Digital Realty Trust, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 5 February 2026: press release. Guidance figures: 22 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue and Adjusted EBITDA grew year on year: Total operating revenues were $1.63 billion, up 14% year on year and 4% sequentially. Adjusted EBITDA was $857 million, up 14% from a year earlier and down 1% from the third quarter. Source
• Core FFO per share slipped from third quarter: Core FFO per diluted share was $1.86, against $1.89 in the third quarter and $1.73 a year earlier. Constant-currency Core FFO per diluted share was $1.81. Source
• 0-1 MW and interconnection led bookings: The 0-1 MW plus interconnection category made up $96 million of the $175 million of bookings at Digital Realty's share, including $77 million from 0-1 MW. Source
• Same-capital cash NOI up 8.6%: Same-capital cash NOI rose 8.6% year on year in the fourth quarter and 6.6% for the full year. Sequentially the quarterly change was 1.5%. Source
• Backlog of signed leases at $817 million: Signed-but-not-commenced leases totalled $817 million of annualized GAAP base rent at Digital Realty's share, against $852 million at the end of the third quarter. Source
• Total debt of $18.4 billion, leverage 4.9x: Total debt was $18.4 billion, of which $17.5 billion unsecured. Net debt to Adjusted EBITDA was 4.9x and debt-plus-preferred to total enterprise value was 26.1%. Source
• DC Partners fund stake raised to 80%: The company contributed a further 40% interest in five operating data centers to its DC Partners NA Fund, taking the fund's stake to 80%, and received about $427 million. Source

“The evolution of our private capital strategy is enabling us to efficiently scale development while maintaining a flexible balance sheet positioned for growth.”

Digital Realty President and CEO Andy Power

Guidance

What changed from last quarter

• New guidance: 2026 guidance introduced, with Core FFO per share given at $7.90 - $8.00 on reported and constant-currency bases. Source
• New: Company entered the Portugal market with a Lisbon building and land purchase. Source
• New: Digital Realty Mivne formed a joint venture with MedOne Ltd. to develop a campus in Israel. Source
• New: Agreement after quarter end to acquire the TelcoHub 1 data center in Malaysia. Source
• New: Additional 40% interest in five operating data centers contributed to the DC Partners NA Fund, lifting its stake to 80%. Source
• New: Moody's issuer rating view moved to Positive from Stable in the prior quarter's release. Source

Results and growth drivers

• Revenue and Adjusted EBITDA grew year on year: Total operating revenues were $1.63 billion, up 14% year on year and 4% sequentially. Adjusted EBITDA was $857 million, up 14% from a year earlier and down 1% from the third quarter. Source
• Core FFO per share slipped from third quarter: Core FFO per diluted share was $1.86, against $1.89 in the third quarter and $1.73 a year earlier. Constant-currency Core FFO per diluted share was $1.81. Source
• GAAP net income per share was $0.24: Net income available to common stockholders was $0.24 per diluted share, against $0.15 in the third quarter and $0.51 a year earlier. Source
• Full-year constant-currency Core FFO reported: Constant-currency Core FFO was $7.29 per share for the twelve months ended December 31, 2025. Source

Products and customers

• 0-1 MW and interconnection led bookings: The 0-1 MW plus interconnection category made up $96 million of the $175 million of bookings at Digital Realty's share, including $77 million from 0-1 MW. Source
• Renewal rates rose on cash and GAAP bases: Renewal leases signed in the quarter, representing $269 million of annualized cash rent, rose 6.1% on a cash basis and 12.0% on a GAAP basis. Source
• Top customers hold large share of rent: The top 20 customers made up 50.9% of annualized recurring revenue. The largest, a Fortune 50 software company, held 11.7% and Oracle held 9.0%. Source

“Together, these initiatives strengthen our ability to support our customers’ cloud and AI roadmaps while driving long term value for shareholders.”

Digital Realty President and CEO Andy Power

Costs, margins and pricing

• Operating expenses rose with impairment: Total operating expenses were $1.52 billion, including a $78.6 million provision for impairment and $36.1 million of transaction and integration expenses. Utilities expense was $398.2 million. Source
• Same-capital cash NOI up 8.6%: Same-capital cash NOI rose 8.6% year on year in the fourth quarter and 6.6% for the full year. Sequentially the quarterly change was 1.5%. Source
• Transaction costs fell from third quarter: Transaction and integration expenses were $36.1 million, down from $86.6 million in the third quarter. Source

Demand and order book

• Backlog of signed leases at $817 million: Signed-but-not-commenced leases totalled $817 million of annualized GAAP base rent at Digital Realty's share, against $852 million at the end of the third quarter. Source
• Leases take about eight months to start: The weighted-average lag between new leases signed in the fourth quarter and their contractual commencement was eight months. Source
• Occupancy held near 85%: Portfolio occupancy was 84.7% at year end, against 84.8% at September 30, 2025 and 84.1% a year earlier. Same-capital occupancy was 83.7%. Source
• Churn was low in the quarter: Quarterly churn was 1.5% of recurring revenue across the portfolio, at 2.2% for 0-1 MW and 1.1% for above 1 MW. Source

“and a substantial backlog that provides clear revenue visibility into 2026 and beyond”

Digital Realty President and CEO Andy Power

Capital, cash and returns to shareholders

• Total debt of $18.4 billion, leverage 4.9x: Total debt was $18.4 billion, of which $17.5 billion unsecured. Net debt to Adjusted EBITDA was 4.9x and debt-plus-preferred to total enterprise value was 26.1%. Source
• Notes issued and early repayment: In November the company issued €600 million of 3.750% notes due 2033 and €800 million of 4.250% notes due 2037. In December it repaid early €1.075 billion of 2.500% notes due 2026. Source
• Small equity sale through ATM in October: In October the company sold 0.4 million common shares under its ATM program at a weighted average $175.68, for net proceeds of about $77 million. Source
• Quarterly dividend held at $1.22: Dividends were $1.22 per common share and unit in each of the five quarters shown. The diluted AFFO payout ratio was 90.9% in the fourth quarter. Source
• Moody's rating view moved to positive: Moody's issuer rating is Baa2 with a Positive view, against Stable in the prior release. S&P and Fitch ratings are unchanged. Source

Investment, development and external growth

• DC Partners fund stake raised to 80%: The company contributed a further 40% interest in five operating data centers to its DC Partners NA Fund, taking the fund's stake to 80%, and received about $427 million. Source
• Entry into Portugal market: A Lisbon building and land purchase can support up to 2.4 megawatts of IT capacity, for about $8.3 million. Source
• Israel campus joint venture formed: The joint venture bought about 2.5 acres in Petah Tikvah for an 18-megawatt campus at ILS90 million, or $29 million at 100%. Digital Realty's share of the land was $7.1 million. Source
• Malaysia acquisition agreed after quarter end: TelcoHub 1 is an operational 1.5 megawatt data center, with adjacent land that can support up to 14 megawatts. Closing is expected in the first half of 2026. Source
• Dallas sale and Portland land purchases: A non-core Dallas data center was sold for about $33 million. Two Portland land parcels of about 20 acres, expected to support up to 85 megawatts, were bought for about $23.6 million. Source

Strategy and platform

• Private capital model supports development: Management said the private capital strategy lets the company scale development efficiently while keeping a flexible balance sheet. Source
• Platform expansion tied to cloud and AI: Management said the PlatformDIGITAL footprint is expanding to meet global demand, supporting customers' cloud and AI roadmaps. Source
• Land and capacity for future development: The portfolio excludes about 9.7 million square feet of space under active development and 4.7 million square feet held for future development. Source

Coming up, as management said on 5 February 2026

• TelcoHub 1 acquisition closing: Closing of the TelcoHub 1 data center and adjacent land in Malaysia is expected in the first half of 2026. Source
• Mid-year long-term debt issuance: Long-term debt issuance of $1,000 - $1,500 million is planned for mid-2026 at 4.0% - 4.5% pricing. Source
• Assets targeted for sale or contribution: Held-for-sale assets are targeted to be sold or contributed in the first quarter of 2026. Source
• Investor conference appearances: The company listed a Wolfe conference on February 25, 2026 and Citi's Global Property CEO Conference on March 2 - 3, 2026. Source

Figures management reported

Risks management discussed

• Financial: Future dilution from the Teraco put right is excluded from Core FFO and AFFO until settlement occurs. Source
• Operational: Non-GAAP caution lists difficulties collecting rent, tenant bankruptcies, property tax reassessments and unrecoverable expenses as risks to acquisition returns. Source
• Demand: A customer bankruptcy produced deferred rent adjustments, which the company excluded from Core FFO. Source
• External: Reported Core FFO per share was $1.86 against $1.81 on a constant-currency basis, so currency movements affect reported results. Source

Earlier plans management reported on

• Not stated: The Dallas sale was described as previously disclosed in the earlier release. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.