Digital Realty Trust Stock Earnings Reports

Digital Realty reported a very strong Q3 2025: record core FFO per share of $1.89 (up 13% YoY; $1.85 constant currency), double-digit growth in revenue and adjusted EBITDA, and accelerating same-capital cash NOI (8% YoY). Leasing momentum was broad-based across regions and products, with $201 million of bookings (100% share), a near-record backlog of $852 million (Digital share) and continued strength in the 0–1 MW plus interconnection product (AI and high-connectivity demand). The company has ~5 GW of contiguous buildable IT capacity (power bank) across 40 strategic metros, which management expects will be highly sought after for AI and latency-sensitive workloads as training shifts toward inference and deployment. Development activity remains substantial (net development spend ~ $700M in Q3; ~50 MW delivered in quarter; ~730 MW under construction; ~$9.7B gross pipeline at ~11.6% expected stabilized yield). Balance sheet and liquidity are strong: leverage down to 4.9x, nearly $7B liquidity (plus $15B private capital available via JVs/fund), and well-laddered maturities. Management raised full-year core FFO guidance (new range $7.32–$7.38; ~10% y/y at midpoint; ~8%+ constant currency) and increased midpoints for revenue, adjusted EBITDA, and re-leasing spread guidance. Key strategic themes: (1) structural, diversified demand driven by cloud, AI and digital transformation; (2) constrained supply in major metros (power/grid/permitting) that favors Digital Realty’s footprint; (3) expanding private capital initiatives (hyperscale fund/JVs) to fund large-scale builds while targeting a ~5.5x long-term leverage objective; (4) ongoing investments in sustainability (EcoVadis Gold, renewable energy deals). Risks called out include market/policy constraints on power delivery, seasonality (Q4 R&M), FX effects and upcoming debt maturities (notably EUR ~1.1B Jan 2026).