New York, NY – July 24, 2025 - Digital Realty Trust Inc. (NYSE: DLR), the world's largest provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, has released its financial results for the second quarter of 2025, showcasing impressive growth across various metrics. The company reported a significant increase in net income, funds from operations (FFO), and leasing activity, indicating a robust demand for digital infrastructure.

1. Financial Highlights

Digital Realty reported several key metrics for Q2 2025:

Net Income: The company achieved net income available to common stockholders of $2.94 per share, a notable rise from $0.20 in the same quarter last year and $0.27 in the previous quarter.

Funds From Operations (FFO): The FFO per share increased to $1.75, up from $1.57 in Q2 2024.

Core FFO: Adjusted Core FFO per share was $1.87, compared to $1.65 a year earlier, reflecting the company’s strong operational performance.

Revenue Growth: Digital Realty reported total revenues of $1.49 billion, marking a 10% year-over-year increase and a 6% rise from the previous quarter.

2. Leasing Activity

In terms of leasing, Digital Realty demonstrated strong performance with total bookings expected to generate $177 million of annualized GAAP rental revenue at full share. The company’s share accounted for $135 million, including contributions from the 0–1 megawatt category which totaled $90 million.

The renewal leases signed during Q2 2025 exhibited a 7.3% increase in rental rates on a cash basis and a 9.9% increase on a GAAP basis, underscoring the demand for Digital Realty's services.

Backlog and Future Projections

As of the end of Q2 2025, Digital Realty reported a backlog of $826 million in annualized GAAP base rent, indicating a strong pipeline for future revenue.

3. Strategic Investments

Digital Realty has been actively expanding its footprint. The company acquired land parcels in key metropolitan areas, including:

Atlanta: Approximately 100 acres for $120 million, expected to support over 200 megawatts of IT capacity.

Dallas: A 167-acre parcel for $11 million, anticipated to provide 480 megawatts of IT capacity.

Chicago: Several parcels to expand its Franklin Park campus for $6 million.

The company also saw a significant influx of capital for its U.S. Hyperscale Data Center Fund, which has now exceeded $3 billion in commitments, reflecting strong investor confidence.

4. Balance Sheet and Financial Outlook

Digital Realty's financial health remains strong, with approximately $18.5 billion in total debt as of June 30, 2025. The company reported a net debt-to-Adjusted EBITDA ratio of 5.1x and a fixed charge coverage ratio of 4.7x.

Looking ahead, Digital Realty raised its 2025 Core FFO per share outlook to a range of $7.15 - $7.25, with the Constant-Currency Core FFO per share expected between $7.10 - $7.20. The company anticipates total revenue in the range of $5.925 - $6.025 billion for the year.

5. Conclusion

Digital Realty's second quarter results reflect a strong operational performance and strategic positioning in the data center market. The company's ability to secure significant rental revenue through new leases and renewals, combined with its proactive investment strategy, positions it well for continued growth in the evolving digital infrastructure landscape. As demand for data center services continues to rise, Digital Realty remains poised to capitalize on emerging opportunities, ensuring its leadership in the global data center industry.

Original press release