Digital Realty Reports Third Quarter 2025 Results

Core Insights - Digital Realty reported strong financial results for Q3 2025, with record Core FFO per share and significant growth in revenue and Adjusted EBITDA [3][4][6] Financial Results - Revenues reached $1.6 billion, marking a 6% increase from the previous quarter and a 10% increase year-over-year [3] - Net income was $64 million, with net income available to common stockholders at $58 million, translating to $0.15 per share, compared to $2.94 per share in the previous quarter [3][9] - Adjusted EBITDA was $868 million, a 5% increase from the previous quarter and a 14% increase year-over-year [4] - Funds From Operations (FFO) totaled $570 million, or $1.65 per share, down from $1.75 per share in the previous quarter but up from $1.55 per share year-over-year [4][9] - Core FFO per share was $1.89, slightly up from $1.87 in the previous quarter and significantly up from $1.67 year-over-year [5][9] Leasing Activity - Total bookings in Q3 2025 are expected to generate $201 million in annualized GAAP rental revenue, with Digital Realty's share at $162 million [7][9] - The backlog of signed-but-not-commenced leases was $852 million in annualized GAAP base rent at quarter-end [8][9] - Renewal leases signed during the quarter represented $192 million in annualized cash rental revenue, with rental rates increasing by 8.0% on a cash basis [8][9] Investment Activity - Digital Realty sold non-core data centers in Atlanta, Boston, and Miami for approximately $90 million [12] - The company acquired land in the Los Angeles metro area for about $49 million, expected to support 32 megawatts of IT capacity [13] - Additional land parcels near the Franklin Park campus were acquired for approximately $18 million, expected to support over 40 megawatts of incremental IT capacity [13] Balance Sheet - Total debt outstanding was approximately $18.2 billion, with a net debt-to-Adjusted EBITDA ratio of 4.9x [15] - The company raised its 2025 Core FFO per share outlook to a range of $7.32 - $7.38 [17][19]