Digital Realty Trust, Inc. (DLR) Earnings Call Transcripts
Digital Realty Trust, Inc.'s Latest Earnings Call - September 9, 2026
In the Q3 2026 earnings call, Digital Realty Trust, Inc. (DLR) reported a robust performance with a core FFO growth of 10%, exceeding the previous guidance of 8%. Revenue for the quarter reached $1.1 billion, reflecting a year-over-year increase driven by strong leasing activity, particularly in the AI sector. Management raised guidance for 2027 to double-digit growth, citing a backlog of $2.3 billion in signed but not commenced leases, which represents over 30% of current data center revenue. This positive momentum, coupled with a strategic focus on capitalizing on AI demand, positions DLR favorably for continued growth in the upcoming quarters.
Reported metrics
| Metric | Value |
|---|---|
| Revenue | $1.1B (beat) |
| Core FFO Growth | 10% (beat) |
| Backlog of Signed Leases | $2.3B (positive) |
| 0 to 1 Plus Interconnection Leasing | $108M (positive) |
| Initial Cash Yield | 11.5% (positive) |
| Debt-to-EBITDA Ratio | 4.7x (positive) |
Guidance from management
Management raised guidance for 2027 to double-digit growth, reflecting strong leasing momentum and a significant backlog of signed leases. They expect to continue this growth trajectory into the coming years.
What management said
No safe harbor per se, but please do visit our website or Investor Relations website. In the event anybody has any questions about some of the numbers or statistics data we put out here today. quarter
So it's a good -- I appreciate the question. I think the context of it comes relative to maybe some of the smaller or nascent hyperscale developers who are out there, maybe have a little bit of a less -- a smaller portfolio or a track record. Just a little bit of a different story. We have -- we target 10-plus percent development yields. We have $20 billion under construction today and 11.5% expected initial cash yi...
What analysts pressed on
Analysts expressed concerns regarding the impact of political moratoriums on development schedules and the ongoing labor shortages affecting construction timelines. There is a focus on how these factors could influence future growth and operational efficiency.
Main topics on the call
- Increased Guidance for Future Growth — Management raised the growth guidance for 2027 to double digits, up from previous expectations of 8%. Jordan Sadler stated, 'We think we can do really well again today... we guided to 8% growth, not the double digits num...
- Strong Leasing Activity — Digital Realty reported $108 million in 0 to 1 plus interconnection leasing, marking a record level. This segment saw a 28% year-over-year increase, with AI-related workloads comprising over 21% of the total. Sadler note...
- Labor Shortages and Mitigation Strategies — Management acknowledged ongoing labor shortages but highlighted efforts to build a consistent workforce through internships and hiring initiatives. Sadler mentioned, 'We're staffing up pretty significantly,' indicating p...
- Development Yield and Risk Management — Digital Realty targets an unlevered development yield of 10% and reported an initial cash yield of 11.5% for ongoing projects. Sadler emphasized, 'We command a premium... we have somewhat uniquely low leverage for a hype...
Read the full Digital Realty Trust, Inc. transcript (September 9, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. (DLR) is a publicly listed company in the Specialized REITs industry, within the Real Estate sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 80 calls on record spanning January 7, 2020 to September 9, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 80 Digital Realty Trust, Inc. earnings call transcripts on record, spanning January 7, 2020 to September 9, 2026. Based on this history, Digital Realty Trust, Inc. reports quarterly. The most recent call on file is dated September 9, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- DLR
- Exchange
- NYSE
- Country
- US
- Sector
- Real Estate
- Industry
- Specialized REITs
- Calls on record
- 80
- First call
- January 7, 2020
- Most recent
- September 9, 2026
- Reporting cadence
- quarterly