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FinanceDigital Realty raises annual FFO forecast on robust data center demand
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Digital Realty Trust raised its full-year forecast for funds from operations (FFO) on July 23, 2026, citing resilient leasing momentum from cloud and AI customers. The Austin-based REIT now expects fiscal 2026 adjusted FFO of $8.15 to $8.20 per share, up from $8.00-$8.10, and raised annual revenue guidance to $6.85-$6.95 billion from $6.65-$6.75 billion. Second-quarter revenue surged 29% to $1.92 billion, beating estimates of $1.66 billion, while adjusted FFO of $2.65 per share far exceeded the $1.86 consensus. The company is expanding into new markets and acquiring a larger stake in three Northern Virginia data centers from Blackstone for $3.5 billion in cash and stock. Shares rose 3% in extended trading following the announcement.
Source report
Reuters Thu, July 23, 2026 at 1:59 PM PDT 2 min read
- DLR +11.01%
July 23 (Reuters) — Digital Realty Trust raised its full-year forecast for funds from operations on Thursday, betting on resilient leasing momentum from cloud and AI customers to drive growth, sending its shares up 3% in extended trading.
Austin, Texas-based Digital Realty is a real estate investment trust (REIT) that provides data center, colocation and interconnection solutions. The company leases managed data centers to clients across industries ranging from cloud and information technology to social networking, communications, and manufacturing. It has been a major beneficiary of the race to adopt generative AI, which requires vast amounts of computing power housed in specialized facilities.
Key Financial Updates
- Adjusted FFO forecast: Digital Realty now expects fiscal 2026 adjusted funds from operations — a key cash flow metric for REITs — in the range of $8.15 to $8.20 per share, up from its earlier projection of $8.00 to $8.10 per share.
- Revenue forecast: The REIT raised its annual total revenue forecast to between $6.85 billion and $6.95 billion, compared with its earlier projection of $6.65 billion to $6.75 billion.
- Q2 revenue: The company posted revenue of $1.92 billion for the second quarter ended June 30, up 29% and beating analysts' average estimate of $1.66 billion, according to data compiled by LSEG.
- Q2 adjusted FFO: Came in at $2.65 per share for the quarter, ahead of an estimate of $1.86 per share.
Strategic Developments
- The company has focused on expansions and entering new markets as it looks to capitalize on the global boom in AI.
- Digital Realty is set to acquire a larger stake in three data centers in Northern Virginia from asset manager Blackstone in a $3.5 billion cash-and-stock deal, strengthening its position in the world's largest data center market.
(Reporting by Juby Babu in Mexico City; Editing by Diti Pujara)
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Digital Realty raises annual FFO forecast on robust data center demand