Digital Realty Trust, Inc. (DLR), headquartered in Austin, Texas, brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. Valued at $49.2 billion by market cap, the company's properties contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants. The leading global data center REIT is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Thursday, Apr. 24.
Ahead of the event, analysts expect DLR to report an FFO of $1.72 per share on a diluted basis, up 3% from $1.67 per share in the year-ago quarter. The company beat or matched the consensus estimates in each of the last four quarters.
For the full year, analysts expect DLR to report FFO of $7.05 per share, up 5.1% from $6.71 in fiscal 2024. Its FFO is expected to rise 8.4% year over year to $7.64 per share in fiscal 2026.
DLR stock has outperformed the S&P 500’s ($SPX) 4.4% gains over the past 52 weeks, with shares up 8.6% during this period. However, it underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 10.5% gains over the same time frame.
Digital Realty Trust has outperformed by focusing on global expansion and maintaining high occupancy levels. Their success is due to strong operational management, a diverse customer base, and successful leasing and interconnection activities that are projected to generate $100 million in annual rental income.
On Feb. 13, DLR shares closed up by 1% after reporting its Q4 results. Its core FFO of $1.73 per share surpassed Wall Street expectations of $1.70 per share. The company’s revenue was $1.4 billion, missing Wall Street forecasts of $1.5 billion. DLR expects full-year core FFO in the range of $7.05 to $7.15 per share.
Analysts’ consensus opinion on DLR stock is bullish, with a “Strong Buy” rating overall. Out of 26 analysts covering the stock, 19 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” five give a “Hold,” and one recommends a “Strong Sell.” DLR’s average analyst price target is $186.29, indicating a potential upside of 25.7% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
