Digital Realty Trust (DLR) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with $242 million in new leasing, a record $919 million backlog, and 119 new customer logos, reflecting robust demand and enhanced growth visibility.

• Launched the first U.S. hyperscale data center fund with over $1.7 billion in commitments, targeting $2.5 billion in equity and supporting up to $10 billion in investment, and entered Indonesia via a $95 million joint venture.

• Expanded global platform with new developments in Indonesia and Crete, delivered 49 MW of new capacity, commenced 219 MW of new projects, and formed strategic connectivity partnerships including Azure on-ramps and Console Connect.

• Advanced sustainability leadership with 100% renewable energy coverage in Singapore, 1.5 GW contracted renewable energy, $7.2 billion in green bonds issued, and 190 MW of certified green data centers added in 2024.

• Net income attributable to common stockholders was $99.8 million for Q1 2025, down from $271.3 million in Q1 2024, primarily due to lower gains on property dispositions.

Financial highlights

• Core FFO per share grew 6% year-over-year to $1.77, with constant currency Core FFO at $1.79; FFO per share/unit (diluted) was $1.67, up from $1.41 year-over-year.

• Adjusted EBITDA rose 11% year-over-year to $791 million, and Same-Capital Cash NOI grew 5% on a constant currency basis.

• Total revenue for Q1 2025 was $1.41 billion, up 5.7% year-over-year, driven by strong renewal spreads, rent escalators, and new lease commencements.

• Signed $147 million of renewal leases at a blended 5.6% cash increase, with churn declining to 1.5%.

• Development CapEx totaled $1 billion gross ($700 million net), delivering nearly 50 MW of new capacity, 83% pre-leased.

Outlook and guidance

• Raised 2025 Core FFO per share guidance to $7.05–$7.15, and increased revenue guidance to $5.825–$5.925 billion and Adjusted EBITDA to $3.125–$3.225 billion.

• Rental rate renewal guidance maintained at 4.0%–6.0% cash increase.

• Capital expenditures for 2025 projected at $2.3–$2.8 billion, including joint venture contributions.

• Expect strong commencements in the next two quarters and multi-year growth visibility, with $440 million scheduled to commence in 2026 and $100 million+ in 2027 and beyond.