Digital Realty Trust (DLR) Q2 2025 earnings summary

Executive summary

• Achieved record bookings and commencements in Q2 2025, with $177 million in new bookings, $228 million in commencements, and $90 million in the 0-1 MW plus interconnection category, reflecting robust global demand and execution on strategic priorities.

• Core FFO per share reached a record $1.87, up from $1.65 in 2Q24, and net income per share rose to $2.94, driven by strong leasing and investment activity.

• U.S. Hyperscale Data Center Fund was oversubscribed with over $3 billion in LP equity commitments, supporting $10 billion in future investment and generating $900 million in gross proceeds from asset contributions.

• Advanced sustainability initiatives, matching 185 data centers to 100% renewable energy, achieving 75% renewable energy globally, and issuing $7.2 billion in green bonds.

• Expanded global platform to 300+ data centers in 50+ metros, with significant land acquisitions and joint ventures enhancing future growth.

Financial highlights

• Total operating revenues for Q2 2025 were $1.49 billion, up 10–11% year-over-year, with adjusted EBITDA at $823 million, up 13% year-over-year.

• Core FFO per share was $1.87, and FFO per diluted share/unit was $1.75, both up year-over-year.

• Net income for Q2 2025 was $1.05 billion, up from $74.7 million in Q2 2024, with diluted EPS at $2.94.

• Same Capital Cash NOI was $577.60 million, up from $553.46 million year-over-year.

• Rental rates on renewal leases increased 7.3% on a cash basis and 9.9% on a GAAP basis in Q2 2025.

Outlook and guidance

• Raised 2025 Core FFO per share guidance to $7.15–$7.25, with constant currency Core FFO per share at $7.10–$7.20.

• Full-year revenue guidance increased to $5.925–$6.025 billion, and adjusted EBITDA guidance to $3.2–$3.3 billion.

• Rental rates on renewal leases expected to rise 5.0–6.0% (cash basis), with year-end portfolio occupancy up 100–200 bps.

• Backlog supports multi-year growth, with $826 million in signed-but-not-commenced leases and $241 million to commence in 2H 2025.

• CapEx (net of partner contributions) forecasted at $3.0–$3.5 billion with average stabilized yields of 10%+.