NEW YORK, July 24, 2026, 3:08 p.m. EDT
- The stock rose 12.4% to $201.64 in regular U.S. trading.
- Colocation and interconnection bookings of smaller size set a new high at $108.3 million.
- Core FFO outlook, not including promote income, increased to $8.15-$8.20 per share.
Digital Realty Trust, Inc. NYSE:DLR topped the S&P 500 on Friday after boosting its outlook for 2026. At 2:53 p.m. EDT, the data-center REIT’s shares had climbed 12.4% to $201.64.
The share price jump was roughly eight times greater than the guidance raise. The core FFO guidance midpoint was lifted by just 1.6%.
Investors seemed to favour the leasing mix instead. Bookings in the second quarter were below the record set in the first quarter. These agreements are expected to commence earlier and generate higher revenue per unit of power.
Total bookings for Digital Realty dropped 51% quarter-on-quarter. However, 0-1 megawatt and interconnection bookings increased 11%, reaching $108.3 million.
Those segments accounted for 52% of bookings in the quarter, rising from 23%. The average lease-start delay for the quarter decreased to nine months from 19.
| Metric at Digital Realty’s share | Q2 2026 | Q1 2026 | Change |
|---|---|---|---|
| Total bookings | $208.5 million | $422.8 million | -51% |
| 0-1 MW plus interconnection | $108.3 million | $97.6 million | +11% |
| Share of total bookings | 52% | 23% | +29 points |
| Weighted lease-start lag | 9 months | 19 months | -10 months |
| Signed backlog | $1.4 billion | $1.0 billion | +40% |
Company data; percentage shifts and valuation ratios are initial estimates by reporters.
Pricing highlighted the difference. Reported base rent for sub-1 MW leases was $280 per kilowatt, while larger leases were priced at $157, with smaller installations commanding a 78% premium.
Sub-1 MW space accounted for 33% of the power booked and produced 47% of non-interconnection base rent, yielding higher revenue density that does not depend solely on hyperscale campuses.
Chief Executive Andy Power said the record for smaller deals was “boosting near-term growth.” The firm additionally secured two hyperscale leases in July valued at $205 million at its share. Digital Realty Trust
Revenue for the second quarter increased by 29% to $1.92 billion, surpassing the $1.66 billion consensus forecast from LSEG. Core FFO, excluding net promote income, climbed 14% to $2.13 per share.
Core FFO amounted to $2.65 per share, reflecting $188 million in net promote income. Included in core FFO was $27 million from a $94 million insurance settlement.
Digital Realty raised its core FFO outlook for 2026 to $8.15-$8.20, up from its earlier forecast of $8.00-$8.10. The company also increased its revenue guidance by $200 million at both the top and bottom ends.
Shares changed hands at $201.64, representing 24.7 times the revised midpoint. The previous close on Thursday put the old midpoint’s multiple at 22.3 times. The preliminary implied expansion of the multiple was 10.7%.
Shares of Equinix Inc. NASDAQ:EQIX climbed 5.8% on Friday. The Real Estate Select Sector SPDR Fund (NYSEARCA:XLRE) advanced 2.2%. The broader movement in Digital Realty points to a company-focused revaluation amid a sector-wide upswing.
Digital Realty’s share of the backlog rose to $1.4 billion, up from $1.0 billion in March. This increase provides greater visibility, but does not translate into instant cash flow.
Risks: Net development spending forecast increased to between $4.25 billion and $4.75 billion. Net debt to adjusted EBITDA was 4.7 times. ATM share issuance for the year so far totaled 13.5 million shares, introducing dilution risk.
The upcoming challenge is conversion. Quicker lease commencements need to balance out increased capital and financing requirements.
