Digital Realty Trust Inc, based in Austin, Texas, is a leading company that specializes in bringing together companies and data through a range of data center, colocation, and interconnection solutions. With a market capitalization of $58.1 billion, Digital Realty is actively engaged in the ownership, acquisition, repositioning, and management of technology-related real estate.
The company is gearing up to announce its second-quarter results after the market closes on Thursday, Jul. 24. Analysts are anticipating Digital Realty to report core funds from operations (FFO) of $1.73 per share, a 4.9% increase from the $1.65 per share reported in the same quarter last year. Impressively, Digital Realty has consistently met or exceeded Wall Street’s FFO projections in the past four quarters.
Looking ahead to the full fiscal year 2025, Digital Realty is expected to deliver a core FFO of $7.03 per share, marking a 4.8% increase from $6.71 per share in fiscal 2024. Furthermore, in fiscal 2026, the company’s FFO is projected to surge by 7.4% year-over-year to $7.55 per share.
In terms of stock performance, DLR has shown strong growth, gaining 13.8% over the past 52 weeks, outpacing the S&P 500 Index and the Real Estate Select Sector SPDR Fund. Following the release of its impressive Q1 results on Apr. 24, the company saw a 4% increase in its stock prices. Driven by robust demand across its key product segments, Digital Realty experienced strong leasing activity and growth in cash flows. Rental revenues for the quarter rose by 7.4% year-over-year to $960.5 million, with overall revenue increasing by 5.7% year-over-year to $1.4 billion. Additionally, core funds from operations (CFFO) soared by 14.3% year-over-year to $608.4 million, surpassing expectations and boosting investor confidence.
Analysts have given Digital Realty Trust a consensus “Moderate Buy” rating, with 19 “Strong Buys,” two “Moderate Buys,” six “Holds,” and one “Strong Sell.” The mean price target of $187.52 suggests an 8.6% upside potential from current levels.
It is important to note that on the date of publication, Aditya Sarawgi did not have any positions in the securities mentioned in this article. The information provided here is for informational purposes only. This article was originally published on Barchart.com.
