$	108,003	$	341,366	$	166,548
Loss attributable to redeemable noncontrolling interest (1)		(4,865)		(4,499)		(12,514)		(6,819)
Net income available to common stockholders - diluted EPS		65,174		103,504		328,852		159,729
Denominator:
Weighted average shares outstanding—basic		319,537		295,390		315,915		293,316
Potentially dilutive common shares:
Unvested incentive units		70		46		69		51
Unvested restricted stock		112		6		107		6
Forward equity offering		—		60		—		169
Market performance-based awards		222		102		292		51
Redeemable noncontrolling interest shares (1)		8,005		11,215		8,068		10,859
Weighted average shares outstanding—diluted		327,946		306,819		324,451		304,452
Income per share:
Basic	$	0.22	$	0.37	$	1.08	$	0.57
Diluted (2)	$	0.20	$	0.34	$	1.01	$	0.52

Digital Realty Trust, L.P. Earnings per Unit

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Numerator:
Net income available to common unitholders	$	71,539	$	110,503	$	349,066	$	170,548
Loss attributable to redeemable noncontrolling interest (1)		(4,865)		(4,499)		(12,514)		(6,819)
Net income available to common unitholders - diluted EPS		66,674		106,004		336,552		163,729
Denominator:
Weighted average units outstanding—basic		325,777		301,593		322,151		299,452
Potentially dilutive common units:
Unvested incentive units		70		46		69		51
Unvested restricted units		112		6		107		6
Forward equity offering		—		60		—		169
Market performance-based awards		222		102		292		51
Redeemable noncontrolling interest shares (1)		8,005		11,215		8,068		10,859
Weighted average units outstanding—diluted		334,186		313,022		330,687		310,588
Income per unit:
Basic	$	0.22	$	0.37	$	1.08	$	0.57
Diluted (2)	$	0.20	$	0.34	$	1.01	$	0.53

(1) As part of the acquisition of Teraco in 2022, certain of Teraco's minority indirect shareholders (“Rollover Shareholders”) have the right to put their shares in an upstream parent company of Teraco (“Remaining Interest”) to the Company in exchange for cash or the equivalent value of shares of the Company common stock, or a combination thereof. 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.

(2) The Company has made an adjustment to previously reported amounts to correct an immaterial error in the computation of diluted earnings per share and diluted earnings per unit in each of the interim periods ended June 30, 2023 and September 30, 2023, and for the year ended December 31, 2023. The correction appropriately reduces net income available to common stockholders and unitholders, as applicable, for the loss attributable to the non-controlling interests in Teraco. The impact to earnings per share and earnings per unit for each respective period is summarized in the table below:

	Digital Realty Trust, Inc.		Digital Realty Trust, L.P.
	Diluted Earnings per Common Share		Diluted Earnings per Unit
	As Reported	As Revised	As Reported	As Revised
Three months ended June 30, 2023	$0.37	$0.34	$0.37	$0.34
Six months ended June 30, 2023	$0.57	$0.52	$0.57	$0.53
Three months ended September 30, 2023	$2.33	$2.31	$2.34	$2.32
Nine months ended September 30, 2023	$2.93	$2.87	$2.94	$2.88
Fiscal year ended December 31, 2023	$3.00	$2.88	$3.01	$2.89

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 June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	6,240	6,202	6,237	6,136
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,364	1,896	1,401	2,013
Potentially dilutive Series K Cumulative Redeemable Preferred Stock	1,434	1,994	1,473	2,116
Potentially dilutive Series L Cumulative Redeemable Preferred Stock	2,352	3,271	2,416	3,471
Total	11,390	13,363	11,527	13,736