Digital Realty owns, operates, and develops data-center properties supporting cloud, network, enterprise, and digital-infrastructure customers.
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DLR · Real Estate · Data Center REIT
Digital Realty Trust, Inc.
Digital Realty owns, operates, and develops data-center properties supporting cloud, network, enterprise, and digital-infrastructure customers.
ReportedCalculatedEstimatedForecastScenario Assumption
Executive summary
The questions under review.
The company connects public-market REIT analysis with direct professional exposure to mission-critical data-center operations.
Can leasing, development, and interconnection demand create attractive per-share growth after capital and financing needs?
Monitor occupancy, leasing, development yields, AFFO, leverage, debt maturities, and capital intensity.
Under Review. Primary-source evidence is documented below, while the five-year model and valuation output remain incomplete.
What Price/AFFO and NAV framework is supported by property growth, leverage, and financing conditions?
Operating perspective
Why I Follow Digital Realty
My interest in Digital Realty is both analytical and personal. My professional experience in data-center operations in the Phoenix market took place at a facility associated with Digital Realty. Working inside that environment gave me firsthand exposure to the physical infrastructure behind cloud computing, artificial intelligence, network connectivity, cooling, power management, uptime, and mission-critical operations. That experience is what originally drew me to Digital Realty as an investment research subject. It allows me to evaluate the company not only through its financial statements, but also through an operating perspective shaped by direct exposure to the data-center environment.
Investment thesis
Scenarios before conviction.
Bull case
Scenario Assumption — operating drivers exceed the verified base evidence without requiring materially weaker economics.
Base case
Scenario Assumption — reported operating drivers develop within management's disclosed framework; no point valuation is published.
Bear case
Scenario Assumption — operating conversion, margins, or cash generation weaken relative to the cited evidence.
What the market may be missing
Research in progress. No differentiated conclusion has been published.
Conditions required
Required evidence will be defined after current filings and investor materials are reviewed.
What would invalidate the thesis
Invalidation criteria are pending completion of the initial research record.
Business overview
Understand the operating system.
Business model
Research in progress. Evidence and source citations have not yet been entered.
Revenue sources
Research in progress. Evidence and source citations have not yet been entered.
Customer base
Research in progress. Evidence and source citations have not yet been entered.
Geographic exposure
Research in progress. Evidence and source citations have not yet been entered.
Recurring versus transactional revenue
Research in progress. Evidence and source citations have not yet been entered.
Competitive advantages
Research in progress. Evidence and source citations have not yet been entered.
Capital intensity and cyclicality
Research in progress. Evidence and source citations have not yet been entered.
Industry structure
Research in progress. Evidence and source citations have not yet been entered.
Latest verified evidence
Digital Realty's Q2 2026 release is the latest verified quarter and separates reported FFO, Core FFO, bookings, and backlog.
Segment analysis
Review disclosed business segments.
| Segment | Revenue | Growth | Operating income | Operating margin | Share of total | Key driver | Source |
|---|---|---|---|---|---|---|---|
| Data-center operations (single reportable segment) | 6,112.7 | 10.0% | 658.5 | 10.8% | 100.0% | Leasing, occupancy, interconnection, development completions, and power availability. | Annual report |
Operating components
Build From Operating Components
| Component | Historical evidence | Unit | Revenue relationship | Margin relationship | Cash-flow relationship | Key uncertainty | Analyst interpretation |
|---|---|---|---|---|---|---|---|
| Bookings and backlogReported | Q2 2026 bookings were $307 million of annualized GAAP base rent at 100% share; quarter-end backlog was $1.9 billion at 100% share. | Annualized GAAP base rent | Signed leases convert after contractual commencement. | Lease economics, energy, and operating costs determine NOI. | Development spending precedes lease commencement and rent collection. | Commencement timing, customer credit, and Digital Realty's ownership share. | Use the company's share and commencement schedule, not gross bookings alone. |
| Renewal pricingReported | Q2 2026 cash-basis renewal rent increased 25.4%. | Cash renewal spread | Renewal spreads affect same-capital growth. | Higher rent can expand NOI if operating costs remain controlled. | Cash-basis spreads are directly relevant to property cash flow. | Mix and sustainability of unusually strong renewals. | Separate renewal economics from new-development leasing. |
Historical financials
Five Years of Evidence — Not Invented Precision
| Period | Revenue | Growth | Gross profit | Gross margin | Operating income | Operating margin | EBITDA | EBITDA margin | Net income | EPS | Operating cash flow | Capital expenditures | FCF | Cash | Debt | Diluted shares | Source |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FY2021 | 4,427.9 | Not applicable | Not applicable | Not applicable | 694 | 15.7% | 2,180.6 | 49.2% | 1,709.3 | 5.94 | 1,702.2 | Not applicable | Not applicable | 142.7 | 13,562.2 | 283.2 | SEC filed annual reports / XBRL company factsUSD |
| FY2022 | 4,691.8 | 6.0% | Not applicable | Not applicable | 590 | 12.6% | 2,167.9 | 46.2% | 377.7 | 1.11 | 1,659.4 | Not applicable | Not applicable | 141.8 | 16,723.9 | 297.9 | SEC filed annual reports / XBRL company factsUSD |
| FY2023 | 5,477.1 | 16.7% | Not applicable | Not applicable | 524.5 | 9.6% | 2,219.3 | 40.5% | 948.8 | 2.88 | 1,634.8 | Not applicable | Not applicable | 1,625.5 | 17,537.6 | 309.1 | SEC filed annual reports / XBRL company factsUSD |
| FY2024 | 5,555 | 1.4% | Not applicable | Not applicable | 471.9 | 8.5% | 2,243.7 | 40.4% | 602.5 | 1.61 | 2,261.5 | Not applicable | Not applicable | 3,870.9 | 16,847 | 331.5 | SEC filed annual reports / XBRL company factsUSD |
| FY2025 | 6,112.7 | 10.0% | Not applicable | Not applicable | 658.5 | 10.8% | 2,553.1 | 41.8% | 1,308.6 | 3.58 | 2,412.1 | Not applicable | Not applicable | 3,451.6 | 18,556.8 | 347.8 | SEC filed annual reports / XBRL company factsUSD |
Revenue build
Model the actual economic drivers.
Data-center operations (single reportable segment)
Leasing, occupancy, interconnection, development completions, and power availability.
Review primary sourceEstimates
Current-period calculations are not reported results.
No analyst estimate is published. Reported results and management guidance remain labeled separately in the source record.
Forecasts
Forward expectations begin with operating drivers.
| Period | Metric | Base case | Bull case | Bear case | Operating-driver build | Difference from guidance | Main sensitivity | Principal risk |
|---|---|---|---|---|---|---|---|---|
| Next fiscal year | Revenue and cash-flow directionForecast | Scenario Assumption — positive operating conversion continues, but growth moderates from the strongest recent period. | Scenario Assumption — demand, mix, and execution remain above the recent reported trend, supporting stronger cash conversion. | Scenario Assumption — demand timing, pricing, mix, or execution weakens enough to pressure revenue and cash conversion. | Build from signed backlog commencement, occupancy, renewal spreads, same-capital NOI, developments, financing, and share issuance. | This is a Luna1 directional scenario, not management guidance and not an external consensus estimate. | Conversion of the cited operating drivers into reported revenue and cash flow | The operating evidence may not persist through the next fiscal year |
| Assumption | Historical basis | Management evidence | Luna1 interpretation | Base | Bull | Bear | Last updated |
|---|---|---|---|---|---|---|---|
| 2026 Core FFO outlook | Current reported period and prior-year comparison | Management raised Core FFO per-share outlook excluding net promote to $8.15–$8.20. | Directionally relevant, but insufficient by itself for a point forecast. | Recent reported momentum moderates toward a normalized pace. | Demand and operating conversion remain above the recent trend. | Demand, pricing, mix, or execution falls below the recent trend. | July 28, 2026 |
Valuation
Make every assumption visible.
Methods
- Price/AFFO
- Price/FFO
- EV/EBITDA
- Net asset value
- Dividend discount model
- Historical multiple range
- Bull, base, and bear scenarios
Primary model inputs
- Same-store cash NOI
- Occupancy and leasing spreads
- Development starts, completions, and stabilized yield
- Core FFO and AFFO per share
- Dividend payout ratio
- Net debt to EBITDA and interest coverage
- Debt maturities, interest rate, and maturity profile
WACC versus terminal growth
Sensitivity table will render after sourced assumptions are entered.
Revenue growth versus operating margin
Sensitivity table will render after sourced assumptions are entered.
| Selected method | Price/AFFO and net asset value |
|---|---|
| Why it fits | A data-center REIT should be valued on per-share cash flow, property economics, development value, leverage, and cost of capital. |
| Valuation date | July 28, 2026 |
| Share-price date | No market-price source connected |
| Share count | Requires verification from the cited primary-source record. |
| Net debt or cash | Requires verification from the cited primary-source record. |
| Forecast period | Not published; operating forecast remains incomplete |
| Discount rate | Not published |
| Terminal assumption | Not published |
| Scenario range | Not published |
| Major sensitivities | Growth duration, margins, capital intensity, and valuation multiple |
| Calculation source | No valuation output is published until reported inputs and market data are verified. |
| Limitations | The site has no licensed real-time market-data feed. This framework is not a price target. |
Comparable companies
Comparable evidence remains separate from valuation output.
| Company | Ticker | Market capitalization | Enterprise value | Revenue growth | EBITDA margin | EV/Revenue | EV/EBITDA | P/E | FCF yield | Price-to-book |
|---|
Comparable-company data has not been entered. The model supports market capitalization, enterprise value, growth, margins, valuation multiples, free-cash-flow yield, and price-to-book where appropriate.
Catalysts
What could change the evidence.
Earnings
Research in progress. Evidence and source citations have not yet been entered.
Product cycle
Research in progress. Evidence and source citations have not yet been entered.
Industry demand
Research in progress. Evidence and source citations have not yet been entered.
Margin expansion
Research in progress. Evidence and source citations have not yet been entered.
Capital allocation
Research in progress. Evidence and source citations have not yet been entered.
Regulatory or macro catalyst
Research in progress. Evidence and source citations have not yet been entered.
Strategic partnerships
Research in progress. Evidence and source citations have not yet been entered.
M&A
Research in progress. Evidence and source citations have not yet been entered.
Customer adoption
Research in progress. Evidence and source citations have not yet been entered.
Risks
What could break the thesis.
Valuation risk
Research in progress. Evidence and source citations have not yet been entered.
Execution risk
Research in progress. Evidence and source citations have not yet been entered.
Cyclical risk
Research in progress. Evidence and source citations have not yet been entered.
Customer concentration
Research in progress. Evidence and source citations have not yet been entered.
Competitive risk
Research in progress. Evidence and source citations have not yet been entered.
Regulatory risk
Research in progress. Evidence and source citations have not yet been entered.
Balance-sheet risk
Research in progress. Evidence and source citations have not yet been entered.
Technology risk
Research in progress. Evidence and source citations have not yet been entered.
Macro risk
Research in progress. Evidence and source citations have not yet been entered.
Thesis-specific risk
Research in progress. Evidence and source citations have not yet been entered.
Thesis monitoring
Evidence that strengthens or challenges the case.
Data-center demand, lease pricing, and development execution may drive per-share cash-flow growth.
Q2 2026 backlog reached a reported record and management raised Core FFO outlook.
Capital intensity, financing needs, long commencement lags, and customer concentration can dilute returns.
Bookings at Digital Realty's share and backlog commencement
Core FFO per share excluding one-time items
AFFO per share and NAV
Capital costs outpace development returns
Backlog commencement and development delivery
Not officially verified
Under Review
July 28, 2026
Earnings history
Verified quarterly evidence.
| Quarter | Revenue | Revenue growth | EPS | EPS growth | Gross margin | Operating margin | Guidance | Earnings reaction | Analyst note |
|---|
No earnings records or dated quarterly updates have been published. This section will remain empty until revenue, EPS, margins, guidance, market reaction, analyst notes, and source links are verified.
Research notes
Research changes and open questions.
No dated notes have been published. Earnings, investor-day, product, industry, valuation, thesis, and portfolio-lesson notes require a verified date and source.
Downloads
Branded documents—published only when complete.
DLRDigital Realty Trust, Inc.
Equity Research and Valuation Report
Prepared by Shy Lee- Last updated
- Updated July 28, 2026
- Format
- File size
- Available after publication
- Status
- In progress
DLRDigital Realty Trust, Inc.
Integrated Valuation Model
Prepared by Shy Lee- Last updated
- Updated July 28, 2026
- Format
- XLSX
- File size
- Available after publication
- Status
- In progress
Sources and disclosures
Evidence before publication.
| Document | Publisher | Publication date | Reporting period | Type | Relevant section | Date accessed |
|---|---|---|---|---|---|---|
| Q2 2026 financial results | Digital Realty Trust, Inc. | July 23, 2026 | Quarter ended June 30, 2026 | Earnings release | Results, bookings, backlog, renewals, and outlook | July 28, 2026 |
| SEC filings | Digital Realty Trust, Inc. | Ongoing archive | Multiple periods | Investor relations | Company filing archive | July 28, 2026 |
Source: Company filings, investor-relations materials, and Luna1 Research estimates. Estimates are labeled Luna1 Research Estimate; scenarios are labeled Illustrative Scenario.
Educational disclosure: This research is for educational and informational purposes only and is not investment advice. Luna1 Research may hold or monitor securities discussed on the platform.
Research completeness
What is supported, partial, or still missing.
| Section | Status | Audit note |
|---|---|---|
| Executive summary | Complete | Company purpose and research question are stated. |
| Business overview | Partial | Current primary-source evidence is present; multi-period model work remains incomplete. |
| Segment data | Complete | Latest disclosed segment or single-reportable-segment values are sourced to the annual filing. |
| Five-year financial history | Complete | Five fiscal-year rows cite filed annual reports; non-applicable or undisclosed measures are labeled explicitly. |
| Operating-component build | Partial | Company-relevant drivers and source links are present; undisclosed metrics are labeled. |
| Estimate section | Partial | Only management-guidance-derived or calculated estimates are shown. |
| Forecast section | Partial | No unsupported analyst point forecast is published. |
| Valuation | Partial | Method and required inputs are documented; market-dependent output is withheld. |
| Bull case | Partial | Scenario requires verified forecast inputs. |
| Base case | Partial | Scenario requires verified forecast inputs. |
| Bear case | Partial | Scenario requires verified forecast inputs. |
| Catalysts | Partial | Catalyst categories are present; dated event verification remains ongoing. |
| Risks | Partial | Risk categories are present; filing-specific citations remain ongoing. |
| Earnings update | Partial | Latest cited release is linked; full quarterly history is incomplete. |
| Source list | Partial | Primary sources are listed; a five-year source archive remains incomplete. |
| Performance tracking | Missing | No verified publication price and benchmark series are connected. |
| Thesis-monitoring indicators | Complete | Quarterly and annual monitoring fields are defined. |
Analyst