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FinanceDigital Realty raises 2026 Core FFO outlook after record Q2 results
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Digital Realty Trust (NYSE: DLR) raised its 2026 Core FFO outlook after reporting record second-quarter results. Revenue rose 29% year-over-year to $1.92 billion, and Core FFO reached a record $2.65 per diluted share, up from $1.87 a year earlier. The company booked $306.9 million in annualized GAAP base rent and a record signed-but-not-started backlog of $1.9 billion. Two hyperscale leases signed in July added $410 million. Digital Realty increased its full-year Core FFO outlook excluding net promote to $8.15-$8.20 per share, from $8.00-$8.10. Portfolio expansion included a 64% interest in three Northern Virginia data centers with 288 megawatts of IT capacity, valued at $7.8 billion. The company also acquired 1,440 acres near Kansas City for $475 million, with plans for up to 2 gigawatts of utility power. Digital Realty ended June with 310 data centers and about 3.1 gigawatts of IT capacity, with total debt of $18.6 billion.
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William Foxley Fri, July 24, 2026 at 7:51 AM PDT 2 min read
Digital Realty Trust (NYSE: DLR) raised its 2026 Core FFO outlook on Thursday after second-quarter revenue rose 29% year over year to $1.92 billion. Core FFO reached a record $2.65 per diluted share, up from $1.87 one year earlier.
Core funds from operations (Core FFO) measures the recurring earnings generated by Digital Realty's data center business. It is not a dividend, but it helps investors assess the company's ability to fund dividends.
Core FFO excluding net promote income was $2.13 per share. The reported figure included $187.9 million of promote income tied to the development and leasing of three joint-venture data centers.
Digital Realty booked $306.9 million of annualized GAAP base rent at 100% share during the quarter. Its signed-but-not-started backlog hit a record $1.9 billion, and two hyperscale leases signed in July contributed another $410 million at 100% share.
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"We signed more than $100 million of 0-1 MW plus Interconnection bookings for the first time, demonstrating the strength of our connectivity-rich portfolio and boosting near-term growth," President and CEO Andy Power said.
Digital Realty increased its full-year Core FFO outlook excluding net promote to $8.15 to $8.20 per diluted share, from $8.00 to $8.10. The data center operator also projected:
- Revenue excluding promote income: $6.85 billion to $6.95 billion
- Adjusted EBITDA: $3.75 billion to $3.85 billion
Portfolio expansion included a 64% interest in three fully leased Northern Virginia data centers containing 288 megawatts of IT capacity. The assets carried a gross value of about $7.8 billion and are leased to investment-grade hyperscale customers under 15-year contracts.
Digital Realty also acquired 1,440 acres near Kansas City for about $475 million, with plans to provide as much as 2 gigawatts of utility power. Separate pending transactions would lift its Teraco ownership to 77% and add digital infrastructure investment firm Columbia Capital.
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Digital Realty finished June with 310 data centers and about 3.1 gigawatts of IT capacity. Total debt was $18.6 billion, net debt to adjusted EBITDA was 4.7 times, and the company had raised around $2.5 billion through share sales in the first half of 2026.
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Digital Realty raises 2026 outlook after record second-quarter Core FFO