Digital Realty (DLR)
NYSEReal EstateReit - SpecialtySnapshot 2026-07-08
$176.30+0.80%
Close 2026-07-08 · 1-day change
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Track DLR free→Digital Realty grows Core FFO per share to about $8.05 in 2026. It expands hyperscale data center capacity with acquisitions totaling over $1.6 billion. The company raised its 2026 outlook and beat Q1 earnings with 16% revenue growth. These show strong growth and operational execution.
High valuation with a price-to-earnings ratio near 110 times may pressure returns. Share buyback progress is limited despite announcements. The sector faces headwinds that could slow growth and margin expansion.
The price is about 23% above our fair value and 33% below the Street median. Analysts expect 12% revenue growth, close to consensus estimates. Our view aligns with justified growth but sees valuation as stretched.
Breaks if: Core FFO per share falls below $7.28 in 2026
Continue to grow Core Funds From Operations per share, raising 2026 outlook to $8.00 - $8.10 per share.
Stated as a priority in 4 of last 4 quarters. Digital Realty raised its 2026 Core FFO per share outlook from $7.90-$8.00 in 2025-Q4 to $8.00-$8.10 in 2026-Q1. Core FFO per share grew from $1.77 in 2025-Q1 to $2.04 in 2026-Q1. The trajectory matches management's stated growth focus and is delivering.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Raised 2026 Core FFO per share outlook to $8.00 - $8.10 and Constant-Currency Core FFO per share outlook to $7.95 - $8.05.”
“Introduced 2026 Core FFO per share outlook of $7.90 - $8.00 on a reported and Constant-Currency basis.”
“Raised 2025 Core FFO per share outlook to $7.32 - $7.38 and Constant-Currency Core FFO per share outlook to $7.25 - $7.30.”
“Raised 2025 Constant-Currency Core FFO per share outlook to $7.25 - $7.30.”
Breaks if: Fails to complete acquisitions or partnerships totaling at least $1 billion
Grow hyperscale AI-oriented capacity, expand connectivity-rich portfolio, and scale Strategic Private Capital platform through acquisitions and partnerships.
Stated in 2 disclosures including 2026-Q1 earnings and 2026-06-22 8-K. Digital Realty acquired 1,440 acres near Kansas City for $475M, increased Teraco stake to 77% for $650M, and agreed to acquire Columbia Capital for $485M. These actions show active expansion of hyperscale capacity and strategic partnerships, delivering on stated growth pillars.
“Swiftly advancing hyperscale AI-oriented capacity and broadening capital base for growth.”
Breaks if: No significant buyback execution within 12 months
Announce and implement share repurchase program to return capital to shareholders.
Stated in 2 recent 8-K filings in 2026-Q2. Digital Realty announced an ATM Equity Offering Sales Agreement on 2026-05-04 and reported unregistered equity sales on 2026-06-22. No specific dollar amounts or shares repurchased reported yet, indicating announcement stage with limited execution evidence so far.