Earnings per Common Share or Unit

12 Months Ended

Dec. 31, 2024

Earnings Per Share [Abstract]

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,
	2024		2023		2022
Numerator:
Net income available to common stockholders	$	561,766	$	908,114	$	336,960
Loss attributable to redeemable noncontrolling interest (1)		(27,059)		(18,093)		(4,839)
Net income available to common stockholders - diluted EPS		534,707		890,021		332,121
Denominator:
Weighted average shares outstanding—basic		323,336		298,603		286,334
Potentially dilutive common shares:
Unvested incentive units		98		118		257
Unvested restricted stock		44		9		45
Forward equity offering		—		248		—
Market performance-based awards		271		112		103
Redeemable noncontrolling interest shares (1)		7,798		9,975		11,180
Weighted average shares outstanding—diluted		331,547		309,065		297,919
Income per share:
Basic	$	1.74	$	3.04	$	1.18
Diluted(2)	$	1.61	$	2.88	$	1.11

Digital Realty Trust, L.P. Earnings per Unit

	Year Ended December 31,
	2024		2023		2022
Numerator:
Net income available to common unitholders	$	574,466	$	928,824	$	345,060
Loss attributable to redeemable noncontrolling interest (1)		(27,059)		(18,093)		(4,839)
Net income available to common unitholders - diluted EPS		547,407		910,731		340,221
Denominator:
Weighted average units outstanding—basic		329,485		304,651		292,123
Potentially dilutive common units:
Unvested incentive units		98		118		257
Unvested restricted units		44		9		45
Forward equity offering		—		248		—
Market performance-based awards		271		112		103
Redeemable noncontrolling interest shares (1)		7,798		9,975		11,180
Weighted average units outstanding—diluted		337,696		315,113		303,708
Income per unit:
Basic	$	1.74	$	3.05	$	1.18
Diluted(2)	$	1.62	$	2.89	$	1.12

(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.

(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	$0.52
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

As of December 31, 2024, the holders of the Exchangeable Notes will have an option on or after August 15, 2029, or at an earlier date under certain circumstances, to exchange the notes. The Company must always cash settle the principal amount of the Exchangeable Notes, while any excess may be settled via cash, common shares or a combination at the election of the Company. Accordingly, the Company applies the if converted method to determine the dilutive impact on EPS related to the Exchangeable Notes. There is no interest expense adjustment to the numerator as the principal will always be cash settled. In order to compute the dilutive effect, the number of shares included in the denominator of diluted EPS is determined by dividing the “conversion spread value” of the share-settled portion (value above principal and interest component) of the instrument by the average share price during the period. The “conversion spread value” is the value that would be delivered to the holders in shares based on the terms of the Exchangeable Notes upon an assumed conversion. As of December 31, 2024, the conversion spread value is currently zero, since the weighted average price of our common stock does not exceed the conversion rate (strike price) and is “out-of-the-money”, resulting in no impact on diluted EPS.

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,
	2024	2023	2022
Exchangeable Notes	6,624	—	—
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	6,149	6,048	5,789
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,298	1,794	1,736
Potentially dilutive Series K Cumulative Redeemable Preferred Stock	1,365	1,887	1,825
Potentially dilutive Series L Cumulative Redeemable Preferred Stock	2,238	3,095	2,993
Total	17,674	12,824	12,343