Digital Realty Trust Inc (DLR.N): DLR Reports Favorable 2Q Results and Upwardly Revised FY26 Guidance Outlook

Research evidence excerpt

Digital Realty Trust Inc (DLR.N): DLR Reports Favorable 2Q Results and Upwardly Revised FY26 Guidance Outlook

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23 Jul 2026 17:29:11 ET │ 13 pages

Digital Realty Trust Inc (DLR.N)

DLR Reports Favorable 2Q Results and Upwardly Revised FY26

Guidance Outlook

CITI'S TAKE Buy

Price (23 Jul 26 16:00) US$179.34 Digital Realty reported favorable 2Q results with solid bookings, especially

Target price US$226.00 for <1MW deployments, and favorable financial performance. Guidance,

excluding promote income of $188 million in 2Q, was increased for key Expected share price return 26.0%

headline measures, including same-store cash NOI growth, and CC Core Expected dividend yield 2.7%

FFOPS, despite some near-term dilution from some of the recently Expected total return 28.7%

announced acquisitions. Development capex was also increased by 20% Market Cap US$64,144M

to $4.5B with a target of 10%+ development yields (which likely includes

the remaining spend for recent acquisitions), while the current pipeline is

anticipated to earn an average of 11.5% on $20.2B of investments; 67% is

attributable to DLR and 54% is pre-leased. DLR is executing well on the Michael Rollins, CFAAC

combination of building a larger retail-centric portfolio, expanding its +1-212-816-1116

development pipeline and prospects, capturing demand at favorable michael.rollins@citi.com

development yields, and improving financial performance for the current Nick Joseph

portfolio. We remain a Buyer of DLR shares and expect shares to trade +1-212-816-1909

higher near-term. nicholas.joseph@citi.com

Caitlyn Walsh

By The Numbers — Total revenue was up 28.9% yoy to $1.92 billion on a reported +1-212-816-6692

basis, which was higher than our estimate and consensus of $1.65 billion. Rental caitlyn.walsh@citi.com