Core Viewpoint - The article emphasizes the importance of unique insights and knowledge in stock analysis, aiming to provide contrasting views on investment portfolios [1] Group 1 - The analyst expresses a commitment to sharing personal opinions and insights without any financial compensation from the companies mentioned [2] - The analysis is intended solely for informational purposes, highlighting the necessity for investors to conduct their own research and due diligence before making investment decisions [3] Group 2 - The article clarifies that past performance does not guarantee future results, and no specific investment recommendations are provided [4]

Core Viewpoint - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or similar derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect any business relationships with the companies discussed [2].

Company Overview - Digital Realty Trust, Inc. (NYSE:DLR) is a significant player in the real estate investment trust (REIT) sector, focusing on data centers that support global digital infrastructure [1] - The company competes with major REITs such as Equinix and CyrusOne, aiming to meet the growing demand for data storage and processing [1] Analyst Ratings and Price Targets - Cowen & Co. has maintained a "Hold" rating for Digital Realty, with the stock currently priced at $164.65, while TD Cowen raised its price target from $179 to $185, indicating a positive outlook [2][5] - The consensus recommendation from twenty-six ratings firms is a "Moderate Buy," with an average 12-month price target of approximately $193.21 [2][5] - Among analysts, nine have rated DLR as a hold, fifteen recommend buying, and two suggest a strong buy [3] Stock Performance - DLR's current stock price is $164.65, reflecting a decrease of 1.28% or $2.14, with trading between $162.61 and $167.89 on the day [4] - Over the past year, the stock reached a high of $182.48 and a low of $129.95 [4] - The market capitalization of DLR is approximately $56.56 billion, underscoring its significant position in the REIT sector [4][5]

Core Insights - Digital Realty Trust (DLR) reported a fourth-quarter 2025 core funds from operations (FFO) per share of $1.86, exceeding the Zacks Consensus Estimate of $1.83, with a year-over-year increase of 7.5% [1][8] - The company achieved operating revenues of $1.63 billion in the fourth quarter, surpassing the Zacks Consensus Estimate of $1.58 billion, reflecting a 13.8% year-over-year growth [2][8] - For the full year 2025, core FFO per share was $7.39, up 10.1% from the previous year, and total operating revenues grew 10% to $6.11 billion, exceeding the consensus mark of $6.06 billion [2] Financial Performance - DLR's signed total bookings in the fourth quarter are estimated to generate $400 million of annualized GAAP rental revenues, with total bookings amounting to $175 million [3] - Renewal leases signed during the quarter contributed $269 million of annualized cash rental revenues, with rental rates increasing by 6.1% on a cash basis and 12% on a GAAP basis [4] - Adjusted EBITDA for the quarter was $856.8 million, marking a 14.1% increase year over year [4] Portfolio Activity - DLR disposed of a non-core data center in the Dallas metro area for approximately $33 million [5] - The company acquired two land parcels totaling around 20 acres in the Portland metro area for $23.6 million, expected to support 85 megawatts of IT capacity [5] - DLR entered a joint venture with MedOne Ltd. to develop an 18 megawatt campus in Israel, contributing $7.1 million [6] Future Outlook - DLR guided for 2026 core FFO per share in the range of $7.90-$8.00, with total revenues projected between $6.60-$6.70 billion [11] - The company anticipates rental rates on renewal leases to increase by 6-8% on a cash basis and 8.5-10.5% on a GAAP basis, with year-end portfolio occupancy expected to rise by 50-100 basis points [12] - DLR's cash and cash equivalents stood at $3.45 billion at the end of the fourth quarter, with total debt of $18.4 billion [9][10]

Core Insights - Digital Realty Trust (DLR) reported a revenue of $1.63 billion for the quarter ended December 2025, reflecting a year-over-year increase of 13.9% and a surprise of +3.52% over the Zacks Consensus Estimate of $1.58 billion [1] - The earnings per share (EPS) for the quarter was $1.86, significantly higher than the $0.51 reported in the same quarter last year, and exceeded the consensus EPS estimate of $1.83 by +1.75% [1] Revenue Breakdown - Rental revenues were reported at $1.07 billion, matching the average estimate from seven analysts and showing a year-over-year increase of +12.1% [4] - Tenant reimbursements for utilities amounted to $356.08 million, surpassing the average estimate of $317.59 million and representing a +17.7% change year over year [4] - Tenant reimbursements for other categories were $34.41 million, falling short of the average estimate of $38.72 million, indicating a -10.8% change compared to the previous year [4] - Total tenant reimbursements (utilities + other) reached $390.49 million, exceeding the average estimate of $356.31 million and showing a +14.4% year-over-year increase [4] - Fee income was reported at $45.69 million, significantly higher than the average estimate of $30.69 million, reflecting a remarkable +96% change year over year [4] - Interconnection and other revenues totaled $123.41 million, slightly above the average estimate of $121.3 million, with a +9.8% year-over-year increase [4] - Other revenues were reported at $0.37 million, which was below the average estimate of $1.4 million, but showed an extraordinary year-over-year change of +830% [4] Stock Performance - Digital Realty Trust's shares have returned +7.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported Core FFO per share of $1.86 for Q4 2025 and $7.39 for the full year, representing a 10% increase over 2024 [5][25] - Core FFO per share grew by 8% year-over-year in Q4 2025, reflecting strong core growth and continued growth in fee income [19][25] - Same capital cash NOI growth was 8.6% year-over-year in Q4, driven by an 8.2% increase in data center revenue [26] Business Line Data and Key Metrics Changes - The 0-1 MW-plus interconnection product set posted nearly $340 million in bookings, a record and 35%+ increase over 2024 levels [9] - The company signed leases representing $400 million of annualized rent in Q4, with strong demand for both larger capacity blocks and smaller colocation capacity [20] - The 0-1 MW-plus interconnection category set a new quarterly leasing record of $96 million, 7% higher than the previous record [21] Market Data and Key Metrics Changes - New leasing activity was particularly strong in the Americas, accounting for 65% of bookings in Q4 [20] - Interconnection bookings increased by 22% year-over-year, driven by record bookings in EMEA and momentum within the ServiceFabric product [22] - Hyperscale leasing exceeded $800 million in 2025, indicating strong demand in the Americas [10] Company Strategy and Development Direction - The company aims to evolve its funding strategy to support the growth of hyperscale data center capacity, with over $3.2 billion in LP equity commitments to its closed-end fund [6][31] - The strategy focuses on a global, full-spectrum, and connectivity-rich platform, emphasizing operational excellence and disciplined capital allocation [8] - The company is expanding its footprint in the APAC region, with recent investments in Indonesia and Malaysia to strengthen its presence in fast-growing markets [12][80] Management's Comments on Operating Environment and Future Outlook - Management noted that data centers have gained prominence due to accelerated AI adoption and cloud platform scaling, with power becoming a primary constraint in the industry [8] - The company anticipates continued strong demand for cloud and AI services, with infrastructure needs evolving to support low-latency, secure, and cost-efficient AI workflows [15] - Management expressed confidence in the company's ability to meet future demand, citing a robust backlog of nearly $1.4 billion [23][33] Other Important Information - The company plans to enhance its reporting by transitioning to power-based metrics, aligning occupancy reporting with IT load [26] - The total development pipeline is valued at over $10 billion, with an expected stabilized yield of 11.9% [29] - The company raised EUR 1.4 billion in a dual tranche green Eurobond offering to support its capital needs [30] Q&A Session Summary Question: Insights on hyperscaler activity and bookings - Management noted a significant increase in hyperscaler demand, particularly in Northern Virginia, Charlotte, Atlanta, and Dallas, with customers looking further out for power capacity [38] Question: Context around inference scaling in 2026 - Management indicated that both hyperscale and enterprise businesses are seeing increased demand for AI-related capacity, with a mix of cloud and AI use cases becoming a priority [41] Question: Impact of industry capacity growth on bookings - Management stated that while there is a significant amount of capacity coming online in 2027 and 2028, demand remains strong, and the company is well-positioned to meet this demand [66] Question: Disconnect between public and private data center valuations - Management discussed that asset mix influences valuations and emphasized the company's strong backlog and execution, which positions it well for future growth [72][74] Question: Investments in new markets and interconnection-focused facilities - Management highlighted strategic acquisitions in Malaysia, Indonesia, and Portugal, focusing on network-dense, highly connected assets to support growth [78]

Financial Data and Key Metrics Changes - The company reported Core FFO per share of $1.86 for Q4 2025 and $7.39 for the full year, representing a 10% increase over 2024 [5][25] - Core FFO per share grew by 8% year-over-year in Q4 2025, reflecting strong core growth and continued growth in fee income [20][25] - Same capital cash NOI growth was 8.6% year-over-year in Q4, driven by an 8.2% increase in data center revenue [26] Business Line Data and Key Metrics Changes - The company signed over $1 billion in new leases for the second consecutive year, with bookings of $1.2 billion in 2025, nearly 70% above the average of the previous five years [9][20] - The 0-1 MW-plus interconnection product set posted nearly $340 million in bookings, a record and 35% higher than 2024 levels [9][20] - The greater-than-1 MW category saw $78 million in bookings, with pricing remaining strong at over $180 per kilowatt [22] Market Data and Key Metrics Changes - Demand for data center capacity remained robust, particularly in the Americas, which accounted for 65% of bookings in Q4 [21] - The company expanded its footprint in the APAC region, entering Indonesia and acquiring a highly connected data center in Malaysia [12][78] - The total backlog reached a record of nearly $1.4 billion at year-end, reflecting strong data center fundamentals [23] Company Strategy and Development Direction - The company focuses on a global, full-spectrum, and connectivity-rich platform, emphasizing operational excellence and disciplined capital allocation [8] - The strategy includes expanding into emerging markets and enhancing interconnection capabilities to support AI and cloud demands [12][78] - The company aims to deliver AI-ready infrastructure in tier-one metros, addressing the growing demand for AI inference workloads [11][16] Management's Comments on Operating Environment and Future Outlook - Management noted that data centers have gained prominence due to accelerated AI adoption and cloud platform scaling, with power becoming a primary constraint [7][8] - The outlook for 2026 anticipates continued growth in cloud and AI demand, with expectations for total revenue and Adjusted EBITDA growth of over 10% [33] - Management highlighted the importance of securing power capacity and maintaining a strong track record of on-time delivery to meet customer needs [17][66] Other Important Information - The company raised EUR 1.4 billion in a dual tranche green Eurobond offering to support its growth strategy [30] - The balance sheet remains robust with nearly $7 billion in liquidity and approximately $15 billion in dry powder for hyperscale data center development [31] - The company plans to enhance its reporting metrics to focus more on power-based metrics, aligning with how the business is managed [26] Q&A Session Summary Question: Insights on hyperscaler activity and bookings - Management noted a significant increase in hyperscaler demand, particularly in Northern Virginia, Charlotte, Atlanta, and Dallas, with customers looking further out for power capacity [36][38] Question: Context around AI inference scaling - Management indicated that both hyperscale and enterprise businesses are seeing increased demand for AI-related infrastructure, with a notable rise in enterprise AI use cases [41][42] Question: Impact of industry capacity growth on bookings - Management expressed confidence in continued strong demand despite upcoming industry capacity growth, emphasizing their proactive development strategy [65][67] Question: Disconnect between public and private data center valuations - Management discussed the importance of asset mix in valuation discrepancies and highlighted their strategy to leverage both private and public capital for growth [69][72] Question: Investments in new markets - Management explained their strategy of acquiring highly connected assets in emerging markets like Malaysia and Indonesia, focusing on interconnection capabilities [77][78]

Financial Data and Key Metrics Changes - The company reported Core FFO per share of $1.86 for Q4 2025, an 8% increase year-over-year, and $7.39 for the full year 2025, which is 10% higher than 2024 [24][31] - Total revenue and Adjusted EBITDA growth are expected to exceed 10% in 2026, with same capital cash NOI growth projected at 4%-5% on a constant currency basis [31][32] - The total backlog reached a record of nearly $1.4 billion at year-end, reflecting strong demand fundamentals [21][30] Business Line Data and Key Metrics Changes - The 0-1 megawatt-plus interconnection product set achieved nearly $340 million in bookings, a record and 35%+ increase over 2024 levels [7][18] - Leasing activity in the Americas represented 65% of the company's share of bookings in Q4, with a new leasing record of $96 million in the 0-1 megawatt-plus interconnection category [19][20] - The company signed leases representing $400 million of annualized rent at 100% share in Q4, contributing to a strong leasing performance [19][24] Market Data and Key Metrics Changes - Demand for data center capacity remains robust, particularly in the Americas, with significant contributions from hyperscalers [19][35] - The company noted a strong inflow of new logos, with nearly 600 added for the second consecutive year, indicating a healthy market presence [8][12] - The company is expanding its footprint in the APAC region, with strategic acquisitions in Indonesia and Malaysia to enhance connectivity and capacity [10][73] Company Strategy and Development Direction - The company is focused on a global, full-spectrum, and connectivity-rich platform, emphasizing operational excellence and disciplined capital allocation [6][11] - The strategy includes expanding AI-driven networking use cases and delivering AI-ready infrastructure in key metro areas [9][13] - The company is evolving its funding strategy to support hyperscale data center capacity, with over $3.2 billion in LP equity commitments to its closed-end fund [5][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the pivotal year for the data center industry, driven by AI adoption and cloud platform scaling, with power becoming a primary constraint [6][12] - The company expects continued strong demand for cloud and AI services, with infrastructure needs evolving to support these technologies [13][80] - Management expressed confidence in the company's ability to meet future demand, citing a strong backlog and strategic positioning in key markets [21][31] Other Important Information - The company plans to enhance its reporting by transitioning to power-based metrics, aligning with how the business is managed [25][26] - The company raised EUR 1.4 billion in a dual tranche green Eurobond offering to support its capital needs [28][29] - The company anticipates cash renewal spreads of 6%-8% and expects to recycle capital with $500 million-$1 billion in dispositions in 2026 [31][32] Q&A Session Summary Question: Insights on hyperscaler activity and bookings - Management noted a significant increase in hyperscaler demand, particularly in Northern Virginia, Charlotte, Atlanta, and Dallas, with customers looking further out for power capacity [35][36] Question: Context around inference scaling in 2026 - Management indicated that both hyperscale and enterprise businesses are seeing increased demand for AI-related infrastructure, with a notable rise in enterprise AI use cases [38][39] Question: Impact of capital expenditures and bottlenecks - Management acknowledged rising costs associated with scaling digital infrastructure but emphasized their ability to secure labor and manage supply chain challenges effectively [41][44] Question: Recurring CapEx and capitalized leasing costs - Management explained that the increase in recurring CapEx for 2026 is partly due to carryover projects from 2025 and ongoing portfolio improvements [46][47] Question: Timing for new capacity availability - Management confirmed that they have secured labor for ongoing projects and are actively working to deliver new capacity ahead of schedule [49][50] Question: Strategy for interconnection-focused facilities in new markets - Management highlighted the importance of acquiring network-dense, highly connected assets in emerging markets, balancing interconnection-focused facilities with larger hyperscale projects [73][75]

February 5, 2026 Global. Connected. Sustainable. 4Q25 FINANCIAL RESULTS The meeting place for companies, technologies and data Strong Execution Throughout 2025 Positioned for Long-Term Sustainable Growth 5,500+ Customers 232,500 Cross Connects 55+ Metros 300+ Data Centers Capacity Host What You Need, How You Need Coverage Deploy Where You Need Connectivity Connect How You Need to Whom You Need Control Implement and Operate the Way You Need 4Q25 Highlights FY 2025 Highlights $1.2B Total Bookings at 100% shar ...

Table of Contents E x h i b i t 9 9 . 1 Table of Contents | | Financial Supplement | | --- | --- | | Table of Contents | Fourth Quarter 2025 | | Overview | PAGE | | Corporate Information | 3 | | Key Quarterly Financial Data | 5 | | Consolidated Statements of Operations | | | Earnings Release | 7 | | 2026 Outlook | 10 | | Consolidated Quarterly Statements of Operations | 12 | | Funds From Operations and Core Funds From Operations | 13 | | Adjusted Funds From Operations | 14 | | Balance Sheet Information | | ...