Wall Street has a habit of taking stories and pushing them to extreme levels. If you are interested in the AI opportunity, you may want to buy a REIT over a high-flying tech stock.
Digital Realty Trust maintains strong financial stability and credibility in Q4 2025, with no significant negative changes in key metrics or credit ratings. DLR's market-adjusted asset coverage ratio stands at 466.28%, and its expected AFFO yield is 4.06%, reflecting robust asset quality and earnings capacity. I recommend a 'hold' on DLR's preferred stocks, which yield 6.18-6.32% and trade below par, while common shares have recently gained.
Digital Realty Trust demonstrates accelerating profitable growth, with FQ4'25 bringing forth growing bookings at higher rates, expanded cash renewal rates, and record high multi-year backlogs. This is while offering an outsized FY2026 revenue/FFO per share guidance, with it lending credibility to the multi-year AI-related mega spending trends. Readers must not forget that DLR maintains disciplined capital management and a stable share count, with the prior JV strategy also triggering a healthier balance sheet.
DLR beats Q4 estimates as FFO rises 7.5% year over year, revenues jump 13.8%, and leasing momentum drives higher rental rates across its data centers.
Digital Realty Trust, Inc. (DLR) Q4 2025 Earnings Call Transcript
The headline numbers for Digital Realty Trust (DLR) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Besides Wall Street's top-and-bottom-line estimates for Digital Realty Trust (DLR), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2025.
DLR heads into Q4 earnings with revenue and FFO growth expected, supported by strong data center demand and steady leasing momentum.
Digital Realty Trust (DLR) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DLR crossed above the 200-day moving average, suggesting a long-term bullish trend.
DOC reports $925M in deals, buying a South San Francisco campus for $600M and selling $325M of stabilized outpatient assets.
Digital Realty Trust (DLR) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DLR broke out above the 50-day moving average, suggesting a short-term bullish trend.
DLR's AI-fueled demand, record bookings and global pipeline position the data-center REIT for stronger upside than its traditional net-lease peer O.