Digital Realty Trust Inc (DLR.N): Staying Positive on DLR‘s Opportunity to Fuel Future Growth; 2Q26 Preview

Research evidence excerpt

Digital Realty Trust Inc (DLR.N): Staying Positive on DLR‘s Opportunity to Fuel Future Growth; 2Q26 Preview

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09 Jul 2026 23:27:26 ET │ 16 pages

Digital Realty Trust Inc (DLR.N)

Staying Positive on DLR’s Opportunity to Fuel Future Growth; 2Q26

Preview

CITI'S TAKE

We remain constructive on DLR heading into 2Q earnings. While several of Buy

our headline metrics are slightly below consensus and bookings are likely to Price (09 Jul 26 16:00) US$179.33

moderate from 1Q’s elevated levels, we view the medium- to long-term Target price US$226.00outlook favorably. Despite recent share price pressure following recent

announcements, we continue to view DLR's recent strategic transactions Expected share price return 26.0%

(link, link) as net-positives. We expect management to discuss the Expected dividend yield 2.7%

transactions in greater detail, including how these initiatives support the Expected total return 28.7%company’s long-term growth strategy, as well as their potential financial

implications and impact on the 2026 guidance. DLR remains upbeat on the Market Cap US$64,140M

continuing opportunity for growth in CY27. We see room for multiple

expansion from favorable demand, positive renewal spreads, and

conservative organic FY26 guidance. We maintain our Buy on DLR shares.

Price Performance

Earnings Focus — Our FY26 outlook is generally in-line or better than consensus, (RIC: DLR.N, BB: DLR US)

while our C2Q outlook is slightly below. For 2Q results, we expect the market will

focus on total bookings, revenue, EBITDA and Core FFOPS. We recognize our

numbers may just be conservative in 2Q, especially if bookings and/or renewal

spreads can outperform. We forecast 2Q26 total bookings of $186 million vs