DLR's 50 MW Singapore expansion aims to meet rising AI, cloud and enterprise workload demand with AI-ready infrastructure.
Hyperscalers are signing multi-year leases at a pace that is rewriting the income playbook, and three REITs are quietly collecting the rent on every server warehouse in the deal.
DLR is benefiting from AI, cloud and enterprise demand, with record bookings, backlog and a strong development pipeline supporting growth.
DLR expands its Swiss campus with ZUR4, a 15MW data center designed for high-density deployments and AI workloads, with completion planned for 2028.
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 20-day moving average, suggesting a short-term bullish trend.
DLR's growth outlook is strengthening on AI, cloud and enterprise demand, but rich valuation and a larger development program raise execution stakes.
DLR's 9.9% monthly gain reflects record leasing backlog, strong renewal pricing and a larger pre-leased development pipeline.
Digital Realty Trust is rated 'hold' due to its premium valuation, with common shares yielding a forward AFFO of only ~3.97%. DLR's preferred stocks offer attractive current yields above 6.6% and investment-grade credit ratings, trading below par and outperforming peers on yield. DLR maintains a robust capital structure: 93% fixed-rate debt, a net debt/EBITDA of 4.9x, and fixed cost coverage of 6.5x.
Digital Realty Trust is rated Buy, leveraging scarce powered-campus assets and a global, interconnected platform to capture AI-driven data center demand. DLR's record $1.6B contracted rent backlog, robust preleasing, and diversified product mix support 11% core FFO-per-share growth guidance for 2026. DLR's development pipeline, power procurement, and private capital partnerships underpin forward growth, with fair value estimated at $205 per share.
Digital Realty tops Q2 estimates as a record backlog, strong bookings and higher renewal rents drive growth, prompting a higher 2026 core FFO outlook.
Digital Realty Trust, Inc. (DLR) Q2 2026 Earnings Call Transcript