DLR jumps 15.4% in three months, fueled by a record leasing backlog and expansion into key data center hubs.
Digital Realty: Its Preferred Stocks, Bonds, And My Top Pick For Return To Risk
DLR shares rise 14.9% in three months, powered by global expansion, leasing gains and rising demand for AI-driven data centers.
Digital Realty Trust has delivered strong leasing activity, pricing power, and financial results, with a global footprint and record $919 million backlog supporting future growth. The company's robust balance sheet, reduced leverage, and $5 billion in liquidity underpin its well-covered 2.8% dividend yield and financial stability. Current valuation at a forward P/FFO of 24.7 suggests much of the good news is priced in, making DLR fairly valued at present.
Digital Realty Trust, Inc. (NYSE:DLR ) NAREIT REITweek 2025 June 3, 2025 2:30 PM ET Company Participants Andrew P. Power - President, CEO & Director Conference Call Participants John Christopher Hodulik - UBS Investment Bank, Research Division John Christopher Hodulik Okay.
Shares of Digital Realty DLR have risen 16.6% in the past three months, outperforming the industry's 4.7% growth.
DLR to gain from its global footprint of data centers with growing digital transformation, cloud computing and the proliferation of AI.
DLR is well-poised to grow amid robust demand for data centers, accretive acquisitions and balance-sheet strength. However, high competition is a concern.
DLR's strategic capital raises through joint ventures/partnerships/investment funds have paid off handsomely, as observed in the growing bookings at favorable rates. With its backlog stretching through 2027, we believe that the ongoing AI/ data center boom remains durable, as similarly reiterated by numerous market players. Despite the higher inflationary and elevated borrowing cost environment, DLR's management has been highly competent in driving strategic growth indeed.
Investors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.
DLR's Q1 results reflect steady leasing activity amid high demand and better rental rates, though elevated operating expenses affect the performance to an extent.
Digital Realty Trust, Inc. (NYSE:DLR ) Q1 2025 Earnings Conference Call April 24, 2025 5:00 PM ET Company Participants Jordan Sadler - Senior Vice President, Public & Private Investor Relations Andy Power - President & Chief Executive Officer Matt Mercier - Chief Financial Officer Greg Wright - Chief Investment Officer Chris Sharp - Chief Technology Officer Colin McLean - Chief Revenue Officer Conference Call Participants Jon Atkin - RBC Capital Markets Richard Choe - JPMorgan Ari Klein - BMO Capital Markets Matt Niknam - Deutsche Bank Alex Waters - Bank of America Michael Elias - TD Cowen Jim Schneider - Goldman Sachs David Guarino - Green Street Irvin Liu - Evercore ISI Eric Luebchow - Wells Fargo Vikram Malhotra - Mizuho Michael Rollins - Citi Nick Del Deo - MoffettNathanson Operator Good afternoon, and welcome to the Digital Realty First Quarter 2025 Earnings Call. Please note, this event is being recorded.