DIGITAL REALTY TRUST, INC.

Previous wording

The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2024, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, each as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”). This report contains forward-looking statements within the meaning of the federal securities laws. In particular, statements pertaining to our capital resources, expected use of borrowings under our credit facilities, expected use of proceeds from our ATM equity program, litigation matters or legal proceedings, portfolio performance, leverage policy, acquisition and capital expenditure plans, capital recycling program, returns on invested capital, supply and demand for data center space, capitalization rates, rents to be received in future periods and expected rental rates on new or renewed data center space contain forward-looking statements. Likewise, all of our statements regarding anticipated market conditions, and results of operations are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and that we may not be able to realize. We do not guarantee that the transactions and events described will happen as described or that they will happen at all. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: reduced demand for data centers or decreases in information technology spending; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services; breaches of our obligations or restrictions under our contracts with our customers; our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties; the impact of current global and local economic, credit a…

Excerpt shortened here; the source contains the full paragraph.

Current wording

The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2024, and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025, each as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”). This report contains forward-looking statements within the meaning of the federal securities laws. In particular, statements pertaining to our capital resources, expected use of borrowings under our credit facilities, expected use of proceeds from our ATM equity program, litigation matters or legal proceedings, portfolio performance, leverage policy, acquisition and capital expenditure plans, capital recycling program, returns on invested capital, supply and demand for data center space, capitalization rates, rents to be received in future periods and expected rental rates on new or renewed data center space contain forward-looking statements. Likewise, all of our statements regarding anticipated market conditions, and results of operations are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and that we may not be able to realize. We do not guarantee that the transactions and events described will happen as described or that they will happen at all. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: reduced demand for data centers or decreases in information technology spending; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services; breaches of our obligations or restrictions under our contracts with our customers; our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties; the impact of current global and local…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We completed the following significant activities during the six months ended June 30, 2025:

Current wording

We completed the following significant activities during the nine months ended September 30, 2025:

Previous wording

Our ability to re-lease expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations. The subsequent table summarizes our leasing activity in the six months ended June 30, 2025 (square feet in thousands):

Current wording

Our ability to re-lease expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations. The subsequent table summarizes our leasing activity in the nine months ended September 30, 2025 (square feet in thousands):

Previous wording

A roll forward showing changes in the stabilized and non-stabilized portfolios for the six months ended June 30, 2025 as compared to December 31, 2024 is shown below (in thousands):

Current wording

A roll forward showing changes in the stabilized and non-stabilized portfolios for the nine months ended September 30, 2025 as compared to December 31, 2024 is shown below (in thousands):

Previous wording

Comparison of the Results of Operations for the Three and Six Months Ended June 30, 2025 to the Three and Six Months Ended June 30, 2024

Current wording

Comparison of the Results of Operations for the Three and Nine Months Ended September 30, 2025 to the Three and Nine Months Ended September 30, 2024

Previous wording

Total operating revenues increased by approximately $136.4 million and $212.9 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

Current wording

Total operating revenues increased by approximately $146.0 million and $358.9 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024.

Previous wording

Stabilized rental and other services revenue increased by approximately $50.7 million and $81.9 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in new leasing and renewals across all regions.

Current wording

Stabilized rental and other services revenue increased by approximately $73.5 million and $160.7 million in the three and nine months ended September 30,2025, respectively, compared to the same periods in 2024 primarily due to increases in new leasing and renewals across all regions along with the strengthening of foreign exchange rates, primarily the Euro, British pound sterling and Singapore dollar.

Previous wording

Non-stabilized rental and other services revenue increased by approximately $67.7 million and $106.0 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to:

Current wording

Non-stabilized rental and other services revenue increased by approximately $48.8 million and $149.7 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to:

Previous wording

Total stabilized utilities expenses increased by approximately $7.4 million and decreased by approximately $3.1 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increase was primarily due to higher power pricing at certain properties in the stabilized portfolio, mainly in EMEA and APAC, whereas the decrease was primarily due to rebates received mainly in EMEA.

Current wording

Total stabilized utilities expenses increased by approximately $5.1 million and $7.8 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The increase was primarily due to higher power pricing at certain properties in the stabilized portfolio, mainly in EMEA and APAC, offset by rebates received mainly in EMEA.

Previous wording

Total non-stabilized utilities expenses increased by approximately $16.6 million and $16.0 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to:

Current wording

Total non-stabilized utilities expenses increased by approximately $14.4 million and $24.7 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to:

Previous wording

Total stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $11.1 million and $22.4 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in building operations expense, common area maintenance expense and data center labor.

Current wording

Total stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $24.3 million and $46.5 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in building operations expense, common area maintenance expense and data center labor.

Previous wording

Total non-stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $19.0 million and $21.9 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in data center labor expense throughout the portfolio.

Current wording

Total non-stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $4.2 million and $26.3 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in data center labor expense throughout the portfolio.

Previous wording

Total stabilized property taxes and insurance decreased by approximately $1.4 million and increased by approximately $2.8 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily due to timing of property tax assessments throughout our North American portfolio.

Current wording

Total stabilized property taxes and insurance increased by approximately $6.2 million and $4.6 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to timing of property tax assessments throughout our North American portfolio.

Previous wording

Total non-stabilized property taxes and insurance increased by approximately $1.6 million and $6.8 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily related to property tax reassessments for certain properties located in Chicago, Northern Virginia and Portland in the non-stabilized portfolio.

Current wording

Total non-stabilized property taxes and insurance decreased by approximately $0.4 million and increased by approximately $10.9 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily related to property tax reassessments for certain properties located in Chicago, Northern Virginia and Portland in the non-stabilized portfolio.

Previous wording

The change in Equity in earnings (loss) of unconsolidated entities was approximately $29.4 million and $37.7 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The foreign exchange remeasurement of debt associated with our unconsolidated Ascenty entity creates volatility in our equity in earnings and drove this fluctuation.

Current wording

The change in Equity in earnings (loss) of unconsolidated entities was approximately $9.5 million and $47.3 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The foreign exchange remeasurement of debt associated with our unconsolidated Ascenty entity creates volatility in our equity in earnings and drove this fluctuation.

Previous wording

Interest expense decreased approximately $5.4 million and $16.4 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 driven primarily by lower average balances on our Global Revolving Credit Facilities and term loan facilities offset by issuances of unsecured senior notes (€850 million of 3.875% Guaranteed Notes due 2033 (issued in September 2024), $1.15 billion of 1.875% Exchangeable Senior Notes due 2029 (issued in November 2024), €850 million of 3.875% Guaranteed Notes due 2035 (issued in January 2025) and €850 million of 3.875% Guaranteed Notes due 2034 (issued in June 2025).

Current wording

Interest expense decreased $10.2 million and $26.7 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 driven primarily by lower average balances on our Global Revolving Credit Facilities and term loan facilities offset by issuances of unsecured senior notes (€850 million of 3.875% Guaranteed Notes due 2033 (issued in September 2024), $1.15 billion of 1.875% Exchangeable Senior Notes due 2029 (issued in November 2024), €850 million of 3.875% Guaranteed Notes due 2035 (issued in January 2025) and €850 million of 3.875% Guaranteed Notes due 2034 (issued in June 2025).

Previous wording

We incurred no losses on debt extinguishment and debt modifications in the three and six months ended June 30, 2025.

Current wording

We incurred no losses on debt extinguishment and debt modifications in the three and nine months ended September 30, 2025.

Previous wording

Income tax expense decreased approximately $2.1 million and $7.4 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 due to jurisdictional rate mix in foreign jurisdictions and internal restructuring within the global group. We carried out an analysis for the purposes of the Model GloBE Rules for Pillar Two and no material top-up tax is expected.

Current wording

Income tax expense decreased $0.7 million and $8.1 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 due to jurisdictional rate mix in foreign jurisdictions and internal restructuring within the global group. We carried out an analysis for the purposes of the Model GloBE Rules for Pillar Two and no material top-up tax is expected.

Previous wording

As of June 30, 2025, we are under examination for various years in Australia, Germany, Kenya, Mauritius, Singapore, Switzerland, United Kingdom, and the United States.

Current wording

As of September 30, 2025, we are under examination for various years in Belgium, Germany, Greece, Kenya, Mauritius, Singapore, Switzerland, United Kingdom and the United States.

Previous wording

The sales of common stock made under the 2024 Sales Agreement Amendment will be made in “at the market” offerings as defined in Rule 415 of the Securities Act. Our Parent has used and intends to use the net proceeds from the program to temporarily repay borrowings under our Operating Partnership’s Global Revolving Credit Facilities, to acquire additional properties or businesses, to fund development opportunities and for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption or retirement of outstanding debt securities. Since March 31, 2025, Digital Realty Trust, Inc. generated net proceeds of approximately $719 million from the issuance of approximately 4.15 million common shares under the 2024 Sales Agreement at an average price of $173.19 per share after payment of approximately $4.7 million of commissions to the agents. As of July 30, 2025, approximately $2.3 billion remains available for future sales under the 2024 Sales Agreement Amendment.

Current wording

The sales of common stock made under the 2024 Sales Agreement Amendment will be made in “at the market” offerings as defined in Rule 415 of the Securities Act. Our Parent has used and intends to use the net proceeds from the program to temporarily repay borrowings under our Operating Partnership’s Global Revolving Credit Facilities, to acquire additional properties or businesses, to fund development opportunities and for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption or retirement of outstanding debt securities. Since June 30, 2025, Digital Realty Trust, Inc. generated net proceeds of approximately $501 million from the issuance of approximately 2.9 million common shares under the 2024 Sales Agreement at an average price of $172.46 per share after payment of approximately $2.9 million of commissions to the agents. As of October 29, 2025, approximately $2.0 billion remains available for future sales under the 2024 Sales Agreement Amendment.

Previous wording

For additional information regarding dividends declared and paid by our Parent on its common and preferred stock for the six months ended June 30, 2025, see Note 10. “Equity and Capital” to our condensed consolidated financial statements contained herein.

Current wording

For additional information regarding dividends declared and paid by our Parent on its common and preferred stock for the nine months ended September 30, 2025, see Note 10. “Equity and Capital” to our condensed consolidated financial statements contained herein.

Previous wording

As of June 30, 2025, we had $3,554.1 million of cash and cash equivalents, excluding $7.6 million of restricted cash. Restricted cash primarily consists of contractual capital expenditures plus other deposits. As circumstances warrant, our Operating Partnership may dispose of assets or enter into joint venture arrangements with institutional investors or strategic partners, on an opportunistic basis dependent upon market conditions. Our Operating Partnership may use the proceeds from such dispositions to acquire additional properties, to fund development opportunities and for general working capital purposes, including the repayment of indebtedness. Our liquidity requirements primarily consist of:

Current wording

As of September 30, 2025, we had $3,299.7 million of cash and cash equivalents, excluding $6.3 million of restricted cash. Restricted cash primarily consists of contractual capital expenditures plus other deposits. As circumstances warrant, our Operating Partnership may dispose of assets or enter into joint venture arrangements with institutional investors or strategic partners, on an opportunistic basis dependent upon market conditions. Our Operating Partnership may use the proceeds from such dispositions to acquire additional properties, to fund development opportunities and for general working capital purposes, including the repayment of indebtedness. Our liquidity requirements primarily consist of:

Previous wording

Our properties require periodic investments of capital for customer-related capital expenditures and for general capital improvements. Depending upon customer demand, we expect to incur significant improvement costs to build out and develop additional capacity. At June 30, 2025, we had open commitments, related to construction contracts of approximately $2.2 billion, including amounts reimbursable of approximately $89.5 million.

Current wording

Our properties require periodic investments of capital for customer-related capital expenditures and for general capital improvements. Depending upon customer demand, we expect to incur significant improvement costs to build out and develop additional capacity. At September 30, 2025, we had open commitments, related to construction contracts of approximately $2.3 billion, including amounts reimbursable of approximately $63.8 million.

Previous wording

For the remainder of 2025, we currently expect to incur approximately $1.7 billion to $2.2 billion of capital expenditures, which includes our share of joint venture contributions and is net of partner contributions for our development programs. This amount could go up or down, potentially materially, based on numerous factors, including changes in demand, leasing results and availability of debt or equity capital.

Current wording

For the remainder of 2025, we currently expect to incur approximately $1.2 billion to $1.7 billion of capital expenditures, which includes our share of joint venture contributions and is net of partner contributions for our development programs. This amount could go up or down, potentially materially, based on numerous factors, including changes in demand, leasing results and availability of debt or equity capital.

Previous wording

The table below summarizes our capital expenditure activity for the six months ended June 30, 2025 and 2024 (in thousands):

Current wording

The table below summarizes our capital expenditure activity for the nine months ended September 30, 2025 and 2024 (in thousands):

Previous wording

Indirect costs, including interest, capitalized in the six months ended June 30, 2025 and 2024 were $126.6 million and $110.4 million, respectively. Capitalized interest comprised approximately $59.5 million and $56.1 million of the total indirect costs capitalized for the six months ended June 30, 2025 and 2024, respectively. Capitalized interest in the six months ended June 30, 2025 increased, compared to the same period in 2024, due to an increase in qualifying activities and higher interest rates.

Current wording

Indirect costs, including interest, capitalized in the nine months ended September 30, 2025 and 2024 were $195.3 million and $166.7 million, respectively. Capitalized interest comprised approximately $92.4 million and $84.4 million of the total indirect costs capitalized for the nine months ended September 30, 2025 and 2024, respectively. Capitalized interest in the nine months ended September 30, 2025 increased, compared to the same period in 2024, due to an increase in qualifying activities and higher interest rates.

Previous wording

Excluding capitalized interest, indirect costs in the six months ended June 30, 2025 increased compared to the same period in 2024 due primarily to capitalized amounts relating to compensation expense of employees directly engaged in construction activities. See “Future Uses of Cash” for a discussion of the amount of capital expenditures we expect to incur during the year ending December 31, 2025.

Current wording

Excluding capitalized interest, indirect costs in the nine months ended September 30, 2025 increased compared to the same period in 2024 due primarily to capitalized amounts relating to compensation expense of employees directly engaged in construction activities. See “Future Uses of Cash” for a discussion of the amount of capital expenditures we expect to incur during the year ending December 31, 2025.

Previous wording

We expect to meet our short-term and long-term liquidity requirements, including payment of scheduled debt maturities and funding of acquisitions and non-recurring capital improvements, with net cash from operations, future long-term secured and unsecured indebtedness and the issuance of equity and debt securities and the proceeds of equity issuances by our Parent. We also may fund future short-term and long-term liquidity requirements, including acquisitions and non-recurring capital improvements, using our Global Revolving Credit Facilities pending permanent financing. As of July 30, 2025, we had approximately $3.3 billion of borrowings available under our Global Revolving Credit Facilities.

Current wording

We expect to meet our short-term and long-term liquidity requirements, including payment of scheduled debt maturities and funding of acquisitions and non-recurring capital improvements, with net cash from operations, future long-term secured and unsecured indebtedness and the issuance of equity and debt securities and the proceeds of equity issuances by our Parent. We also may fund future short-term and long-term liquidity requirements, including acquisitions and non-recurring capital improvements, using our Global Revolving Credit Facilities pending permanent financing. As of October 29, 2025, we had approximately $3.2 billion of borrowings available under our Global Revolving Credit Facilities.

Previous wording

All distributions on our units are at the discretion of our Parent’s Board of Directors. For additional information regarding distributions paid on our common and preferred units for the three and six months ended June 30, 2025, see Note 10. “Equity and Capital” to our condensed consolidated financial statements contained herein.

Current wording

All distributions on our units are at the discretion of our Parent’s Board of Directors. For additional information regarding distributions paid on our common and preferred units for the three and nine months ended September 30, 2025, see Note 10. “Equity and Capital” to our condensed consolidated financial statements contained herein.

Previous wording

Our ratio of debt to total enterprise value was approximately 23.2% (based on the closing price of Digital Realty Trust, Inc.’s common stock on June 30, 2025 of $174.33). For this purpose, our total enterprise value is defined as the sum of the market value of Digital Realty Trust, Inc.’s outstanding common stock (which may decrease, thereby increasing our debt to total enterprise value ratio), plus the liquidation value of Digital Realty Trust, Inc.’s preferred stock, plus the aggregate value of Digital Realty Trust, L.P. units not held by Digital Realty Trust, Inc. (with the per unit value equal to the market value of one share of Digital Realty Trust, Inc.’s common stock and excluding long-term incentive units, Class C units and Class D units), plus the book value of our total consolidated indebtedness.

Current wording

Our ratio of debt to total enterprise value was approximately 23.0% (based on the closing price of Digital Realty Trust, Inc.’s common stock on September 30, 2025 of $172.88). For this purpose, our total enterprise value is defined as the sum of the market value of Digital Realty Trust, Inc.’s outstanding common stock (which may decrease, thereby increasing our debt to total enterprise value ratio), plus the liquidation value of Digital Realty Trust, Inc.’s preferred stock, plus the aggregate value of Digital Realty Trust, L.P. units not held by Digital Realty Trust, Inc. (with the per unit value equal to the market value of one share of Digital Realty Trust, Inc.’s common stock and excluding long-term incentive units, Class C units and Class D units), plus the book value of our total consolidated indebtedness.

Previous wording

The variable rate debt shown above bears interest based on various one-month SOFR, EURIBOR, HIBOR, TIBOR, JIBAR, SARON and Base CD Rate rates, depending on the respective agreement governing the debt, including our Global Revolving Credit Facilities and unsecured term loans. As of June 30, 2025, our debt had a weighted average term to initial maturity of approximately 4.5 years (or approximately 4.6 years assuming exercise of extension options).

Current wording

The variable rate debt shown above bears interest based on various one-month SOFR, EURIBOR, HIBOR, TIBOR, JIBAR, SARON and Base CD Rate rates, depending on the respective agreement governing the debt, including our Global Revolving Credit Facilities and unsecured term loans. As of September 30, 2025, our debt had a weighted average term to initial maturity of approximately 4.4 years (or approximately 4.5 years assuming exercise of extension options).

Previous wording

As of June 30, 2025, our pro-rata share of secured debt of unconsolidated entities was approximately $2.0 billion.

Current wording

As of September 30, 2025, our pro-rata share of secured debt of unconsolidated entities was approximately $2.1 billion.

Previous wording

Cash provided by operating activities in 2025 increased $114.8 million over 2024. The increase was driven by:

Current wording

Cash provided by operating activities in 2025 increased $201.2 million over 2024. The increase was driven by:

Previous wording

The changes in the activities that comprise the increase in net cash used in investing activities for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 consisted of the following amounts (in thousands).

Current wording

The changes in the activities that comprise the increase in net cash used in investing activities for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 consisted of the following amounts (in thousands).

Previous wording

The changes in the activities that comprise the increase in net cash used in financing activities for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 consisted of the following amounts (in thousands).

Current wording

The changes in the activities that comprise the increase in net cash used in financing activities for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 consisted of the following amounts (in thousands).