Digital Realty Trust (DLR) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Growth acceleration and operational highlights

• Achieved record signings and added 600 new customers in the past year, driving both top and bottom-line growth with Core FFO per share inflecting upward into 2025.

• Built a backlog representing 20% of revenue, supporting a $7.5 billion development pipeline that is over 70% pre-leased at a 12% ROI.

• Delivered record performance in the 0-1 MW interconnection enterprise segment, with 25% year-over-year growth and over 100 new customers per quarter.

• Maintains a strong balance sheet with net debt to EBITDA at 4.8x and over $6 billion in liquidity.

Funding model evolution and capital strategy

• Launched a new $2.5 billion hyperscale fund, with over $800 million in initial commitments, focused on U.S. assets and designed to support capital-intensive growth.

• The fund, when leveraged, provides up to $5 billion in capacity for both specified and unspecified projects.

• Monetization of stabilized hyperscale assets into the fund is included in the $500 million–$1 billion full-year guidance.

• Capital recycling and private capital initiatives are expected to scale rapidly, supporting ongoing development and reducing reliance on public capital.

Market demand, leasing trends, and customer dynamics

• Hyperscale demand remains robust, with North America projects nearly 97% pre-leased and large contiguous capacity blocks highly valued for AI and cloud needs.

• Customer base is diversifying, with major signings from a broader set of clients, reducing reliance on any single hyperscaler.

• The addressable market for large capacity blocks is limited to about 10 key customers, but competitive tension remains strong due to supply constraints.

• Enterprise colocation bookings are shorter cycle, while large deals are building backlog for growth into 2026 and beyond.