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Key Takeaways Digital Realty beat Q2 estimates as revenues rose 28.9% and core FFO per share increased 13.9% year over year.DLR posted record signed lease backlog and strong bookings, with renewal rental rates rising sharply.DLR raised 2026 core FFO and revenue guidance after expanding capacity through acquisitions and land buys. Digital Realty Trust, Inc. (DLR - Free Report) reported second-quarter 2026 core FFO per share, excluding net promote, of $2.13, up 13.9% from a year ago. The figure surpassed the Zacks Consensus Estimate of $1.98 by 7.6%.

Total operating revenues rose 28.9% year over year to $1.92 billion and beat the consensus mark of $1.66 billion. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter. The company raised its 2026 core FFO guidance.

As a result, the stock was trading almost 3% higher during the pre-market session today.

DLR's Bookings Reflect Broad-Based DemandDigital Realty signed bookings expected to generate $307 million of annualized GAAP base rent at 100% share. At DLR's share, bookings totaled $208.5 million, with the 0-1-megawatt category contributing $87.8 million and interconnection adding $20.5 million.

Digital Realty Builds Record Revenue VisibilityThe backlog of signed but not yet commenced leases reached a record $1.9 billion of annualized GAAP base rent at 100% share. Digital Realty's share was $1.4 billion.

The weighted-average lag between new lease signing and contractual commencement was nine months. In July, the company also signed two hyperscale leases representing $410 million of annualized GAAP base rent at 100% share, or $205 million at DLR's share.

DLR Benefits From Strong Renewal PricingDigital Realty signed renewal leases representing $262 million of annualized cash rental revenues. Rental rates increased 25.4% on a cash basis and 32% on a GAAP basis, reflecting a favorable pricing environment. Portfolio occupancy ended the quarter at 90.2%, up from 89.7% a year earlier.

DLR Expands Capacity Through InvestmentsDigital Realty acquired Kansas City-area land for about $475 million to support up to 2 gigawatts of utility power. It also purchased a 64% stake in three fully leased Northern Virginia data centers containing 288 megawatts of IT capacity at a gross value of about $7.8 billion.

Other investments included two Malaysian data centers and adjacent land for about $134 million, Marseille land for $53.1 million and Atlanta-area land for $20 million. The global portfolio ended June with roughly 3.1 gigawatts of in-place IT capacity and 8.5 gigawatts of buildable capacity.

Digital Realty Maintains Financial FlexibilityTotal debt stood at roughly $18.6 billion at quarter-end. Net debt to Adjusted EBITDA remained at 4.7 times, while fixed-charge coverage improved to 5.2 times from 4.7 times a year ago.

From the prior earnings release through June 30, DLR sold about 6.2 million shares through its at-the-market program for net proceeds of approximately $1.2 billion. Year-to-date proceeds totaled about $2.5 billion from 13.5 million shares.

DLR Raises 2026 OutlookDigital Realty raised its 2026 core FFO per share outlook, excluding net promote, to $8.15-$8.20 from $8.00-$8.10. The revised range stands above the current Zacks Consensus Estimate of $8.04.

The company also lifted its revenue outlook, excluding promote income, to $6.85-$6.95 billion from $6.65-$6.75 billion. Adjusted EBITDA is now projected at $3.75-$3.85 billion, while development capital expenditures, net of partner contributions, are expected at $4.25-$4.75 billion.

Currently, DLR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Earnings ReleasesWe now look forward to the earnings releases of other REITs like Regency Centers (REG - Free Report)  and Ventas (VTR - Free Report) , both slated to report on July 29.

The Zacks Consensus Estimate for Regency Centers’ second-quarter 2026 FFO per share is pegged at $1.20, implying a 3.45% year-over-year increase. REG currently carries a Zacks Rank #3.

The Zacks Consensus Estimate for Ventas’ second-quarter 2026 FFO per share is pegged at 96 cents, calling for a 10.3% year-over-year jump. VTR currently carries a Zacks Rank #3.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Digital Realty Trust, Inc. (DLR) Q2 2026 Earnings Call July 23, 2026 5:00 PM EDT

Company Participants

Jordan Sadler - Senior VP of Public & Private Investor Relations
Andrew Power - President, CEO & Director
Matt Mercier - Chief Financial Officer
Colin McLean - Chief Revenue Officer
Gregory Wright - Chief Investment Officer
Chris Sharp - Chief Technology Officer

Conference Call Participants

Eric Luebchow - Wells Fargo Securities, LLC, Research Division
Nicholas Del Deo - MoffettNathanson LLC
Michael Rollins - Citigroup Inc., Research Division
Madison Rezaei - Bernstein Institutional Services LLC, Research Division
Jonathan Atkin - RBC Capital Markets, Research Division
Jonathan Petersen - Jefferies LLC, Research Division
Michael Ng - Goldman Sachs Group, Inc., Research Division
Richard Choe - JPMorgan Chase & Co, Research Division
Joseph Osha - Guggenheim Securities, LLC, Research Division

Presentation

Operator

Good afternoon, and welcome to the Digital Realty Second Quarter 2026 Earnings Call. Please note, this event is being recorded. [Operator Instructions]

I would now like to turn the call over to Jordan Sadler, Digital Realty's Senior Vice President of Public and Private Investor Relations. Jordan, please go ahead.

Jordan Sadler
Senior VP of Public & Private Investor Relations

Thank you, operator, and welcome, everyone, to Digital Realty's Second quarter 2026 Earnings Conference Call. Joining me on today's call are President and CEO, Andy Power; and CFO, Matt Mercier; Chief Investment Officer, Greg Wright; and Chief Technology Officer, Chris Sharp; and Chief Revenue Officer, Colin McLean, are also on the call and will be available for Q&A.

Management will be making forward-looking statements, including guidance and underlying assumptions on today's call. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our 10-K and subsequent filings with the SEC. This call will contain certain non-GAAP financial information. Reconciliations to the most

Digital Realty Trust (DLR - Free Report) reported $1.92 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 28.9%. EPS of $2.13 for the same period compares to $2.94 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.66 billion, representing a surprise of +15.59%. The company delivered an EPS surprise of +7.58%, with the consensus EPS estimate being $1.98.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Digital Realty Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Earnings per Share (Diluted): $1.21 versus the five-analyst average estimate of $0.46.Revenues- Rental revenues: $1.15 billion versus the five-analyst average estimate of $1.12 billion. The reported number represents a year-over-year change of +14.2%.Revenues- Interconnection and other: $130.41 million versus $126.76 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.Revenues- Fee Income: $248.93 million versus the five-analyst average estimate of $33.79 million. The reported number represents a year-over-year change of +623.1%.Revenues- Tenant reimbursements (Utilities + Other): $398.29 million compared to the $373.69 million average estimate based on five analysts. The reported number represents a change of +20% year over year.Revenues- Other: $0.48 million versus the four-analyst average estimate of $0.47 million. The reported number represents a year-over-year change of -64.8%.Revenues- Tenant reimbursements- Other: $45.39 million compared to the $39.54 million average estimate based on four analysts. The reported number represents a change of +21.5% year over year.Revenues- Tenant reimbursements- Utilities: $352.9 million versus the four-analyst average estimate of $333.75 million. The reported number represents a year-over-year change of +19.8%.View all Key Company Metrics for Digital Realty Trust here>>>

Shares of Digital Realty Trust have returned -7.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

AUSTIN, Texas, July 23, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, announced today financial results for the second quarter of 2026. All per share results are presented on a fully diluted basis.

Highlights

Reported net income available to common stockholders of $1.21 per share in 2Q26, compared to $2.94 in 2Q25Reported FFO per share of $2.73 in 2Q26, compared to $1.75 in 2Q25Reported Core FFO per share of $2.65 in 2Q26, compared to $1.87 in 2Q25; reported Core FFO per share (excluding net promote) of $2.13 in 2Q26Signed total bookings during 2Q26 that are expected to generate $307 million of annualized GAAP base rent at 100% share; at Digital Realty’s share, bookings were $208 million, including a $108 million contribution from the 0-1 megawatt plus interconnection categoryIn July, signed two hyperscale leases, representing $410 million of annualized GAAP base rent at 100% share, or $205 million at Digital Realty’s shareReported rental rate increases on renewal leases of 25.4% on a cash basis in 2Q26Reported a record total backlog of $1.9 billion of annualized GAAP base rent at 100% share, at the end of 2Q26; at Digital Realty’s share, the backlog was $1.4 billionRaised 2026 Core FFO per share (excluding net promote) outlook to $8.15 - $8.20 and 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.10 - $8.15 Financial Results

Digital Realty reported total revenues of $1.9 billion in the second quarter of 2026, an 18% increase from the previous quarter and a 29% increase from the same quarter last year.

During the second quarter, Digital Realty recognized $188 million of net promote income in Core FFO related to the successful development and leasing of three data centers in its development joint venture. The company also recognized a $94 million insurance settlement, net of income tax, related to a previously disclosed 2024 matter, of which approximately $27 million was recognized in Core FFO as business interruption recovery; the remainder related to property damage recoveries, was excluded from Core FFO.

The company delivered net income of $458 million in the second quarter of 2026, as well as net income available to common stockholders of $443 million and $1.21 per share, compared to $0.46 per share in the previous quarter and $2.94 per share in the same quarter last year.

Digital Realty generated Adjusted EBITDA of $978 million in the second quarter of 2026, a 6% increase from the previous quarter and a 19% increase over the same quarter last year.

The company reported Funds From Operations (FFO) of $982 million in the second quarter of 2026, or $2.73 per share, compared to $1.99 per share in the previous quarter and $1.75 per share in the same quarter last year.

Digital Realty delivered Core FFO per share (excluding net promote) of $2.13 in the second quarter of 2026, compared to $2.04 per share in the previous quarter and $1.87 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share (excluding net promote) of $2.11 in the second quarter of 2026 and $4.07 per share for the six-month period ended June 30, 2026.

“Digital Realty delivered record Core FFO per share in the quarter, reflecting robust customer demand and strong execution across our core pillars of growth,” said President and Chief Executive Officer Andy Power. “We signed more than $100 million of 0-1 MW plus Interconnection bookings for the first time, demonstrating the strength of our connectivity-rich portfolio and boosting near-term growth. We also continued to make strides in our hyperscale and strategic private capital verticals, as we added powered land in the Kansas City metro, accretively purchased interests in three hyperscale data centers in Northern Virginia, and announced the deal to acquire Columbia Capital, a leading investment firm in the digital infrastructure space. Together, these growth vectors are driving double-digit bottom line growth, and we are focused on extending this runway for years to come.”

Leasing Activity

In the second quarter, Digital Realty signed total bookings that are expected to generate $307 million of annualized GAAP rental revenue, at 100% share; at Digital Realty’s share, total bookings were $208 million, including an $88 million contribution from the 0-1 MW category and a $20 million contribution from interconnection.

The weighted-average lag between new leases signed during the second quarter of 2026 and the contractual commencement date was nine months. The backlog of signed-but-not-commenced leases at quarter-end was $1.9 billion of annualized GAAP base rent at 100% share, and $1.4 billion at Digital Realty’s share. In addition, Digital Realty also signed renewal leases representing $262 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the second quarter of 2026 increased 25.4% on a cash basis and 32.0% on a GAAP basis.

New leases signed during the second quarter of 2026, at Digital Realty’s share, are summarized by region and product as follows:

        Annualized GAAP      Base Rent   GAAP Base RentAmericas(in thousands) Megawatts per Kilowatt0-1 MW$37,131 10.6  $293> 1 MW 82,706 44.2   156Other(1) 142 —   —Total$119,980 54.8  $182       EMEA(2)      0-1 MW$42,149 13.0  $269> 1 MW 4,999 2.5   167Other(1) 21 —   —Total$47,168 15.5  $253       Asia Pacific(2)      0-1 MW$8,541 2.5  $286> 1 MW 12,141 6.2   165Other(1) 170 —   —Total$20,851 8.6  $199       All Regions(2)      0-1 MW$87,821 26.1  $280> 1 MW 99,846 52.9   157Other(1) 332 —   —Total$187,999 79.0  $198       Interconnection$20,497 N/A  N/A       Grand Total at DLR Share$208,495 79.0  $198       Grand Total at 100% Share$306,944 129.8  $183 Note: Totals may not foot due to rounding differences.

(1)   Other includes Powered Base Building® shell capacity as well as storage and office space within fully improved data center facilities.

(2)   Based on quarterly average exchange rates during the three months ended June 30, 2026.

Investment Activity

During the second quarter of 2026, Digital Realty acquired:

Land in Marseille, France for approximately €46.5 million, or $53.1 million, that is expected to support the development of up to 48 megawatts of IT capacity.Land in the Atlanta metro area for approximately $20 million. Together with an adjacent parcel that was acquired in the first quarter, this campus is expected to support over one gigawatt of IT capacity. As previously announced, during the quarter, Digital Realty also acquired:

Land in the Kansas City metro area for approximately $475 million to support hyperscale data center development for up to two gigawatts of utility power.Two data centers in Malaysia containing 16.5 megawatts of IT capacity, and a land parcel that is expected to support the development of up to 14 megawatts of IT capacity, for total consideration of approximately $134 million. A 64% stake in three fully leased data centers in Northern Virginia containing 288 megawatts of IT capacity, at a gross value of approximately $7.8 billion, reflecting an expected initial stabilized cap rate of over 6.5%. The newly developed assets are expected to be fully stabilized in the first half of 2027 and first half of 2028. Total consideration for our joint venture partners’ equity interest in the assets was approximately $3.5 billion, including $1.2 billion of cash and 12.3 million shares of Digital Realty common stock. As previously disclosed, during the quarter, Digital Realty sold a non-core asset in the Atlanta metro area for $24 million.

Balance Sheet

Digital Realty had approximately $18.6 billion of total debt outstanding as of June 30, 2026, comprised of $17.0 billion of unsecured debt and approximately $1.6 billion of secured debt and other debt. At the end of the second quarter of 2026, net debt-to-Adjusted EBITDA was 4.7x, debt-plus-preferred-to-total enterprise value was 22.3% and fixed charge coverage was 5.2x.

From our first quarter earnings report on April 23, 2026 through June 30, 2026, the company sold approximately 6.2 million shares of common stock under its At-The-Market (ATM) equity issuance program at a weighted average price of $191.63 per share, for net proceeds of approximately $1.2 billion. Year-to-date, the company has sold approximately 13.5 million shares under its ATM equity issuance program at a weighted average price of $184.94 per share, for net proceeds of approximately $2.5 billion.

2026 Outlook

Digital Realty raised its 2026 Core FFO per share (excluding net promote) outlook to $8.15 - $8.20 and its 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.10 - $8.15. The assumptions underlying the outlook are summarized in the following table.

       As of As of As ofTop-Line and Cost StructureFebruary 5, 2026 April 23, 2026 July 23, 2026Total revenue (excluding promote income)$6.600 - $6.700 billion $6.650 - $6.750 billion $6.850 - $6.950 billionNet non-cash rent adjustments(1)($90 - $95 million) ($90 - $95 million) ($145 - $150 million)Adjusted EBITDA$3.600 - $3.700 billion $3.650 - $3.750 billion $3.750 - $3.850 billionG&A$610 - $620 million $615 - $625 million $620 - $630 million      Internal Growth     Rental rates on renewal leases     Cash basis6.0% - 8.0% 6.5% - 8.5% 9.0% - 11.0%GAAP basis8.5% - 10.5% 9.5% - 11.5% 12.0% - 14.0%Year-end portfolio occupancy(2)+50 - 100 bps +50 - 100 bps +75 - 125 bps"Same-Capital" cash NOI growth(3)4.0% - 5.0% 4.0% - 5.0% 4.25% - 5.25%      Foreign Exchange Rates     U.S. Dollar / Pound Sterling$1.30 - $1.35 $1.32 - $1.37 $1.32 - $1.37U.S. Dollar / Euro$1.13 - $1.18 $1.15 - $1.20 $1.13 - $1.18      External Growth     Dispositions / Joint Venture Capital     Dollar volume$500 - $1,000 million $500 - $1,000 million $1,000 - $1,500 millionCap rate0.0% - 10.0% 0.0% - 10.0% 0.0% - 10.0%Development     CapEx (Net of Partner Contributions)(4)$3,250 - $3,750 million $3,500 - $4,000 million $4,250 - $4,750 millionAverage stabilized yields10.0%+ 10.0%+ 10.0%+Enhancements and other non-recurring CapEx(5)$30 - $35 million $30 - $35 million $30 - $35 millionRecurring CapEx + capitalized leasing costs(6)$400 - $425 million $400 - $425 million $400 - $425 million      Balance Sheet     Long-term debt issuance     Dollar amount$1,000 - $1,500 million $1,500 - $2,000 million $1,500 - $2,000 millionPricing4.0% - 4.5% 4.0% - 4.5% 4.5% - 5.5%TimingMid-Year Mid-Year 2H-2026      Net income per diluted share$2.55 - $2.65 $2.65 - $2.75 $3.10 - $3.15Real estate depreciation and (gain) / loss on sale$4.90 - $4.90 $4.95 - $4.95 $5.30 - $5.30Funds From Operations / share (NAREIT-Defined)$7.45 - $7.55 $7.60 - $7.70 $8.40 - $8.45Non-core expenses and revenue streams$0.45 - $0.45 $0.40 - $0.40 $0.25 - $0.25Net Promote$0.0 - $0.0 $0.0 - $0.0 ($0.50) - ($0.50)Core Funds From Operations / share (excluding net promote)$7.90 - $8.00 $8.00 - $8.10 $8.15 - $8.20Foreign currency translation adjustments$0.00 - $0.00 ($0.05) - ($0.05) ($0.05) - ($0.05)Constant-Currency Core FFO / share (excluding net promote)$7.90 - $8.00 $7.95 - $8.05 $8.10 - $8.15 (1)   Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments).
(2)   Year-end portfolio occupancy guidance based on IT load (kW).
(3)   The “Same-Capital” pool includes properties owned as of December 31, 2024 with less than 5% of total rentable square feet under development. It excludes properties that were undergoing, or were expected to undergo, development activities in 2025-2026, properties classified as held for sale and contribution, and properties sold or contributed to joint ventures for all periods presented. The 2026 “Same-Capital” cash NOI growth outlook is presented on a constant currency basis.
(4)   Excludes land acquisitions and includes Digital Realty’s share of joint venture and fund contributions. Figure is net of joint venture and fund partners’ share of contributions.
(5)   Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs.
(6)   Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.

Note: The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures, including FFO, Core FFO, Core FFO (excluding net promote), Constant Currency Core FFO (excluding net promote), Adjusted FFO, Net Operating Income (NOI), “Same-Capital” Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO (excluding net promote) to Constant Currency Core FFO (excluding net promote), a reconciliation from Core FFO to Adjusted FFO, a reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Constant Currency Core FFO, Core FFO (excluding net promote), Adjusted FFO, NOI and “Same-Capital” Cash NOI are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.

The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the company's control and/or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Investor Conference Call

Prior to Digital Realty’s investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on July 23, 2026, a presentation will be posted to the Investors section of the company’s website at https://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company’s second quarter 2026 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.

A live webcast of the call will be available on the Investors section of Digital Realty’s website at https://investor.digitalrealty.com. The webcast will be archived for one year and the replay will be available shortly after the conclusion of the live event.

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

Contact Information

Matt Mercier
Chief Financial Officer
Digital Realty

Jordan Sadler / Jim Huseby
Investor Relations
Digital Realty
[email protected]

Consolidated Quarterly Statements of Operations
Unaudited and in Thousands, Except Per Share Data
                    Second Quarter 2026 Three Months Ended
   Six Months Ended  30-Jun-26  31-Mar-26   31-Dec-25   30-Sep-25  30-Jun-25    30-Jun-26   30-Jun-25 Rental revenues$1,145,936  $1,103,946   $1,074,703   $1,045,708  $1,003,550    $2,249,882   $1,964,076 Tenant reimbursements - Utilities352,897  333,909   356,084   332,681  294,503    686,807   565,692 Tenant reimbursements - Other45,391  38,093   34,406   37,302  37,355    83,484   79,532 Interconnection and other130,409  124,278   123,414   120,399  121,952    254,687   234,921 Fee income248,927  34,899   45,692   36,398  34,427    283,826   55,070 Other480  47   372   4,746  1,363    527   1,496 Total Operating Revenues$1,924,040  $1,635,173   $1,634,671   $1,577,234  $1,493,150    $3,559,213   $2,900,787                           Utilities$396,454  $372,385   $398,185   $375,627  $339,288    $768,839   $652,673 Rental property operating291,408  266,115   295,948   278,292  267,724    557,523   506,324 Property taxes55,160  54,964   50,791   51,823  49,570    110,124   98,426 Insurance4,744  4,799   4,711   4,508  4,946    9,543   9,429 Depreciation and amortization507,106  499,511   493,458   497,002  461,167    1,006,617   904,176 General and administration153,316  151,923   159,283   139,911  133,755    305,239   254,867 Severance, equity acceleration and legal expenses4,384  2,835   4,937   1,794  2,262    7,219   4,690 Transaction and integration expenses38,703  15,685   36,083   86,559  22,546    54,388   62,448 Provision for impairment—  —   78,553   —  —    —   — Other expenses13,508  23   98   3,297  195    13,531   307 Total Operating Expenses $1,464,783   $1,368,240    $1,522,047    $1,438,813   $1,281,453     $2,833,023    $2,493,340                           Operating income before gain (loss) on disposition of properties, net $459,257   $266,933    $112,624    $138,420   $211,698     $726,190    $407,447 Gain (loss) on disposition of properties, net7,988  873   42,865   19,780  931,830    8,861   932,941 Operating Income $467,245   $267,806    $155,489    $158,200   $1,143,527     $735,051    $1,340,388                           Equity in earnings (loss) of unconsolidated entities36  (1,833)  4,659   (16,944) (12,062)   (1,797)  (19,702)Interest and other income (expense), net137,944  45,342   42,797   47,735  37,747    183,286   70,520 Interest (expense)(113,943) (116,384)  (116,516)  (113,584) (109,383)   (230,327)  (207,847)Income tax benefit (expense)(33,675) (16,008)  9,673   (11,695) (12,883)   (49,683)  (30,018)Gain (loss) on debt extinguishment and modifications—  (4,119)  9   —  —    (4,119)  — Net Income$457,607   $174,804    $96,111     $63,713   $1,046,946     $632,411    $1,153,341                           Net (income) loss attributable to noncontrolling interests(4,318) 4,470   2,536   4,099  (14,790)   152   (11,211)Net Income Attributable to Digital Realty Trust, Inc.$453,289   $179,274     $98,647    $67,812   $1,032,156     $632,563    $1,142,130                           Preferred stock dividends(10,181) (10,181)  (10,181)  (10,181) (10,181)   (20,362)  (20,362)Net Income (Loss) Available to Common Stockholders$443,108   $169,093    $88,466     $57,631   $1,021,975     $612,201    $1,121,768                           Weighted-average shares outstanding - basic354,118  345,013   343,493   341,370  337,589    349,591   337,139 Weighted-average shares outstanding - diluted361,542  353,255   351,570   349,234  345,734    357,355   345,305 Weighted-average fully diluted shares and units367,605  359,300   357,430   355,165  351,691    363,462   351,239                           Net income / (loss) per share - basic$1.25  $0.49   $0.26   $0.17  $3.03    $1.75   $3.33 Net income / (loss) per share - diluted$1.21  $0.46   $0.24   $0.15  $2.94    $1.68   $3.21  Funds From Operations and Core Funds From Operations
Unaudited and in Thousands, Except Per Share Data
     Second Quarter 2026
  Three Months Ended
 Six Months Ended
 Reconciliation of Net Income to Funds From Operations (FFO)  30-Jun-26  31-Mar-26   31-Dec-25   30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                              Net Income (Loss) Available to Common Stockholders  $443,108  $169,093   $88,466   $57,631   $1,021,975    $612,201   $1,121,768 Adjustments:                            Noncontrolling interest in operating partnership  9,000  4,000   2,000   2,000   21,000    13,000   24,000 Real Estate Related Depreciation and Amortization(1)  499,106  490,965   484,260   487,182   451,050    990,071   883,700 Reconciling items related to noncontrolling interests  (24,292) (23,726)  (22,753)  (22,888)  (21,038)   (48,018)  (40,518)Unconsolidated entities real estate related depreciation and amortization  62,972  60,291   70,260   65,922   59,172    123,263   115,033 (Gain) loss on real estate transactions  (7,988) (226)  (42,865)  (19,780)  (931,830)   (8,214)  (932,941)Provision for impairment  —  —   78,553   —   —    —   — Funds From Operations  $981,906  $700,398   $657,921   $570,067   $600,329    $1,682,303   $1,171,044                              Weighted-average shares and units outstanding - basic  360,181  351,059   349,354   347,301   343,546    355,698   343,073 Weighted-average shares and units outstanding - diluted(2) (3)  367,605  359,300   357,430   355,165   351,691    363,462   351,239                              Funds From Operations per share - basic  $2.73  $2.00   $1.88   $1.64   $1.75    $4.73   $3.41                              Funds From Operations per share - diluted(2) (3)  $2.73  $1.99   $1.89   $1.65   $1.75    $4.73   $3.42                              Reconciliation of FFO to Core FFO  30-Jun-26  31-Mar-26   31-Dec-25   30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                              Funds From Operations  $981,906  $700,398   $657,921   $570,067   $600,329    $1,682,303   $1,171,044 Other non-core revenue adjustments(4)  (80,837) (29)  (10,633)  (4,746)  4,228    (80,866)  2,303 Transaction and integration expenses  38,703  15,685   36,083   86,559   22,546    54,388   62,448 Gain (loss) on debt extinguishment and modifications  —  4,119   (9)  —   —    4,119   — Severance, equity acceleration and legal expenses(5)  4,384  2,835   4,937   1,794   2,262    7,219   4,690 (Gain) loss on FX and derivatives revaluation  (1,608) (4,398)  (16,295)  252   8,827    (6,006)  6,764 Other non-core expense adjustments(6)  13,208  (2,538)  (21,794)  2,075   5,092    10,670   4,390 Core Funds From Operations  $955,756  $716,071   $650,210   $656,001   $643,284    $1,671,827   $1,251,639                              Net promote  (187,871) —   —   —   —    (187,871)  —                              Core Funds From Operations (excluding net promote)  $767,885  $716,071   $650,210   $656,001   $643,284    $1,483,956   $1,251,639                              Weighted-average shares and units outstanding - diluted(2) (3)  360,648  351,293   349,740   347,700   343,909    356,113   343,436                              Core Funds From Operations per share - diluted(2)  $2.65  $2.04   $1.86   $1.89   $1.87    $4.69   $3.64                              Core FFO per share (excluding net promote) - diluted(2)  $2.13  $2.04   $1.86   $1.89   $1.87    $4.17   $3.64                              (1)   Real Estate Related Depreciation & Amortization  30-Jun-26  31-Mar-26   31-Dec-25   30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                              Depreciation and amortization per income statement  $507,106  $499,511   $493,458   $497,002   $461,167    $1,006,617   $904,175 Non-real estate depreciation  (8,000) (8,546)  (9,198)  (9,820)  (10,117)   (16,546)  (20,473)Real Estate Related Depreciation & Amortization  $499,106  $490,965   $484,259   $487,182   $451,050    $990,071   $883,702  (2)  Certain of Teraco's minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. U.S. GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO. When calculating diluted FFO, Teraco related noncontrolling interest is added back to the FFO numerator as the denominator assumes all shares have been put back to Digital Realty.

                      Three Months Ended  Six Months Ended 30-Jun-26  31-Mar-26  31-Dec-25  30-Sep-25  30-Jun-25   30-Jun-26  30-Jun-25Teraco noncontrolling share of FFO$19,979  $15,410  $18,240  $17,018  $15,850   $35,389  $29,136Teraco related minority interest$19,979  $15,410  $18,240  $17,018  $15,850   $35,389  $29,136 (3)  For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and the share count detail section that follows the reconciliation of Core FFO to AFFO for calculations of weighted average common stock and units outstanding. For definitions and discussion of FFO, Core FFO and Core FFO (excluding net promote), see the Definitions section.

(4)  Includes development fees included in gains, lease termination fees, gain on sale of equity investment included in other income, insurance proceeds related to property damage and unconsolidated entities non-core adjustments within equity in earnings.

(5)  Relates to severance and other charges related to the departure of company executives and integration-related severance.

(6)  Includes write-offs associated with non-recurring legal and insurance expenses, impact of foreign tax rate changes, non-core adjustments attributable to noncontrolling interests, impact on tax expense due to insurance proceeds related to property damage and adjustments to reflect our proportionate share of transaction costs associated with noncontrolling interests.

Adjusted Funds From Operations (AFFO)
 Unaudited and in Thousands, Except Per Share Data
                       Second Quarter 2026
  Three Months Ended
   Six Months Ended  Reconciliation of Core FFO to AFFO  30-Jun-26   31-Mar-26  31-Dec-25  30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                             Core Funds From Operations   $955,756
   $716,071   $650,210   $656,001    $643,284     $1,671,827    $1,251,638  Adjustments:                           Non-real estate depreciation  8,000   8,546  9,198  9,820   10,117    16,546   20,473 Amortization of deferred financing costs  6,343   6,443  6,781  6,565   6,451    12,786   12,999 Amortization of debt discount/premium  1,595   1,581  1,341  1,293   1,251    3,176   2,377 Non-cash stock-based compensation expense  21,379   20,908  17,327  18,174   18,026    42,287   34,726 Straight-line rental revenue  (26,955)  (21,741) (34,351) (33,351)  (23,698)   (48,696)  (33,390)Straight-line rental expense  (602)  (1,410) (97) (271)  (475)   (2,012)  (635)Above- and below-market rent amortization  (962)  (1,007) (972) (864)  (752)   (1,969)  (1,458)Deferred tax (benefit) / expense  (12,681)  (10,919) (26,184) 18,187   (30,714)   (23,600)  (31,232)Leasing compensation and internal lease commissions  13,857   15,476  14,644  15,013   14,721    29,333   28,126 Recurring capital expenditures (1)  (76,674)  (59,665) (168,539) (77,998)  (62,083)   (136,339)  (97,388)                            Adjusted Funds From Operations (2)   $889,056    $674,283   $469,358   $612,569    $576,127     $1,563,339    $1,186,235                             Weighted-average shares and units outstanding - basic  360,181   351,059  349,354  347,301   343,546    355,698   343,073 Weighted-average shares and units outstanding - diluted (3)  360,648   351,293  349,740  347,700   343,909    356,113   343,436                             AFFO per share - diluted (3)  $2.47    $1.92   $1.34   $1.76    $1.68     $4.39    $3.45                               Dividends per share and common unit  $1.22   $1.22  $1.22  $1.22   $1.22    $2.44   $2.44                             Diluted AFFO Payout Ratio  49.5%   63.6%  90.9%  69.2%   72.8%    55.6%   70.6%    Three Months Ended   Six Months Ended Share Count Detail  30-Jun-26   31-Mar-26  31-Dec-25  30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                             Weighted Average Common Stock and Units Outstanding  360,181   351,059  349,354  347,301   343,546    355,698   343,073 Add: Effect of dilutive securities  467   234  386  399   362    415   363 Weighted Avg. Common Stock and Units Outstanding - diluted  360,648   351,293  349,740  347,700   343,909    356,113   343,436  (1)  Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and external leasing commissions. Recurring capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty’s operating standards, or internal leasing commissions.

(2)  For a definition and discussion of AFFO, see the Definitions section. For a reconciliation of net income (loss) available to common stockholders to FFO and Core FFO, see above.

(3)  For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and for calculations of weighted average common stock and units outstanding.

Consolidated Balance Sheets
 Unaudited and in Thousands, Except Per Share Data
              Second Quarter 2026
 30-Jun-26  31-Mar-26  31-Dec-25  30-Sep-25  30-Jun-25 Assets                   Investments in real estate:                   Real estate $33,700,303   $31,633,899   $31,359,298   $30,194,891   $29,836,218 Construction in progress 9,770,384   5,381,071   4,976,785   5,422,338   5,080,701 Land held for future development 122,841   199,681   91,130   66,668   73,665 Investments in Real Estate  $43,593,528    $37,214,651    $36,427,213    $35,683,897    $34,990,583 Accumulated depreciation and amortization (10,736,127)  (10,355,181)  (9,993,596)  (9,665,380)  (9,341,719)Net Investments in Properties  $32,857,401    $26,859,470    $26,433,617    $26,018,517    $25,648,865 Investment in unconsolidated entities 3,548,297   3,536,757   3,427,903   3,690,749   3,622,677 Net Investments in Real Estate  $36,405,698    $30,396,227    $29,861,520    $29,709,266    $29,271,542                     Operating lease right-of-use assets, net $1,093,015   $1,105,080   $1,135,645   $1,167,398   $1,180,657 Cash and cash equivalents 1,864,796   2,426,631   3,451,647   3,299,703   3,554,126 Accounts and other receivables, net (1) 1,564,955   1,430,242   1,358,895   1,496,105   1,586,146 Deferred rent, net 792,045   765,198   750,907   710,624   681,375 Goodwill 9,592,127   9,591,250   9,711,953   9,647,754   9,636,513 Customer relationship value, deferred leasing costs and other intangibles, net 2,595,046   2,053,368   2,134,698   2,080,898   2,171,318 Assets held for sale and contribution —   441,064   349,826   116,624   139,993 Other assets 610,232   650,913   655,377   500,262   493,325 Total Assets  $54,517,914    $48,859,973    $49,410,468    $48,728,634    $48,714,995                     Liabilities and Equity                   Global unsecured revolving credit facilities, net $709,756   $707,961   $899,090   $1,152,042   $567,699 Unsecured term loans, net 427,681   432,450   439,536   438,933   440,788 Unsecured senior notes, net of discount 15,906,794   16,013,977   16,194,441   15,808,565   16,641,367 Secured and other debt, net of discount 1,591,118   842,245   869,068   825,894   802,294 Operating lease liabilities 1,209,459   1,218,509   1,253,217   1,285,067   1,298,085 Accounts payable and other accrued liabilities 3,922,825   2,419,888   2,600,979   2,377,726   2,310,882 Deferred tax liabilities 1,124,899   1,093,955   1,124,724   1,151,374   1,137,305 Accrued dividends and distributions —   —   428,337   —   — Security deposits and prepaid rents 759,979   733,974   754,920   699,528   653,640 Obligations associated with assets held for sale and contribution —   —   182   283   1,089 Total Liabilities  $25,652,511    $23,462,959    $24,564,494    $23,739,412    $23,853,149                     Redeemable noncontrolling interests 886,249   1,594,718   1,498,975   1,535,972   1,505,889                     Equity                   Preferred Stock: $0.01 par value per share, 110,000 shares authorized:                   Series J Cumulative Redeemable Preferred Stock (2) $193,540   $193,540   $193,540   $193,540   $193,540 Series K Cumulative Redeemable Preferred Stock (3) 203,264   203,264   203,264   203,264   203,264 Series L Cumulative Redeemable Preferred Stock (4) 334,886   334,886   334,886   334,886   334,886 Common Stock: $0.01 par value per share, 502,000 shares authorized (5) 3,669   3,459   3,406   3,400   3,374 Additional paid-in capital 34,160,613   30,093,165   29,350,487   29,182,332   28,720,826 Dividends in excess of earnings (6,939,476)  (6,946,676)  (6,690,722)  (6,358,501)  (5,997,607)Accumulated other comprehensive loss, net (522,024)  (512,885)  (469,198)  (533,891)  (543,756)Total Stockholders' Equity  $27,434,472    $23,368,753    $22,925,663    $23,025,030    $22,914,527                     Noncontrolling Interests                   Noncontrolling interest in operating partnership $533,620   $426,853   $415,456   $420,280   $431,000 Noncontrolling interest in consolidated entities 11,062   6,690   5,880   7,940   10,430                     Total Noncontrolling Interests  $544,682    $433,543    $421,336    $428,220    $441,430                     Total Equity  $27,979,154    $23,802,296    $23,346,999    $23,453,250    $23,355,957                     Total Liabilities and Equity  $54,517,914    $48,859,973    $49,410,468    $48,728,634    $48,714,995  (1)  Net of allowance for doubtful accounts of $73,428 and $80,832 as of June 30, 2026 and June 30, 2025, respectively.

(2)  Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 liquidation preference ($25.00 per share), 8,000 shares issued and outstanding as of June 30, 2026 and June 30, 2025.

(3)  Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 liquidation preference ($25.00 per share), 8,400 shares issued and outstanding as of June 30, 2026 and June 30, 2025.

(4)  Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 liquidation preference ($25.00 per share), 13,800 shares issued and outstanding as of June 30, 2026 and June 30, 2025.

(5)  Common Stock: 370,010 and 340,372 shares issued and outstanding as of June 30, 2026 and June 30, 2025, respectively.

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios      Unaudited and Dollars in Thousands                  Second Quarter 2026  Three Months Ended Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1) 30-Jun-26   31-Mar-26   31-Dec-25   30-Sep-25   30-Jun-25                     Net Income (Loss) Available to Common Stockholders $443,108    $169,093     $88,466    $57,631    $1,021,975 Interest expense 113,943   116,384   116,516   113,584   109,383 (Gain) loss on debt extinguishment and modifications —   4,119   (9)  —   — Income tax expense (benefit) 33,675   16,008   (9,673)  11,695   12,883 Depreciation and amortization 507,106   499,511   493,458   497,002   461,167 EBITDA  $1,097,832    $805,115    $688,758    $679,912    $1,605,408 Unconsolidated JV real estate related depreciation and amortization 62,972   60,291   70,260   65,922   59,172 Unconsolidated JV interest expense and tax expense 37,142   35,814   38,498   44,795   31,243 Severance, equity acceleration and legal expenses 4,384   2,835   4,937   1,794   2,262 Transaction and integration expenses 38,703   15,685   36,083   86,559   22,546 (Gain) loss on disposition of properties, net (7,988)  (873)  (42,865)  (19,780)  (931,830)Provision for impairment —   —   78,553   —   — Other non-core adjustments, net (2) (82,084)  (4,270)  (25,033)  2,523   9,545 Net promote     —   —   —   — Noncontrolling interests 4,318   (4,470)  (2,536)  (4,099)  14,790 Preferred stock dividends 10,181   10,181   10,181   10,181   10,181 Adjusted EBITDA  $977,589    $920,307    $856,836    $867,807    $823,319  (1)  For definitions and discussion of EBITDA and Adjusted EBITDA, see the Definitions section.

(2)  Includes foreign exchange remeasurement (gain) loss, net, impact of foreign tax rate changes, non-recurring legal and insurance expenses, lease termination fees, insurance proceeds related to property damage and similar adjustments on unconsolidated entities.

           Three Months EndedFinancial Ratios30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 30-Jun-25          Total GAAP interest expense$113,943  $116,384  $116,516  $113,584  $109,383 Capitalized interest expense 37,102   35,637   34,783   32,923   29,393 Change in accrued interest and other non-cash amounts (104,924)  30,268   (52,014)  41,265   (92,065)Cash Interest Expense(3)$46,121  $182,289  $99,285  $187,772  $46,711           Preferred stock dividends 10,181   10,181   10,181   10,181   10,181 Total Fixed Charges(4)$161,226  $162,202  $161,479  $156,687  $148,957                     Coverage         Interest coverage ratio(5)5.5x 5.2x 4.8x 4.9x 5.0xCash interest coverage ratio(6)13.2x 4.4x 6.8x 3.9x 11.2xFixed charge coverage ratio(7)5.2x 4.9x 4.5x 4.6x 4.7xCash fixed charge coverage ratio(8)11.6x 4.2x 6.3x 3.8x 9.9x          Leverage         Debt to total enterprise value(9)(10) 21.4%  21.7%  25.1%  23.0%  23.2%Debt-plus-preferred-stock-to-total-enterprise-value(10)(11) 22.3%  22.7%  26.1%  23.9%  24.1%Pre-tax income to interest expense(12)5.0x 2.5x 1.8x 1.6x 10.6xNet Debt-to-Adjusted EBITDA(13)4.7x 4.7x 4.9x 4.9x 5.1x (3)  Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash-based interest expense.

(4)  Fixed charges consist of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred stock dividends.

(5)  Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated entities interest expense).

(6)  Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by cash interest expense (including our pro rata share of unconsolidated entities interest expense).

(7)  Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by fixed charges (including our pro rata share of unconsolidated entities fixed charges).

(8)  Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by the sum of cash interest expense and preferred stock dividends (including our pro rata share of unconsolidated entities cash fixed charges).

(9)  Total debt divided by market value of common equity plus debt plus preferred stock.

(10)  Total enterprise value defined as market value of common equity plus debt plus preferred stock.

(11)  Same as (9), except numerator includes preferred stock.

(12)  Calculated as net income plus interest expense divided by GAAP interest expense.

(13)  Calculated as total debt at balance sheet carrying value, plus finance lease obligations, plus Digital Realty’s pro rata share of unconsolidated entities debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated entities cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated entities EBITDA), multiplied by four.

Definitions

Funds From Operations (FFO):
We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts (Nareit) in the Nareit Funds From Operations White Paper - 2018 Restatement. FFO is a non-GAAP financial measure and represents net income (loss) available to common stockholders (computed in accordance with GAAP), excluding gain (loss) from the disposition of real estate assets, provision for impairment, real estate related depreciation and amortization (excluding amortization of deferred financing costs), our share of unconsolidated JV real estate related depreciation & amortization, net income attributable to noncontrolling interests in operating partnership and reconciling items related to noncontrolling interests. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions and after adjustments for unconsolidated partnerships and joint ventures, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the Nareit definition and, accordingly, our FFO may not be comparable to other REITs’ FFO. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Core Funds from Operations (Core FFO) and Core FFO (excluding net promote):
We present core funds from operations, or Core FFO, as a supplemental operating measure because, in excluding certain items that do not reflect core revenue or expense streams, it provides a performance measure that, when compared year over year, captures trends in our core business operating performance. We calculate Core FFO by adding to or subtracting from FFO (i) other non-core revenue adjustments, (ii) transaction and integration expenses, (iii) gain (loss) on debt extinguishment and modifications, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration and legal expenses, (vi) gain/loss on FX and derivatives revaluation, and (vii) other non-core expense adjustments. We calculate Core FFO (excluding net promote) by adding to Core FFO the net impact of (i) promote income and (ii) promote expense (collectively “net promote”). Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO and Core FFO (excluding net promote) as a measure of our performance is limited. Other REITs may calculate Core FFO and Core FFO (excluding net promote) differently than we do and accordingly, our Core FFO and Core FFO (excluding net promote) may not be comparable to other REITs’ Core FFO and Core FFO (excluding net promote). Core FFO and Core FFO (excluding net promote) should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Adjusted Funds from Operations (AFFO):
We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from Core FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount/premium, (iv) non-cash stock-based compensation expense, (v) straight-line rental revenue, (vi) straight-line rental expense, (vii) above- and below-market rent amortization, (viii) deferred tax expense / (benefit), (ix) leasing compensation and internal lease commissions, and (x) recurring capital expenditures. Other REITs may calculate AFFO differently than we do and, accordingly, our AFFO may not be comparable to other REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

EBITDA and Adjusted EBITDA:
We believe that earnings before interest expense, gain (loss) on debt extinguishment and modifications, income tax expense (benefit), and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, (i) unconsolidated entities real estate related depreciation & amortization, (ii) unconsolidated entities interest expense and tax expense, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) noncontrolling interests, (ix) preferred stock dividends, (x) gain on / issuance costs associated with redeemed preferred stock and (xi) net promote. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs. Because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, exclude capitalized costs, such as leasing commissions, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited. Other REITs may calculate EBITDA and Adjusted EBITDA differently than we do and, accordingly, our EBITDA and Adjusted EBITDA may not be comparable to other REITs’ EBITDA and Adjusted EBITDA. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income computed in accordance with GAAP as a measure of our financial performance.

Net Operating Income (NOI) and Cash NOI:
Net operating income, or NOI, represents rental revenue, tenant reimbursement revenue and interconnection revenue less utilities expense, rental property operating expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. Cash NOI is NOI less straight-line rents and above- and below-market rent amortization. Cash NOI is commonly used by stockholders, company management and industry analysts as a measure of property operating performance on a cash basis. Same-Capital Cash NOI represents data centers owned as of December 31, 2024 with less than 5% of total rentable square feet under development and excludes data centers that were undergoing, or were expected to undergo, development activities in 2025-2026, data centers classified as held for sale and contribution, and data centers sold or contributed to joint ventures for all periods presented (prior period numbers adjusted to reflect current same-capital pool). However, because NOI and cash NOI exclude depreciation and amortization and capture neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our results from operations, the utility of NOI and cash NOI as measures of our performance is limited. Other REITs may calculate NOI and cash NOI differently than we do and, accordingly, our NOI and cash NOI may not be comparable to other REITs’ NOI and cash NOI. NOI and cash NOI should be considered only as supplements to net income computed in accordance with GAAP as measures of our performance.

Additional Definitions

GAAP refers to United States generally accepted accounting principles.

Net debt-to-Adjusted EBITDA ratio is calculated as total debt at balance sheet carrying value, plus finance lease obligations, plus Digital Realty’s pro rata share of unconsolidated entities debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated entities cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated entities EBITDA), multiplied by four.

Debt-plus-preferred-to-total enterprise value is total debt plus preferred stock divided by total debt plus the liquidation value of preferred stock and the market value of outstanding Digital Realty Trust, Inc. common stock and Digital Realty Trust, L.P. units, assuming the redemption of Digital Realty Trust, L.P. units for shares of Digital Realty Trust, Inc. common stock.

Fixed charge coverage ratio is Adjusted EBITDA divided by the sum of GAAP interest expense, capitalized interest and preferred stock dividends. For the quarter ended June 30, 2026, GAAP interest expense was $114 million, capitalized interest was $37 million and preferred stock dividends were $10 million.

           Reconciliation of Net Operating Income (NOI)Three Months Ended  Six Months Ended(in thousands)30-Jun-26 31-Mar-26 30-Jun-25  30-Jun-26 30-Jun-25           Operating income before gain (loss) on disposition of properties, net$459,257  $266,933  $211,698   $726,190  $407,447            Fee income (248,927)  (34,899)  (34,427)   (283,826)  (55,070)Other income (480)  (47)  (1,363)   (527)  (1,496)Depreciation and amortization 507,106   499,511   461,167    1,006,617   904,176 General and administrative 153,316   151,923   133,755    305,239   254,867 Severance, equity acceleration and legal expenses 4,384   2,835   2,262    7,219   4,690 Transaction and integration expenses 38,703   15,685   22,546    54,388   62,448 Provision for impairment —   —   —    —   — Other expenses 13,508   23   195    13,531   307            Net Operating Income$926,867  $901,963  $795,832   $1,828,831  $1,577,368                       Cash Net Operating Income (Cash NOI)                     Net Operating Income$926,867  $901,963  $795,832   $1,828,831  $1,577,368            Straight-line rental revenue (26,955)  (21,813)  (24,015)   (48,767)  (33,708)Straight-line rental expense (617)  (1,423)  (469)   (2,040)  (445)Above- and below-market rent amortization (962)  (1,007)  (752)   (1,969)  (1,458)           Cash Net Operating Income$898,333  $877,720  $770,595   $1,776,055  $1,541,757                                  Constant Currency Core FFO (Excluding Net Promote) ReconciliationThree Months Ended  Six Months Ended(in thousands, except per share data)30-Jun-26   30-Jun-25  30-Jun-26 30-Jun-25           Core FFO (Excluding Net Promote)(1)$767,885    $643,284   $1,483,956  $1,251,639 Core FFO impact of holding '25 Exchange Rates Constant(2) (7,720)    —    (34,138)  —            Constant Currency Core FFO (Excluding Net Promote)$760,165    $643,284   $1,449,818  $1,251,639 Weighted-average shares and units outstanding - diluted 360,648     343,909    356,113   343,436 Constant Currency Core FFO Per Share (Excluding Net Promote)$2.11    $1.87   $4.07  $3.64  1)  As reconciled to net income above.

2)  Adjustment calculated by holding currency translation rates for 2026 constant with average currency translation rates that were applicable to the same periods in 2025.

This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, anticipated continued demand for our products and service, our liquidity, our joint ventures, supply and demand for data center and colocation capacity, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company’s FFO, Core FFO, constant currency Core FFO, Core FFO (excluding net promote), adjusted FFO, adjusted EBITDA, net income, 2026 outlook and underlying assumptions, information related to trends, our strategy and plans, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and development activity and plans, projected construction costs, estimated yields on investment, expected occupancy, expected square footage and IT load capacity upon completion of development projects, backlog NOI, NAV components, and other forward-looking financial data. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

reduced demand for data centers or decreases in information technology spending;decreased rental rates, increased operating costs or increased vacancy rates;increased competition or available supply of data center capacity;the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services;breaches of our obligations or restrictions under our contracts with our customers;our inability to successfully develop and lease new properties and development capacity, and delays or unexpected costs in development of properties;the impact of current global and local economic, credit and market conditions;increased tariffs, global supply chain or procurement disruptions, or increased supply chain costs;the impact from periods of heightened inflation on our costs, such as operating and general and administrative expenses, interest expense and real estate acquisition and construction costs;the impact on our customers’ and our suppliers’ operations during an epidemic, pandemic, or other global events;our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers;changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate;our inability to retain data center capacity that we lease or sublease from third parties;information security, cyberattacks, security breaches and data privacy breaches;difficulties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas;our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions;our failure to successfully integrate and operate acquired or developed properties or businesses;difficulties in identifying properties to acquire and completing acquisitions;risks related to joint venture investments, including as a result of our lack of control of such investments;risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital;financial market fluctuations and changes in foreign currency exchange rates;adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges;our inability to manage our growth effectively;losses in excess of our insurance coverage;our inability to attract and retain talent;environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations;our inability to comply with rules and regulations applicable to our company;Digital Realty Trust, Inc.’s failure to maintain its status as a REIT for U.S. federal income tax purposes;Digital Realty Trust, L.P.’s failure to qualify as a partnership for U.S. federal income tax purposes;restrictions on our ability to engage in certain business activities;changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates; andthe impact of any financial, accounting, legal or regulatory issues or litigation that may affect us. The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. Several additional material risks are discussed in our annual report on Form 10-K for the year ended December 31, 2025, and other filings with the U.S. Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Digital Realty, Digital Realty Trust, the Digital Realty logo, Interxion, Turn-Key Flex, Powered Base Building, ServiceFabric, AnyScale Colo, Pervasive Data Center Architecture, PlatformDIGITAL, PDx, Data Gravity Index and Data Gravity Index DGx are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All other names, trademarks and service marks are the property of their respective owners.

Wall Street analysts forecast that Digital Realty Trust (DLR - Free Report) will report quarterly earnings of $1.98 per share in its upcoming release, pointing to a year-over-year increase of 5.9%. It is anticipated that revenues will amount to $1.66 billion, exhibiting an increase of 11.5% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Digital Realty Trust metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts expect 'Revenues- Rental revenues' to come in at $1.12 billion. The estimate suggests a change of +12.1% year over year.

The consensus estimate for 'Revenues- Interconnection and other' stands at $126.76 million. The estimate suggests a change of +3.9% year over year.

The combined assessment of analysts suggests that 'Revenues- Fee Income' will likely reach $33.79 million. The estimate points to a change of -1.9% from the year-ago quarter.

Analysts forecast 'Revenues- Tenant reimbursements (Utilities + Other)' to reach $373.69 million. The estimate indicates a year-over-year change of +12.6%.

Analysts predict that the 'Revenues- Tenant reimbursements- Other' will reach $39.54 million. The estimate suggests a change of +5.9% year over year.

According to the collective judgment of analysts, 'Revenues- Tenant reimbursements- Utilities' should come in at $333.74 million. The estimate indicates a year-over-year change of +13.3%.

Based on the collective assessment of analysts, 'Depreciation and amortization' should arrive at $509.19 million.

View all Key Company Metrics for Digital Realty Trust here>>>

Digital Realty Trust shares have witnessed a change of -7.6% in the past month, in contrast to the Zacks S&P 500 composite's +0.6% move. With a Zacks Rank #3 (Hold), DLR is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Digital Realty is expected to post higher Q2 revenues and FFO year over year on July 23 after market close.DLR's growth is supported by strong leasing, a record backlog and rising AI and cloud data center demand.Digital Realty expects revenue support from lease commencements, renewal spreads and higher occupancy. Digital Realty Trust (DLR - Free Report) is slated to report second-quarter 2026 results on July 23, after the closing bell. The quarterly results are expected to reflect year-over-year growth in both revenues and funds from operations (FFO) per share.

This Austin, TX-based data center real estate investment trust (REIT) reported a core FFO per share of $2.04 in the prior quarter, surpassing the Zacks Consensus Estimate of $1.94. Results reflected steady leasing momentum amid rising AI demand.

Over the trailing four quarters, Digital Realty’s core FFO per share topped the Zacks Consensus Estimate on all occasions, with the average beat being 5.11%. This is depicted in the chart below:

Factors at Play and Projections for DLRDigital Realty is expected to sustain healthy growth in the second quarter of 2026, supported by strong leasing, a record backlog and rising demand for AI- and cloud-related data center capacity.

Revenues should benefit from $544 million of lease commencements scheduled through 2026, along with positive renewal spreads of 6.5%-8.5% and a projected 50-100 basis point improvement in occupancy.

Near-term earnings may have softened in the second quarter due to higher operating costs, development spending and capital recycling, before improving later in the year.

For the second quarter, the Zacks Consensus Estimate for rental revenues is pegged at $1.12 billion, up 12.1% from $1 billion reported in the year-ago quarter. The Zacks Consensus Estimate for interconnection & other revenues currently stands at $126.8 million, indicating a 3.9% increase from the year-ago quarter.

The consensus estimate for quarterly total revenues is pegged at $1.66 billion, calling for an 11.4% year-over-year jump.

Digital Realty’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the company’s quarterly FFO per share has remained unchanged at $1.98 over the past two months. However, the figure indicates year-over-year growth of 5.9%.

What Our Quantitative Model Predicts for DLROur proven model predicts a surprise in terms of FFO per share for Digital Realty this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.

Digital Realty currently has an Earnings ESP of +2.30% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a LookHere are two other stocks from the broader REIT sector, SL Green Realty (SLG - Free Report) and Cousins Properties (CUZ - Free Report) , you may want to consider, as our model shows that these also have the right combination of elements to report an FFO beat this quarter.

SL Green is slated to report quarterly numbers on July 22. SLG has an Earnings ESP of +7.20% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Cerebras CEO and co-founder Andrew Feldman made an appearance on the All-In Podcast to describe an AI infrastructure buildout so lopsided that compute suppliers are still racing to catch up with orders placed months ago. Chamath framed the scale of the buildout bluntly: “We’ve never seen a buildout like this since the Great Wall of China.” Feldman’s response was that the industry didn’t have to build on speculation because much of the demand is already under contract.

“They’re not chasing sort of, if you build it, they will come. They’re chasing the demand that is booked,” Feldman said. He described a $25 billion backlog at Cerebras and argued the company is not alone. According to Feldman, compute supply cannot keep pace with existing, booked orders from OpenAI, Anthropic, Google, Microsoft, and AWS. As a result, data centers are rising across the US, Europe, the Middle East, and even countries like Kazakhstan, Tajikistan, Armenia, and Georgia, with individual buildings consuming more power than mid-sized cities.

The AI Buildout Is Being Compared to the Great Wall of China With Orders Already Booked The data across the picks-and-shovels layer of the AI stack tells a similar story: bookings, backlog, and power commitments are outpacing what suppliers can deliver.

Readers looking to find the winning companies riding this AI build-out wave can dig into our Free Report: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).

NVIDIA Has Committed $119 Billion to Meeting Future Demand NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) posted Q1 FY2027 revenue of $81.615 billion, up 85.23% year over year, with Data Center revenue of $75.246 billion and Data Center Networking growth of 199%. Guidance for Q2 calls for $91.0 billion in revenue, and total supply-related commitments have reached $119.0 billion to serve demand “beyond the next several quarters.” CEO Jensen Huang called the buildout “the largest infrastructure expansion in human history” in the company’s Q1 FY2027 release. Shares trade around $202.78, up 24.66% over the past year.

AMD’s Data Center Revenue Is Growing 57% AMD (NASDAQ:AMD) reported Q1 2026 revenue of $10.25B, with Data Center revenue up 57% to $5.78B. CEO Lisa Su said “leading customer forecasts exceeding our initial expectations” on the MI450 Series and Helios platforms, and the company disclosed a Meta partnership to deploy up to 6 gigawatts of AMD Instinct GPUs. AMD shares have run 155.29% year-to-date to $546.72, the clearest market vote that Feldman’s supply-tightness thesis is real.

AI Demand Is Driving 60% of Equinix’s Largest Deals Equinix (NASDAQ:EQIX) closed 2025 with record annualized gross bookings of $474M (+42% YoY), and roughly 60% of the largest Q4 deals were driven by AI workloads. Management flagged 52 major expansion projects and roughly 1 GW added to powered land-under-control. CEO Adaire Fox-Martin: “Demand for our solutions has never been higher.” The stock is up 36.46% year to date.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Digital Realty Just Signed the Biggest Hyperscale Lease in Its History Digital Realty Trust (NYSE:DLR) signed a 200-megawatt AI inference lease in Q1 2026, the largest hyperscale lease in company history, contributing to $707 million in annualized GAAP base rent bookings. It has roughly 1.2 GW under construction and 6.3 GW of buildable capacity in the pipeline, per its Q1 2026 release.

AI Experimentation Will Eventually Become More Efficient Feldman did not dismiss the debate around whether the spending is creating real value. He conceded some wasteful spending exists, likening it to the experimentation phase of early AWS adoption.

He compared early AI token usage to shoppers wandering every aisle at Costco before learning to shop efficiently. His argument is that the net value created will be enormous, and consumption patterns will rationalize over time without undermining the buildout thesis.

What to Watch Next The next constraint on AI is electricity and power. Individual data center loads have already doubled from approximately 150 megawatts to 300 megawatts, while the EIA estimates server electricity consumption could reach 818 billion kilowatt-hours by 2050 in a high-demand scenario.

If Feldman is right that yesterday’s orders already exceed today’s available compute, the greatest operating leverage might belong to the companies that can pour concrete, secure power, and ship silicon fastest.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

DLR benefits from AI-driven demand and expansion, but competition, debt and execution risks remain.

Key Takeaways Digital Realty will acquire Blackstone's stake in three Northern Virginia data centers valued at $7.8B.DLR expects the deal to boost Core FFO per share in 2027 and 2028 as assets stabilize.The portfolio is fully leased under 15-year agreements with investment-grade hyperscale customers. Digital Realty (DLR - Free Report) announced that it has agreed to acquire Blackstone-affiliated funds’ equity interest in three hyperscale data centers in Northern Virginia, increasing its ownership of high-quality assets in the world’s largest data center market. The portfolio comprises two facilities in Manassas and one in Sterling, with a combined 288 megawatts of IT capacity. The transaction values the portfolio at $7.8 billion.

Digital Realty will pay Blackstone $3.5 billion for its combined 64% equity interest, including $1.2 billion in cash and $2.3 billion in Digital Realty shares. The company is acquiring Blackstone’s 80% interest in the two Manassas facilities and its 50% stake in the Sterling property. Two of the data centers are expected to stabilize in the first half of 2027, while the third is expected to stabilize in the first half of 2028.

The acquired assets are backed by 15-year leases with customers. All three data centers are fully leased to three separate investment-grade hyperscale customers, carrying a blended average AA- credit rating, and include annual rent escalators of 3.6%. Digital Realty said that the deal will increase its exposure to newly developed capacity in Northern Virginia, a region that continues to attract strong demand from hyperscale cloud providers. The company also noted that it will continue working with Blackstone on other joint ventures in Northern Virginia, Paris and Frankfurt.

Digital Realty’s chief financial officer, Matt Mercier, said the acquisition is expected to be accretive to Core funds from operations (Core FFO) per share in both 2027 and 2028 as development is completed and rental income begins. He added that the transaction is expected to support contractual organic rent growth and improve the quality of Digital Realty’s portfolio through long-term leases with leading hyperscale customers in newly built facilities. According to Mercier, the company’s recent execution and strategic transactions position it to continue its growth trajectory.

ConclusionOverall, the acquisition strengthens Digital Realty's position in the world's largest hyperscale data center market by increasing its ownership of high-quality, fully leased assets that offer long-term cash flows. As of March 31, 2026, the company has 309 data centers in more than 55 metros, with decent occupancy reflecting the company’s global presence.

While the transaction requires a sizable capital commitment, its expected Core FFO accretion, enhanced exposure to AI- and cloud-driven demand, and stronger portfolio quality reinforce Digital Realty's long-term growth outlook.

In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 17.5% compared with the industry's growth of 13%.

Image Source: Zacks Investment Research

Stock to ConsiderSome better-ranked stocks from the broader REIT sector are Gladstone Land (LAND - Free Report) and Apple Hospitality REIT (APLE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for LAND’s 2026 FFO per share is pinned at 45 cents. This indicates year-over-year growth of 15.38% for 2026.

The Zacks Consensus Estimate for APLE’s 2026 FFO per share is pegged at $1.58. This implies year-over-year growth of 3.95% for 2026.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

June 30, 2026 00:26 ET  | Source: Digital Realty Trust, L.P.

AUSTIN, Texas, June 30, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today the pricing of an underwritten registered public offering of 12,310,249 shares of its common stock by affiliates of Blackstone Inc. (collectively, “Blackstone”) at a public offering price of $185.00 per share. The shares of common stock being sold in this offering will be issued to Blackstone upon the closing of the acquisition by the company of Blackstone's interests in the Digital Carver Dulles 9 and Digital Carver Brickyard joint ventures (the "Blackstone Acquisition"), which is expected to occur on June 30, 2026. Each share of non-voting common stock will automatically convert into one share of the company’s common stock upon its transfer by Blackstone in connection with this offering.

The Company is not offering any shares of common stock in the offering and will not receive any of the proceeds from the sale of shares of its common stock by Blackstone.

The offering is expected to close on July 1, 2026, subject to customary closing conditions, and is conditioned upon the closing of the Blackstone Acquisition.

Morgan Stanley acted as the sole underwriter for the public offering.

The offering is being made pursuant to an effective shelf registration statement (containing a prospectus) filed with the Securities and Exchange Commission (the “SEC”). A final prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives customers access to the connected data communities that matter to them through a global footprint of 300+ facilities in 55+ metros across 30+ countries on six continents.

For Additional Information

Investor Relations

Safe Harbor Statement

This press release contains forward-looking statements that are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the occurrence and timing of the closing of the Blackstone Acquisition and the timing and closing of the offering. For a list and description of such risks and uncertainties, see the reports and other filings by Digital Realty Trust, Inc. and Digital Realty Trust, L.P. with the SEC, including Digital Realty Trust, Inc. and Digital Realty Trust, L.P.’s combined Annual Report on Form 10-K for the year ended December 31, 2025 and other documents subsequently filed by the company with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

AUSTIN, Texas, June 17, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, today announced the availability of ServiceFabric® Model Context Protocol (MCP), an emerging open protocol that helps make infrastructure programmable for Private AI environments. ServiceFabric MCP extends Digital Realty's global interconnection platform with programmable controls designed for enterprise AI deployments. The launch reflects Digital Realty’s view that the next era of enterprise AI will be defined by physical infrastructure—power density, advanced cooling, and sovereign placement—made programmable through open, AI-native control.

AI Private Exchange (AIPx), the underlying architecture behind ServiceFabric MCP, includes patented policy and orchestration technology for programmable AI infrastructure. This announcement builds on Digital Realty’s broader Foundation for AI strategy focused on enabling enterprise AI at global scale.

Model Context Protocol (MCP) is an emerging open standard that can enable AI systems and agents to securely interact with infrastructure, applications, and enterprise services through standardized interfaces. These capabilities help enterprises securely connect AI workloads, data, and infrastructure across distributed environments. Across more than 800 Digital Realty and third-party data centers, ServiceFabric MCP extends Digital Realty’s global platform into a programmable foundation for deploying and managing enterprise AI infrastructure at scale.

“Our strategy is simple: provide the foundational infrastructure enterprises need for sustained AI workloads, while enabling flexible scale as demand grows. ServiceFabric MCP extends the foundation of AIPx with programmable controls and agent-ready interfaces, and our patent position reflects the long-term investment we’ve made in this architecture,” said Chris Sharp, Chief Technology Officer, Digital Realty.

Validated Across Digital Realty's Platform and Ecosystem
ServiceFabric MCP and AIPx, Digital Realty's private interconnection fabric for AI workloads, are being validated across internal deployments, enterprise AI environments, and partner ecosystem implementations.

“Enterprise adoption of Private AI infrastructure has reached an inflection point. Production AI workloads now demand control over data movement, policy enforcement, and partner integration that public cloud APIs alone cannot deliver. Providers combining global footprint with programmable, agent-ready interconnection are well positioned to support this next wave of enterprise AI investment,” said Mary Johnston Turner, Research VP, IDC.

Digital Realty has launched AI solutions with partners including ePlus, Lenovo, and Dell, built on infrastructure powered by technologies from NVIDIA and AMD. Additional providers are in active development.

Proven Internally, Validated by Customers
Digital Realty operates ServiceFabric MCP and related AIPx across its own infrastructure environments, using internal AI workloads and operational deployments. These deployments help Digital Realty validate and orchestrate its own AI infrastructure. Insights from these internal deployments are now helping inform customer AI infrastructure implementations.

“At See All AI, we are developing advanced medical imaging AI systems that demand both massive compute performance and highly scalable data infrastructure. Digital Realty's Borton campus and ServiceFabric provide the high-bandwidth, low-latency connectivity required to support our NVIDIA DGX B200 environment, enabling secure movement of large imaging datasets, dynamic connectivity to cloud resources, and the operational resiliency needed for production healthcare AI,” said T. Michael Thornton, Chief Executive Officer, See All AI.

What ServiceFabric MCP Delivers
ServiceFabric MCP provides an AI-native control surface across four capability areas:

Design and provisioning: enabling intent-based connectivity design, provisioning, and API access through MCP.Discovery and telemetry: allowing real-time capacity, topology, and inventory discovery, plus live network telemetry signals covering throughput, latency, and link health.Identity and security: enabling identity and access control via OAuth 2, with programmable controls over network connectivity.Operations integration: allowing agent-assisted diagnostics and troubleshooting, with integration hooks for Slack, Microsoft Teams, Splunk, and Datadog. Open by Design
ServiceFabric MCP is built for how enterprises deploy AI – across public cloud, network service providers, bare metal platforms, and other colocation environments – supporting commercial, open-source, and future AI models. Connections remain private, operating at Layer 2 and Layer 3 with strong authentication and access controls. Enterprises are not required to operate exclusively in Digital Realty facilities, and they are not required to commit to a single AI model.

The First Programmable Surface of a Foundation for AI Architecture
ServiceFabric MCP is designed as the first programmable surface of Digital Realty’s broader Foundation for AI architecture. Over time, that architecture is expected to extend beyond programmable networking into space, power, inventory, partner ecosystems, and sovereign deployment patterns. Digital Realty sees ServiceFabric MCP as a key part of its broader private AI infrastructure strategy.

Availability
By exposing programmable controls and agent-ready interfaces across the global platform, ServiceFabric MCP is designed to help shorten enterprise time-to-deployment for Private AI workloads and support a broader ecosystem of customers and partners building AI infrastructure on Digital Realty's platform. ServiceFabric MCP is available today.

Enterprises designing or operating Private AI environments can engage Digital Realty to explore capacity, interconnection, and integration options across the company's global platform. Learn more at https://www.digitalrealty.com/platform-digital/connectivity/service-fabric.

About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

For Additional Information

Media Contacts
Helen Bleasdale
Digital Realty
+1 (737) 267-6822
[email protected]

Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
+1 (737) 281-0101
[email protected]

Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the company’s strategy, expectations, anticipated benefits of ServiceFabric MCP and related technologies, availability and participation of partners, emerging technologies including AI, expected growth in digital transformation, customer demand for company’s products and services and growth, and adoption of private AI infrastructure. For a list and description of risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Digital Realty Trust?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Digital Realty Trust (DLR - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $2.02 a share 30 days away from its upcoming earnings release on July 23, 2026.

By taking the percentage difference between the $2.02 Most Accurate Estimate and the $1.98 Zacks Consensus Estimate, Digital Realty Trust has an Earnings ESP of +1.95%. Investors should also know that DLR is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

DLR is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is Arch Capital Group (ACGL - Free Report) .

Slated to report earnings on August 4, 2026, Arch Capital Group holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $2.68 a share 42 days from its next quarterly update.

For Arch Capital Group, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.46 is +9.02%.

Because both stocks hold a positive Earnings ESP, DLR and ACGL could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

On June 24, 2026, we present a DCF analysis for Digital Realty Trust Inc DLR , which has shown a price performance of +27.8% year-to-date and +13.1% over the past year. The current price of DLR stands at $195.00.

DCF Earnings-based intrinsic value: $13.46 vs price $195.00 (margin of safety: -980.3%) DCF FCF-based intrinsic value: $83.98 vs price $195.00 (second opinion) GF Score™: 86/100, indicating a high reliability of the DCF inputs What Is DLR Worth? DCF Earnings-Based Model The DCF earnings-based model for DLR uses a two-stage approach to estimate the intrinsic value of the stock. The first stage considers a growth phase over the next ten years, where the earnings per share (EPS) is expected to grow at a rate of 0.4% per year. The second stage assumes a terminal growth rate of 4% for the following ten years. The discount rate applied is 11%, which combines the risk-free rate and the equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $1.56 10-Year Growth Rate 0.4% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 0.4%, discounted at 11% $9.38 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $4.08 Intrinsic Value Growth + Terminal $13.46 With the current price at $195.00 compared to the intrinsic value of $18.05, DLR appears significantly overvalued, with a margin of safety of -980.3%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further analysis, visit the DLR DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for DLR is calculated at $83.98. When comparing this to the earnings-based intrinsic value of $13.46, both models indicate that DLR is significantly overvalued, with a margin of safety of -132.2%. This suggests a consensus on the overvaluation of the stock based on different valuation methodologies.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for DLR is calculated at $166.67, providing a third perspective on the valuation of the stock. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models (DCF earnings, DCF FCF, and GF Value™) agree on the overvaluation of DLR, reinforcing the need for caution among investors. For more details, visit the GF Value™ page.

What Does DLR's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtested data from 2006 to 2021.

Metric Rating GF Score™ 86/100 Financial Strength 5/10 Profitability 7/10 Growth 9/10 Valuation 6/10 Momentum 10/10 With a predictability rank of 1/5 stars, it indicates that the DCF model may be less reliable for this stock. For further insights, visit the DLR stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as DLR, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not reflect future market conditions accurately.

What This Means for Investors In summary, the three valuation models (DCF earnings, DCF FCF, and GF Value™) consistently indicate that Digital Realty Trust Inc DLR is overvalued at its current price of $195.00. Investors should exercise caution and consider the significant discrepancies between market price and intrinsic values derived from these models. For the full DCF analysis, visit the DLR DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is DLR's intrinsic value based on DCF?

Answer: earnings-based $18.05, FCF-based $83.98

Is DLR overvalued or undervalued?

Answer: DLR is overvalued based on DCF and GF Value™ consensus.

How reliable is the DCF model for DLR?

Answer: The predictability rank is 1/5, indicating lower reliability of the DCF model for DLR.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

May 12, 2026 16:05 ET  | Source: Digital Realty Trust, L.P.

AUSTIN, Texas, May 12, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, announced today its board of directors has authorized quarterly cash dividends for common and preferred stock for the second quarter of 2026.

Common Stock
Digital Realty’s board of directors authorized a cash dividend of $1.22 per share to common stockholders of record as of the close of business on June 15, 2026. The common stock cash dividend will be paid on June 30, 2026.

Series J Cumulative Redeemable Preferred Stock
The company’s board of directors authorized a cash dividend of $0.328125 per share to holders of record of the company’s 5.250% Series J Cumulative Redeemable Preferred Stock as of the close of business on June 15, 2026. The Series J Cumulative Redeemable Preferred Stock cash dividend will be paid on June 30, 2026.

Series K Cumulative Redeemable Preferred Stock
The company’s board of directors authorized a cash dividend of $0.365625 per share to holders of record of the company’s 5.850% Series K Cumulative Redeemable Preferred Stock as of the close of business on June 15, 2026. The Series K Cumulative Redeemable Preferred Stock cash dividend will be paid on June 30, 2026.

Series L Cumulative Redeemable Preferred Stock
The company’s board of directors authorized a cash dividend of $0.325000 per share to holders of record of the company’s 5.200% Series L Cumulative Redeemable Preferred Stock as of the close of business on June 15, 2026. The Series L Cumulative Redeemable Preferred Stock cash dividend will be paid on June 30, 2026.

About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
(737) 281-0101
[email protected]

Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the amount and timing of expected payment of dividends on our common stock and preferred stock. For a list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

LONDON & NEW YORK & HONG KONG--(BUSINESS WIRE)--Options Technology, the leading managed IT services and technology solutions provider, today announced it has been named Digital Realty's Partner of the Year for EMEA for 2025. The award, presented as part of Digital Realty's annual Partner Awards program, recognizes channel and alliance partners who drive the most meaningful impact for Digital Realty and its customers.

The recognition reflects the significant expertise that Options' team and technology bring in helping enterprises achieve their digital transformation and AI ambitions. The partnership has grown increasingly global in scope, with both organizations sharing a vision for continued expansion and collaboration.

Danny Moore, President and CEO of Options Technology, said: "We are truly honored to be recognized as Digital Realty's EMEA Partner of the Year for 2025. This award is a testament to the dedication of our team and the strength of our relationship with Digital Realty. Together, we are helping enterprises navigate the complexities of digital transformation and unlocking the power of AI, and next-generation compute like quantum computing. We both believe we are just getting started."

Jules Johnston, Senior Vice President, Global Channels at Digital Realty: "Options is a world-class partner for global financial services enterprises who delivers truly innovative solutions that draw on their deep expertise in AI and quantum computing. The strength of our partnership with Options enables both our companies to provide our shared customers with a distinct competitive advantage and benefit of our combined expertise at this critical inflection point in technology.”

Samuel Farmer, President, EMEA, Options Technology, commented: "We are delighted to be recognized as Digital Realty's EMEA Partner of the Year for 2025. We have been working closely with Jules Johnston, Phil Barnett, and the broader team to strengthen our offering across financial services in EMEA. Given the rapid acceleration in demand for our PrivateMind AI solution, it further demonstrates the importance of having their continued commitment to the partnership.

Together, we are helping enterprises navigate the complexities of digital transformation and unlocking the power of AI, and next-generation compute like quantum computing. We both believe we are just getting started."

This announcement comes after several recent developments for Options, including the appointment of Larry Leibowitz as Chairman of the Options Board, the enhancement of its APAC connectivity with direct access to the Japan Alternative Market (JAX) via AtlasFabric, and the company’s recent acquisition of Crossvale.

Options Technology:
Options Technology (Options) is a financial technology company at the forefront of banking and trading infrastructure. We serve clients globally with offices in New York, London, Paris, Belfast, Cambridge, Chicago, Hong Kong, Tokyo, Singapore, Dubai, Sydney and Auckland. At Options, our services are woven into the hottest trends in global technology, including high-performance Networking, Cloud, Security, and AI (Artificial Intelligence).

www.options-it.com

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PT Series showcased in production-grade AI infrastructure environment at Digital Realty’s new London Innovation Lab

LONDON & AUSTIN, Texas--(BUSINESS WIRE)--ORCA Computing a leading quantum computing company, announced today its participation in the newly launched Digital Realty Innovation Lab (DRIL) in London, a next-generation infrastructure testing environment developed by Digital Realty, the world’s largest cloud-and carrier-neutral data center provider.

“Having ORCA integrated within the DRIL helps customers explore practical pathways to hybrid quantum-classical computing,” said Seamus Dunne, Managing Director, Digital Realty UK and Ireland.

Share The DRIL enables customers to test emerging AI and quantum technologies in live operational conditions before full-scale deployment, helping reduce risk and accelerate adoption. By bringing this capability to London, Digital Realty is expanding access to advanced infrastructure testing for organizations building next-generation compute environments across EMEA.

The collaboration with Digital Realty represents another significant commercial milestone for ORCA, as enterprises increasingly explore how quantum acceleration can integrate alongside AI and HPC infrastructure. As part of the initiative, ORCA’s PT Series photonic quantum systems will operate alongside leading AI and infrastructure technologies in a live environment, without the need for specialized cooling or infrastructure.

“Working with ORCA gives customers direct access to one of the UK’s leading quantum innovators and demonstrates how quantum technologies can be integrated into real-world enterprise and AI infrastructure environments today,” said Seamus Dunne, Managing Director, Digital Realty UK and Ireland. “Having ORCA integrated within the DRIL helps customers explore practical pathways to hybrid quantum-classical computing.”

ORCA’s latest deployment is proof of the company’s data center-native approach to photonic quantum computing. This partnership solidifies ORCA’s position as a leading quantum company and one of the only full-stack quantum computing companies able to quickly and effectively deploy in commercial environments.

“ORCA was built around the idea that quantum computing should integrate directly into the infrastructure enterprises already rely on for AI and high-performance computing,” said Richard Murray, PhD, Co-founder and Chief Executive Officer of ORCA Computing. “As a London-based quantum company, it is exciting to be part of the launch of the Digital Realty Innovation Lab and to demonstrate our systems operating inside a commercial data center environment.”

This announcement reinforces ORCA’s continued momentum in advancing hybrid quantum–classical integration across generative AI and enterprise environments. Together with ORCA’s growing ecosystem of strategic collaborations including, NVIDIA, Toyota Tsusho, SiC Systems and JIJ, ORCA continues to expand the deployment of photonic quantum systems within enterprise data center environments and real-world commercial deployments.

About ORCA Computing

ORCA Computing, headquartered in London, UK, with offices in the United States, is a leading developer and provider of full-stack photonic quantum computing systems. The company delivers an innovative approach to quantum computing, providing robust, high-performance, and data center-standard systems for machine learning, generative AI and optimization workloads. ORCA Computing has successfully delivered ten on-premises quantum computers to leading global customers, including the UK National Quantum Computing Centre, Montana State University, and the Poznan Supercomputing and Networking Center.

For more information, please visit https://orcacomputing.com

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Key Takeaways DLR shares gained 21.4% in six months, outpacing the industry's 7.8% growth.DLR signed $707M in Q1 bookings and grew its lease backlog to $1.8B through 2027 and 2028.DLR raised 2026 Core FFO guidance to $8.00-$8.10 and has 1.2 GW under construction, 61% pre-leased. Digital Realty (DLR - Free Report) shares have risen 19% in the past six months compared with the industry’s 7.8% growth.

Digital Realty is benefiting from strong cloud and AI-driven demand, which is supporting robust leasing activity, record bookings and a growing backlog that enhances revenue visibility. The company continues expanding its global footprint through acquisitions and development projects while maintaining significant pre-leased capacity. Strong liquidity, improving leverage metrics, access to low-cost and diversified capital sources and higher 2026 core FFO guidance position Digital Realty for sustained long-term growth.

Analysts seem positive about this Zacks Rank #3 (Hold) company, with the Zacks Consensus Estimate for its 2026 funds from operations (FFO) per share revised marginally northward to $8.06 over the past month.

Image Source: Zacks Investment Research

Factors Behind DLR Stock’s Price Surge: Will This Continue?Digital Realty continues to benefit from strong demand for data center infrastructure as enterprises accelerate cloud adoption, AI deployments and IT outsourcing. The company serves a highly diversified customer base spanning cloud, content, information technology, network and enterprise industries. As of March 31, 2026, Digital Realty operated 309 data centers across more than 55 metropolitan areas worldwide and supported more than 5,500 customers. Portfolio occupancy stood at 90.1%, while the addition of 116 new customer logos during the first quarter highlights the breadth of demand and the recurring nature of its revenue stream.

Leasing activity remains a key growth driver. During the first quarter of 2026, Digital Realty signed $707 million of total bookings at 100% share, including $98 million from the 0-1 megawatt and interconnection category. The company’s backlog of signed but not yet commenced leases increased to $1.8 billion, providing revenue visibility well into 2027 and 2028. Positive cash renewal spreads of 5% further demonstrate pricing power, while management’s decision to raise 2026 Core FFO guidance to $8.00-$8.10 per share reflects confidence in future earnings growth.

Digital Realty is expanding its global footprint through strategic land acquisitions and connectivity-focused investments. During the first quarter of 2026, the company acquired development sites in Atlanta, Portland and Milan while strengthening its European presence through the acquisition of Telepoint in Bulgaria. Subsequent to the first quarter, it also expanded its presence in Malaysia through acquisitions in Cyberjaya and opened its first data center in Barcelona in May 2026. These investments added more than one gigawatt of future capacity and position the company to capitalize on growing hyperscale, cloud and AI-related demand across key markets.

Development activity remains robust. Management reported approximately 1.2 gigawatts of capacity under construction as of March 31, 2026, with 61% already pre-leased and expected to generate an average yield of 11.4%. This level of pre-leasing reduces lease-up risk and supports future revenue commencements. To support the pipeline, Digital Realty increased its 2026 development capital expenditure outlook to $3.5-$4.0 billion, net of partner contributions.

The company maintains financial flexibility to fund its growth initiatives. As of March 31, 2026, Digital Realty held $2.43 billion in cash and cash equivalents while leverage improved to 4.7x net debt-to-Adjusted EBITDA. Its largely fixed-rate debt structure carries a low 2.8% weighted-average coupon and a 4.7-year average maturity. Combined with equity issuance and planned asset recycling activities, this liquidity position provides ample capacity to support future development and expansion plans.

Given the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term.

Key Risks for DLR StockCompetition from other industry players is likely to lead to aggressive pricing pressure and weigh on Digital Realty’s prospects. A substantial debt burden adds to its woes.

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are American Tower (AMT - Free Report) and Lamar Advertising (LAMR - Free Report) , each carrying a Zacks Rank of #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for AMT’s 2026 FFO per share is pegged at $10.95, which indicates year-over-year growth of 1.77%.

The Zacks Consensus Estimate for LAMR’s full-year FFO per share is pinned at $8.81, which suggests an increase of 6.66% from the year-ago period.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

Digital Realty Trust, Inc. (DLR) Presents at Nareit REITweek: 2026 Investor Conference Transcript