Digital Realty Trust (DLR)
NYSE:DLR
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Digital Realty
(NYSE:DLR)
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Rating:68Neutral
Price Target:
$219.00
▲(7.55% Upside)
Action:Reiterated
Date:05/04/26
The score is driven by strong technical momentum and a constructive earnings outlook (raised FFO guidance, record backlog, and strong leasing activity). Financial performance is solid but held back by cash flow volatility and a large absolute debt load. Valuation is the biggest drag due to the very high P/E, partially offset by the dividend yield.
Positive Factors
Hyperscale demand & backlog
A historic 200 MW hyperscaler lease alongside a record $1.8B backlog provides multi-year revenue visibility and validates Digital Realty’s hub-and-spoke strategy. Durable hyperscale demand supports pricing power, scales interconnection revenue, and raises switching costs for large cloud customers.
Negative Factors
High absolute debt load
Despite improved leverage ratios, a ~$19.2B absolute debt stock leaves the company exposed to refinancing timing and higher interest costs. Large nominal debt increases sensitivity to rate cycles and limits cushion for opportunistic investments or sustained cash‑flow shortfalls over a multi‑quarter horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Hyperscale demand & backlog
A historic 200 MW hyperscaler lease alongside a record $1.8B backlog provides multi-year revenue visibility and validates Digital Realty’s hub-and-spoke strategy. Durable hyperscale demand supports pricing power, scales interconnection revenue, and raises switching costs for large cloud customers.
Read all positive factors
Digital Realty Key Performance Indicators (KPIs)
Digital Realty (DLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.00B
Dividend Yield3.17%
Average Volume (3M)2.12M
Price to Earnings (P/E)86.7
Beta (1Y)0.72
Revenue Growth13.97%
EPS Growth234.59%
CountryUS
Employees3,936
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)3.95
Shares Outstanding351,406,070
10 Day Avg. Volume1,982,747
30 Day Avg. Volume2,121,985
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 Cap1.25
Enterprise Value/Revenue13.05
Enterprise Value/Gross Profit51.96
Enterprise Value/Ebitda21.33
Forecast
1Y Price Target
$217.95Price Target Upside7.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)2.04
Revenue Forecast (FY)$6.74B
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...
How the Company Makes Money
Digital Realty primarily generates revenue by leasing data center space and providing related data center services to customers under contractual arrangements. Key revenue streams include: (1) Colocation and data center leasing: customers rent pow...
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
Positive
203.62
Price Trends
189.00
Positive
177.74
Positive
170.76
Positive
Market Momentum
-0.44
Positive
46.49
Neutral
25.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLR, the sentiment is Positive. The current price of 203.62 is above the 20-day moving average (MA) of 195.18, above the 50-day MA of 189.00, and above the 200-day MA of 170.76, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 25.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $67.00B | 86.70 | 5.98% | 3.17% | 13.97% | 234.59% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $4.34B | -37.77 | -0.11% | 5.08% | 12.11% | -109.72% | |
65 Neutral | $6.48B | -168.42 | 13.16% | 2.24% | -0.27% | 600.83% | |
62 Neutral | $4.02B | -43.06 | 4.05% | 5.75% | -1.42% | 8.81% | |
57 Neutral | $8.34B | 5.49 | -6.29% | 10.90% | -5.35% | -923.18% | |
57 Neutral | $10.49B | 20.27 | 6.17% | 5.26% | 1.62% | ― |
* Real Estate Sector Average
DLR
Digital Realty
190.65
28.10
17.29%
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Digital Realty Corporate Events
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...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Digital Realty Maintains Capital Flexibility With New Shelf Filing
Positive
Feb 17, 2026
On February 17, 2026, Digital Realty Trust, Inc. and its operating partnership filed a new automatic shelf registration statement with the U.S. SEC, replacing a prior shelf that was set to expire in March 2026, thereby maintaining their ability to...
Business Operations and StrategyFinancial Disclosures
Digital Realty Releases Q4 2025 Results, Highlights IR Plans
Neutral
Feb 5, 2026
On February 5, 2026, Digital Realty released its financial results for the quarter ended December 31, 2025, and furnished investors with an earnings press release, a detailed financial supplement and other supporting materials via its website. The...
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.