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Digital Realty
(NYSE:DLR)
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Rating:68Neutral
Price Target:
$210.00
▲(3.13% Upside)
Action:Reiterated
Date:06/30/26
DLR scores well on operating momentum and outlook, supported by steady financial performance and a notably positive beat-and-raise earnings call with record backlog/leasing. Technicals are constructive with price above major moving averages and healthy (not overextended) momentum. The main constraint on the score is valuation, as the high P/E reduces margin of safety, alongside ongoing balance-sheet and cash-flow consistency considerations.
Positive Factors
Revenue and Margin Recovery
Digital Realty’s steady top-line expansion and recovery of net margins to ~21% indicate sustainable operating leverage in its core leasing business. This improves FFO generation potential, supports dividend coverage and funds continued development, making earnings less dependent on short-term cyclical swings.
Negative Factors
High Absolute Debt Load
Despite ratio improvements, a ~$19.2B absolute debt stock leaves the company exposed to refinancing, interest-rate and covenant risks. Large nominal leverage constrains discretionary spending and increases sensitivity of returns and FFO to rises in borrowing costs or slower leasing activity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Recovery
Digital Realty’s steady top-line expansion and recovery of net margins to ~21% indicate sustainable operating leverage in its core leasing business. This improves FFO generation potential, supports dividend coverage and funds continued development, making earnings less dependent on short-term cyclical swings.
Read all positive factors
Digital Realty Key Performance Indicators (KPIs)
Digital Realty (DLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.06B
Dividend Yield3.17%
Average Volume (3M)2.21M
Price to Earnings (P/E)44.6
Beta (1Y)0.70
Revenue Growth13.97%
EPS Growth234.59%
CountryUS
Employees4,282
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)3.95
Shares Outstanding357,665,740
10 Day Avg. Volume2,910,629
30 Day Avg. Volume2,208,475
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)2.32
Price to Sales (P/S)8.69
P/FCF Ratio22.03
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue12.86
Enterprise Value/Gross Profit51.19
Enterprise Value/Ebitda21.01
Forecast
1Y Price Target
$219.78Price Target Upside7.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)2.06
Revenue Forecast (FY)$6.75B
Digital Realty Business Overview & Revenue Model
Company Description
Digital Realty Trust, Inc. owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. The company is focused on providing data center, colocation, and interconnection solutions for ...
How the Company Makes Money
Digital Realty primarily makes money by leasing data center space and providing data center-related services under customer contracts. The largest revenue stream is recurring rental revenue from customers who lease capacity (e.g., colocation cabin...
Digital Realty Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: management reported record and near-record leasing activity across product categories (including a historic 200 MW hyperscale lease), expanded backlog and a materially enlarged development pipeline, delivered beat-and-raise financial results (core FFO up ~15% and guidance increased to $8.10), and reduced leverage to multi-year lows while building private capital capacity. Key risks and headwinds were acknowledged — elevated operating expenses, supply-chain and energy uncertainties, rising development costs per MW, longer commencement lags for very large deals, and community/permitting challenges — but management articulated specific mitigants (high prelease rates, utility reimbursements/hedges, diversified capital, and differentiated execution capability). Overall, the positive operational and financial momentum materially outweighs the highlighted challenges.Positive Updates
Strong Leasing Volume and Market Momentum
Signed $707M of new leases at 100% share ($423M at DLR share) — the second-highest bookings quarter in company history and ~70% higher than the next-highest quarter.
Negative Updates
Elevated Operating Expense Growth
Operating expenses rose above trend versus prior-year quarter, which compressed constant-currency same-capital cash NOI growth to 2.5% (vs 7.9% nominal YoY) and contributed to expected near-term quarter-to-quarter variability.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Leasing Volume and Market Momentum
Signed $707M of new leases at 100% share ($423M at DLR share) — the second-highest bookings quarter in company history and ~70% higher than the next-highest quarter.
Read all positive updates
Company Guidance
Digital raised 2026 core FFO per share guidance by $0.10 to $8.10 (the midpoint implies ~9% growth vs. 2025) after a strong Q1 (core FFO $2.04/sh, +15% y/y); management now expects cash renewal spreads of 6.5%–8.5% (up 50 bps), power‑based occupancy to improve 50–100 bps from year‑end 2025, same‑capital cash NOI growth of 4%–5% on a constant‑currency basis, and net development CapEx of $3.5B–$4.0B (midpoint increased by $250M), with $500M–$1.0B of dispositions/JV capital targeted later this year; guidance is supported by a record $1.8B backlog ($1.0B at DLR share) and scheduled lease commencements of $44M in 2026, $247M in 2027 and $242M in 2028+.Digital Realty Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.42B | 6.11B | 5.55B | 5.48B | 4.69B | 4.43B |
| Gross Profit | 1.61B | 3.39B | 3.04B | 2.88B | 2.67B | 2.65B |
| EBITDA | 3.93B | 3.59B | 2.87B | 3.16B | 2.29B | 3.60B |
| Net Income | 1.38B | 1.31B | 602.49M | 948.84M | 377.68M | 1.71B |
Balance Sheet | ||||||
| Total Assets | 48.86B | 49.41B | 45.28B | 44.11B | 41.48B | 36.37B |
| Cash, Cash Equivalents and Short-Term Investments | 2.43B | 3.45B | 3.87B | 1.63B | 141.77M | 142.70M |
| Total Debt | 19.22B | 24.18B | 18.01B | 18.97B | 18.07B | 14.96B |
| Total Liabilities | 23.46B | 24.56B | 22.11B | 23.12B | 21.86B | 17.85B |
| Stockholders Equity | 23.37B | 22.93B | 21.34B | 19.12B | 17.58B | 18.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.15B | 2.41B | -570.26M | -1.89B | -983.71M | -818.54M |
| Operating Cash Flow | 2.55B | 2.41B | 2.26B | 1.63B | 1.66B | 1.70B |
| Investing Cash Flow | -2.66B | -2.23B | -1.91B | -1.12B | -4.70B | -1.06B |
| Financing Cash Flow | 313.31M | -486.74M | 2.06B | 963.47M | 2.97B | -590.63M |
Digital Realty Technical Analysis
Negative
203.62
Price Trends
190.46
Negative
184.85
Negative
173.08
Positive
Market Momentum
-0.89
Positive
35.82
Neutral
17.23
Positive
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 203.62 is above the 20-day moving average (MA) of 186.51, above the 50-day MA of 190.46, and above the 200-day MA of 173.08, indicating a neutral trend. The MACD of -0.89 indicates Positive momentum. The RSI at 35.82 is Neutral, neither overbought nor oversold. The STOCH value of 17.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLR.
Digital Realty Risk Analysis
Digital Realty disclosed 12 risk factors in its most recent earnings report. Digital Realty reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Digital Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $63.06B | 44.64 | 5.98% | 3.17% | 13.97% | 234.59% | |
66 Neutral | $8.21B | 10.51 | 13.16% | 2.24% | -0.27% | 600.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $5.04B | -937.31 | -0.11% | 5.08% | 12.11% | -109.72% | |
63 Neutral | $4.60B | 21.17 | 4.05% | 5.75% | -1.42% | 8.81% | |
58 Neutral | $11.87B | 33.88 | 6.17% | 5.26% | 1.62% | ― | |
57 Neutral | $9.24B | -8.45 | -6.29% | 10.90% | -5.35% | -923.18% |
* Real Estate Sector Average
DLR
Digital Realty
176.32
8.56
5.11%
ARE
Alexandria Equities
53.01
-19.49
-26.89%
BXP
BXP
67.76
1.87
2.83%
CUZ
Cousins Properties
30.65
2.34
8.28%
KRC
Kilroy Realty
39.16
5.94
17.88%
VNO
Vornado Realty
40.06
3.12
8.44%
Digital Realty Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Digital Realty boosts hyperscale footprint with Virginia acquisitions
Positive
Jun 29, 2026
Digital Realty, the world’s largest cloud- and carrier-neutral data center platform, is deepening its focus on hyperscale infrastructure with a portfolio exceeding 300 sites across six continents and a customer base spanning cloud, enterpris...
Business Operations and StrategyM&A Transactions
Digital Realty Expands Growth with Major Strategic Acquisitions
Positive
Jun 22, 2026
On June 22, 2026, Digital Realty announced a series of transactions aimed at accelerating growth across hyperscale development, colocation and private capital activities. The company has acquired about 1,440 acres at Astra Enterprise Park near Kan...
Executive/Board ChangesShareholder Meetings
Digital Realty Shareholders Reaffirm Board, Reject Water Proposal
Neutral
Jun 1, 2026
At its Annual Meeting of Stockholders held on May 29, 2026, Digital Realty Trust, Inc. shareholders elected all ten nominated directors to serve until the 2027 annual meeting, including CEO Andrew P. Power, with vote counts indicating solid but va...
Business Operations and StrategyPrivate Placements and Financing
Digital Realty Launches New $7.5 Billion ATM Program
Positive
May 4, 2026
On May 4, 2026, Digital Realty Trust entered into a new at-the-market equity offering sales agreement allowing it to issue up to $7.5 billion of common stock, including through forward sale arrangements with a syndicate of major banks acting as ag...
Business Operations and StrategyFinancial Disclosures
Digital Realty Reports First-Quarter 2026 Financial Results
Neutral
Apr 23, 2026
On April 23, 2026, Digital Realty announced its financial results for the quarter ended March 31, 2026, and released a detailed earnings press release and financial supplement on its website. The materials cover key quarterly financial data, funds...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.