Digital Realty Reports Second Quarter 2025 Results
DALLAS, July 24, 2025 /PRNewswire/ -- Digital Realty (NYSE:DLR), the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today financial results for the second quarter of 2025. All per share results are presented on a fully diluted basis.
Highlights
Reported net income available to common stockholders of $2.94 per share in 2Q25, compared to $0.20 in 2Q24
Reported FFO per share of $1.75 in 2Q25, compared to $1.57 in 2Q24
Reported Core FFO per share of $1.87 in 2Q25, compared to $1.65 in 2Q24
Reported Constant-Currency Core FFO per share of $1.84 in 2Q25
Reported rental rate increases on renewal leases of 7.3% on a cash basis in 2Q25
Signed total bookings during 2Q25 that are expected to generate $177 million of annualized GAAP rental revenue at 100% share; at Digital Realty's share total bookings were $135 million, including a $90 million contribution from the 0–1 megawatt plus interconnection category
Reported backlog of $826 million of annualized GAAP base rent at the end of 2Q25
Raised 2025 Core FFO per share outlook to $7.15 - $7.25 and 2025 Constant-Currency Core FFO per share outlook to $7.10 - $7.20
Financial Results
Digital Realty reported revenues of $1.49 billion in the second quarter of 2025, a 6% increase from the previous quarter and a 10% increase from the same quarter last year.
The company delivered net income of $1.05 billion in the second quarter of 2025, as well as net income available to common stockholders of $1.02 billion and $2.94 per share, compared to $0.27 per share in the previous quarter and $0.20 per share in the same quarter last year.
Digital Realty generated Adjusted EBITDA of $823 million in the second quarter of 2025, a 4% increase from the previous quarter and a 13% increase over the same quarter last year.
The company reported Funds From Operations (FFO) of $600 million in the second quarter of 2025, or $1.75 per share, compared to $1.67 per share in the previous quarter and $1.57 per share in the same quarter last year.
Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered Core FFO per share of $1.87 in the second quarter of 2025, compared to $1.77 per share in the previous quarter and $1.65 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share of $1.84 in the second quarter of 2025 and $3.63 per share for the six-month period ended June 30, 2025.
"Record bookings in our 0–1 megawatt plus interconnection product set underscore the strength of our full spectrum strategy and the breadth of the growing demand for digital infrastructure," said Digital Realty President and Chief Executive Officer Andy Power. "Our inaugural U.S. Hyperscale Data Center Fund is oversubscribed, providing us the capital necessary to serve our customers' growing requirements and to extend Digital Realty's runway for growth."
Leasing Activity
In the second quarter, Digital Realty signed total bookings that are expected to generate $135 million of annualized GAAP rental revenue at its share, including a $73 million contribution from the 0–1 megawatt category and a $17 million contribution from interconnection.
The weighted-average lag between new leases signed during the second quarter of 2025 and the contractual commencement date was four months. The backlog of signed-but-not-commenced leases at quarter-end was $826 million of annualized GAAP base rent at Digital Realty's share.
In addition to new leases signed, Digital Realty also signed renewal leases representing $177 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the second quarter of 2025 increased 7.3% on a cash basis and 9.9% on a GAAP basis.
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New leases signed during the second quarter of 2025 are summarized by region and product as follows:
Annualized GAAP
Base Rent
Square Feet
GAAP Base Rent
GAAP Base Rent
Americas
(in thousands)
(in thousands)
per Square Foot
Megawatts
per Kilowatt
0-1 MW
$30,750
128
$240
9.9
$259
> 1 MW
16,261
41
400
10.4
130
Other (1)
288
6
47
—
—
Total
$47,299
175
$270
20.3
$193
EMEA (2)
0-1 MW
$31,024
72
$429
8.5
$304
> 1 MW
15,609
54
290
6.6
197
Other (1)
115
1
138
—
—
Total
$46,747
127
$368
15.1
$257
Asia Pacific (2)
0-1 MW
$10,744
39
$274
3.3
$268
> 1 MW
13,168
58
228
6.3
174
Other (1)
16
2
9
—
—
Total
$23,927
99
$243
9.6
$207
All Regions (2)
0-1 MW
$72,517
240
$303
21.7
$278
> 1 MW
45,038
152
296
23.3
161
Other (1)
419
9
48
—
—
Total
$117,974
401
$294
45.0
$218
Interconnection
$17,346
N/A
N/A
N/A
N/A
Grand Total
$135,320
401
$294
45.0
$218
Note: Totals may not foot due to rounding differences.
(1)
Other includes Powered Base Building® shell capacity as well as storage and office space within fully improved data center facilities.
(2)
Based on quarterly average exchange rates during the three months ended June 30, 2025.
Investment Activity
During the second quarter, Digital Realty acquired land parcels in three metros. As previously disclosed, Digital Realty acquired approximately 100 acres of land in the Atlanta metro area that is expected to support over 200 megawatts of IT capacity for approximately $120 million. Separately, Digital Realty acquired a 167-acre land parcel in the Dallas metro area that is expected to support approximately 480 megawatts of IT capacity for approximately $11 million. Lastly, Digital Realty acquired several land parcels as part of an assemblage in the Chicago metro area supporting the continued expansion of its Franklin Park campus for approximately $6 million.
Digital Realty also received additional equity commitments from a broad array of global Limited Partners for its U.S. Hyperscale Data Center Fund (the "Fund"), lifting total commitments to more than $3 billion to date. The Fund is now well ahead of its initial target for LP equity commitments and is on track for its final close. During the quarter, Digital Realty contributed interests in five operating data centers and two development sites to the Fund. Digital Realty received over $900 million of gross proceeds as a result of the contributions.
Subsequent to quarter end, Digital Realty sold a five megawatt non-core data center in the Atlanta metro area for gross proceeds of $65 million.
2
Balance Sheet
Digital Realty had approximately $18.5 billion of total debt outstanding as of June 30, 2025, comprised of $17.7 billion of unsecured debt and approximately $0.8 billion of secured debt and other debt. At the end of the second quarter of 2025, net debt-to-Adjusted EBITDA was 5.1x, debt-plus-preferred-to-total enterprise value was 24.1% and fixed charge coverage was 4.7x.
In June, Digital Realty issued €850 million of 3.875% notes due 2034, for net proceeds of approximately €837 million ($975 million). Subsequent to quarter end, the company also repaid €650 million ($754 million) in aggregate principal amount of its 0.625% senior notes.
Since March 31, 2025, the company also sold 4.15 million shares of common stock under its At-The-Market (ATM) equity issuance program at a weighted average price of $173.19 per share, for net proceeds of approximately $719 million.
3
2025 Outlook
Digital Realty raised its 2025 Core FFO per share outlook to $7.15 - $7.25 and its 2025 Constant-Currency Core FFO per share outlook to $7.10 - $7.20. The assumptions underlying the outlook are summarized in the following table.
As of
As of
As of
Top-Line and Cost Structure
February 13, 2025
April 24, 2025
July 24, 2025
Total revenue
$5.800 - $5.900 billion
$5.825 - $5.925 billion
$5.925 - $6.025 billion
Net non-cash rent adjustments (1)
($45 - $50 million)
($50 - $55 million)
($65 - $70 million)
Adjusted EBITDA
$3.100 - $3.200 billion
$3.125 - $3.225 billion
$3.200 - $3.300 billion
G&A
$500 - $510 million
$505 - $515 million
$520 - $530 million
Internal Growth
Rental rates on renewal leases
Cash basis
4.0% - 6.0%
4.0% - 6.0%
5.0% - 6.0%
GAAP basis
6.0% - 8.0%
6.0% - 8.0%
7.0% - 8.0%
Year-end portfolio occupancy
+100 - 200 bps
+100 - 200 bps
+100 - 200 bps
"Same-Capital" cash NOI growth (2)
3.5% - 4.5%
3.5% - 4.5%
3.5% - 4.5%
Foreign Exchange Rates
U.S. Dollar / Pound Sterling
$1.20 - $1.25
$1.25 - $1.35
$1.30 - $1.35
U.S. Dollar / Euro
$1.00 - $1.05
$1.05 - $1.15
$1.10 - $1.15
External Growth
Dispositions / Joint Venture Capital
Dollar volume
$500 - $1,000 million
$500 - $1,000 million
$700 - $1,000 million
Cap rate
0.0% - 10.0%
0.0% - 10.0%
0.0% - 10.0%
Development
CapEx (Net of Partner Contributions) (3)
$3,000 - $3,500 million
$3,000 - $3,500 million
$3,000 - $3,500 million
Average stabilized yields
10.0%+
10.0%+
10.0%+
Enhancements and other non-recurring CapEx (4)
$30 - $35 million
$30 - $35 million
$30 - $35 million
Recurring CapEx + capitalized leasing costs (5)
$320 - $335 million
$320 - $335 million
$320 - $335 million
Balance Sheet
Long-term debt issuance
Dollar amount
$900 - $1,500 million
$900 - $1,500 million
~$2,000 million
Pricing
5.0% - 5.5%
4.0% - 5.5%
~4.0%
Timing
Mid-Year
Mid-Year
Mid-Year
Net income per diluted share
$2.10 - $2.20
$2.15 - $2.25
$3.45 - $3.55
Real estate depreciation and (gain) / loss on sale
$4.50 - $4.50
$4.50 - $4.50
$3.25 - $3.25
Funds From Operations / share (NAREIT-Defined)
$6.60 - $6.70
$6.65 - $6.75
$6.70 - $6.80
Non-core expenses and revenue streams
$0.40 - $0.40
$0.40 - $0.40
$0.45 - $0.45
Core Funds From Operations / share
$7.00 - $7.10
$7.05 - $7.15
$7.15 - $7.25
Foreign currency translation adjustments
$0.05 - $0.05
$0.00 - $0.00
($0.05) - ( $0.05)
Constant-Currency Core Funds From Operations / share
$7.05 - $7.15
$7.05 - $7.15
$7.10 - $7.20
(1)
Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments).
(2)
The "Same-Capital" pool includes properties owned as of December 31, 2023 with less than 5% of total rentable square feet under development. It excludes properties that were undergoing, or were expected to undergo, development activities in 2024-2025, properties classified as held for sale and contribution, and properties sold or contributed to joint ventures for all periods presented. The 2025 "Same-Capital" cash NOI growth outlook is presented on a constant currency basis.
(3)
Excludes land acquisitions and includes Digital Realty's share of joint venture and fund contributions. Figure is net of joint venture and fund contributions.
(4)
Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs.
(5)
Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.
Note: The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.
4
Non-GAAP Financial Measures
This document contains non-GAAP financial measures, including FFO, Core FFO, Constant Currency Core FFO, Adjusted FFO, Net Operating Income (NOI), "Same-Capital" Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO to Adjusted FFO, a reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Constant Currency Core FFO, Adjusted FFO, NOI and "Same-Capital" Cash NOI are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.
The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the company's control and/or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Investor Conference Call
Prior to Digital Realty's investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on July 24, 2025, a presentation will be posted to the Investors section of the company's website at https://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company's second quarter 2025 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.
To participate in the live call, investors are invited to dial +1 (888) 317-6003 (for domestic callers) or +1 (412) 317-6061 (for international callers) and reference the conference ID# 5545220 at least five minutes prior to start time. A live webcast of the call will be available via the Investors section of Digital Realty's website at https://investor.digitalrealty.com.
Telephone and webcast replays will be available after the call until August 24, 2025. The telephone replay can be accessed by dialing +1 (877) 344-7529 (for domestic callers) or +1 (412) 317-0088 (for international callers) and providing the conference ID# 4783857. The webcast replay can be accessed on Digital Realty's website.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.
Contact Information
Matt MercierChief Financial OfficerDigital Realty(415) 874-2803
Jordan Sadler / Jim Huseby Investor Relations Digital Realty (415) 275-5344
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Consolidated Quarterly Statements of Operations
Unaudited and in Thousands, Except Per Share Data
Second Quarter 2025
Three Months Ended
Six Months Ended
30-Jun-25
31-Mar-25
31-Dec-24
30-Sep-24
30-Jun-24
30-Jun-25
30-Jun-24
Rental revenues
$1,003,550
$960,526
$958,892
$956,351
$912,994
$1,964,076
$1,807,402
Tenant reimbursements - Utilities
294,503
271,189
302,664
305,097
274,505
565,692
550,862
Tenant reimbursements - Other
37,355
42,177
38,591
39,624
41,964
79,532
80,398
Interconnection and other
121,952
112,969
112,360
112,655
109,505
234,921
217,576
Fee income
34,427
20,643
23,316
12,907
15,656
55,070
28,666
Other
1,363
133
40
4,581
2,125
1,496
2,987
Total Operating Revenues
$1,493,150
$1,407,637
$1,435,862
$1,431,214
$1,356,749
$2,900,787
$2,687,892
Utilities
$339,288
$313,385
$337,534
$356,063
$315,248
$652,673
$639,818
Rental property operating
267,724
238,600
273,104
249,796
237,653
506,324
462,021
Property taxes
49,570
48,856
46,044
45,633
49,620
98,426
90,776
Insurance
4,946
4,483
6,007
4,869
4,755
9,429
7,449
Depreciation and amortization
461,167
443,009
455,355
459,997
425,343
904,176
856,445
General and administration
133,755
121,112
124,470
115,120
119,511
254,867
233,931
Severance, equity acceleration and legal expenses
2,262
2,428
2,346
2,481
884
4,690
1,675
Transaction and integration expenses
22,546
39,902
11,797
24,194
26,072
62,448
57,911
Provision for impairment
—
—
22,881
—
168,303
—
168,303
Other expenses
195
112
12,002
4,774
(529)
307
10,306
Total Operating Expenses
$1,281,453
$1,211,887
$1,291,540
$1,262,928
$1,346,860
$2,493,340
$2,528,636
Operating Income
$211,697
$195,750
$144,322
$168,286
$9,889
$407,447
$159,256
Equity in earnings / (loss) of unconsolidated entities
(12,062)
(7,640)
(36,201)
(26,486)
(41,443)
(19,702)
(57,451)
Gain / (loss) on sale of investments
931,830
1,111
144,885
(556)
173,709
932,941
451,496
Interest and other income / (expense), net
37,747
32,773
44,517
37,756
62,261
70,520
71,970
Interest (expense)
(109,383)
(98,464)
(104,742)
(123,803)
(114,756)
(207,847)
(224,291)
Income tax benefit / (expense)
(12,883)
(17,135)
(4,928)
(12,427)
(14,992)
(30,018)
(37,405)
Loss on debt extinguishment and modifications
—
—
(2,165)
(2,636)
—
—
(1,070)
Net Income
$1,046,946
$106,395
$185,688
$40,134
$74,668
$1,153,341
$362,505
Net (income) / loss attributable to noncontrolling interests
(14,790)
3,579
3,881
11,059
5,552
(11,211)
(777)
Net Income Attributable to Digital Realty Trust, Inc.
$1,032,156
$109,974
$189,569
$51,193
$80,220
$1,142,130
$361,728
Preferred stock dividends
(10,181)
(10,181)
(10,181)
(10,181)
(10,181)
(20,362)
(20,362)
Net Income / (Loss) Available to Common Stockholders
$1,021,975
$99,793
$179,388
$41,012
$70,039
$1,121,768
$341,366
Weighted-average shares outstanding - basic
337,589
336,683
333,376
327,977
319,537
337,139
315,915
Weighted-average shares outstanding - diluted
345,734
344,721
340,690
336,249
327,946
345,305
324,451
Weighted-average fully diluted shares and units
351,691
