Digital Realty Trust Inc (DLR) has reported a strong performance in its Q2 2025 earnings call, showcasing several positive developments that could influence its future stock price favorably. The company achieved record bookings and financial metrics, indicating robust growth and operational efficiency.
Here are the specific viewpoints from the earnings call:
**Bullish Points:**
1. Record bookings of $177 million in gross new leases were signed in Q2 2025, with $135 million at the company's share, marking an 18% increase over the previous record.
2. Achieved a record core FFO of $1.87 per share, a 13% year-over-year increase and 6% higher than the previous quarter.
3. Total bookings for the zero to one megawatt plus interconnection product set exceeded $300 million over the past four quarters, up from approximately $200 million in 2023.
4. The backlog at the company's share stood at $826 million at quarter-end, supporting multiyear growth visibility.
5. Renewal leases of $177 million were signed at a blended 7.3% cash increase, surpassing the original full-year guidance range of 4%-6% for cash releasing spreads.
6. The gross data center development pipeline reached $9 billion at quarter-end, with an expected stabilized yield of 12.2% and a land bank of 3.7 gigawatts, providing a capacity runway of 5 gigawatts.
7. Liquidity exceeded $7 billion, with leverage at 5.1 times, below the long-term target of 5.5 times.
8. More than $3 billion in LP equity commitments were received for the US Hyperscale Fund, supporting approximately $10 billion of data center investment.
9. Full-year 2025 core FFO per share guidance increased to a range of $7.15–$7.25, with revenue and adjusted EBITDA guidance increased by $100 million and $75 million, respectively.
10. Added 139 new customer logos, indicating an expanding wallet share and recurring revenue base.
For more information about Digital Realty Trust Inc's earnings call, you can read the relevant news: Digital Realty (DLR) Q2 2025 Earnings Transcript
Comments