DIGITAL REALTY TRUST, INC. Earnings Per Share Disclosure
11. 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, | |||||||||
2025 | | 2024 | | 2023 | |||||
Numerator: | |||||||||
Net income available to common stockholders | $ | 1,267,865 | $ | 561,766 | $ | 908,114 | |||
Loss attributable to redeemable noncontrolling interest (1) | (22,593) | (27,059) | (18,093) | ||||||
Net income available to common stockholders - diluted EPS | 1,245,272 | 534,707 | 890,021 | ||||||
Denominator: | |||||||||
Weighted average shares outstanding—basic |
| 339,807 |
| 323,336 |
| 298,603 | |||
Potentially dilutive common shares: |
| |
| |
| | |||
Unvested incentive units |
| 110 |
| 98 |
| 118 | |||
Unvested restricted stock | 30 | 44 | 9 | ||||||
Forward equity offering | — | — | 248 | ||||||
Market performance-based awards |
| 229 |
| 271 |
| 112 | |||
Redeemable noncontrolling interest shares (1) | 7,634 | 7,798 | 9,975 | ||||||
Weighted average shares outstanding—diluted |
| 347,810 |
| 331,547 |
| 309,065 | |||
Income per share: |
| |
| |
| | |||
Basic | $ | 3.73 | $ | 1.74 | $ | 3.04 | |||
Diluted | $ | 3.58 | $ | 1.61 | $ | 2.88 | |||
Digital Realty Trust, L.P. Earnings per Unit
Year Ended December 31, | |||||||||
2025 | | 2024 | | 2023 | |||||
Numerator: | |||||||||
Net income available to common unitholders | $ | 1,295,865 | $ | 574,466 | $ | 928,824 | |||
Loss attributable to redeemable noncontrolling interest (1) | (22,593) | (27,059) | (18,093) | ||||||
Net income available to common unitholders - diluted EPS | 1,273,272 | 547,407 | 910,731 | ||||||
Denominator: | |||||||||
Weighted average units outstanding—basic |
| 345,717 |
| 329,485 |
| 304,651 | |||
Potentially dilutive common units: |
| |
|
| |||||
Unvested incentive units |
| 110 |
| 98 |
| 118 | |||
Unvested restricted units | 30 |
| 44 | 9 | |||||
Forward equity offering | — |
| — | 248 | |||||
Market performance-based awards |
| 229 |
| 271 |
| 112 | |||
Redeemable noncontrolling interest shares (1) | 7,634 | 7,798 | 9,975 | ||||||
Weighted average units outstanding—diluted |
| 353,720 |
| 337,696 |
| 315,113 | |||
Income per unit: |
| |
| |
| | |||
Basic | $ | 3.75 | $ | 1.74 | $ | 3.05 | |||
Diluted | $ | 3.60 | $ | 1.62 | $ | 2.89 | |||
| (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 defined terms used above, see Note 13. “Equity and Capital” to Consolidated Financial Statements contained herein. |
In November 2024, Digital Realty Trust, L.P. issued $1.2 billion principal amount of its 1.875% Exchangeable Senior Notes due 2029 (the “Exchangeable Notes”). Net proceeds from the offering were approximately $1.1 billion after deducting managers’ discounts and offering expenses. As of December 31, 2025, 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, 2025, 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 table below 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, | ||||||
2025 | | 2024 | | 2023 | ||
Exchangeable Notes | 6,624 | 6,624 | — | |||
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc. | 5,910 |
| 6,149 |
| 6,048 | |
Potentially dilutive Series J Cumulative Redeemable Preferred Stock | 1,254 |
| 1,298 |
| 1,794 | |
Potentially dilutive Series K Cumulative Redeemable Preferred Stock | 1,319 | 1,365 | 1,887 | |||
Potentially dilutive Series L Cumulative Redeemable Preferred Stock | 2,164 | 2,238 | 3,095 | |||
Total | 17,271 |
| 17,674 |
| 12,824 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2017 | Mar 1, 2018 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.