Digital Realty Trust Inc (DLR.N): DLR Now Poised for Double-Digit Annual Normalized Core FFOPS Growth

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Digital Realty Trust Inc (DLR.N): DLR Now Poised for Double-Digit Annual Normalized Core FFOPS Growth

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24 Jul 2026 01:59:03 ET │ 21 pages

Digital Realty Trust Inc (DLR.N)

DLR Now Poised for Double-Digit Annual Normalized Core FFOPS

Growth

CITI'S TAKE

DLR reported favorable 2Q results that delivered ongoing improvement in Buy

retail-centric bookings, favorable hyperscale bookings (including 2 large

leases signed in early 3Q), and favorable financial performance before Price (23 Jul 26 16:00) US$179.34

considering the unexpected promote fees associated with the acquisition Target price US$226.00

of 3 data centers under development from its JV with Blackstone. Expected share price return 26.0%Management was bullish on the growth trajectory and indicated the

prospect for double-digit core FFOPS growth to continue for at least the Expected dividend yield 2.7%

next 2 years in 2027 and 2028 (excluding outsized promote fees in 2026). Expected total return 28.7%

We are upwardly revising our forecasts for double-digit core FFOPS growth Market Cap US$64,144Mand remain a Buyer of DLR shares that we expect will trade higher near term.

Model Update — We are updating our model for 2Q results, updated guidance, and

management commentary. We are upwardly revising our Core FFOPS outlook, Price Performanceconsistent with management commentary about double digit growth in 2026 and

beyond. For additional takeaways, see Takeaways from DLR Earnings Call and (RIC: DLR.N, BB: DLR US)

Management Call-Back.

Implications — Demand for data centers remains favorable for a combination of

reasons that include rising demand for AI workloads. We view DLR as a net

beneficiary and also expect EQIX to report favorable results next week on the heels