Digital Realty Trust 8-K

Summary

Q3 2026 results with raised FY2026 guidance. Digital Realty reported double-digit revenue growth and record leasing, and raised its outlook for Core FFO per share excluding net promote. The company is building around colocation and connectivity, hyperscale capacity for cloud and AI customers, and strategic private capital to fund growth.

Key Figures

• Leasing generated $855M of annualized GAAP base rent at 100% share ($627M at Digital Realty’s share), including $474M of bookings above 1 MW and $152M from 0–1 MW plus interconnection, up 40% Q/Q and 80% Y/Y. The signed-but-not-commenced backlog reached $2.5B at 100% share ($1.8B at Digital Realty’s share); the average lag to lease commencement was 17 months.
• Renewal leases represented $261M of annualized cash rent, with renewal rate increases of 11.8% on a cash basis and 17.0% on a GAAP basis. Same-capital cash NOI was $687M, up 5.9% Y/Y, and portfolio occupancy was 91.1%, versus 90.4% a year earlier.
• The company acquired $742M of land during the quarter, including sites supporting large-scale capacity development; its portfolio had about 10 GW of future development capacity and about 1.5 GW under construction. After quarter-end, it secured $1.4B of cornerstone commitments for its stabilized hyperscale perpetual capital strategy and acquired an additional 16% of Teraco for about $688M, principally through issuing 3.4M shares, taking its ownership to about 77%.

Guidance

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
Revenue excluding promote income	FY2026	$6.85B-$6.95B	$7.05B-$7.125B	raised
Net non-cash rent adjustments	FY2026	negative $145M-$150M	$(145M)-$(150M)	lowered
Adjusted EBITDA (non-GAAP)	FY2026	$3.75B-$3.85B	$3.8B-$3.85B	narrowed (raised low end)
General and administrative expense	FY2026	$620M-$630M	$640M-$650M	raised
Renewal lease rate increases, cash basis	FY2026	9.0%-11.0%	10.0%-12.0%	raised
Renewal lease rate increases, GAAP basis	FY2026	12.0%-14.0%	13.0%-15.0%	raised
Year-end portfolio occupancy	FY2026	+75-125 bp	+75-125 bps	reaffirmed
Same-capital cash NOI growth (non-GAAP)	FY2026	4.25%-5.25%	5.25%-5.75%	raised
Dispositions and asset contributions	FY2026	$1.0B-$1.5B	$1.5B-$2.0B	raised
Disposition cap rate	FY2026	0.0%-10.0%	0.0%-10.0%	reaffirmed
Development capital expenditures, net of partner contributions	FY2026	$4.25B-$4.75B	$4.25B-$4.75B	reaffirmed
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
Net income per diluted share (GAAP)	FY2026	$3.10-$3.15	$2.90-$2.95	lowered
Real estate depreciation and gain/loss on sale	FY2026	$5.30-$5.30	$5.65	raised
FFO per share, Nareit-defined (non-GAAP)	FY2026	$8.40-$8.45	$8.55-$8.60	raised
Non-core expenses and revenue streams per share	FY2026	$0.25-$0.25	$0.25	reaffirmed
Net promote per share	FY2026	$(0.50)-$(0.50)	$(0.50)	reaffirmed
Core FFO per share excluding net promote (non-GAAP)	FY2026	$8.15-$8.20	$8.30-$8.35	raised
Foreign currency translation adjustment per share	FY2026	$(0.05)-$(0.05)	$(0.05)	reaffirmed
Constant-currency Core FFO per share excluding net promote (non-GAAP)	FY2026	$8.10-$8.15	$8.25-$8.30	raised

Investor Takeaways

• Track commencements from the $1.8B company-share backlog, particularly the $643M scheduled for 2028 and beyond; conversion into operating rent will test the multi-year growth outlook.
• Watch renewal spreads and same-capital cash NOI growth: sustained growth alongside higher occupancy would support the company’s case for continued internal growth.
• Monitor execution of the development pipeline and private-capital strategy, including capacity additions and the deployment of the $1.4B in cornerstone commitments.