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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.
