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DLR

Digital Realty Trust, Inc.

DLR

Digital Realty Trust, Inc. • NYSE
$160.12 ▲ 0.76% (+1.21)
Market Cap $55.00 B
52w High $195.38
52w Low $129.95
Dividend Yield 4.88%
P/E 41.48
Volume 602.25K
Outstanding Shares 343.50M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.577B ▲ $733.071M ▲ $67.812M ▼ 4.299% ▼ $0.17 ▼ $580.41M ▼
Q2-2025 $1.493B ▲ $619.925M ▲ $1.032B ▲ 69.126% ▲ $3.03 ▲ $1.63B ▲
Q1-2025 $1.408B ▼ $606.563M ▼ $109.974M ▼ 7.813% ▼ $0.3 ▼ $665.003M ▼
Q4-2024 $1.436B ▲ $628.851M ▲ $189.569M ▲ 13.202% ▲ $0.54 ▲ $750.713M ▲
Q3-2024 $1.431B $606.567M $51.193M 3.577% $0.13 $636.361M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $3.3B ▼ $48.729B ▲ $23.739B ▼ $23.025B ▲
Q2-2025 $3.554B ▲ $48.715B ▲ $23.853B ▲ $22.915B ▲
Q1-2025 $2.322B ▼ $45.081B ▼ $21.902B ▼ $21.296B ▼
Q4-2024 $3.871B ▲ $45.284B ▼ $22.108B ▼ $21.34B ▲
Q3-2024 $2.176B $45.295B $22.119B $21.246B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $63.713M ▼ $652.861M ▲ $-729.558M ▼ $-176.504M ▼ $-255.682M ▼ $652.861M ▲
Q2-2025 $1.047B ▲ $641.237M ▲ $161.34M ▲ $555.831M ▲ $1.234B ▲ $641.237M ▲
Q1-2025 $106.395M ▼ $399.085M ▼ $-903.18M ▼ $-1.018B ▼ $-1.549B ▼ $399.085M ▼
Q4-2024 $185.688M ▲ $769.475M ▲ $-511.99M ▲ $1.541B ▲ $1.695B ▲ $769.475M ▲
Q3-2024 $40.134M $566.515M $-1.119B $474.351M $-105.126M $566.515M

Revenue by Products

Product Q3-2024Q4-2024Q1-2025Q2-2025
Fee Income And Other
Fee Income And Other
 $20.00M ▲$60.00M ▲$20.00M ▼$40.00M ▲
Rental And Other Services
Rental And Other Services
 $1.41Bn ▲$4.07Bn ▲$1.39Bn ▼$1.46Bn ▲

Five-Year Company Overview

Income Statement

Income Statement Digital Realty’s revenue has been climbing steadily over the past five years, showing that demand for its data centers continues to grow. Gross profit has also trended upward, which suggests the core business remains structurally healthy. However, profit measures after operating costs and non‑cash items are more uneven. Operating income is positive but not surging, which implies that higher costs (including power, staffing, maintenance, and overhead) are absorbing a good share of the added revenue. Net income and earnings per share jump around quite a bit from year to year, which is typical for a capital‑intensive real estate business where depreciation, asset sales, and one‑time items can distort reported earnings. Overall, the income statement points to a business with solid, growing revenue and acceptable profitability at the operating level, but with headline earnings that can be quite volatile and should be interpreted with care, especially for a REIT where cash flow metrics tend to matter more than accounting earnings.

Balance Sheet

Balance Sheet The balance sheet shows a large and expanding asset base, reflecting continued investment in data centers around the world. Shareholders’ equity has grown over time, which signals that the company has been able to build value in its portfolio rather than simply trading assets. Debt levels are significant, which is normal for a real estate trust, but they have not exploded relative to the growth in assets and equity. This suggests leverage is meaningful but not out of control, although it does leave the company exposed to interest rate and refinancing conditions. A notable positive shift is the much stronger cash position in the most recent year compared with earlier years, when cash was quite thin. That added liquidity gives Digital Realty more flexibility to manage its debt, fund projects, and weather any short‑term disruptions, though investors would still want to keep an eye on how that cash was raised and how quickly it is deployed.

Cash Flow

Cash Flow Operating cash flow has been reasonably stable and has improved in the latest year, indicating that the underlying data center operations generate a solid and growing stream of cash. A few years ago, free cash flow was negative because the company was spending heavily on new facilities and expansions. More recently, free cash flow has turned clearly positive, largely because capital spending dropped off in the reported period. That shift boosts financial flexibility and supports the REIT’s ability to fund dividends and debt service from internal cash. The trade‑off is that a period of lighter capital spending may slow the pace of future capacity additions if it persists. In a fast‑growing sector like data centers, the sustainability of free cash flow depends on how the company balances ongoing expansion with the need to keep leverage and funding costs under control.

Competitive Edge

Competitive Edge Digital Realty has a strong competitive position built on global scale, network effects, and a diversified customer base. It operates a very broad footprint of data centers across many countries and major metropolitan areas, which is hard and expensive for smaller rivals to replicate. This scale is particularly valuable for large cloud providers and multinational enterprises that want consistent infrastructure in many regions. Its interconnection and networking capabilities create a “meet‑me” effect: as more customers colocate within its facilities, the value of being in that ecosystem increases for everyone else. That stickiness can reduce churn and support pricing power. The company’s access to capital as a large, established REIT is another advantage, allowing it to pursue acquisitions and new builds when opportunities arise. At the same time, it faces intense competition from other large data center REITs and from hyperscale cloud companies that sometimes build their own facilities. Power availability, regulation, and local permitting constraints are additional competitive and operational risks. Overall, the moat appears solid, but it must be actively maintained through ongoing investment, service quality, and strong relationships with key cloud and enterprise customers.

Innovation and R&D

Innovation and R&D Digital Realty is leaning into innovation rather than treating data centers as plain real estate, which is important as workloads become more demanding and AI‑heavy. Its PlatformDIGITAL offering provides a standardized, globally distributed environment where customers can place and interconnect their infrastructure in a consistent way. ServiceFabric adds a layer of orchestration, helping customers manage and link their systems across locations and cloud providers, which differentiates the company from more basic colocation providers. The collaboration with Oracle around validated architectures for AI, data, and cloud workloads shows a deliberate push into higher‑value, compute‑intensive use cases. This is especially relevant as AI and advanced analytics require higher power density, more sophisticated cooling, and tighter connectivity. The company is also investing heavily in innovation and next‑generation data center designs, including efficiency and sustainability initiatives such as energy‑saving technologies and renewable power sourcing. This can be both a cost advantage and a selling point for customers with strict environmental goals. Taken together, these efforts position Digital Realty not just as a landlord, but as a digital infrastructure platform provider, which can deepen customer relationships and support premium positioning if execution is strong.

Summary

Digital Realty’s recent financials describe a large, growing, and capital‑intensive digital infrastructure business with a solid revenue engine, reasonably healthy operating profitability, and more volatile accounting earnings. Its balance sheet reflects heavy but manageable leverage, backed by a sizable and expanding asset base and improved liquidity. Cash generation from operations is steady, and the recent swing to clearly positive free cash flow improves financial flexibility, although future growth will still require ongoing investment. Competitively, the company benefits from global scale, strong interconnection ecosystems, and diversified customers, all of which support a meaningful moat in a structurally growing market fueled by cloud and AI. Innovation efforts around PlatformDIGITAL, ServiceFabric, AI‑oriented solutions, and sustainability suggest a focus on higher‑value, future‑proof offerings rather than commodity space. Key watchpoints include managing debt and interest costs, balancing growth capex with free cash flow, keeping utilization high in new facilities, and staying ahead in technology, power, and cooling capabilities for AI workloads. Overall, the data points to a strategically well‑positioned data center REIT, with performance tied closely to how effectively it funds and executes its global expansion while maintaining financial discipline.

NEWS

November 19, 2025 · 11:00 AM UTC

Schneider Electric and Digital Realty Announce $373M Supply Capacity Agreement to Meet Rising Data Center Demand

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November 12, 2025 · 4:05 PM UTC

Digital Realty Announces Pricing of €600 million of Guaranteed Notes due 2033 and €800 million of Guaranteed Notes due 2037

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November 3, 2025 · 4:05 PM UTC

Digital Realty Advances AI Infrastructure Innovation Supporting NVIDIA AI Factory Research Center and NVIDIA DSX Blueprint

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October 23, 2025 · 4:05 PM UTC

Digital Realty Reports Third Quarter 2025 Results

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October 2, 2025 · 8:42 AM UTC

Digital Realty and DXC Team to Accelerate Adoption of Enterprise AI Globally

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