Digital Realty Files Automatic Mixed Securities Shelf
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
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Should l Buy DLR?
Digital Realty files automatic mixed securities shelf
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Analyst Views on DLR
Wall Street analysts forecast DLR stock price to rise
18 Analyst Rating
15 Buy
2 Hold
1 Sell
Strong Buy
Current: 179.890
Low
139.00
Averages
189.06
High
220.00
Current: 179.890
Low
139.00
Averages
189.06
High
220.00
About DLR
Digital Realty Trust, Inc. is a real estate investment trust. The Company owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. The Company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. Its portfolio consists of over 308 data centers, of which 121 are located in the United States, 112 are located in Europe, 36 are located in Latin America, 16 are located in Africa, 16 are located in Asia, six are located in Australia and three are located in Canada. Its PlatformDIGITAL is a global data center platform for scaling digital business which enables customers to deploy their critical infrastructure with a global data center provider.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Three Top Dividend Stocks to Buy and Hold Forever
- Automatic Data Processing: Automatic Data Processing (ADP) has raised its per-share dividend for the 51st consecutive year, with a current yield of 2.97%, indicating strong performance in cash flow and shareholder returns, particularly as its diverse HR management services continue to attract investor interest amid the rise of artificial intelligence.
- Digital Realty Trust: Digital Realty Trust (DLR), structured as a REIT with over 300 data centers, may not yet have a strong dividend growth record, but its structure allows for most rental profits to be passed to shareholders, offering a forward-looking yield of 2.7%, making it an appealing option for income-seeking investors.
- NextEra Energy: NextEra Energy (NEE) has raised its dividend annually for 31 years, currently yielding 2.44%, and its investments in renewable energy position it favorably in the future energy market, ensuring ongoing cash flow and shareholder returns as electricity demand continues to rise.
- Market Outlook: These three companies demonstrate significant market potential in their respective fields, with ADP diversifying its HR services, DLR leveraging its data center leasing model, and NEE investing in renewables, all providing investors with confidence for long-term holdings, especially amid increasing economic uncertainty.
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Analysis of Divergent Credit Ratings for Digital Realty Trust
- Credit Rating Consistency: Digital Realty Trust (DLR) holds investment-grade ratings from three agencies, with S&P Global at BBB+, Moody's at Baa2, and Fitch at BBB, indicating a consensus on investment grade, yet the one-notch divergence may impact refinancing costs and index eligibility.
- Stable Financial Leverage: As of Q4 2025, DLR's net debt to adjusted EBITDA ratio stands at 4.9x, aligning with investment-grade standards, with a long-term target set below 5.5x, indicating a healthy financial position with only 0.6x to the target threshold.
- Capital Intensity and Growth Potential: DLR boasts approximately 5 gigawatts of buildable IT capacity across over 40 metropolitan areas, with a record backlog of $1.4 billion in signed-but-not-commenced contracts by year-end 2025, showcasing strong market demand and future growth potential.
- Funding Strategy Evolution: In 2025, DLR launched a closed-end private capital fund, attracting approximately $3.225 billion in LP equity commitments, with fee income more than doubling within the year, potentially reducing balance sheet capital requirements while altering EBITDA composition, reflecting diversification in funding sources.
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- Nvidia Earnings Outlook: Nvidia is projected to report record revenue of $57 billion for Q3 of fiscal 2026, with $51.2 billion coming from its data center segment, indicating strong demand for its Blackwell GPUs and suggesting robust growth potential for the company.
- TSMC's Market Position: As a leading chip manufacturer, TSMC produced over 11,800 products in 2024, with 63% of its shipments in Q4 2025 being 3nm or 5nm chips, highlighting its leadership in efficient chip manufacturing.
- Nebius Expansion Plans: Nebius Group aims to increase its data center connected power from 220 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, backed by contracts worth up to $19.4 billion with Microsoft and $3 billion with Meta, indicating rapid expansion and strong demand in the AI cloud platform market.
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- Digital Realty Trust Overview: Digital Realty Trust (DLR) owns over 300 data centers across 55 metropolitan areas, serving tech giants like Microsoft, Amazon, and Google, which diversifies its customer base and positions it for long-term growth in cloud computing and AI, with projected revenue of $6.65 billion in 2026, an 8.8% year-over-year increase.
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- Stag Industrial's Market Position: Stag Industrial (STAG) operates 601 warehouses across 41 states, with major clients including Amazon, FedEx, and UPS, and reported a 16.2% year-over-year net income increase in Q3 2025, indicating robust demand and growth potential in the logistics sector.
- Stable Dividend Returns: Stag Industrial Trust's 3.46% dividend yield and 95.8% overall occupancy rate ensure predictable cash flow, enhancing its appeal as a long-term investment, particularly amid increasing economic uncertainty.
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- Industry Growth Outlook: Cathie Wood from ARK Invest predicts that the AI data center business will grow from $500 billion now to $1.4 trillion by 2030, highlighting significant growth potential in the sector, prompting investors to reassess their strategies to capitalize on this opportunity.
- Advantages of REITs: Real Estate Investment Trusts (REITs) like Equinix and Digital Realty Trust are seen as the best way to invest in AI due to their stable cash flows and tax advantages, which support sustained dividend payments, attracting income-seeking investors.
- Digital Realty's Market Position: Digital Realty Trust claims to be the world's largest data center platform, owning over 300 facilities and expecting to generate over $6 billion in revenue this year, demonstrating its adaptability and sustained growth potential in a rapidly changing tech landscape.
- Equinix's Growth Potential: Equinix's dividend is expected to increase by 10%, and analysts are bullish on the company, with a target price of $965, indicating a 20% upside from current levels, reflecting strong growth prospects in the AI data center space.
See More
Three Top Dividend Stocks to Buy and Hold Forever
- Automatic Data Processing: Automatic Data Processing (ADP) has raised its per-share dividend for the 51st consecutive year, with a current yield of 2.97%, indicating strong performance in cash flow and shareholder returns, particularly as its diverse HR management services continue to attract investor interest amid the rise of artificial intelligence.
- Digital Realty Trust: Digital Realty Trust (DLR), structured as a REIT with over 300 data centers, may not yet have a strong dividend growth record, but its structure allows for most rental profits to be passed to shareholders, offering a forward-looking yield of 2.7%, making it an appealing option for income-seeking investors.
- NextEra Energy: NextEra Energy (NEE) has raised its dividend annually for 31 years, currently yielding 2.44%, and its investments in renewable energy position it favorably in the future energy market, ensuring ongoing cash flow and shareholder returns as electricity demand continues to rise.
- Market Outlook: These three companies demonstrate significant market potential in their respective fields, with ADP diversifying its HR services, DLR leveraging its data center leasing model, and NEE investing in renewables, all providing investors with confidence for long-term holdings, especially amid increasing economic uncertainty.
See More
Analysis of Divergent Credit Ratings for Digital Realty Trust
- Credit Rating Consistency: Digital Realty Trust (DLR) holds investment-grade ratings from three agencies, with S&P Global at BBB+, Moody's at Baa2, and Fitch at BBB, indicating a consensus on investment grade, yet the one-notch divergence may impact refinancing costs and index eligibility.
- Stable Financial Leverage: As of Q4 2025, DLR's net debt to adjusted EBITDA ratio stands at 4.9x, aligning with investment-grade standards, with a long-term target set below 5.5x, indicating a healthy financial position with only 0.6x to the target threshold.
- Capital Intensity and Growth Potential: DLR boasts approximately 5 gigawatts of buildable IT capacity across over 40 metropolitan areas, with a record backlog of $1.4 billion in signed-but-not-commenced contracts by year-end 2025, showcasing strong market demand and future growth potential.
- Funding Strategy Evolution: In 2025, DLR launched a closed-end private capital fund, attracting approximately $3.225 billion in LP equity commitments, with fee income more than doubling within the year, potentially reducing balance sheet capital requirements while altering EBITDA composition, reflecting diversification in funding sources.
See More
Surge in AI Stock Investments Amid $650 Billion Spending Plans
- Market Investment Trend: Microsoft, Alphabet, Amazon, and Meta are set to invest up to $650 billion in AI in 2023, and while their stocks have dipped slightly, investors should focus on AI infrastructure companies that are expected to benefit significantly from this trend.
- Nvidia Earnings Expectations: Nvidia (NVDA) is anticipated to report quarterly earnings on February 25, with expectations of a substantial revenue increase following last year's record revenue of $57 billion, of which $51.2 billion came from its data center segment, indicating strong market demand.
- TSMC's Market Position: Taiwan Semiconductor Manufacturing (TSM) is the preferred foundry for top chipmakers, producing over 11,800 products in 2024, with 63% of its shipments in Q4 2025 being 3nm or 5nm chips, showcasing its leadership in efficient chip manufacturing.
- Nebius Group Expansion Plans: Nebius Group (NBIS) aims to increase its data center connected power from 220 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, backed by contracts worth up to $19.4 billion with Microsoft and $3 billion with Meta, highlighting its rapid growth potential in AI cloud platform development.
See More
Top Picks for Investing in Chipmakers
- AI Investment Surge: Microsoft, Alphabet, Amazon, and Meta are set to invest up to $650 billion in AI this year, creating significant demand for related infrastructure companies, particularly chipmakers like Nvidia and TSMC, which are expected to benefit from this trend.
- Nvidia Earnings Outlook: Nvidia is projected to report record revenue of $57 billion for Q3 of fiscal 2026, with $51.2 billion coming from its data center segment, indicating strong demand for its Blackwell GPUs and suggesting robust growth potential for the company.
- TSMC's Market Position: As a leading chip manufacturer, TSMC produced over 11,800 products in 2024, with 63% of its shipments in Q4 2025 being 3nm or 5nm chips, highlighting its leadership in efficient chip manufacturing.
- Nebius Expansion Plans: Nebius Group aims to increase its data center connected power from 220 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, backed by contracts worth up to $19.4 billion with Microsoft and $3 billion with Meta, indicating rapid expansion and strong demand in the AI cloud platform market.
See More
High Yield Potential of Real Estate Investment Trusts
- Digital Realty Trust Overview: Digital Realty Trust (DLR) owns over 300 data centers across 55 metropolitan areas, serving tech giants like Microsoft, Amazon, and Google, which diversifies its customer base and positions it for long-term growth in cloud computing and AI, with projected revenue of $6.65 billion in 2026, an 8.8% year-over-year increase.
- High Occupancy and Yield: With over 80% occupancy across its data centers, Digital Realty Trust offers a 2.83% dividend yield, providing stable cash flow for investors and reflecting its strong market position in the rapidly growing tech sector.
- Stag Industrial's Market Position: Stag Industrial (STAG) operates 601 warehouses across 41 states, with major clients including Amazon, FedEx, and UPS, and reported a 16.2% year-over-year net income increase in Q3 2025, indicating robust demand and growth potential in the logistics sector.
- Stable Dividend Returns: Stag Industrial Trust's 3.46% dividend yield and 95.8% overall occupancy rate ensure predictable cash flow, enhancing its appeal as a long-term investment, particularly amid increasing economic uncertainty.
See More
AI Stocks Face Challenges, REITs Emerge as New Favorites
- Industry Growth Outlook: Cathie Wood from ARK Invest predicts that the AI data center business will grow from $500 billion now to $1.4 trillion by 2030, highlighting significant growth potential in the sector, prompting investors to reassess their strategies to capitalize on this opportunity.
- Advantages of REITs: Real Estate Investment Trusts (REITs) like Equinix and Digital Realty Trust are seen as the best way to invest in AI due to their stable cash flows and tax advantages, which support sustained dividend payments, attracting income-seeking investors.
- Digital Realty's Market Position: Digital Realty Trust claims to be the world's largest data center platform, owning over 300 facilities and expecting to generate over $6 billion in revenue this year, demonstrating its adaptability and sustained growth potential in a rapidly changing tech landscape.
- Equinix's Growth Potential: Equinix's dividend is expected to increase by 10%, and analysts are bullish on the company, with a target price of $965, indicating a 20% upside from current levels, reflecting strong growth prospects in the AI data center space.
See More
