Digital Realty Trust (NYSE:DLR) Announces Earnings Results

Digital Realty Trust (NYSE:DLR) announced its quarterly earnings results on Thursday. The real estate investment trust reported $1.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.98 by ($0.77), FiscalAI reports. The company had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.66 billion. Digital Realty Trust had a net margin of 21.73% and a return on equity of 6.05%. The business’s revenue was up 28.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.87 earnings per share. Digital Realty Trust updated its FY 2026 guidance to 8.150-8.200 EPS.

Here are the key takeaways from Digital Realty Trust’s conference call:

• Digital Realty posted record second-quarter results, with core FFO ex-promote of $2.13 per share, up 14% year over year, and raised full-year 2026 core FFO guidance again to $8.15-$8.20 per share.
• Leasing momentum was strong across the portfolio, highlighted by record $108 million of zero-to-1 MW plus interconnection bookings and record renewal spreads above 25%, underscoring pricing power in supply-constrained markets.
• The company ended the quarter with a record $1.9 billion backlog and said contracted commencements should drive growth into 2027 and 2028, giving management confidence in sustained double-digit FFO growth.
• Digital Realty continues to expand its hyperscale and development footprint, including new leases after quarter-end and projects such as Kansas City and Northern Virginia, while its development pipeline rose to 1.4 GW under construction and is 63% pre-leased.
• Management also highlighted strategic transactions, including the Columbia Capital acquisition and Blackstone hyperscale deal, which are expected to expand fee income, improve capital flexibility, and support future growth.

Digital Realty Trust Trading Up 15.3%

Shares of Digital Realty Trust stock traded up $27.50 on Friday, reaching $206.84. The company had a trading volume of 5,603,468 shares, compared to its average volume of 2,406,619. The firm has a market cap of $72.69 billion, a price-to-earnings ratio of 54.40, a P/E/G ratio of 4.86 and a beta of 1.03. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.59 and a quick ratio of 1.59. The firm’s 50-day moving average price is $184.35 and its two-hundred day moving average price is $180.59. Digital Realty Trust has a 1 year low of $146.23 and a 1 year high of $208.14.

Digital Realty Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were issued a $1.22 dividend. The ex-dividend date was Monday, June 15th. This represents a $4.88 dividend on an annualized basis and a dividend yield of 2.4%. Digital Realty Trust’s payout ratio is 128.76%.

Institutional Trading of Digital Realty Trust

A number of institutional investors have recently bought and sold shares of DLR. State Street Corp increased its position in Digital Realty Trust by 1.1% during the fourth quarter. State Street Corp now owns 20,649,053 shares of the real estate investment trust’s stock valued at $3,219,256,000 after acquiring an additional 231,933 shares during the last quarter. Northern Trust Corp lifted its holdings in shares of Digital Realty Trust by 2.5% in the 4th quarter. Northern Trust Corp now owns 5,787,922 shares of the real estate investment trust’s stock worth $895,449,000 after acquiring an additional 140,388 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Digital Realty Trust by 3.3% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,814,566 shares of the real estate investment trust’s stock worth $744,879,000 after purchasing an additional 151,660 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Digital Realty Trust by 686.0% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,807,512 shares of the real estate investment trust’s stock worth $831,123,000 after purchasing an additional 4,195,862 shares during the period. Finally, Invesco Ltd. grew its holdings in Digital Realty Trust by 8.5% during the 4th quarter. Invesco Ltd. now owns 4,433,515 shares of the real estate investment trust’s stock valued at $685,909,000 after purchasing an additional 346,200 shares during the last quarter. 99.71% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on DLR shares. Wells Fargo & Company lifted their target price on Digital Realty Trust from $195.00 to $220.00 and gave the stock an “overweight” rating in a report on Tuesday, April 21st. Guggenheim raised Digital Realty Trust from a “neutral” rating to a “buy” rating and set a $200.00 price target for the company in a research note on Wednesday, July 15th. Wolfe Research raised their price target on Digital Realty Trust from $194.00 to $211.00 and gave the company an “outperform” rating in a report on Monday, April 6th. HSBC downgraded Digital Realty Trust from a “buy” rating to a “hold” rating and lifted their price objective for the stock from $193.00 to $210.00 in a research note on Monday, April 27th. Finally, Barclays upped their price objective on Digital Realty Trust from $189.00 to $197.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Digital Realty Trust presently has a consensus rating of “Moderate Buy” and an average price target of $217.21.

More Digital Realty Trust News

Here are the key news stories impacting Digital Realty Trust this week:

• Positive Sentiment: Digital Realty reported second-quarter FFO of $2.13 per share, topping estimates, while revenue of $1.92 billion also beat expectations and rose 28.9% year over year. Article: Digital Realty Trust (DLR) Beats Q2 FFO and Revenue Estimates
• Positive Sentiment: The company raised full-year FFO guidance to $8.15-$8.20 and lifted revenue guidance to about $6.85 billion-$7.0 billion, signaling management confidence in ongoing leasing momentum. Article: Digital Realty raises annual FFO forecast on robust data center demand
• Positive Sentiment: Management said record backlog, strong bookings, and higher renewal rents are supporting growth, which should help future cash flow and earnings visibility. Article: DLR Q2 FFO Beats on Leasing Strength & Renewal Rent, ’26 View Raised
• Positive Sentiment: TD Cowen upgraded Digital Realty from hold to buy and set a $222 price target, reinforcing the bullish view that demand tied to AI infrastructure remains strong. Article: TD Cowen upgrade coverage
• Neutral Sentiment: The quarter included a mixed result on EPS, as reported earnings missed consensus even while revenue and FFO beat estimates, so investors may focus more on operating strength and guidance than the headline EPS miss.

Digital Realty Trust Company Profile

Digital Realty Trust, Inc (NYSE: DLR) is a real estate investment trust that owns, acquires and operates carrier-neutral data centers and provides related colocation and interconnection solutions. The company focuses on large-scale, mission-critical facilities that support the physical infrastructure needs of cloud providers, enterprises, network operators and content companies. Digital Realty’s offerings are designed to enable secure, reliable and highly available IT infrastructure with an emphasis on power density, cooling, and physical security.

Digital Realty’s product set spans wholesale data center space, turnkey build-to-suit facilities, and retail colocation suites, complemented by interconnection services that allow customers to establish private and public connections to networks, cloud on-ramps and other ecosystem partners.