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Why is Digital Realty Trust Inc (DLR) Stock down?

16 Feb, 2024:

Digital Realty (DLR) stock declined by 8.34% attributed to the company's fourth-quarter financial performance missing estimates. Despite reporting core funds from operations (FFO) per share of $1.63 for Q4 2023, which met expectations, DLR's revenues fell short of the Zacks Consensus Estimate by a penny.

  • Revenue Misses Expectations: Digital Realty's fourth-quarter operating revenues of $1.37 billion missed the Zacks Consensus Estimate of $1.40 billion. The shortfall was primarily driven by lower-than-expected revenues, despite experiencing growth in operating revenues due to robust leasing activity. However, rising operating expenses acted as a dampener in the quarter, impacting the overall financial performance of the company.
  • Mixed Outlook for 2024: DLR provided a mixed outlook for 2024, acknowledging challenges and opportunities in the market. Despite the uncertainties, Digital Realty's president & CEO, Andy Power, emphasized the company's efforts in diversifying its capital sources and capitalizing on opportunities in the AI sector.
  • Rising Operating Expenses: Total operating expenses increased by 11.1% year over year to $1.24 billion. This rise was primarily attributed to higher costs related to utilities, rental property operations, general administration, transaction and integration expenses, provision for impairment, and other expenses.
reit_specialty CCI
$105.44
price up icon 0.90%
$936.37
price up icon 1.38%
reit_specialty IRM
$119.10
price up icon 0.31%
reit_specialty AMT
$204.31
price up icon 0.74%
$220.66
price up icon 0.56%
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