Digital Realty Leasing Gains May Be Limited By Growth Constraints, Analyst Warns

Group 1 - Digital Realty Trust, Inc. plans to release its fourth quarter 2025 results on February 5, 2026 [1] - BofA Securities analyst Michael Funk downgraded the company from Buy to Neutral and reduced the price forecast from $210 to $170 [1] - The company has lagged in capturing AI-driven demand, with significant development deals favoring emerging data center markets outside its footprint [2] Group 2 - The growth of Digital Realty Trust is constrained by its scale and development schedule, creating downside risk to fourth-quarter leasing forecasts [3] - Strong demand and supply constraints support a positive outlook for data centers in 2026, but the company's growth will depend on development timelines, lease renewals, and market focus [4] - EPS estimates have been raised to $7.34 for 2025, $7.92 for 2026, and $8.64 for 2027 [4] Group 3 - Digital Realty Trust shares are currently down 1.67% at $152.28 [4]