Digital Realty (DLR)

Real Estate · $68.1B market cap · SEC CIK 0001297996

Next reports on Feb 3, 2027, after the close, with analysts expecting $0.59 in earnings per share.

52-week range $146.23 to $208.14. 13% below its 52-week high and 24% above its low.

The case for DLR

• Revenue growing 20.0% year over year.
• Pays a 3.6% dividend while you wait.
• Gross margin of 59% absorbs cost shocks.

The case against

• Expensive for its growth: 73.5× earnings, where 8%+ a year of growth would justify about 20×.
• Earnings per share down 37.0%.
• Return on equity of only 4%.
• Current liabilities exceed current assets (ratio 0.55).
• Dividend takes 196% of earnings, leaving little cushion.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Capital spending is missing from its filings, so free cash flow cannot be worked out. Operating cash flow stands in for the cash test, against a stricter bar.
• Each factor except momentum is half fixed thresholds, half rank among the 30 Real Estate companies.

The financials

The financials, five years deep

Pulled from Digital Realty's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Digital Realty says it does

The Company Digital Realty Trust, Inc., through its controlling interest in Digital Realty Trust, L.P. and the subsidiaries of the Operating Partnership, is a leading global provider of data center, colocation and interconnection solutions for customers across a variety of industry verticals. The Parent operates as a REIT for U.S. federal income tax purposes. The Operating Partnership is the entity through which the Parent conducts its business of owning, acquiring, developing and operating data centers. The Parent was incorporated in the state of Maryland on March 9, 2004. The Operating Partnership was organized as a limited partnership in the state of Maryland on July 21, 2004. As of December 31, 2025, our portfolio included 310 data centers (including 89 data centers held as investments in unconsolidated entities), of which 118 are located in the United States, 113 are located in Europe, 36 are located in Latin America, 16 are…

Risk factors DLR lists in its 10-K

• Our business depends upon the demand for data centers
• We depend upon third-party suppliers for power and we are vulnerable to service failures and price increases by such suppliers and to volatility in the supply and price of power in the open market
• We face significant competition, which may adversely affect the occupancy and rental rates of our data centers
• Any failure of our physical or information technology or operational technology infrastructure or services could lead to significant costs and disruptions
• We and our third-party providers are vulnerable to cyberattacks and security breaches that could materially disrupt or compromise our operations, data and results
• We depend on significant customers, and many of our data centers are single-tenant properties or are currently occupied by single tenants
• Failure to attract, grow and retain a diverse and balanced customer base, including key magnet customers, could harm our business and operating results
• Our contracts with our customers could subject us to significant liability
• Certain of our customer agreements may include restrictions on the sale of our properties to certain third parties, which could have a material adverse effect on us
• Our data centers may not be suitable for re-leasing without significant expenditures or renovations
• We may be unable to lease vacant or development space, renew leases, or re-lease space as leases expire
• Even if we have additional space available for lease at any one of our data centers, our ability to lease this space to existing or new customers could be constrained by our ability to provide sufficient electrical power
• Our portfolio depends upon local economic conditions and is geographically concentrated in certain locations
• Our business and operations, and our customers, suppliers and business partners may be adversely affected by epidemics, pandemics or other outbreaks
• We lease or sublease certain of our data center space from third parties and the ability to retain these leases or subleases could be a significant risk to our ongoing operations
• We and our customers may experience supply chain or procurement disruptions, or increased supply chain costs, which may lead to delays
• We may not be able to adapt to changing technologies and customer requirements, and our data center infrastructure may become obsolete
• We depend on third parties to provide network connectivity to the customers in our data centers and any delays or disruptions in connectivity may materially adversely affect our operating results and cash flow
• Our acquisitions may not achieve the intended benefits or may disrupt our plans and operations
• We may be subject to unknown or contingent liabilities related to our acquisitions, for which we may have no or limited recourse against the sellers
• Joint venture (JV), fund and other investments could be adversely affected by our lack of sole decision-making authority, our reliance on our JV partners’ financial condition and disputes between us and our partners
• Any delays or unexpected costs in the development of our existing space and developable land and new properties acquired for development may delay and harm our growth prospects, future operating results and financial condition
• Many of our costs, such as operating and general and administrative expenses, interest expense and real estate acquisition and construction costs, could be adversely impacted by periods of heightened inflation
• We have substantial debt and face risks associated with the use of debt to fund our business activities, including refinancing and interest rate risks
• Our growth depends on external sources of capital which are outside of our control
• Declining real estate valuations, impairment charges and illiquidity of real estate investments could adversely affect our earnings and financial condition
• Our success depends on key personnel whose continued service is not guaranteed
• As artificial intelligence becomes more prevalent in the workplace, it may present new considerations that could affect our business and operating results
• We may have difficulty managing our growth
• Potential losses may not be covered by insurance
• We could incur significant costs related to environmental matters, including from government regulation, private litigation, and existing conditions at some of our properties
• We may incur significant costs complying with applicable laws and governmental regulations, including the Americans with Disabilities Act
• Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting
• Volatility in market and economic conditions may impact the accuracy of the various estimates used in the preparation of our financial statements and footnotes to the financial statements
• The interests of Digital Realty Trust, Inc.’s stockholders may conflict with the interests of Digital Realty Trust, L.P.’s unitholders
• Digital Realty Trust, Inc.’s charter, Digital Realty Trust, L.P.’s partnership agreement and Maryland law contain provisions that may delay, defer or prevent a change of control transaction
• The conversion rights of Digital Realty Trust, Inc.’s preferred stock may be detrimental to holders of Digital Realty Trust, Inc.’s common stock
• Digital Realty Trust, Inc.’s rights and the rights of its stockholders to take action against its directors and officers are limited
• Failure to qualify as a REIT would have significant adverse consequences to Digital Realty Trust, Inc. and its stockholders and to Digital Realty Trust, L.P. and its unitholders
• Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends
• The tax imposed on REITs engaging in “prohibited transactions” may limit our ability to engage in transactions which would be treated as sales for U.S. federal income tax purposes
• Complying with REIT requirements may cause us to forgo otherwise attractive opportunities or liquidate otherwise attractive investments
• If Digital Realty Trust, L.P. were to fail to qualify as a partnership for U.S. federal income tax purposes, Digital Realty Trust, Inc. would fail to qualify as a REIT and suffer other adverse consequences
• Tax liabilities and attributes inherited in connection with acquisitions may adversely impact our business
• Changes in U.S. or foreign tax laws and regulations, including changes to tax rates, legislation and other actions may adversely affect our results of operations, our stockholders, Digital Realty Trust, L.P.’s unitholders and us

Filings

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