DIGITAL REALTY TRUST, INC. (DLR): Third Quarter 2026
DIGITAL REALTY TRUST, INC. (DLR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Table of Contents Exhibit 99.1 Table of Contents Financial Supplement Table of Contents Third Quarter 2026 Overview PAGE Corporate Information 3 Key Quarterly Financial Data 5 Consolidated Statements of Operations Earnings Release 7 2026 Outloo
How this was made
The 30-second read
Why it matters
Investors will compare the Q3 results to prior quarters and consensus estimates to gauge momentum.
Market read
First‑report earnings for a major REIT; likely to influence short‑term price action and sector sentiment.
What to watch
Potential impact of upcoming capital expenditures and lease expirations on future cash flow.
Digital Realty reported record leasing and backlog, double-digit year-over-year revenue and earnings growth, and raised 2026 Core FFO per share outlook.
Third-quarter results featured $1.9 billion of total revenues, 21% growth versus the same quarter last year, record $855 million of bookings at 100% share, record $2.5 billion backlog at 100% share, and a raised 2026 Core FFO per share outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, three months ended September 30, 2026GAAP | $1.90B | 10% higher than the previous quarter when excluding $201 million of promote income in the second quarter | 21% |
| Rental revenues, three months ended September 30, 2026GAAP | $1.22B | – | – |
| Tenant reimbursements - Utilities, three months ended September 30, 2026GAAP | $423.9M | – | – |
| Tenant reimbursements - Other, three months ended September 30, 2026GAAP | $47.03M | – | – |
| Interconnection and other, three months ended September 30, 2026GAAP | $131.4M | – | – |
| Fee income, three months ended September 30, 2026GAAP | $75.30M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $1.61B | – | – |
| Utilities expense, three months ended September 30, 2026GAAP | $477.5M | – | – |
| Rental property operating expense, three months ended September 30, 2026GAAP | $304.2M | – | – |
| Property taxes, three months ended September 30, 2026GAAP | $60.41M | – | – |
| Insurance, three months ended September 30, 2026GAAP | $4.65M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $539.5M | – | – |
| General and administration, three months ended September 30, 2026GAAP | $170.6M | – | – |
| Transaction and integration expenses, three months ended September 30, 2026GAAP | $48.96M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $302.1M | – | – |
| Net income, three months ended September 30, 2026GAAP | $193.6M | – | – |
| Net income available to common stockholders, three months ended September 30, 2026GAAP | $185.2M | – | – |
| Net income per common share - diluted, three months ended September 30, 2026GAAP | $0.48 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $977.7M | in line with the previous quarter | 13% |
| Funds From Operations, three months ended September 30, 2026non-GAAP | $741.5M | – | – |
| Funds From Operations per share - diluted, three months ended September 30, 2026non-GAAP | $1.97 | – | – |
| Core Funds From Operations, three months ended September 30, 2026non-GAAP | $795.3M | – | – |
| Core FFO per share (excluding net promote) - diluted, three months ended September 30, 2026non-GAAP | $2.10 | – | – |
| Constant-Currency Core FFO per share (excluding net promote), three months ended September 30, 2026non-GAAP | $2.10 | – | – |
| Adjusted Funds From Operations, three months ended September 30, 2026non-GAAP | $686.0M | – | – |
| AFFO per share - diluted, three months ended September 30, 2026non-GAAP | $1.81 | – | – |
| Same-Capital cash net operating income, three months ended September 30, 2026non-GAAP | $687.2M | (1.4%) | 5.9% |
| Constant Currency Cash Net Operating Income, three months ended September 30, 2026non-GAAP | $687.0M | – | 5.9% |
| Portfolio occupancy at end of quarterother | 91.1% | – | – |
| Same-capital occupancy at end of quarterother | 93.4% | – | – |
| Total bookings at 100% share, annualized GAAP rental revenueGAAP | $855M | – | – |
| Total bookings at Digital Realty's share, annualized GAAP rental revenueGAAP | $627M | – | – |
| Backlog at 100% share, annualized GAAP base rentGAAP | $2.5B | – | – |
| Backlog at Digital Realty's share, annualized GAAP base rentGAAP | $1.8B | – | – |
| Rental rate increases on renewal leases, cash basisother | 11.8% | – | – |
| Rental rate increases on renewal leases, GAAP basisGAAP | 17.0% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 Outlook as of October 29, 2026 outlook
- Revenue$7.050 - $7.125 billion total revenue (excluding promote income)
- Operating expenses$640 - $650 million G&A
- Note$3.800 - $3.850 billion Adjusted EBITDA
- Note($145 - $150 million) net non-cash rent adjustments
- Note10.0% - 12.0% rental rates on renewal leases, cash basis
- Note13.0% - 15.0% rental rates on renewal leases, GAAP basis
- Note+75 - 125 bps year-end portfolio occupancy
- Note+5.25% - 5.75% Same-Capital cash NOI growth
- Note$1,500 - $2,000 million dispositions / asset contributions
- Note$4,250 - $4,750 million development CapEx (Net of Partner Contributions)
- Note10.0%+ average stabilized yields
- Note$30 - $35 million enhancements and other non-recurring CapEx
- Note$400 - $425 million recurring CapEx + capitalized leasing costs
- Note~$1,750 million long-term debt issuance
- Note~4.0% long-term debt issuance pricing
- NoteOctober long-term debt issuance timing
- Note$2.90 - $2.95 net income per diluted share
- Note$5.65 - $5.65 real estate depreciation and (gain) / loss on sale
- Note$8.55 - $8.60 Funds From Operations / share (NAREIT-Defined)
- Note$0.25 - $0.25 non-core expenses and revenue streams
- Note($0.50) - ($0.50) Net Promote
- Note$8.30 - $8.35 Core Funds From Operations / share (excluding net promote)
- Note($0.05) - ($0.05) foreign currency translation adjustments
- Note$8.25 - $8.30 Constant-Currency Core FFO / share (excluding net promote)
Capital returns
- Dividends per share and common unit: $1.22.
- 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, the company sold approximately 15.9 million shares under its At-The-Market equity issuance program at a weighted average price of $185.98 per share, for net proceeds of approximately $2.9 billion.
What drove it
- Record bookings of $855 million of annualized GAAP rental revenue at 100% share, including $627 million at Digital Realty's share.
- The 0-1 megawatt plus interconnection category contributed a record $152 million of bookings at Digital Realty's share.
- The weighted-average lag between new leases signed during the third quarter of 2026 and contractual commencement was 17 months.
- Renewal leases represented $261 million of annualized cash rental revenue, with rental-rate increases of 11.8% on a cash basis and 17.0% on a GAAP basis.
- Same-Capital cash NOI increased 5.9% and same-capital occupancy reached 93.4%.
- Development lifecycle totaled 1,464 MW under construction and was 63% leased, with 11.6% average stabilized yields.
Concerns
- Total operating revenues of $1,902,418 were below $1,924,040 in the previous quarter; the company stated third-quarter revenue was 10% higher when excluding $201 million of second-quarter promote income.
- Net income per diluted share was $0.48, below $1.21 in the previous quarter.
- AFFO per diluted share was $1.81, below $2.47 in the previous quarter, and the diluted AFFO payout ratio was 67.4% versus 49.5% in the previous quarter.
- Net debt-to-Adjusted EBITDA increased to 5.2x from 4.7x in the previous quarter.
- Cash and cash equivalents declined to $802,903 from $1,864,796 in the previous quarter.
- EMEA portfolio occupancy was 83.2%, including London at 72.8%, and Asia Pacific portfolio occupancy was 85.1%, including Hong Kong at 59.9%.
What to watch
- Conversion of the record $2.5 billion backlog at 100% share, given the 17-month weighted-average lag to contractual commencement for new leases.
- Delivery and leasing of the 1,464 MW development pipeline, which was 63% leased at September 30, 2026.
- Execution against the raised $7.050 - $7.125 billion total-revenue outlook excluding promote income and $3.800 - $3.850 billion Adjusted EBITDA outlook.
- Portfolio occupancy progression against the +75 - 125 bps year-end guidance.
- Capital deployment under the $4,250 - $4,750 million development CapEx outlook and balance-sheet execution following October debt issuance.
Balance sheet and cash flow
- Cash and cash equivalents: $802,903 as of September 30, 2026.
- Total debt outstanding: approximately $19.5 billion as of September 30, 2026, comprising $17.9 billion of unsecured debt and approximately $1.6 billion of secured debt and other debt.
- Net debt-to-Adjusted EBITDA: 5.2x.
- Debt-plus-preferred-to-total enterprise value: 23.2%.
- Fixed charge coverage: 4.8x.
- Total direct capital expenditures: $1,262,844 for the three months ended September 30, 2026.
- Development capital expenditures: $1,154,527 for the three months ended September 30, 2026.
- Recurring capital expenditures: $105,789 for the three months ended September 30, 2026.
- During the third quarter, Digital Realty acquired $742 million of land.
- Subsequent to quarter end, Digital Realty closed $1.4 billion of initial cornerstone equity commitments to its new perpetual capital strategy focused on stabilized hyperscale data centers in North America.
Analysis
Digital Realty delivered a strong third quarter, led by $1,902,418 of total operating revenues, which the company said was 21% above the same quarter last year. Rental revenues were $1,224,802, tenant reimbursements for utilities were $423,919, interconnection and other revenue was $131,356, and fee income was $75,298. Total operating revenues were lower than $1,924,040 in the previous quarter, but the company said third-quarter revenue was 10% higher than the previous quarter when excluding $201 million of promote income in the second quarter.
Demand indicators were particularly strong. The company signed record bookings expected to generate $855 million of annualized GAAP rental revenue at 100% share, or $627 million at Digital Realty's share. The backlog reached a record $2.5 billion of annualized GAAP base rent at 100% share and $1.8 billion at Digital Realty's share. New leases had a 17-month weighted-average lag to contractual commencement. Renewals contributed $261 million of annualized cash rental revenue, with cash and GAAP rental-rate increases of 11.8% and 17.0%, respectively. Portfolio occupancy was 91.1%, while same-capital occupancy was 93.4%.
Profitability advanced year over year despite higher cost levels and significant sequential variation in promote-related income. Operating income was $302,131, net income was $193,611, and diluted net income per share was $0.48, compared with $158,200, $63,713, and $0.15, respectively, in the same quarter last year. Adjusted EBITDA was $977,702, in line with $977,589 in the previous quarter and 13% above $867,807 in the same quarter last year. Core FFO per share excluding net promote was $2.10, versus $2.13 in the previous quarter and $1.89 a year earlier. Same-Capital cash NOI increased 5.9% year over year, although it declined 1.4% from the previous quarter.
Capital deployment remained elevated. The company acquired $742 million of land during the quarter and reported $1,154,527 of development capital expenditures, while its development lifecycle included 1,464 MW under construction that was 63% leased. The development pipeline carried 11.6% average stabilized yields. The company also raised approximately $450 million through its ATM program during the quarter. Cash and cash equivalents were $802,903, total debt outstanding was approximately $19.5 billion, and net debt-to-Adjusted EBITDA was 5.2x.
Management raised 2026 Core FFO per share excluding net promote outlook to $8.30 - $8.35 and Constant-Currency Core FFO per share excluding net promote outlook to $8.25 - $8.30. The revenue outlook excluding promote income increased to $7.050 - $7.125 billion, Adjusted EBITDA outlook was $3.800 - $3.850 billion, and Same-Capital cash NOI growth guidance was raised to 5.25% - 5.75%. The primary execution items are backlog conversion, occupancy progression, development delivery, and funding of the $4,250 - $4,750 million development CapEx plan.
Management, verbatim
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. These results underscore the global strength of customer demand for connectivity-rich environments, trusted execution, and a well-capitalized partner with the reach and capabilities to support their evolving requirements across the digital infrastructure landscape.
Andy Power, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Reportable operating-segment revenue was not reported.
- A previous earnings release outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing includes detailed financial tables, occupancy data, and upcoming conference appearances.
Ticker impact
Digital Realty Trust filed its Q3 2026 earnings and provided guidance in an SEC Form 8‑K.
likely modest pressure as the market prices in the new guidance and performance metrics
Primary disclosure of earnings and outlook for a sizable REIT; investors typically react to the numbers and any guidance changes.
Market effects
Provides insight into data‑center REIT performance, which may affect comparable infrastructure funds.
U.S. REIT market may see slight adjustments based on the guidance.
Limited to investors tracking global data‑center capacity trends.
Counterpoint
If the guidance is below expectations, the stock could rally on a perceived discount.
Key entities
- ExecutiveAndrew P. Power
President & CEO of Digital Realty
