Digital Realty Trust, Inc.
DLR · NYSE
Next quarter
Expected to report Feb 4, 2027 — estimated from last year’s reporting date.
Consensus is $2.05 EPS for Dec 2026 across 8 estimates, ranging $1.99 to $2.17.
DLR Sep 2026
- 6.60%
- -1.21%
- $1.97
- $2.10
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Highlights
- Core FFO beat: Core FFO excluding net promote was $2.10 per diluted share, 6.6% above the supplied $1.97 consensus; it was up from $1.89 a year ago and down from $2.13 in Q2.
- Record bookings: New bookings represented $855 million of annualized GAAP base rent at 100% share, or $627 million at Digital Realty’s share, including a record $152 million in 0–1 MW and interconnection.
- Backlog expanded: Signed-but-not-commenced leases reached a record $2.5 billion of annualized GAAP base rent at 100% share and $1.8 billion at Digital Realty’s share; the average commencement lag was 17 months.
- Revenue growth: Revenue was $1.90 billion, up 21% year over year and about 10% sequentially excluding $201 million of Q2 promote income.
- Renewal pricing strengthened: Renewal leases totaling $261 million of annualized cash rent achieved rate increases of 11.8% on a cash basis and 17.0% on a GAAP basis.
- Occupancy improved: Portfolio occupancy rose to 91.1% from 90.2% in Q2 and 89.9% a year earlier; same-capital cash NOI grew 5.9% year over year.
- Full-year outlook raised: 2026 Core FFO excluding net promote guidance increased to $8.30–$8.35 per share from $8.15–$8.20; constant-currency guidance rose to $8.25–$8.30.
- Investment and leverage: The company acquired about $742 million of land during the quarter; quarter-end debt was $19.5 billion and net debt-to-Adjusted EBITDA rose to 5.2x from 4.7x in Q2.
Analysis
Digital Realty’s third quarter was defined by record leasing and a higher full-year Core FFO outlook, against a revenue base that continued to expand. Core FFO excluding net promote was $2.10 per diluted share, 6.6% above the supplied $1.97 consensus and 11% above $1.89 a year ago, though slightly below Q2’s $2.13. Revenue of $1.90 billion increased 21% year over year; versus Q2’s $1.92 billion, revenue was about 10% higher after excluding the prior quarter’s $201 million of promote income. GAAP net income available to common stockholders was $185 million, or $0.48 per diluted share, compared with $58 million and $0.15 a year earlier, and $443 million and $1.21 in Q2, when promote income boosted results.
Demand indicators were the standout: bookings reached $855 million of annualized GAAP base rent at 100% share, while the signed lease backlog hit a record $2.5 billion. Occupancy and renewal pricing also improved, helping same-capital cash NOI grow 5.9% year over year. The company raised 2026 Core FFO guidance, with the new midpoint implying continued growth from the $6.27 generated in the first nine months. Expansion is absorbing substantial capital: Digital Realty acquired about $742 million of land in the quarter, and net debt-to-Adjusted EBITDA increased to 5.2x from 4.7x in Q2.
Record leasing backlog
- New bookings: Leases signed in Q3 are expected to generate $855 million of annualized GAAP base rent at 100% share and $627 million at Digital Realty’s share, across 267.2 MW and 184.8 MW, respectively.
- Smaller deals and interconnection: At the company’s share, 0–1 MW bookings contributed $129.6 million and interconnection contributed $22.2 million, together making a record $152 million.
- Backlog: Signed-but-not-commenced leases totaled a record $2.5 billion at 100% share and $1.8 billion at Digital Realty’s share. The weighted-average lag from signing to contractual commencement was 17 months, so conversion to rent will be gradual.
- Renewals: Renewal leases represented $261 million of annualized cash rental revenue. Cash renewal spreads were 11.8% and GAAP spreads were 17.0%.
Core FFO and reported earnings
Core FFO excluding net promote was $795 million, or $2.10 per diluted share, versus $656 million and $1.89 a year ago. It was modestly below Q2’s $768 million and $2.13 per share; Q2 Core FFO had included $188 million of net promote. FFO was $742 million, or $1.97 per diluted share, compared with $570 million and $1.65 a year ago and $982 million and $2.73 in Q2. The sequential comparison is therefore affected by the prior quarter’s promote income.
GAAP revenue rose to $1.90 billion from $1.58 billion a year ago, while operating income before property disposition gains increased to $294 million from $138 million. Net income available to common stockholders was $185 million, or $0.48 per diluted share, compared with $58 million and $0.15 a year earlier and $443 million and $1.21 in Q2. Operating expenses increased to $1.61 billion from $1.44 billion a year ago, including higher utilities and depreciation, while Q2 also benefited from promote-related income.
Occupancy and same-store growth
- Portfolio utilization: Occupancy ended the quarter at 91.1%, versus 90.2% in Q2 and 89.9% a year earlier. Occupied capacity increased to 2,874 MW from 2,799 MW in Q2.
- Same-capital results: Cash NOI rose 5.9% year over year to $687 million, while it was 1.4% lower than Q2. Constant-currency cash NOI also grew 5.9% year over year.
- Occupancy within the same-capital pool: Same-capital occupancy reached 93.4%, up 0.9 percentage points year over year and 0.9 points from Q2.
- Renewal pricing outlook: Management raised its 2026 renewal-rate assumptions to 10%–12% on a cash basis and 13%–15% on a GAAP basis.
Raised 2026 outlook
- Core FFO: The 2026 outlook for Core FFO excluding net promote increased to $8.30–$8.35 per share from $8.15–$8.20. The company reported $6.27 for the first nine months.
- Constant currency: Constant-currency Core FFO guidance increased to $8.25–$8.30 per share from $8.10–$8.15.
- Operating assumptions: Revenue excluding promote income is now expected at $7.05–$7.125 billion, and Adjusted EBITDA at $3.80–$3.85 billion. Same-capital cash NOI growth guidance increased to 5.25%–5.75%.
- Development spending: 2026 development capital expenditures, net of partner contributions, remain projected at $4.25–$4.75 billion, with expected stabilized yields of at least 10%.
Expansion and funding
- Land and pipeline: The company acquired about $742 million of land during the quarter, including sites near Indianapolis, Atlanta, Chicago, Charlotte, Frankfurt and Crete. Its portfolio totals approximately 3.2 GW of IT capacity, with about 9.8 GW of buildable capacity under active or future development.
- Development investment: Construction in progress reached $10.6 billion at quarter-end. Nine-month improvements to real estate were $3.17 billion, versus $2.18 billion in the comparable 2025 period.
- Balance sheet: Total debt was approximately $19.5 billion, and net debt-to-Adjusted EBITDA was 5.2x, up from 4.7x in Q2 and 4.9x a year earlier. Adjusted EBITDA of $978 million was nearly flat sequentially and 13% higher year over year.
- Equity and subsequent financing: The company sold about 2.4 million shares through its ATM program during Q3 for $450 million net proceeds; year-to-date proceeds were about $2.9 billion. After quarter-end, it reported $1.4 billion of initial equity commitments for a perpetual capital strategy and issued euro and Swiss-franc debt.
