Digital Realty Trust Inc.

DLR
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.8B
Q1 FY2026 · +10% YoY
TTM ROIC
7.6%
FY2025 · Adj. EBITDA / Total Invested Capital (Real Estate Assets + Goodwill) · WACC ~6.75% · Moat spread +1.1pp

Financial Snapshot


ticker: DLR step: 04 generated: 2026-05-12 source: quick-research

Digital Realty Trust Inc. (DLR) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $5.48B $5.55B $6.11B +10.1%
Gross Margin ~48% ~48% ~50% +2pp
Operating Margin ~13% ~12% ~13% flat
Net Income ~$0.67B ~$0.36B ~$1.31B* NM
FFO per Share ~$5.70 ~$6.00 $6.27 +4.5%

FY2024 net income boosted by a large one-time gain. Core operating performance measured by FFO (Funds from Operations) is the appropriate REIT metric. FFO FY2025 guidance raised to $7.32–$7.38/share; AFFO/share Q3 2025 up 16% YoY. Stock up ~27% in 2026 YTD.

Cash Flow & Balance Sheet (FY2024/2025)

Metric Value
FFO (FY2024) ~$2.03B ($6.27/share)
FFO (FY2025E) $7.32–7.38/share ($2.3B)
Capital Expenditures $3.25–3.75B guided FY2026 (net of partner contributions)
Signed Lease Backlog $1.4B+ (Q1 2026); was $919M at Q1 2025
Total Debt ~$18–20B
Debt Maturities ~$4.9B maturing 2027–2028
Dividend ~$1.22/quarter ($4.88 annualized); ~3% yield

FCF is negative and expected to remain so through FY2027 due to AI infrastructure capex cycle ($3.25–3.75B annually net); funded through JVs, asset sales, and capital markets.

Key Ratios (approximate, FY2025)

  • P/FFO: ~22–25x | P/AFFO: ~27–30x | Trailing P/E: ~52x (inflated by one-off gains)
  • EV/EBITDA: ~22–24x | Dividend Yield: ~3.0–3.5%
  • Revenue Growth (FY2024): +10.1% | FFO/share Growth (FY2025E): ~17% YoY

Growth Profile

Digital Realty is in an accelerating revenue growth phase driven entirely by AI infrastructure demand. FY2023 was a trough year (+1.3% revenue growth) when hyperscaler spending paused after post-pandemic overbuild. FY2024 recovered strongly (+10%), and FY2025-2026 is expected to accelerate further as the signed lease backlog ($1.4B) commences revenue. The long-term growth algorithm: 8–10% revenue growth from lease commencements + 2–3% in-place rent escalators + interconnection revenue growth. FFO/share growth is higher (15–20%) due to JV structure reducing dilution and favorable lease mark-to-market on renewals.

Forward Estimates

  • FY2026: Revenue ~$6.6–6.9B (+8–13%); FFO/share ~$8.00–8.50 (+10–15%); AFFO/share growth ~15–20%
  • 3-Year Revenue CAGR: ~9% (management/analyst consensus)
  • Backlog conversion: $1.4B signed backlog expected to commence revenue over 12–18 months
  • Capital Return: Dividend well-covered at 34% payout buffer vs. FFO; no planned dividend cuts

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $DLR.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/dlr/financials/md · → thesis · → memo