- Adjusted EBITDA grew 13% year-over-year, reflecting revenue growth and higher fee income.
- Core FFO per share reached a record $1.87, up 13% year-over-year and 6% higher than last quarter, reflecting strong upside from hyperscale commencements and better-than-expected 0-1 megawatt plus interconnection bookings.
- Data center revenue increased 11% year-over-year, supported by strong renewal spreads, rent escalators and new lease commencements, offsetting disposition impacts.
- Development CapEx was over $900 million gross, $700 million net to Digital Realty, with 96 megawatts of new capacity delivered (98% pre-leased) and 16 megawatts of new projects started construction.
- Digital Realty posted double-digit growth in revenue, adjusted EBITDA and core FFO this quarter, driven by record lease commencements, low churn and higher fee income.
- Gross data center development pipeline stands at $9 billion with a 12.2% expected stabilized yield; land bank grew to 3.7 gigawatts, extending runway to 5 gigawatts.
- Leasing in the quarter totaled $177 million at 100% share, including $135 million at Digital Realty's share, with $90 million in the 0-1 megawatt plus interconnection category, an 18% increase over the prior record.
- Renewal leases signed in the quarter totaled $177 million with a blended 7.3% cash basis increase, exceeding prior guidance.
- Same-capital cash NOI grew 4.4% year-over-year, driven by 5.9% growth in data center revenue; on a constant currency basis, same-capital cash NOI rose 1.8%.
- Total churn declined to 1%, with negligible churn in the greater than a megawatt category.
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- Organic revenue growth of 10%, driven by occupancy gains of 420 basis points, with notable 600 basis points increase in UK portfolio occupancy.
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- FFO per share as adjusted was $0.65, at the high end of guidance.
- Move-in rates improved, down 4% in Q2 compared to down 8% in Q1 and down 10% in Q4 2024.
- Net debt-to-EBITDA ratio stood at 4.7x, with $300 million senior unsecured notes maturing in November 2025.
- Same-store operating expenses grew 1.2%, better than expectations, resulting in negative 1.1% same-store NOI growth.
- Same-store revenue growth was down 0.5% year-over-year, with average occupancy down 80 basis points to 90.6%.
- Book value per share increased 26% year-to-date inclusive of dividends, driven by an 84 combined ratio and double-digit net investment income growth.
- Casualty segment premiums grew 8% with a 98 combined ratio, benefiting from favorable prior year reserve development and improved current accident year loss ratio.
- Expense ratio rose due to higher acquisition costs and investments in technology and personnel.
- Net earnings on a GAAP basis were $1.35 per share, up from $1.03 in Q3 2024.
- Property segment premiums declined 11% but posted a strong 60 combined ratio due to absence of hurricane losses and favorable reserve development.
- Surety premiums declined 3% for the quarter but commercial and transactional surety grew 53% year-to-date.
- Third quarter operating earnings of $0.83 per share, supported by solid underwriting and a 12% increase in investment income.
- Total combined ratio improved to 85.1% from 89.6% last year, reflecting a benign hurricane season.
- Net charge-offs were exemplary at 0.01%, despite some negative asset quality migration.
- Non-GAAP core net income was $19.5 million and EPS was $0.66 after excluding acquisition and core conversion expenses.
- Noninterest-bearing deposits increased 7.8% linked quarter, driven by short-term inflows.
- Noninterest expense was $51.2 million GAAP, $49.6 million core, relatively flat quarter-over-quarter.
- Q2 GAAP net income was $20.8 million with EPS of $0.70, including a $3.36 million gain on branch sale.
- ROAA was 1%, net interest margin remained stable at 3.68% GAAP and 3.64% core.
- Total deposits decreased $38.5 million, mainly due to interest-bearing deposit withdrawals and branch sale.
- Total loans held for investment increased 4.5% annualized, driven by C&I and CRE growth.
Dafinchi