AUSTIN, Texas, July 23, 2026 (GLOBE NEWSWIRE) — Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, announced today financial results for the second quarter of 2026. All per share results are presented on a fully diluted basis.
Reported net income available to common stockholders of $1.21 per share in 2Q26, compared to $2.94 in 2Q25
Reported FFO per share of $2.73 in 2Q26, compared to $1.75 in 2Q25
Reported Core FFO per share of $2.65 in 2Q26, compared to $1.87 in 2Q25; reported Core FFO per share (excluding net promote) of $2.13 in 2Q26
Signed total bookings during 2Q26 that are expected to generate $307 million of annualized GAAP base rent at 100% share; at Digital Realty’s share, bookings were $208 million, including a $108 million contribution from the 0-1 megawatt plus interconnection category
In July, signed two hyperscale leases, representing $410 million of annualized GAAP base rent at 100% share, or $205 million at Digital Realty’s share
Reported rental rate increases on renewal leases of 25.4% on a cash basis in 2Q26
Reported a record total backlog of $1.9 billion of annualized GAAP base rent at 100% share, at the end of 2Q26; at Digital Realty’s share, the backlog was $1.4 billion
Raised 2026 Core FFO per share (excluding net promote) outlook to $8.15 – $8.20 and 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.10 – $8.15
Digital Realty reported total revenues of $1.9 billion in the second quarter of 2026, an 18% increase from the previous quarter and a 29% increase from the same quarter last year.
During the second quarter, Digital Realty recognized $188 million of net promote income in Core FFO related to the successful development and leasing of three data centers in its development joint venture. The company also recognized a $94 million insurance settlement, net of income tax, related to a previously disclosed 2024 matter, of which approximately $27 million was recognized in Core FFO as business interruption recovery; the remainder related to property damage recoveries, was excluded from Core FFO.
The company delivered net income of $458 million in the second quarter of 2026, as well as net income available to common stockholders of $443 million and $1.21 per share, compared to $0.46 per share in the previous quarter and $2.94 per share in the same quarter last year.
Digital Realty generated Adjusted EBITDA of $978 million in the second quarter of 2026, a 6% increase from the previous quarter and a 19% increase over the same quarter last year.
The company reported Funds From Operations (FFO) of $982 million in the second quarter of 2026, or $2.73 per share, compared to $1.99 per share in the previous quarter and $1.75 per share in the same quarter last year.
Digital Realty delivered Core FFO per share (excluding net promote) of $2.13 in the second quarter of 2026, compared to $2.04 per share in the previous quarter and $1.87 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share (excluding net promote) of $2.11 in the second quarter of 2026 and $4.07 per share for the six-month period ended June 30, 2026.
“Digital Realty delivered record Core FFO per share in the quarter, reflecting robust customer demand and strong execution across our core pillars of growth,” said President and Chief Executive Officer Andy Power. “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. We also continued to make strides in our hyperscale and strategic private capital verticals, as we added powered land in the Kansas City metro, accretively purchased interests in three hyperscale data centers in Northern Virginia, and announced the deal to acquire Columbia Capital, a leading investment firm in the digital infrastructure space. Together, these growth vectors are driving double-digit bottom line growth, and we are focused on extending this runway for years to come.”
In the second quarter, Digital Realty signed total bookings that are expected to generate $307 million of annualized GAAP rental revenue, at 100% share; at Digital Realty’s share, total bookings were $208 million, including an $88 million contribution from the 0-1 MW category and a $20 million contribution from interconnection.
The weighted-average lag between new leases signed during the second quarter of 2026 and the contractual commencement date was nine months. The backlog of signed-but-not-commenced leases at quarter-end was $1.9 billion of annualized GAAP base rent at 100% share, and $1.4 billion at Digital Realty’s share. In addition, Digital Realty also signed renewal leases representing $262 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the second quarter of 2026 increased 25.4% on a cash basis and 32.0% on a GAAP basis.
New leases signed during the second quarter of 2026, at Digital Realty’s share, are summarized by region and product as follows:
|
Annualized GAAP |
||||||||
|
Base Rent |
GAAP Base Rent |
|||||||
|
Americas |
(in thousands) |
Megawatts |
per Kilowatt |
|||||
|
0-1 MW |
$ |
37,131 |
10.6 |
$ |
293 |
|||
|
> 1 MW |
82,706 |
44.2 |
156 |
|||||
|
Other(1) |
142 |
— |
— |
|||||
|
Total |
$ |
119,980 |
54.8 |
$ |
182 |
|||
|
EMEA(2) |
||||||||
|
0-1 MW |
$ |
42,149 |
13.0 |
$ |
269 |
|||
|
> 1 MW |
4,999 |
2.5 |
167 |
|||||
|
Other(1) |
21 |
— |
— |
|||||
|
Total |
$ |
47,168 |
15.5 |
$ |
253 |
|||
|
Asia Pacific(2) |
||||||||
|
0-1 MW |
$ |
8,541 |
2.5 |
$ |
286 |
|||
|
> 1 MW |
12,141 |
6.2 |
165 |
|||||
|
Other(1) |
170 |
— |
— |
|||||
|
Total |
$ |
20,851 |
8.6 |
$ |
199 |
|||
|
All Regions(2) |
||||||||
|
0-1 MW |
$ |
87,821 |
26.1 |
$ |
280 |
|||
|
> 1 MW |
99,846 |
52.9 |
157 |
|||||
|
Other(1) |
332 |
— |
— |
|||||
|
Total |
$ |
187,999 |
79.0 |
$ |
198 |
|||
|
Interconnection |
$ |
20,497 |
N/A |
N/A |
||||
|
Grand Total at DLR Share |
$ |
208,495 |
79.0 |
$ |
198 |
|||
|
Grand Total at 100% Share |
$ |
306,944 |
129.8 |
$ |
183 |
|||
Note: Totals may not foot due to rounding differences.
(1) Other includes Powered Base Building® shell capacity as well as storage and office space within fully improved data center facilities.
(2) Based on quarterly average exchange rates during the three months ended June 30, 2026.
During the second quarter of 2026, Digital Realty acquired:
Land in Marseille, France for approximately €46.5 million, or $53.1 million, that is expected to support the development of up to 48 megawatts of IT capacity.
Land in the Atlanta metro area for approximately $20 million. Together with an adjacent parcel that was acquired in the first quarter, this campus is expected to support over one gigawatt of IT capacity.
As previously announced, during the quarter, Digital Realty also acquired:
Land in the Kansas City metro area for approximately $475 million to support hyperscale data center development for up to two gigawatts of utility power.
Two data centers in Malaysia containing 16.5 megawatts of IT capacity, and a land parcel that is expected to support the development of up to 14 megawatts of IT capacity, for total consideration of approximately $134 million.
A 64% stake in three fully leased data centers in Northern Virginia containing 288 megawatts of IT capacity, at a gross value of approximately $7.8 billion, reflecting an expected initial stabilized cap rate of over 6.5%. The newly developed assets are expected to be fully stabilized in the first half of 2027 and first half of 2028. Total consideration for our joint venture partners’ equity interest in the assets was approximately $3.5 billion, including $1.2 billion of cash and 12.3 million shares of Digital Realty common stock.
As previously disclosed, during the quarter, Digital Realty sold a non-core asset in the Atlanta metro area for $24 million.
Digital Realty had approximately $18.6 billion of total debt outstanding as of June 30, 2026, comprised of $17.0 billion of unsecured debt and approximately $1.6 billion of secured debt and other debt. At the end of the second quarter of 2026, net debt-to-Adjusted EBITDA was 4.7x, debt-plus-preferred-to-total enterprise value was 22.3% and fixed charge coverage was 5.2x.
From our first quarter earnings report on April 23, 2026 through June 30, 2026, the company sold approximately 6.2 million shares of common stock under its At-The-Market (ATM) equity issuance program at a weighted average price of $191.63 per share, for net proceeds of approximately $1.2 billion. Year-to-date, the company has sold approximately 13.5 million shares under its ATM equity issuance program at a weighted average price of $184.94 per share, for net proceeds of approximately $2.5 billion.
Digital Realty raised its 2026 Core FFO per share (excluding net promote) outlook to $8.15 – $8.20 and its 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.10 – $8.15. The assumptions underlying the outlook are summarized in the following table.
|
As of |
As of |
As of |
|||
|
Top-Line and Cost Structure |
February 5, 2026 |
April 23, 2026 |
July 23, 2026 |
||
|
Total revenue (excluding promote income) |
$6.600 – $6.700 billion |
$6.650 – $6.750 billion |
$6.850 – $6.950 billion |
||
|
Net non-cash rent adjustments(1) |
($90 – $95 million) |
($90 – $95 million) |
($145 – $150 million) |
||
|
Adjusted EBITDA |
$3.600 – $3.700 billion |
$3.650 – $3.750 billion |
$3.750 – $3.850 billion |
||
|
G&A |
$610 – $620 million |
$615 – $625 million |
$620 – $630 million |
||
|
Internal Growth |
|||||
|
Rental rates on renewal leases |
|||||
|
Cash basis |
6.0% – 8.0% |
6.5% – 8.5% |
9.0% – 11.0% |
||
|
GAAP basis |
8.5% – 10.5% |
9.5% – 11.5% |
12.0% – 14.0% |
||
|
Year-end portfolio occupancy(2) |
+50 – 100 bps |
+50 – 100 bps |
+75 – 125 bps |
||
|
“Same-Capital” cash NOI growth(3) |
4.0% – 5.0% |
4.0% – 5.0% |
4.25% – 5.25% |
||
|
Foreign Exchange Rates |
|||||
|
U.S. Dollar / Pound Sterling |
$1.30 – $1.35 |
$1.32 – $1.37 |
$1.32 – $1.37 |
||
|
U.S. Dollar / Euro |
$1.13 – $1.18 |
$1.15 – $1.20 |
$1.13 – $1.18 |
||
|
External Growth |
|||||
|
Dispositions / Joint Venture Capital |
|||||
|
Dollar volume |
$500 – $1,000 million |
$500 – $1,000 million |
$1,000 – $1,500 million |
||
|
Cap rate |
0.0% – 10.0% |
0.0% – 10.0% |
0.0% – 10.0% |
||
|
Development |
|||||
|
CapEx (Net of Partner Contributions)(4) |
$3,250 – $3,750 million |
$3,500 – $4,000 million |
$4,250 – $4,750 million |
||
|
Average stabilized yields |
10.0%+ |
10.0%+ |
10.0%+ |
||
|
Enhancements and other non-recurring CapEx(5) |
$30 – $35 million |
$30 – $35 million |
$30 – $35 million |
||
|
Recurring CapEx + capitalized leasing costs(6) |
$400 – $425 million |
$400 – $425 million |
$400 – $425 million |
||
|
Balance Sheet |
|||||
|
Long-term debt issuance |
|||||
|
Dollar amount |
$1,000 – $1,500 million |
$1,500 – $2,000 million |
$1,500 – $2,000 million |
||
|
Pricing |
4.0% – 4.5% |
4.0% – 4.5% |
4.5% – 5.5% |
||
|
Timing |
Mid-Year |
Mid-Year |
2H-2026 |
||
|
Net income per diluted share |
$2.55 – $2.65 |
$2.65 – $2.75 |
$3.10 – $3.15 |
||
|
Real estate depreciation and (gain) / loss on sale |
$4.90 – $4.90 |
$4.95 – $4.95 |
$5.30 – $5.30 |
||
|
Funds From Operations / share (NAREIT-Defined) |
$7.45 – $7.55 |
$7.60 – $7.70 |
$8.40 – $8.45 |
||
|
Non-core expenses and revenue streams |
$0.45 – $0.45 |
$0.40 – $0.40 |
$0.25 – $0.25 |
||
|
Net Promote |
$0.0 – $0.0 |
$0.0 – $0.0 |
($0.50) – ($0.50) |
||
|
Core Funds From Operations / share (excluding net promote) |
$7.90 – $8.00 |
$8.00 – $8.10 |
$8.15 – $8.20 |
||
|
Foreign currency translation adjustments |
$0.00 – $0.00 |
($0.05) – ($0.05) |
($0.05) – ($0.05) |
||
|
Constant-Currency Core FFO / share (excluding net promote) |
$7.90 – $8.00 |
$7.95 – $8.05 |
$8.10 – $8.15 |
Top-Line and Cost Structure
Total revenue (excluding promote income)
Net non-cash rent adjustments(1)
Rental rates on renewal leases
Year-end portfolio occupancy(2)
“Same-Capital” cash NOI growth(3)
U.S. Dollar / Pound Sterling
Dispositions / Joint Venture Capital
CapEx (Net of Partner Contributions)(4)
Enhancements and other non-recurring CapEx(5)
Recurring CapEx + capitalized leasing costs(6)
Net income per diluted share
Real estate depreciation and (gain) / loss on sale
Funds From Operations / share (NAREIT-Defined)
Non-core expenses and revenue streams
Core Funds From Operations / share (excluding net promote)
Foreign currency translation adjustments
Constant-Currency Core FFO / share (excluding net promote)
(1) Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments). (2) Year-end portfolio occupancy guidance based on IT load (kW).(3) The “Same-Capital” pool includes properties owned as of December 31, 2024 with less than 5% of total rentable square feet under development. It excludes properties that were undergoing, or were expected to undergo, development activities in 2025-2026, properties classified as held for sale and contribution, and properties sold or contributed to joint ventures for all periods presented. The 2026 “Same-Capital” cash NOI growth outlook is presented on a constant currency basis.(4) Excludes land acquisitions and includes Digital Realty’s share of joint venture and fund contributions. Figure is net of joint venture and fund partners’ share of contributions.(5) Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs. (6) Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.
Note: The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.
Non-GAAP Financial Measures
This document contains non-GAAP financial measures, including FFO, Core FFO, Core FFO (excluding net promote), Constant Currency Core FFO (excluding net promote), Adjusted FFO, Net Operating Income (NOI), “Same-Capital” Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO (excluding net promote) to Constant Currency Core FFO (excluding net promote), a reconciliation from Core FFO to Adjusted FFO, a reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Constant Currency Core FFO, Core FFO (excluding net promote), Adjusted FFO, NOI and “Same-Capital” Cash NOI are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.
The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the company’s control and/or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Prior to Digital Realty’s investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on July 23, 2026, a presentation will be posted to the Investors section of the company’s website at https://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company’s second quarter 2026 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.
A live webcast of the call will be available on the Investors section of Digital Realty’s website at https://investor.digitalrealty.com. The webcast will be archived for one year and the replay will be available shortly after the conclusion of the live event.
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.
Matt MercierChief Financial OfficerDigital Realty
Jordan Sadler / Jim Huseby Investor Relations Digital Realty [email protected]
|
Consolidated Quarterly Statements of Operations |
|||||||||||||||||||||||||||
|
Unaudited and in Thousands, Except Per Share Data |
|||||||||||||||||||||||||||
|
Second Quarter 2026 |
|||||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||
|
30-Jun-26 |
31-Mar-26 |
31-Dec-25 |
30-Sep-25 |
30-Jun-25 |
30-Jun-26 |
30-Jun-25 |
|||||||||||||||||||||
|
Rental revenues |
$1,145,936 |
$1,103,946 |
$1,074,703 |
$1,045,708 |
$1,003,550 |
$2,249,882 |
$1,964,076 |
||||||||||||||||||||
|
Tenant reimbursements – Utilities |
352,897 |
333,909 |
356,084 |
332,681 |
294,503 |
686,807 |
565,692 |
||||||||||||||||||||
|
Tenant reimbursements – Other |
45,391 |
38,093 |
34,406 |
37,302 |
37,355 |
83,484 |
79,532 |
||||||||||||||||||||
|
Interconnection and other |
130,409 |
124,278 |
123,414 |
120,399 |
121,952 |
254,687 |
234,921 |
||||||||||||||||||||
|
Fee income |
248,927 |
34,899 |
45,692 |
36,398 |
34,427 |
283,826 |
55,070 |
||||||||||||||||||||
|
Other |
480 |
47 |
372 |
4,746 |
1,363 |
527 |
1,496 |
||||||||||||||||||||
|
Total Operating Revenues |
$1,924,040 |
$1,635,173 |
$1,634,671 |
$1,577,234 |
$1,493,150 |
$3,559,213 |
$2,900,787 |
||||||||||||||||||||
|
Utilities |
$396,454 |
$372,385 |
$398,185 |
$375,627 |
$339,288 |
$768,839 |
$652,673 |
||||||||||||||||||||
|
Rental property operating |
291,408 |
266,115 |
295,948 |
278,292 |
267,724 |
557,523 |
506,324 |
||||||||||||||||||||
|
Property taxes |
55,160 |
54,964 |
50,791 |
51,823 |
49,570 |
110,124 |
98,426 |
||||||||||||||||||||
|
Insurance |
4,744 |
4,799 |
4,711 |
4,508 |
4,946 |
9,543 |
9,429 |
||||||||||||||||||||
|
Depreciation and amortization |
507,106 |
499,511 |
493,458 |
497,002 |
461,167 |
1,006,617 |
904,176 |
||||||||||||||||||||
|
General and administration |
153,316 |
151,923 |
159,283 |
139,911 |
133,755 |
305,239 |
254,867 |
||||||||||||||||||||
|
Severance, equity acceleration and legal expenses |
4,384 |
2,835 |
4,937 |
1,794 |
2,262 |
7,219 |
4,690 |
||||||||||||||||||||
|
Transaction and integration expenses |
38,703 |
15,685 |
36,083 |
86,559 |
22,546 |
54,388 |
62,448 |
||||||||||||||||||||
|
Provision for impairment |
— |
— |
78,553 |
— |
— |
— |
— |
||||||||||||||||||||
|
Other expenses |
13,508 |
23 |
98 |
3,297 |
195 |
13,531 |
307 |
||||||||||||||||||||
|
Total Operating Expenses |
$1,464,783 |
$1,368,240 |
$1,522,047 |
$1,438,813 |
$1,281,453 |
$2,833,023 |
$2,493,340 |
||||||||||||||||||||
|
Operating income before gain (loss) on disposition of properties, net |
$459,257 |
$266,933 |
$112,624 |
$138,420 |
$211,698 |
$726,190 |
$407,447 |
||||||||||||||||||||
|
Gain (loss) on disposition of properties, net |
7,988 |
873 |
42,865 |
19,780 |
931,830 |
8,861 |
932,941 |
||||||||||||||||||||
|
Operating Income |
$467,245 |
$267,806 |
$155,489 |
$158,200 |
$1,143,527 |
$735,051 |
$1,340,388 |
||||||||||||||||||||
|
Equity in earnings (loss) of unconsolidated entities |
36 |
(1,833 |
) |
4,659 |
(16,944 |
) |
(12,062 |
) |
(1,797 |
) |
(19,702 |
) |
|||||||||||||||
|
Interest and other income (expense), net |
137,944 |
45,342 |
42,797 |
47,735 |
37,747 |
183,286 |
70,520 |
||||||||||||||||||||
|
Interest (expense) |
(113,943 |
) |
(116,384 |
) |
(116,516 |
) |
(113,584 |
) |
(109,383 |
) |
(230,327 |
) |
(207,847 |
) |
|||||||||||||
|
Income tax benefit (expense) |
(33,675 |
) |
(16,008 |
) |
9,673 |
(11,695 |
) |
(12,883 |
) |
(49,683 |
) |
(30,018 |
) |
||||||||||||||
|
Gain (loss) on debt extinguishment and modifications |
— |
(4,119 |
) |
9 |
— |
— |
(4,119 |
) |
— |
||||||||||||||||||
|
Net Income |
$457,607 |
$174,804 |
$96,111 |
$63,713 |
$1,046,946 |
$632,411 |
$1,153,341 |
||||||||||||||||||||
|
Net (income) loss attributable to noncontrolling interests |
(4,318 |
) |
4,470 |
2,536 |
4,099 |
(14,790 |
) |
152 |
(11,211 |
) |
|||||||||||||||||
|
Net Income Attributable to Digital Realty Trust, Inc. |
$453,289 |
$179,274 |
$98,647 |
$67,812 |
$1,032,156 |
$632,563 |
$1,142,130 |
||||||||||||||||||||
|
Preferred stock dividends |
(10,181 |
) |
(10,181 |
) |
(10,181 |
) |
(10,181 |
) |
(10,181 |
) |
(20,362 |
) |
(20,362 |
) |
|||||||||||||
|
Net Income (Loss) Available to Common Stockholders |
$443,108 |
$169,093 |
$88,466 |
$57,631 |
$1,021,975 |
$612,201 |
$1,121,768 |
||||||||||||||||||||
|
Weighted-average shares outstanding – basic |
354,118 |
345,013 |
343,493 |
341,370 |
337,589 |
349,591 |
337,139 |
||||||||||||||||||||
|
Weighted-average shares outstanding – diluted |
361,542 |
353,255 |
351,570 |
349,234 |
345,734 |
357,355 |
345,305 |
||||||||||||||||||||
|
Weighted-average fully diluted shares and units |
367,605 |
359,300 |
357,430 |
355,165 |
351,691 |
363,462 |
351,239 |
||||||||||||||||||||
|
Net income / (loss) per share – basic |
$1.25 |
$0.49 |
$0.26 |
$0.17 |
$3.03 |
$1.75 |
$3.33 |
||||||||||||||||||||
|
Net income / (loss) per share – diluted |
$1.21 |
$0.46 |
$0.24 |
$0.15 |
$2.94 |
$1.68 |
$3.21 |
||||||||||||||||||||
Consolidated Quarterly Statements of Operations
Unaudited and in Thousands, Except Per Share Data
Tenant reimbursements – Utilities
Tenant reimbursements – Other
Depreciation and amortization
General and administration
Severance, equity acceleration and legal expenses
Transaction and integration expenses
Operating income before gain (loss) on disposition of properties, net
Gain (loss) on disposition of properties, net
Equity in earnings (loss) of unconsolidated entities
Interest and other income (expense), net
Income tax benefit (expense)
Gain (loss) on debt extinguishment and modifications
Net (income) loss attributable to noncontrolling interests
Net Income Attributable to Digital Realty Trust, Inc.
Net Income (Loss) Available to Common Stockholders
Weighted-average shares outstanding – basic
Weighted-average shares outstanding – diluted
Weighted-average fully diluted shares and units
Net income / (loss) per share – basic
Net income / (loss) per share – diluted
|
Funds From Operations and Core Funds From Operations |
||||||||||||||||||||||||||||||
|
Unaudited and in Thousands, Except Per Share Data |
||||||||||||||||||||||||||||||
|
Second Quarter 2026 |
||||||||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||||||||
|
Reconciliation of Net Income to Funds From Operations (FFO) |
30-Jun-26 |
31-Mar-26 |
31-Dec-25 |
30-Sep-25 |
30-Jun-25 |
30-Jun-26 |
30-Jun-25 |
|||||||||||||||||||||||
|
Net Income (Loss) Available to Common Stockholders |
$443,108 |
$169,093 |
$88,466 |
$57,631 |
$1,021,975 |
$612,201 |
$1,121,768 |
|||||||||||||||||||||||
|
Adjustments: |
||||||||||||||||||||||||||||||
|
Noncontrolling interest in operating partnership |
9,000 |
4,000 |
2,000 |
2,000 |
21,000 |
13,000 |
24,000 |
|||||||||||||||||||||||
|
Real Estate Related Depreciation and Amortization(1) |
499,106 |
490,965 |
484,260 |
487,182 |
451,050 |
990,071 |
883,700 |
|||||||||||||||||||||||
|
Reconciling items related to noncontrolling interests |
(24,292 |
) |
(23,726 |
) |
(22,753 |
) |
(22,888 |
) |
(21,038 |
) |
(48,018 |
) |
(40,518 |
) |
||||||||||||||||
|
Unconsolidated entities real estate related depreciation and amortization |
62,972 |
60,291 |
70,260 |
65,922 |
59,172 |
123,263 |
115,033 |
|||||||||||||||||||||||
|
(Gain) loss on real estate transactions |
(7,988 |
) |
(226 |
) |
(42,865 |
) |
(19,780 |
) |
(931,830 |
) |
(8,214 |
) |
(932,941 |
) |
||||||||||||||||
|
Provision for impairment |
— |
— |
78,553 |
— |
— |
— |
— |
|||||||||||||||||||||||
|
Funds From Operations |
$981,906 |
$700,398 |
$657,921 |
$570,067 |
$600,329 |
$1,682,303 |
$1,171,044 |
|||||||||||||||||||||||
|
Weighted-average shares and units outstanding – basic |
360,181 |
351,059 |
349,354 |
347,301 |
343,546 |
355,698 |
343,073 |
|||||||||||||||||||||||
|
Weighted-average shares and units outstanding – diluted(2) (3) |
367,605 |
359,300 |
357,430 |
355,165 |
351,691 |
363,462 |
351,239 |
|||||||||||||||||||||||
|
Funds From Operations per share – basic |
$2.73 |
$2.00 |
$1.88 |
$1.64 |
$1.75 |
$4.73 |
$3.41 |
|||||||||||||||||||||||
|
Funds From Operations per share – diluted(2) (3) |
$2.73 |
$1.99 |
$1.89 |
$1.65 |
$1.75 |
$4.73 |
$3.42 |
|||||||||||||||||||||||
|
Reconciliation of FFO to Core FFO |
30-Jun-26 |
31-Mar-26 |
31-Dec-25 |
30-Sep-25 |
30-Jun-25 |
30-Jun-26 |
30-Jun-25 |
|||||||||||||||||||||||
|
Funds From Operations |
$981,906 |
$700,398 |
$657,921 |
$570,067 |
$600,329 |
$1,682,303 |
$1,171,044 |
|||||||||||||||||||||||
|
Other non-core revenue adjustments(4) |
(80,837 |
) |
(29 |
) |
(10,633 |
) |
(4,746 |
) |
4,228 |
(80,866 |
) |
2,303 |
||||||||||||||||||
|
Transaction and integration expenses |
38,703 |
15,685 |
36,083 |
86,559 |
22,546 |
54,388 |
62,448 |
|||||||||||||||||||||||
|
Gain (loss) on debt extinguishment and modifications |
— |
4,119 |
(9 |
) |
— |
— |
4,119 |
— |
||||||||||||||||||||||
|
Severance, equity acceleration and legal expenses(5) |
4,384 |
2,835 |
4,937 |
1,794 |
2,262 |
7,219 |
4,690 |
|||||||||||||||||||||||
|
(Gain) loss on FX and derivatives revaluation |
(1,608 |
) |
(4,398 |
) |
(16,295 |
) |
252 |
8,827 |
(6,006 |
) |
6,764 |
|||||||||||||||||||
|
Other non-core expense adjustments(6) |
13,208 |
(2,538 |
) |
(21,794 |
) |
2,075 |
5,092 |
10,670 |
4,390 |
|||||||||||||||||||||
|
Core Funds From Operations |
$955,756 |
$716,071 |
$650,210 |
$656,001 |
$643,284 |
$1,671,827 |
$1,251,639 |
|||||||||||||||||||||||
|
Net promote |
(187,871 |
) |
— |
— |
— |
— |
(187,871 |
) |
— |
|||||||||||||||||||||
|
Core Funds From Operations (excluding net promote) |
$767,885 |
$716,071 |
$650,210 |
$656,001 |
$643,284 |
$1,483,956 |
$1,251,639 |
|||||||||||||||||||||||
|
Weighted-average shares and units outstanding – diluted(2) (3) |
360,648 |
351,293 |
349,740 |
347,700 |
343,909 |
356,113 |
343,436 |
|||||||||||||||||||||||
|
Core Funds From Operations per share – diluted(2) |
$2.65 |
$2.04 |
$1.86 |
$1.89 |
$1.87 |
$4.69 |
$3.64 |
|||||||||||||||||||||||
|
Core FFO per share (excluding net promote) – diluted(2) |
$2.13 |
$2.04 |
$1.86 |
$1.89 |
$1.87 |
$4.17 |
$3.64 |
|||||||||||||||||||||||
|
(1) Real Estate Related Depreciation & Amortization |
30-Jun-26 |
31-Mar-26 |
31-Dec-25 |
30-Sep-25 |
30-Jun-25 |
30-Jun-26 |
30-Jun-25 |
|||||||||||||||||||||||
|
Depreciation and amortization per income statement |
$507,106 |
$499,511 |
$493,458 |
$497,002 |
$461,167 |
$1,006,617 |
$904,175 |
|||||||||||||||||||||||
|
Non-real estate depreciation |
(8,000 |
) |
(8,546 |
) |
(9,198 |
) |
(9,820 |
) |
(10,117 |
) |
(16,546 |
) |
(20,473 |
) |
||||||||||||||||
|
Real Estate Related Depreciation & Amortization |
$499,106 |
$490,965 |
$484,259 |
$487,182 |
$451,050 |
$990,071 |
$883,702 |
|||||||||||||||||||||||
Funds From Operations and Core Funds From Operations
Unaudited and in Thousands, Except Per Share Data
Reconciliation of Net Income to Funds From Operations (FFO)
Net Income (Loss) Available to Common Stockholders
Noncontrolling interest in operating partnership
Real Estate Related Depreciation and Amortization(1)
Reconciling items related to noncontrolling interests
Unconsolidated entities real estate related depreciation and amortization
(Gain) loss on real estate transactions
Weighted-average shares and units outstanding – basic
Weighted-average shares and units outstanding – diluted(2) (3)
Funds From Operations per share – basic
Funds From Operations per share – diluted(2) (3)
Reconciliation of FFO to Core FFO
Other non-core revenue adjustments(4)
Transaction and integration expenses
Gain (loss) on debt extinguishment and modifications
Severance, equity acceleration and legal expenses(5)
(Gain) loss on FX and derivatives revaluation
Other non-core expense adjustments(6)
Core Funds From Operations
Core Funds From Operations (excluding net promote)
Weighted-average shares and units outstanding – diluted(2) (3)
Core Funds From Operations per share – diluted(2)
Core FFO per share (excluding net promote) – diluted(2)
(1) Real Estate Related Depreciation & Amortization
Depreciation and amortization per income statement
Non-real estate depreciation
Real Estate Related Depreciation & Amortization
(2) Certain of Teraco’s minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. U.S. GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO. When calculating diluted FFO, Teraco related noncontrolling interest is added back to the FFO numerator as the denominator assumes all shares have been put back to Digital Realty.
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||
|
30-Jun-26 |
31-Mar-26 |
31-Dec-25 |
30-Sep-25 |
30-Jun-25 |
30-Jun-26 |
30-Jun-25 |
|||||||||||||||||||||
|
Teraco noncontrolling share of FFO |
$19,979 |
$15,410 |
$18,240 |
$17,018 |
… |
||||||||||||||||||||||
Teraco noncontrolling share of FFO