Digital Realty Raises Full-Year FFO Forecast Amid Strong Data Center Demand
Digital Realty Trust has raised its full-year adjusted funds from operations (AFFO) forecast for fiscal 2026, citing strong leasing momentum driven by cloud and AI customers. The real estate investment trust now expects AFFO in the range of $8.15 to $8.20 per share compared to a previous projection of $8 to $8.10 per share. The company also increased its annual total revenue forecast, projecting between $6.85 billion and $6.95 billion versus an earlier estimate of $6.65 billion to $6.75 billion. In the second quarter ended June 30, Digital Realty reported a significant increase in revenue—$1.92 billion compared with analysts' average estimate of $1.66 billion—and adjusted FFO came in at $2.65 per share versus an expected $1.86. Digital Realty is capitalizing on the global AI boom and plans to expand its presence by acquiring a larger stake in three data centers in Northern Virginia from Blackstone for $3.5 billion, further solidifying its position in one of the world's largest data center markets.
Topics: AI demand data centers FFO forecast REITs