Digital Realty Trust, Inc. (DLR)

In the past six months, Digital Realty reported strong financial performance in 2024, with record leasing and revenue growth, and its core FFO per share grew by 6% in the fourth quarter. For the first quarter of 2025, Digital Realty reported a 6% year-over-year growth in core FFO per share, reaching $1.77, and signed total bookings expected to generate $242 million of annualized GAAP rental revenue, leading to a record backlog of $919 million. Analyst sentiment has been largely positive, with an average rating of "Moderate Buy" from covering firms. However, Digital Realty's stock dipped by 1.5% on June 26, 2025, due to "guilt by association" with Equinix, and there have been concerns raised about Digital Realty's high dividend payout ratio and P/E ratio.

Demand for Digital Realty's data center products and services is driven by secular, long-term trends rather than seasonal fluctuations. Key drivers include ongoing digital transformation, the increasing adoption of cloud computing, the proliferation of artificial intelligence (AI), and the continuous growth in mobile data and internet traffic. The company's CEO has stated that demand is "definitely not seasonal."

Digital Realty Trust, Inc. (DLR) is a real estate investment trust (REIT) specializing in data centers and digital infrastructure. The company develops, acquires, and manages data centers, providing data center, colocation, and interconnection solutions. Digital Realty serves industries including AI, networks, cloud providers, IT service providers, digital media, and financial services. The company's PlatformDIGITAL® is a global data center platform designed to help customers scale their digital businesses and manage data gravity challenges.

Digital Realty has a global footprint with over 300 data centers across more than 25 countries on six continents, comprising approximately 41.8 million square feet as of March 31, 2025. Its data centers are distributed across North America (121 facilities), Europe (112 facilities), Latin America (36 facilities), Asia (16 facilities), Africa (16 facilities), and Australia (6 facilities), with three additional facilities in Canada. North America is the largest revenue-generating region, contributing approximately 60% of total revenue, followed by EMEA at around 25%, and Asia Pacific at approximately 15%.

Digital Realty has maintained a strong brand reputation, driven by its commitment to sustainability and its leading position in the data center industry. In July 2025, the company released its 2024 Impact Report, highlighting achievements such as 75% renewable energy for its global electricity needs and U.S. EPA ENERGY STAR certification for 69% of its U.S. managed portfolio. Digital Realty is also a signatory of the Climate Neutral Data Center Pact, aiming for climate neutrality by 2030. Digital Realty Trust Inc. was ranked 102nd overall out of 940 companies and 2nd in the Real Estate industry among 36 companies by JUST Capital.

Digital Realty Trust exhibits a mixed ownership structure, with institutional investors holding approximately 89.88% to 91.77% of the shares, retail investors holding around 7.94% to 8.18%, and insider ownership at approximately 0.29% to 0.01%. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and Cohen & Steers, Inc.