Digital Realty Trust Stock Earnings Reports

Digital Realty started 2026 with a very strong quarter: leasing was the company's second-highest ever at ~$707M (100% basis; $423M at DLR share), highlighted by the largest single lease in company history — a 200 MW AI inference deal with a AA-rated hyperscaler in Charlotte. Backlog reached a record $1.8 billion ($1.0 billion at DLR share), providing visibility into 2027–2028. The development pipeline scaled to $16.5 billion (100% basis) with ~1.2 GW under construction (61% pre-leased) and attractive expected unlevered yields (~11.4%). Financial results beat expectations with Core FFO of $2.04/share (up ~15% YoY) and management raised full‑year 2026 Core FFO guidance to $8.00–$8.10 (midpoint implying ~9% growth). The company reduced leverage to a multiyear low (debt/adjusted EBITDA ~4.7x) and continues to expand its private capital programs (including a $3.25B hyperscale fund) to fund large-scale hyperscale and interconnection-led development. Geographic expansion and connectivity investments continued (entering Sofia, Milan, Cyberjaya/Malaysia and land adds in Atlanta & Hillsboro). Operating headwinds noted include higher operating expenses (R&M, labor) and industry-wide constraints (power availability, supply chain, skilled labor and local/community permitting), but Digital Realty says most utility cost exposure is reimbursed by customers and remaining energy risk is largely hedged through 2026. Management emphasized durable, diversified demand across 0–1 MW colo/interconnection, mid-sized (1–10+ MW) enterprise deals, and very large hyperscale leases (tens to hundreds of MW), with AI (particularly inference) meaningfully present across deal sizes.