This article first appeared on GuruFocus .
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Core FFO:$2.13 per share in Q2 2026, 14% year-over-year growth.
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Bookings:Record 0 to 1-megawatt plus interconnection signings surpassing $100 million.
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Renewal Spreads:Surged to a record 25-plus percent.
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Total Backlog:New record of $1.9 billion, $1.4 billion at Digital Realty's share.
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Revenue Commencements:$208 million annualized rent commenced in Q2 2026.
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Core FFO Guidance:Raised to $8.15 to $8.20 per share for 2026.
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Same-Capital Cash NOI Growth:Increased 8.9% year-over-year.
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Development Pipeline:Expanded to 1.4 gigawatts under construction.
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Leverage:4.7 times debt to adjusted EBITDA at quarter end.
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Liquidity:Approximately $6 billion available.
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Digital Realty Trust Inc ( NYSE:DLR ) reported a 14% year-over-year growth in core FFO, reaching $2.13 per share, exceeding expectations.
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The company achieved record bookings in the 0 to 1-megawatt plus interconnection business, surpassing $100 million.
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Digital Realty Trust Inc ( NYSE:DLR ) signed two hyperscale leases post-quarter, demonstrating strong momentum in the greater than a megawatt category.
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The total backlog reached a new record of $1.9 billion, supporting multiple years of double-digit growth.
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Strategic transactions across four growth pillars are expected to bolster the company's growth runway for years to come.
Negative Points
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The company faces risks and uncertainties that could cause actual results to differ materially from forward-looking statements.
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Hyperscale leasing can be episodic, leading to potential fluctuations in quarterly results.
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The company is experiencing increasing public scrutiny and regulatory challenges in certain regions.
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There is a growing supply-demand imbalance in certain markets, which could impact future pricing and availability.
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The company is undertaking significant capital expenditures, which may strain financial resources if not managed effectively.
Q & A Highlights
Q: Can you elaborate on the double-digit FFO growth for the coming years and the factors contributing to it? A: Matthew Mercier, CFO: We are executing across several growth levers, including renewal execution, hyperscale leasing, and interconnection demand, which are driving immediate and long-term revenue growth. Our private capital initiatives also allow us to fund additional capacity while generating fee income, supporting our confidence in extending double-digit core FFO growth into 2027 and beyond.
Q: How do you foresee the evolution of your asset mix between network-dense colo, on-balance sheet hyperscale, and off-balance sheet assets? A: Andrew Power, CEO: We are expanding our colo connectivity by entering new markets and increasing our addressable market execution. Our hyperscale customers are supported through private capital vehicles, like our US hyperscale fund, which allows us to better fund our capital base and support customer needs.
Q: Can you discuss the timing and power commitments for your development pipeline? A: Andrew Power, CEO: We have over $20 billion of projects under development, with 63% pre-leased. This represents a 45% expansion of our current capacity. We are in active dialogue for deliveries in 2027 and 2028, and our development pipeline is a significant contributor to our growth.
Q: Are you signing leases with a wider set of hyperscale counterparties beyond traditional cloud majors? A: Andrew Power, CEO: For larger footprint capacity blocks, we primarily support traditional strong investment-grade credit names. However, we are also supporting diverse, smaller deployments for enterprises using private AI, which adds to our ecosystem's demand and connectivity.
Q: How does the political activity in regions like New York State and Loudoun County affect your pricing strategy? A: Andrew Power, CEO: The increasing challenges in delivering digital infrastructure make our installed base more valuable. We are committed to ensuring communities understand our value and contribution, which supports our pricing strategy in these regions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
