Digital Realty reported Q4 revenues of $1.6 billion, up 14% year-over-year and 4% sequentially, driven by stronger leasing across its global data center footprint. Net income available to common stockholders was $88 million, or $0.24 per diluted share, compared with $0.51 per share in the prior-year quarter. The company generated Funds From Operations (FFO) of $658 million, or $1.89 per share, a 17% increase from $1.61 per share in Q4 2024, and delivered Core FFO of $1.86 per share, up from $1.73. Adjusted EBITDA reached $857 million, a 14% increase year-over-year, while net debt-to-EBITDA stood at 4.9x and fixed-charge coverage at 4.5x.

During the quarter, Digital Realty signed bookings expected to generate $400 million of annualized GAAP rental revenue at 100% share, including $175 million at the company’s share, with 0–1 MW interconnection contributing $96 million. Renewal leases represented $269 million of annualized cash rental revenue, with cash rental rates rising 6.1% and GAAP rates up 12.0%. The weighted-average lag to commencement for new leases was eight months, and the signed-but-not-commenced backlog stood at $817 million of annualized GAAP base rent at Digital Realty’s share.

In Q4, Digital Realty sold a non-core Dallas data center for gross proceeds of $33 million and acquired two Portland land parcels (20 acres) for $23.6 million to support up to 85 MW of capacity, plus a Lisbon site for €7.1 million ($8.3 million) to enter Portugal. A joint venture in Israel will develop an 18 MW campus for ILS90 million ($29 million at 100%), with Digital Realty’s share at $7.1 million. The company also contributed a 40% interest in five operating centers to its DC Partners NA Fund, raising its stake to 80% and receiving $427 million in proceeds. Post-quarter, it agreed to acquire Malaysia’s TelcoHub 1 data center and adjacent land for future expansion.

Digital Realty introduced 2026 Core FFO per share guidance of $7.90–$8.00 on both reported and constant-currency bases. The outlook assumes total revenues of $6.6–$6.7 billion, Adjusted EBITDA of $3.6–$3.7 billion, and same-capital cash NOI growth of 4–5%. Management expects rental rate increases on renewals of 6–8% cash basis and 8.5–10.5% GAAP basis, year-end occupancy to improve by 50–100 bps, and development capital expenditures (net) of $3.25–$3.75 billion at stabilized yields above 10%. The balance sheet plan includes $1.0–$1.5 billion of long-term debt issuance at 4.0–4.5% coupon mid-year.