Digital Realty Trust 8-K
PositiveEarningsGuidance raised
Record leasing backlog supports raised FY2026 guidance; a majority stake in three Northern Virginia data centers expands the portfolio.
Filed 2026-07-23 16:18 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with raised FY2026 guidance. Digital Realty reported higher revenue and operating performance, while GAAP net income and EPS declined Y/Y partly because Q2 2025 included a large property-disposition gain. Strong leasing, renewal spreads and a record backlog support the higher outlook.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Total operating revenue | $1.92B | $1.49B | +28.9% |
| Operating income | $467M | $1.14B | -59.1% |
| Net income | $458M | $1.05B | -56.3% |
| Net income available to common stockholders | $443M | $1.02B | -56.6% |
| Diluted EPS | $1.21 | $2.94 | -58.8% |
| FFO per diluted share, non-GAAP | $2.73 | $1.75 | +56.0% |
| Core FFO per diluted share, non-GAAP | $2.65 | $1.87 | +41.7% |
| Core FFO per diluted share excluding net promote, non-GAAP | $2.13 | $1.87 | +13.9% |
- Core FFO included $188M of net promote income. A $94M after-tax insurance settlement included ≈$27M in Core FFO; the property-damage recovery portion was excluded.
- Leasing bookings totaled $307M of annualized GAAP base rent at 100% share ($208M at Digital Realty’s share), including $87.8M from 0–1 MW leases and $20.5M from interconnection. Quarter-end backlog reached a record $1.9B at 100% share ($1.4B at its share). Renewal rates rose 25.4% on a cash basis and 32.0% on a GAAP basis.
- Same-capital cash NOI grew 8.9% Y/Y (7.2% on a constant-currency basis); portfolio occupancy was 90.2%, up 50 bp Y/Y. Q2 2025 net income included a $932M property-disposition gain.
- Q2 ATM sales: 6.2M shares at a weighted average $191.63, for $1.2B net proceeds; YTD sales were 13.5M shares for $2.5B. Common shares outstanding rose 8.7% Y/Y to 370.0M. Total debt at carrying value was $18.6B and cash was $1.86B.
- Acquired a 64% stake in three Northern Virginia data centers (288 MW; gross value ≈$7.8B); consideration for partners’ equity was ≈$3.5B, including $1.2B cash and 12.3M common shares.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Total revenue, excluding promote income | FY2026 | $6.85B-$6.95B | $6.65B-$6.75B | Raised |
| Net non-cash rent adjustments | FY2026 | $(145M)-$(150M) | $(90M)-$(95M) | Lowered |
| Adjusted EBITDA, non-GAAP | FY2026 | $3.75B-$3.85B | $3.65B-$3.75B | Raised |
| General and administrative expense | FY2026 | $620M-$630M | $615M-$625M | Raised |
| Renewal rates, cash basis | FY2026 | 9.0%-11.0% | 6.5%-8.5% | Raised |
| Renewal rates, GAAP basis | FY2026 | 12.0%-14.0% | 9.5%-11.5% | Raised |
| Year-end portfolio occupancy | FY2026 | +75-125 bp | +50-100 bp | Raised |
| Same-capital cash NOI growth, non-GAAP | FY2026 | 4.25%-5.25% | 4.0%-5.0% | Raised |
| U.S. dollar / pound sterling | FY2026 | $1.32-$1.37 | $1.32-$1.37 | Reaffirmed |
| U.S. dollar / euro | FY2026 | $1.13-$1.18 | $1.15-$1.20 | Lowered |
| Dispositions / joint venture capital | FY2026 | $1.0B-$1.5B | $0.5B-$1.0B | Raised |
| Dispositions / joint venture cap rate | FY2026 | 0.0%-10.0% | 0.0%-10.0% | Reaffirmed |
| Development capital expenditures, net of partner contributions | FY2026 | $4.25B-$4.75B | $3.5B-$4.0B | Raised |
| Average stabilized development yields | FY2026 | 10.0%+ | 10.0%+ | Reaffirmed |
| Enhancements and other non-recurring capital expenditures | FY2026 | $30M-$35M | $30M-$35M | Reaffirmed |
| Recurring capital expenditures and capitalized leasing costs | FY2026 | $400M-$425M | $400M-$425M | Reaffirmed |
| Long-term debt issuance | FY2026 | $1.5B-$2.0B | $1.5B-$2.0B | Reaffirmed |
| Long-term debt pricing | FY2026 | 4.5%-5.5% | 4.0%-4.5% | Raised |
| Long-term debt issuance timing | FY2026 | 2H 2026 | Mid-year | Shifted later |
| Net income per diluted share, GAAP | FY2026 | $3.10-$3.15 | $2.65-$2.75 | Raised |
| Real estate depreciation and gain/loss on sale per share | FY2026 | $5.30-$5.30 | $4.95-$4.95 | Raised |
| NAREIT FFO per share, non-GAAP | FY2026 | $8.40-$8.45 | $7.60-$7.70 | Raised |
| Non-core expenses and revenue streams per share | FY2026 | $0.25-$0.25 | $0.40-$0.40 | Lowered |
| Net promote per share | FY2026 | $(0.50)-$(0.50) | $0.00-$0.00 | Lowered |
| Core FFO per share excluding net promote, non-GAAP | FY2026 | $8.15-$8.20 | $8.00-$8.10 | Raised |
| Foreign-currency translation adjustment per share | FY2026 | $(0.05)-$(0.05) | $(0.05)-$(0.05) | Reaffirmed |
| Constant-currency Core FFO per share excluding net promote, non-GAAP | FY2026 | $8.10-$8.15 | $7.95-$8.05 | Raised |
Investor Takeaways
- Watch whether signed leases commence as expected and backlog converts into revenue, supporting the FY2026 outlook.
- The announced Columbia Capital acquisition is expected to close in 2H 2026, subject to customary closing conditions and regulatory approvals.
The summary is written by an AI model reading the filing.
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