Digital Realty Trust Stock Earnings Reports

Digital Realty delivered a very strong start to 2026 with record leasing activity across multiple product categories and regions. Key operational highlights: $707M of new leases signed in the quarter ($423M at DLR share), a record $98M in 0–1 MW + interconnection signings (21% AI-related within that band), 116 new logos added, and the largest lease in company history — a 200 MW AI inference deal in Charlotte. Backlog rose to $1.8B ( $1.0B at DLR share) providing multi-year revenue visibility. The development pipeline expanded materially to ~$16.5B (1.2 GW under construction, ~61% pre-leased) while the company reported delivery of 63 MW (84% pre-leased) and started ~464 MW (~50% pre-leased). Financial performance beat expectations: Core FFO of $2.04/sh (up 15% YoY) and management raised 2026 Core FFO guidance to $8.00–$8.10 (midpoint ≈ 9% growth vs. 2025). Balance sheet and capital strategy: leverage fell to a multi-year low of 4.7x debt/adjusted EBITDA, AFFO payout ratio ~64%, ~ $10B of capital available for hyperscale development after closing a $3.25B fund, and continued expansion of private capital / JV platforms. Spending and pipeline growth are accelerating: FY26 net CapEx guidance raised to $3.5B–$4.0B (midpoint +$250M), with $500M–$1B of dispositions/JV capital expected. Management notes industry constraints (power, labor, supply chain, community pushback) but says Digital Realty’s global footprint, connectivity, land holdings and execution track record position it to capture both enterprise and hyperscale AI-driven demand. Risks include energy and supply-chain volatility (most utilities ~90% reimbursed), execution on large developments, and geopolitical/market uncertainties.