Digital Realty Raises 2026 Outlook After Record Data Center Leasing

Digital Realty raised its full-year outlook again on Thursday after signing a record volume of new data center leases in the third quarter, with core funds from operations rising to $2.10 per share from $1.89 a year earlier, according to its earnings release filed with an 8-K.

The data center real estate investment trust now expects 2026 core FFO per share, excluding net promote, of $8.30 to $8.35, up from the $8.15 to $8.20 it forecast in July. It also lifted its 2026 total revenue outlook, excluding promote income, to $7.050 billion to $7.125 billion from $6.850 billion to $6.950 billion.

"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," President and CEO Andy Power said in the release.

Record bookings and backlog

New leases signed in the quarter are expected to generate $855 million of annualized GAAP base rent at 100% share. At Digital Realty's share, bookings were a record $627 million, including a record $152 million from its 0-1 megawatt and interconnection category.

The backlog of signed but not yet commenced leases reached a record $2.5 billion of annualized GAAP base rent at 100% share, or $1.8 billion at the company's share. The weighted-average lag between signing and commencement for new leases was 17 months.

Rents on renewal leases rose 11.8% on a cash basis and 17.0% on a GAAP basis. The company raised its full-year guidance for cash renewal spreads to 10.0% to 12.0%.

By the numbers

• Total revenue: $1.9 billion, up 21% from a year earlier
• Core FFO per share: $2.10, vs. $1.89
• FFO per share: $1.97, vs. $1.65
• Net income to common stockholders: $0.48 per share, vs. $0.15
• Adjusted EBITDA: $978 million, up 13%

Profit and funding

Net income available to common stockholders was $185 million, or $0.48 per share, compared with $0.15 a year earlier and $1.21 in the second quarter, according to the filing. FFO was $742 million, or $1.97 per share.

Digital Realty spent $742 million on land during the quarter, including sites near Indianapolis to support more than a gigawatt of IT capacity and in the Charlotte area for up to 600 megawatts.

After the quarter ended, it bought an additional 16% stake in Teraco for about $688 million, mainly by issuing 3.4 million shares, lifting its ownership to about 77% from 61%. It also closed $1.4 billion of initial cornerstone equity commitments to a new perpetual capital strategy focused on stabilized hyperscale data centers in North America.

The company sold about 2.4 million shares through its at-the-market program in the quarter for net proceeds of about $450 million. It ended September with about $19.5 billion of total debt and net debt-to-adjusted EBITDA of 5.2 times.

Outlook details

Digital Realty raised its 2026 adjusted EBITDA forecast to $3.800 billion to $3.850 billion and its same-capital cash net operating income growth outlook to 5.25% to 5.75%. It cut its 2026 net income per diluted share outlook to $2.90 to $2.95 from $3.10 to $3.15, while lifting NAREIT-defined FFO per share guidance to $8.55 to $8.60.

The REIT paid a dividend of $1.22 per share and common unit for the quarter, unchanged from a year earlier.

Sources

1. Digital Realty Form 8-K with third-quarter 2026 earnings release and financial supplement (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001104659-26-120212)

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