Digital Realty Trust, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 23 April 2026: press release. Guidance figures: 14 raised, 2 lowered, 9 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Core FFO per share $2.04: Core FFO per share was $2.04, against $1.86 in the prior quarter and $1.77 a year earlier. FFO per share was $1.99. Source
• Bookings of $707 million at 100%: Total bookings are expected to generate $707 million of annualized GAAP rental revenue at 100% share. At Digital Realty's share, bookings were $423 million, including $98 million from the 0-1 megawatt plus interconnection category. Source
• Backlog $1.0 billion at company share: Signed-but-not-commenced leases totalled $1.8 billion of annualized GAAP base rent at 100% share, and $1.0 billion at Digital Realty's share, at quarter end. Source
• Same-capital cash NOI up 7.9%: Same-capital cash NOI was $691.9 million, up 7.9% year on year. On a constant-currency basis the increase was 2.5%. Source
• Core FFO range raised: The 2026 Core FFO and constant-currency Core FFO ranges were raised after the first quarter. The release links the year's growth to double-digit Core FFO growth in the quarter. Source
• ATM equity sales about $1.3 billion: Since December 31, 2025, the company sold 7.3 million common shares under its ATM program, for net proceeds of about $1.3 billion. Source
• Atlanta land for over 1 GW: Digital Realty bought an 873-acre parcel in greater Atlanta for $95 million, expected to support over one gigawatt of IT capacity. Source

“Digital Realty saw a further acceleration in data center demand and our growth trajectory in the first quarter, with record 0 - 1 megawatt plus interconnection leasing and the largest hyperscale lease in company history”

Digital Realty President and Chief Executive Officer Andy Power

Guidance

What changed from last quarter

• Guidance raised: 2026 Core FFO per share and constant-currency Core FFO per share ranges were both moved up. Source
• Guidance raised: Total revenue, Adjusted EBITDA and G&A ranges were all moved up in the April table. Source
• Guidance raised: Renewal rental rate ranges moved up on both cash and GAAP bases. Source
• Guidance raised: Development capex range, net of partner contributions, moved up by $250 million at both ends. Source
• Guidance raised: Planned long-term debt issuance range moved up by $500 million at both ends. Source
• Guidance kept: Year-end occupancy and same-capital cash NOI growth ranges were kept. Source
• New: After quarter end, the company acquired a 15-megawatt development in Cyberjaya, Malaysia, near TelcoHub 1. Source
• New: After quarter end, the company closed the sale of a non-core Atlanta metro asset for $24 million. Source

Results and growth drivers

• Revenue flat on prior quarter: Total revenue was $1.6 billion, unchanged from the prior quarter and up 16% from a year earlier. Source
• Core FFO per share $2.04: Core FFO per share was $2.04, against $1.86 in the prior quarter and $1.77 a year earlier. FFO per share was $1.99. Source
• Adjusted EBITDA up 7% sequentially: Adjusted EBITDA was $920 million, up 7% from the prior quarter and 16% from a year earlier. Source
• Net income per diluted share $0.46: Net income available to common stockholders was $169 million, or $0.46 per diluted share, against $0.24 in the prior quarter, which included a $78.6 million impairment. Source

Leasing, backlog and renewals

• Bookings of $707 million at 100%: Total bookings are expected to generate $707 million of annualized GAAP rental revenue at 100% share. At Digital Realty's share, bookings were $423 million, including $98 million from the 0-1 megawatt plus interconnection category. Source
• Backlog $1.0 billion at company share: Signed-but-not-commenced leases totalled $1.8 billion of annualized GAAP base rent at 100% share, and $1.0 billion at Digital Realty's share, at quarter end. Source
• Commencement lag lengthened to nineteen months: The weighted-average lag from signing to contractual commencement was nineteen months, against eight months for leases signed in the fourth quarter of 2025. Source
• Renewal rents up 5.0% on cash basis: Renewals representing $193 million of annualized cash rent rose 5.0% on a cash basis and 6.3% on a GAAP basis, against 6.1% and 12.0% in the fourth quarter. Source

“We are swiftly advancing hyperscale AI-oriented capacity in the U.S., growing our connectivity-rich portfolio across key global markets, and broadening our capital base to prudently extend Digital Realty’s runway for growth.”

Digital Realty President and Chief Executive Officer Andy Power

Segments and regions

• Americas carried most new bookings: At Digital Realty's share, Americas new leases were $320.9 million for 147.7 megawatts. EMEA was $37.4 million and Asia Pacific $45.8 million. Source
• Northern Virginia occupancy 98.6%: Northern Virginia occupancy was 98.6% on a 100% share basis at March 31, against 98.4% at December 31. Americas stood at 94.7%, EMEA 83.6% and Asia Pacific 83.1%. Source
• London occupancy 72.0%: London occupancy was 72.0% at March 31, the same at 100% share and at Digital Realty's share. Hong Kong occupancy at 100% share was 59.7%. Source

Customers and interconnection

• Top 20 customers 51.9% of revenue: The top 20 customers accounted for 51.9% of annualized recurring revenue, with a 6.0-year weighted average remaining lease term. The largest, a Fortune 50 software company, was 11.4%. Source
• Interconnection revenue $124.3 million: Interconnection and other revenue was $124.3 million, up from $123.4 million in the prior quarter and $113.0 million a year earlier. Source
• Interconnection bookings $19 million: Interconnection contributed $19 million of bookings at Digital Realty's share, alongside $79 million from the 0-1 megawatt category. Source

Costs, pricing and NOI

• Same-capital cash NOI up 7.9%: Same-capital cash NOI was $691.9 million, up 7.9% year on year. On a constant-currency basis the increase was 2.5%. Source
• Same-capital utility costs up 13.2%: Same-capital utilities expense rose 13.2% to $297.8 million, while tenant utility reimbursements rose 16.3%. Source
• Operating costs below prior quarter: Total operating expenses were $1.37 billion, down from $1.52 billion in the prior quarter. Transaction and integration expenses were $15.7 million, against $36.1 million. Source
• New-lease rent per kilowatt $191: GAAP base rent per kilowatt on new leases was $191 at Digital Realty's share on 176.0 megawatts, against $220 in the fourth quarter. Source

2026 guidance changes

• Core FFO range raised: The 2026 Core FFO and constant-currency Core FFO ranges were raised after the first quarter. The release links the year's growth to double-digit Core FFO growth in the quarter. Source
• Currency assumptions moved up: Pound and euro exchange rate assumptions were moved up. A translation adjustment was added to bridge Core FFO to constant-currency Core FFO. Source
• Internal growth ranges raised: Renewal rent ranges were raised on cash and GAAP bases. Same-capital cash NOI growth and year-end occupancy ranges were kept. Source
• Development and debt ranges raised: The development capex range moved up, and the planned long-term debt issuance range moved up to a mid-year timing. Source

Capital, cash and returns

• Total debt about $18.0 billion: Total debt was about $18.0 billion at March 31, made up of $17.2 billion of unsecured debt and $0.8 billion of secured and other debt. Source
• Leverage at 4.7x and 22.7%: Net debt-to-Adjusted EBITDA was 4.7x, debt-plus-preferred-to-total enterprise value was 22.7%, and fixed charge coverage was 4.9x. Source
• ATM equity sales about $1.3 billion: Since December 31, 2025, the company sold 7.3 million common shares under its ATM program, for net proceeds of about $1.3 billion. Source
• Cash balance down to $2.4 billion: Cash and cash equivalents were $2.43 billion at March 31, down from $3.45 billion at December 31, when $428.3 million of dividends and distributions were accrued. Source
• AFFO payout ratio 63.6%: Diluted AFFO per share was $1.92, against $1.34 in the prior quarter, when recurring capex was $168.5 million, versus $59.7 million this quarter. Source

Acquisitions, dispositions and development

• Atlanta land for over 1 GW: Digital Realty bought an 873-acre parcel in greater Atlanta for $95 million, expected to support over one gigawatt of IT capacity. Source
• Telepoint acquired in Bulgaria: Telepoint, a Sofia-based data center and interconnection provider, was acquired for €66.5 million, or $76.6 million, and adds a connectivity hub to PlatformDIGITAL. Source
• Cyberjaya development bought after quarter: After quarter end, Digital Realty acquired an unleased 15-megawatt development in Cyberjaya, Malaysia, for about $117 million. Source
• Boston and Atlanta assets sold: A non-core Boston data center sold for $6.4 million in the quarter. A non-core Atlanta asset sold for $24 million after quarter end. Source
• Development spend $730 million: Development capital expenditure on consolidated projects was $730.0 million in the quarter, against $756.8 million in the fourth quarter. Source

Currency and credit exposure

• Constant-currency drag of $26.4 million: Holding 2025 exchange rates constant reduced Core FFO by $26.4 million, giving constant-currency Core FFO of $689.7 million, or $1.96 per share. Source
• Doubtful-account allowance $79.2 million: The allowance for doubtful accounts was $79.2 million at March 31, 2026, against $62.8 million a year earlier. Source
• Backlog cost to complete $879 million: The cost to complete backlog NOI was $879.0 million, including Digital Realty's share of construction in progress at unconsolidated entities. Source

Coming up, as management said on 23 April 2026

• TelcoHub 1 closing expected first half: The TelcoHub 1 acquisition in Malaysia and its adjacent land are expected to close in the first half of 2026, subject to customary conditions. Source
• Cyberjaya capacity due second half: Initial IT capacity at the unleased Cyberjaya facility is expected to deliver in the second half of 2026, to support a connected campus. Source
• Amsterdam development completion second quarter: The development table shows Amsterdam with 40 megawatts of land, 47% leased and expected completion in the second quarter of 2026. Source
• Investor conferences in May and June: Management listed the JP Morgan conference on May 19, 2026, a Kempen seminar on May 20, and Nareit REITweek on June 2 to 3. Source

Figures management reported

Risks management discussed

• Financial: Currency translation: constant-currency treatment reduces Core FFO, and the 2026 exchange rate assumptions were moved up. Source
• Financial: Receivables allowance for doubtful accounts rose to $79.2 million from $62.8 million a year earlier. Source
• Demand: Data center churn was 1.4% of recurring revenue in the quarter and 5.5% over the last twelve months. Source
• Operational: Backlog cost to complete remains a large open amount for construction in progress at unconsolidated entities. Source

Earlier plans management reported on

• Met: Management says the Telepoint and Milan purchases were previously announced and were acquired during the quarter. Source
• Not stated: Management refers to a land assemblage announced last quarter, expected to support up to 85 megawatts, and gives no status beyond that reference. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 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.