Digital Realty Trust, Inc. DLR
Digital Realty's FY2025 results show genuine operating acceleration—revenue grew 10% to $6.11B, EPS recovered to $3.58 from $1.61, and operating margin expanded to 10.77% from 8.49%, supported by AI-driven leasing demand and a record contracted rent backlog. However, the stock at $192.35 trades at 88.64x earnings versus a peer median of 30.94x, total debt has climbed to $24.18B from $18.01B a year earlier, and smart money positioning while improving remains modest at a score of 0.1714 across 66 funds.
The AI infrastructure tailwind and raised 2026 guidance are real, but the valuation premium already discounts much of that growth, making this a hold pending evidence that leasing momentum sustains without further balance-sheet stretch.
What could go wrong
- Valuation compression. At 88.64x PE versus a peer median of 30.94x, any disappointment in leasing velocity or guidance could trigger a sharp de-rating, especially with EV/EBITDA already at a 28.9% premium to peers.
- Balance sheet leverage. Total debt rose to $24.18B at FY2025-end from $18.01B at FY2024-end, increasing interest-rate sensitivity and refinancing risk if capex normalizes after the $0 reported in FY2025.
- Capex normalization. FY2025 showed $0 capex and $2.41B FCF versus FY2024 capex of $2.83B and negative FCF of $570M; if development spending resumes, FCF could deteriorate materially.
- Insider selling signal. Over 24 months insiders net acquired 191,660 shares but net value was -$10.73M, indicating dispositions at higher prices outweighed acquisitions in dollar terms.
What would change my mind
Where this comes from: FMP annual fundamentals FY2025 vs FY2024 · derived_metrics FY2025 vs FY2024 · peer_relative composite · FMP annual fundamentals FY2025 vs FY2024. Orin's read on DLR; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All DLR filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 8-K | 19 Aug | Digital Realty Trust, Inc. | read |
| 13G | 12 Aug | — | on file |
| 10-Q | 31 Jul | Total operating revenues for the three months ended June 30, 2026, were $1,924,040,000, an increase of 28.9% year-over-year. | read |
| 8-K | 23 Jul | Digital Realty Trust, Inc. | read |
| 8-K | 1 Jul | On June 30, 2026, Digital Realty Trust, Inc. | read |
| 8-K | 29 Jun | The company entered into an agreement on June 29, 2026, to acquire Blackstone's 64% interest in the Digital Carver Dulles 9 and Digital Carver Brickyard joint ventures for $1,231… | read |
| 8-K | 22 Jun | Digital Realty Trust, Inc. | read |
| 8-K | 1 Jun | Digital Realty Trust, Inc. | read |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Portfolio Management | $5.4B | 0.2% of fund |
| Vanguard Capital Management | $4.0B | 0.1% of fund |
| State Street | $3.7B | 0.1% of fund |
| Norges Bank | $3.5B | 0.3% of fund |
| Blackstone | $2.2B | 6.7% of fund |
| Geode Capital Management | $1.7B | 0.1% of fund |
116 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 66 Form 4 filings, net −$10.8M. Of the 50 on hand, 0 were open-market purchases and 4 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about DLR
Orin answers questions about DLR from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 83.4× | 42.4× | 56.8× |
| EV/EBITDA | 24.4× | 20.4× | — |
| P/S | 9.78× | 8.69× | — |
| P/B | 2.3× | 2.3× | — |
Its P/E sits 80th percentile of its own last 5 years (+1.08σ from its own mean).
12.2%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $2.4B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$222
$197 – $240 · +24% against today's price
- 34 buy or overweight
- 14 hold
- 1 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| DLRDigital Realty Trust, Inc. | $67B | 83.4× | 24.4× | 13.8% | 11.7% | 3% |
| AMTAmerican Tower Corporation | $78B | 23.0× | 17.2× | 73.2% | 30.9% | 90% |
| CBRECBRE Group, Inc. | $40B | 31.1× | 17.9× | 17.7% | 3.0% | 15% |
| CCICrown Castle Inc. | $30B | 27.4× | 19.1× | 63.2% | 25.8% | -52% |
| EQIXEquinix, Inc. | $102B | 66.3× | 27.7× | 51.6% | 15.6% | 11% |
| ORealty Income Corporation | $52B | 40.4× | 12.2× | 68.6% | 22.3% | 3% |
| PSAPublic Storage | $53B | 27.1× | 18.6× | 60.4% | 41.8% | 22% |
| SPGSimon Property Group, Inc. | $66B | 14.5× | 12.2× | 84.6% | 66.4% | 109% |
The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 204.6% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $-4 | $182.32 · −102% | 2026-06-10 |
| Levered DCF | $-71 | $182.32 · −139% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.