Digital Realty Trust (DLR) Q3 2025 earnings summary

Executive summary

• Achieved record Core FFO per share of $1.89 in 3Q25, up 13% year-over-year, with double-digit revenue growth and robust profitability driven by strong demand, new leasing, renewals, and contributions to joint ventures and funds.

• Added 156 new customers, launched innovative initiatives including a quantum-AI data center in NYC, and advanced sustainability with EcoVadis Gold rating, new renewable energy agreements, and $7.2B in green bonds issued.

• Maintained strong liquidity with ~$7B at quarter-end and over $15B in JV/fund capital for hyperscale development, supported by a conservative capital structure and robust cash flow.

• AI-related deployments accounted for over 50% of bookings since mid-2023, with significant capacity positioned in highly connected global metros.

• Completed significant capital markets and joint venture transactions, including the launch of a $3B U.S. Hyperscale Data Center Fund and multiple joint ventures in Europe and Asia.

Financial highlights

• Core FFO per share grew 13% year-over-year to $1.89; constant currency core FFO per share was $1.85, up 11%.

• Adjusted EBITDA increased 14% year-over-year to $868 million; data center revenue rose 9–10% year-over-year.

• Net income for 3Q25 was $64 million; FFO per share was $1.65, AFFO per share was $1.76, and dividend per share remained $1.22.

• Same capital cash NOI grew 8% year-over-year; 5.2% on a constant currency basis.

• Leverage reduced to 4.9x, below the 5.5x target; liquidity at nearly $7 billion, with $3.3 billion in available revolving credit facilities.

Outlook and guidance

• Raised full-year 2025 core FFO per share guidance to $7.32–$7.38; constant currency guidance to $7.25–$7.30.

• 2025 revenue guidance increased to $6.025–$6.075 billion; Adjusted EBITDA expected at $3.3–$3.35 billion.

• Expect 10% year-over-year core FFO per share growth at midpoint; constant currency growth over 8%.

• Rental rates on renewal leases projected to increase 4–6% on a cash basis and 6–8% on a GAAP basis.

• Anticipate higher CapEx in 2026, with a larger portion funded through private capital groups.