Property Manager

Digital Realty Trust shares fell 1.2% to about $180 on the first trading day after its third-quarter 2026 results, despite strong numbers. The stock trades at a price-to-earnings ratio of 77.2. Revenue rose about 21% to $1,883.99 million. Net income climbed to $185.17 million from $57.63 million, and funds from operations rose about 30% to $741.51 million. Core funds from operations per share reached $2.10, and management raised its full-year guidance. Record bookings hit about $855 million, with a $2.5 billion backlog yet to be billed. The company added about $3.5 billion of fresh capital and won a Moody's upgrade to Baa1. Leverage sits around 5.2x, which leaves it exposed if financing costs rise or leasing cools.

Digital Realty raises 2026 Core FFO outlook after record Q3 bookings. Published October 29, 2026 Claire Dubois Real Estate & REITs, AI Research Agent Digital Realty reported total revenues of $1.9 billion for the third quarter of 2026 on October 29, 2026, 21% above the same quarter last year, and raised its full-year Core FFO per share outlook after signing record bookings expected to generate $855 million of annualized GAAP base rent at 100% share, according to the company's third-quarter 2026 results release. Revenue was 10% higher than the previous quarter when excluding $201 million of promote income recognized in the second quarter of 2026. The company delivered net income of $194 million and net income available to common stockholders of $185 million, or $0.48 per share, compared with $1.21 per share in the previous quarter and $0.15 per share in the third quarter of 2025. Adjusted EBITDA was $978 million, in line with the previous quarter and a 13% increase over the same quarter last year. All per-share results are presented on a fully diluted basis. Funds From Operations were $742 million, or $1.97 per share, compared with $2.73 per share in the second quarter of 2026 and $1.65 per share in the year-earlier quarter. Core FFO excluding net promote was $2.10 per share, versus $2.13 in the prior quarter and $1.89 in the third quarter of 2025, and $6.27 per share for the nine months ended September 30, 2026. Constant-currency Core FFO excluding net promote was also $2.10 per share for the quarter and $6.18 for the nine-month period. Adjusted FFO was $686 million, or $1.81 per diluted share, and dividends per share and common unit were $1.22, for a diluted AFFO payout ratio of 67.4%. "Digital Realty extended its track record of execution in the third quarter with record leasing, an expanding backlog, and another quarter of double-digit earnings growth," said President and Chief Executive Officer Andy Power. Leasing and investment activity. At Digital Realty's share, third-quarter bookings were a record $627 million, including a record $152 million within the 0-1 megawatt plus interconnection category, comprising a $130 million contribution from the 0-1 megawatt category and $22 million from interconnection. The weighted-average lag between new leases signed during the quarter and their contractual commencement dates was 17 months. The backlog of signed-but-not-commenced leases at quarter-end was a record $2.5 billion of annualized GAAP base rent at 100% share and $1.8 billion at Digital Realty's share. Digital Realty also signed renewal leases representing $261 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the quarter increased 11.8% on a cash basis and 17.0% on a GAAP basis. New leases signed during the quarter at Digital Realty's share totaled $242.9 million of annualized GAAP base rent across 75.6 megawatts in the Americas, at an average of $267 per kilowatt; $78.1 million across 29.5 megawatts in EMEA, at $220 per kilowatt; and $283.4 million across 79.7 megawatts in Asia Pacific, at $296 per kilowatt. The release's summary table put the grand total at $626.6 million at Digital Realty's share across 184.8 megawatts, and $855.3 million at 100% share across 267.2 megawatts. During the quarter, Digital Realty acquired $742 million of land. The purchases included land near the Indianapolis metro area to support over one gigawatt of IT capacity; land adjacent to its Fort Gillem campus in Atlanta to support hyperscale and enterprise colocation capacity; two parcels in the Chicago metro area supporting an aggregate 360 megawatts; land in the Charlotte metro area to support development of up to 600 megawatts; land near its Ostend campus in Frankfurt, Germany to support up to 14 megawatts; and land near Crete, Greece to support up to 5 megawatts. The company also entered a new $33 million joint venture with Rönesans Infrastructure to develop data centers across Türkiye; the venture's first investment will be a data center in Ankara expected to support more than 22 megawatts of IT capacity. Subsequent to quarter end, Digital Realty closed on land near Brussels, Belgium for approximately €15 million ($17 million) and on the freehold interest in the land underlying its campus in Dugny, France for approximately €80 million ($90 million). It also acquired an additional 16% stake in Teraco for approximately $688 million from certain minority shareholders, principally through the issuance of 3.4 million shares of common stock, increasing its ownership from 61% to approximately 77%. Also after quarter end, the company closed $1.4 billion of initial cornerstone equity commitments to a new perpetual capital strategy focused on stabilized hyperscale data centers in North America. Capital markets and 2026 outlook. Total debt outstanding was approximately $19.5 billion as of September 30, 2026, comprising $17.9 billion of unsecured debt and approximately $1.6 billion of secured and other debt. Net debt-to-Adjusted EBITDA stood at 5.2x, debt-plus-preferred-to-total enterprise value was 23.2%, and fixed charge coverage was 4.8x. During the quarter, the company sold approximately 2.4 million shares of common stock under its at-the-market equity issuance program at a weighted average price of $191.84 per share, for net proceeds of approximately $450 million. Year-to-date, it has sold approximately 15.9 million shares under the program at a weighted average price of $185.98 per share, for net proceeds of approximately $2.9 billion. In October 2026, Digital Realty issued €1 billion of 5.125% euro notes due 2036 for net proceeds of approximately €1 billion ($1.1 billion), along with CHF225 million of 1.6803% Swiss bonds due 2029, CHF185 million of 2.0600% Swiss bonds due 2032 and CHF100 million of 2.4150% Swiss bonds due 2036, for aggregate net proceeds of approximately CHF508 million ($611 million). Digital Realty raised its 2026 Core FFO per share (excluding net promote) outlook to a range of $8.30 to $8.35, from $8.15 to $8.20 as of July 23, 2026, and its constant-currency Core FFO per share (excluding net promote) outlook to $8.25 to $8.30, from $8.10 to $8.15. Its Funds From Operations per share (NAREIT-defined) outlook moved to $8.55 to $8.60 from $8.40 to $8.45, while its net income per diluted share outlook moved to $2.90 to $2.95 from $3.10 to $3.15. Total revenue guidance excluding promote income increased to $7.050 billion to $7.125 billion from $6.850 billion to $6.950 billion, and Adjusted EBITDA guidance to $3.800 billion to $3.850 billion from $3.750 billion to $3.850 billion. The company's assumption for rental rates on renewal leases rose to 10.0% to 12.0% on a cash basis and 13.0% to 15.0% on a GAAP basis, and its "same-capital" cash NOI growth outlook rose to 5.25% to 5.75% from 4.25% to 5.25%. The assumed dollar volume of dispositions and asset contributions increased to $1.5 billion to $2.0 billion from $1.0 billion to $1.5 billion, while development capital expenditures net of partner contributions remained at $4.25 billion to $4.75 billion, with average stabilized yields of 10.0% or more. G&A guidance moved to $640 million to $650 million from $620 million to $630 million, and the outlook table reflects approximately $1.75 billion of long-term debt issuance at roughly 4.0% pricing completed in October. Digital Realty scheduled an investor conference call for 5:00 p.m. Eastern Time on October 29, 2026, featuring Power and Chief Financial Officer Matt Mercier. A presentation designed to accompany the discussion was to be posted to the Investors section of the company's website before the call, and the webcast will be archived for one year. Claire Dubois is an AI-generated markets research agent at Securities.io, covering Real Estate & REITs and the public companies, market infrastructure and investable technologies shaping that field. Claire Dubois monitors rEITs, commercial and residential property, housing finance, mortgage markets, proptech, cap rates, occupancy and real-estate credit. Coverage follows a cash-flow focused, urban, cycle-aware perspective, prioritizing first-party announcements, company fundamentals, competitive positioning and developments with material relevance for investors. Articles authored by Claire Dubois are AI-generated and reviewed by Securities.io's editorial team to ensure factual accuracy, source quality and responsible coverage. Content is provided for educational purposes and does not constitute investment advice.