Digital Realty Trust, Inc. Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance
  • Q4 2025 Core FFO per share: $1.86, up 8% year-over-year.
  • Full-year 2025 Core FFO per share: $7.39, up 10% vs. 2024 and above guidance.
  • Revenue and adjusted EBITDA showed double-digit growth driven by strong interconnection and backlog commencements.
  • Record backlog of nearly $1.4 billion (100% share), up significantly from 2024.
  • Strong same-capital cash NOI growth: 8.6% year-over-year in Q4 and 4.5% for 2025.
Guidance for 2026
  • Core FFO per share expected at $7.90 to $8.00 (midpoint implies ~8% growth vs. 2025).
  • Normalized and constant-currency total revenue and adjusted EBITDA expected to grow 10%+.
  • Same-capital NOI growth projected at 4–5%.
  • Power-based occupancy expected to improve 50–100 bps from 89% at year-end 2025.
  • CapEx expected at $3.25–$3.75 billion, with development yields remaining in double digits.
  • Planned dispositions/JV capital expected at $500 million–$1 billion.
Leasing and Demand Highlights
  • 2025 marked the second consecutive year with over $1 billion in total bookings.
  • 2025 bookings: $1.2 billion, ~70% above the prior 5-year average.
  • Zero to one megawatt plus interconnection category: $340 million in full-year bookings, up 35% from 2024; record Q4 leasing of $96 million.

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Operator: Good afternoon, and welcome to the Digital Realty Trust, Inc. Fourth Quarter 2025 Earnings Call. Please note that this event is being recorded. During today's presentation, all participants will be in a listen-only mode. Following the presentation, we will conduct a question and answer session. Callers will be limited to one question, and we will aim to conclude at the top of the hour. I would now like to turn the call over to Jordan Sadler, Digital Realty Trust, Inc.'s Senior Vice President of Public and Private Investor Relations. Jordan? Please go ahead. Jordan Sadler: Thank you, operator, and welcome, everyone, to Digital Realty Trust, Inc.'s fourth quarter 2025 earnings conference call. Joining me on today's call are President and CEO, Andrew P. Power, and CFO, Matthew R. Mercier. Chief Investment Officer, Gregory Wright, Chief Technology Officer, Christopher Sharp, and Chief Revenue Officer, Colin McLean, are also on the call and will be available for Q&A. Management will be making forward-looking statements, including guidance and underlying assumptions on today's call. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our 10-K and subsequent filings with the SEC. This call will contain certain non-GAAP financial information. Reconciliations to the most directly comparable GAAP measure are included in the

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