With a market cap of $60.4 billion, Digital Realty Trust, Inc. (DLR) is a leading global provider of data center, colocation, and interconnection solutions, serving a diverse range of industries including cloud services, financial institutions, healthcare, and manufacturing. As of June 30, 2025, the company owns and operates 310 data centers totaling approximately 42.5 million square feet across North America, Europe, South America, Asia, Australia, and Africa. The Dallas, Texas-based company is expected ...

Core Insights - Digital Realty Trust, Inc. (DLR) is a Dallas-based REIT focused on data centers, with a market cap of $55 billion, catering to the increasing demand for cloud computing and digital transformation [1][2] - DLR is classified as a large-cap stock, serving a diverse clientele including technology firms and financial institutions, providing secure infrastructure solutions for digital information management [2] Financial Performance - DLR reported Q2 operating revenue of $1.5 billion, reflecting a year-over-year growth of 10.1%, exceeding consensus estimates by 3.5% [5] - The company's core FFO was $1.87 per share, up 13.3% from the previous year and 3.5% above Wall Street expectations [5] - DLR raised its fiscal 2025 guidance, projecting revenues between $5.9 billion and $6 billion, and core FFO between $7.15 and $7.25 per share [5] Stock Performance - DLR's shares have declined 18.6% from its 52-week high of $198, reached on November 29, 2024, and are down 8.8% over the past three months, underperforming the S&P 500 Index's 8.3% return [3] - Over the past 52 weeks, DLR has gained 8.8%, which is lower than the S&P 500's 20.1% increase during the same period [3] - Year-to-date, DLR shares are down 9.1%, compared to a 10.4% surge in the S&P 500 [3] Technical Indicators - DLR has been trading below its 200-day moving average since early August and below its 50-day moving average since late July, indicating a bearish trend [4]

Core Insights - Digital Realty Trust Inc. is a real estate investment trust specializing in data center, colocation, and interconnection services globally [1] - The company is set to report its Q3 2025 earnings on October 23, with analysts expecting EPS to decline to $0.85 from $1.67 year-over-year, while quarterly revenue is projected to increase to $1.52 billion from $1.43 billion [2] Historical Performance - If an investor had purchased Digital Realty stock 10 years ago at approximately $61.52 per share, a $10,000 investment would have grown to $27,250 based on stock price appreciation alone, with dividends contributing an additional $7,546, leading to a total investment value of $34,795, representing a total return of 247.95% [3][4][5] - This total return is lower than the S&P 500's total return of 302.50% over the same period [5] Current Financials and Projections - Digital Realty's dividend yield is currently at 2.89%, and the company has paid about $46.42 in dividends per share over the last decade [4] - The company reported Q2 2025 earnings with FFO of $1.87, exceeding the consensus estimate of $1.76, and revenues of $1.49 billion, surpassing the consensus of $1.45 billion [7] - Digital Realty has raised its full-year 2025 total revenue guidance to a range of $5.93 to $6.03 billion and core FFO per share guidance to $7.15 to $7.25 [7] Analyst Ratings and Market Outlook - The consensus rating for Digital Realty is "Buy," with a price target of $176.08, indicating a potential upside of around 5% from the current stock price [6] - Given the expected upside potential and solid dividend yield, Digital Realty stock may be attractive to growth-focused investors [8]

Core Insights - Digital Realty Trust (DLR) reported a second-quarter 2025 core funds from operations (FFO) per share of $1.87, exceeding the Zacks Consensus Estimate of $1.74, with a year-over-year increase of 13.3% [1][9] - The company raised its 2025 core FFO guidance range to $7.15-$7.25 from the previous range of $7.05-$7.15, with the Zacks Consensus Estimate of $7.04 below the new guidance [12] Financial Performance - DLR's operating revenues for the second quarter reached $1.49 billion, surpassing the Zacks Consensus Estimate of $1.44 billion, and reflecting a year-over-year increase of 10.1% [2][9] - The company reported "Same-Capital" cash net operating income (NOI) growth of 4.4% [2] - Adjusted EBITDA for the quarter was $823.3 million, marking a 13.3% increase year over year [5] Leasing and Revenue Growth - DLR signed total bookings estimated to generate $135 million of annualized GAAP rental revenues, with significant contributions from the 0-1 megawatt category and interconnection services [4] - Renewal leases signed during the quarter resulted in $177 million of annualized cash rental revenues, with rental rates increasing by 7.3% on a cash basis and 9.9% on a GAAP basis [5] Strategic Partnerships and Initiatives - DLR partnered with Oracle Solution Centers to enhance digital infrastructure offerings, combining data center services with Oracle's deployment-ready frameworks [3] Portfolio Activity - During the quarter, DLR acquired land parcels in Atlanta and Dallas for $120 million and $11 million respectively, expected to support significant IT capacity [6] - Additional land parcels were acquired for around $6 million in the Chicago metro area to expand its Franklin Park campus [7] Capital and Debt Management - As of the end of the second quarter, DLR had cash and cash equivalents of $3.55 billion, up from $2.32 billion at the end of the first quarter [10] - The company had total debt outstanding of $18.5 billion, with a net debt-to-adjusted EBITDA ratio of 5.1X and a fixed charge coverage of 4.7X [10][11] Future Projections - DLR projects total revenues for 2025 in the range of $5.925-$6.025 billion, with adjusted EBITDA expected between $3.200-$3.300 billion [13]