You are correct. Unfortunately, this does reflect a very elevated level of protein in urine. Based on your history of diabetes, this would seem to be the most likely culprit. If however your diabetes was recently diagnosed and you truly had normal blood sugar until very recently, then I would consider other causes of kidney disease, of which there are many. The other important part of this is your level of kidney function which is measured using an eGFR based on a serum creatinine or cystatin C level.
I can only base my opinion on the information provided and your health-care provider might arrive at different conclusions once you have provided an entire history and had a physical examination performed. As always, this forum provides general medical information only and is limited to educational use only. Please discuss the above remarks with your health-care provider.
It means your kidney function is fortunately relatively normal at the moment. However, if the proteinuria (and blood pressure/diabetes) is not under control soon, the kidney function will begin to decline over time. It would also be important to exclude other causes than diabetes. I believe you should be referred to a kidney specialist.