Digital Realty (DLR) AI Stock Analysis

• Market Cap: $54.79B
• Dividend Yield: 3.07%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.75
• Revenue Growth: 7.75%
• EPS Growth: 216.77%
• Country: US
• Employees: 3,936
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.15
• Shares Outstanding: 343,501,560
• 10 Day Avg. Volume: 1,355,125
• 30 Day Avg. Volume: 1,751,744
• PEG Ratio: -2.23
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 10.32
• P/FCF Ratio: 25.35
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 13.41
• Enterprise Value/Gross Profit: 24.18
• Enterprise Value/Ebitda: 21.86
• 1Y Price Target: $198.94
• Price Target Upside: 25.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $179.00 ▲(12.71% Upside)

Digital Realty's overall score reflects strong financial performance and positive earnings call sentiment, tempered by high valuation and mixed technical indicators. Strategic financial management and sustainability initiatives provide additional support, but challenges like power availability and rising costs remain.

Positive Factors

Strong Backlog Growth

A robust backlog indicates sustained demand and provides visibility into future revenue streams, supporting long-term growth.

Sustainability Initiatives

Strong sustainability practices enhance brand reputation and align with global trends, potentially attracting more eco-conscious clients.

Strategic Financial Management

Efficient debt management improves financial structure, reducing interest burden and enhancing financial flexibility for future investments.

Negative Factors

Power Availability Challenges

Power constraints could limit capacity expansion, impacting the ability to meet growing demand and potentially slowing revenue growth.

Rising Operating Costs

Increased costs can pressure margins, reducing profitability unless offset by higher revenues or operational efficiencies.

Debt Maturity Risks

Upcoming debt maturities may require refinancing at higher rates, increasing financial costs and impacting cash flow.

Digital Realty Business Overview & Revenue Model

Company Description

Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITALR, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture PDxTM solution methodology for scaling digital business and efficiently managing data gravity challenges. Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with more than 284 facilities in 48 metros across 23 countries on six continents.

How the Company Makes Money

Digital Realty generates revenue primarily through leasing data center space to customers, which includes both colocation and powered shell services. The company charges customers based on the amount of space they occupy and the power they consume. Additionally, Digital Realty earns income through interconnection services, where customers pay for direct connections to other networks and service providers. The company has established significant partnerships with major cloud service providers, telecommunications companies, and enterprises, enhancing its revenue potential. Furthermore, Digital Realty's strategy includes expanding its footprint through acquisitions and developments, which contributes to long-term revenue growth by increasing its customer base and service offerings.

Digital Realty Financial Statement Overview

Summary

Digital Realty demonstrates strong profitability and operational efficiency, with improving margins and a stable balance sheet. While revenue growth has decelerated, the company maintains a healthy cash flow position. Continued focus on growth strategies and leverage management will be crucial for sustaining long-term financial health.

Income Statement

Digital Realty shows a solid performance in its income statement with a consistent revenue growth rate and strong profitability margins. The TTM gross profit margin stands at 55.44%, and the net profit margin has improved significantly to 23.66%. The EBIT and EBITDA margins are also robust at 32.32% and 63.72%, respectively, indicating efficient operations. However, the revenue growth rate has slowed to 2.53% in the TTM, suggesting a need for strategic initiatives to accelerate growth.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.85 in the TTM, showing a slight improvement from previous years. The return on equity has increased to 6.32%, indicating better utilization of equity. However, the equity ratio is not explicitly calculated, and the company should continue to monitor its leverage to maintain financial stability.

Cash Flow

Cash flow analysis reveals a positive trend with a 3.63% growth in free cash flow in the TTM. The operating cash flow to net income ratio is healthy at 0.80, and the free cash flow to net income ratio is 1.0, indicating strong cash generation relative to profits. However, past years showed negative free cash flow, highlighting the importance of maintaining cash flow improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.91B	5.55B	5.48B	4.69B	4.43B	3.90B
Gross Profit	3.28B	3.04B	2.88B	2.67B	2.65B	2.39B
EBITDA	3.63B	2.87B	3.16B	2.29B	3.60B	2.10B
Net Income	1.40B	602.49M	948.84M	377.68M	1.71B	356.40M
Balance Sheet
Total Assets	48.73B	45.28B	44.11B	41.48B	36.37B	36.08B
Cash, Cash Equivalents and Short-Term Investments	3.30B	3.87B	1.63B	141.77M	142.70M	108.50M
Total Debt	19.51B	18.01B	18.97B	18.07B	14.96B	14.77B
Total Liabilities	23.74B	22.11B	23.12B	21.86B	17.85B	17.59B
Stockholders Equity	23.03B	21.34B	19.12B	17.58B	18.00B	17.72B
Cash Flow
Free Cash Flow	2.46B	2.26B	1.63B	-983.71M	-818.54M	-472.14M
Operating Cash Flow	2.46B	2.26B	1.63B	1.66B	1.70B	1.71B
Investing Cash Flow	-1.98B	-1.91B	-1.12B	-4.70B	-1.06B	-2.60B
Financing Cash Flow	902.83M	2.06B	963.47M	2.97B	-590.63M	935.69M

Digital Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 158.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLR, the sentiment is Negative. The current price of 158.82 is below the 20-day moving average (MA) of 159.31, below the 50-day MA of 167.01, and below the 200-day MA of 164.05, indicating a bearish trend. The MACD of -1.53 indicates Negative momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 44.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLR.

Digital Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	71 Outperform	$4.84B	14.96	5.94%	5.32%	0.77%	62.58%
DLR	69 Neutral	$54.79B	41.20	6.32%	3.07%	7.75%	216.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CUZ	63 Neutral	$4.10B	70.36	1.26%	5.09%	16.38%	3.60%
BXP	62 Neutral	$12.01B	―	-3.74%	5.08%	2.54%	-155.17%
VNO	57 Neutral	$7.21B	8.22	15.97%	2.14%	2.41%	―
ARE	47 Neutral	$8.03B	―	-2.42%	10.90%	-0.76%	-250.60%

Digital Realty Corporate Events

Digital Realty Announces Redemption of Euro Notes

On December 3, 2025, Digital Realty announced that its subsidiary, Digital Euro Finco, LLC, will redeem the €1,075 million of its 2.500% Guaranteed Notes due 2026 on December 18, 2025. This redemption reflects Digital Realty’s strategic financial management, potentially impacting its financial structure and market positioning by eliminating outstanding debt obligations.

Digital Realty Issues €1.4 Billion in Euro Notes

On November 20, 2025, Digital Euro Finco, LLC, a subsidiary of Digital Realty Trust, Inc., issued €600 million of 3.750% Guaranteed Notes due 2033 and €800 million of 4.250% Guaranteed Notes due 2037. These Euro Notes, sold outside the U.S. under Regulation S, are senior unsecured obligations guaranteed by Digital Realty Trust, Inc. The net proceeds of approximately €1,384.7 million will be allocated to finance or refinance Eligible Green Projects, including renewable energy and sustainable management initiatives, with potential interim uses including debt repayment and investment in interest-bearing accounts.

Digital Realty Prices €1.4 Billion Euro Notes

On November 12, 2025, Digital Realty announced the pricing of €600 million of 3.750% Guaranteed Notes due 2033 and €800 million of 4.250% Guaranteed Notes due 2037, issued by its subsidiary Digital Euro Finco, LLC. The proceeds from these Euro Notes, which are sold outside the U.S., are intended to finance or refinance projects under Digital Realty’s Green Bond Framework, including renewable energy and sustainable development initiatives.

Digital Realty Launches Euro-Denominated Green Notes

On November 12, 2025, Digital Euro Finco, LLC, a subsidiary of Digital Realty Trust, Inc., launched an offering of Euro-denominated Guaranteed Notes outside the United States. The proceeds from this offering are intended to finance or refinance a variety of Eligible Green Projects, including renewable energy and sustainable management initiatives, aligning with Digital Realty’s commitment to environmental sustainability.

Digital Realty Releases Q3 2025 Financial Results

On October 23, 2025, Digital Realty announced its financial results for the quarter ending September 30, 2025. The company released supplemental information and presentation materials on its website, reflecting its ongoing commitment to transparency and stakeholder engagement. This announcement is likely to impact the company’s operations and industry positioning by providing stakeholders with critical insights into its financial health and strategic direction.