DIGITAL REALTY TRUST, INC.
For the period ended Mar 31, 2026. Filed May 1, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 1, 2026
DLR$174.20-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001104659-25-104945
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001104659-26-054255
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 146 previous paragraphs and 140 current paragraphs.
82 unchanged; 45 reworded; 12 added; 19 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 83 previous and 58 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
General and Administrative
Current report
General and administrative expenses increased $31.2 million in the three months ended March 31, 2026, compared to the same period in 2025 due to higher head count along with increased information technology costs.
Current report
Transactions and integration expenses decreased $24.2 million in the three months ended March 31, 2026, compared to the same period in 2025 driven primarily by German real estate transfer taxes paid in 2025 related to the Interxion combination.
Current report
Other income, net
Current report
Other income, net increased $12.6 million in the three months ended March 31, 2026, compared to the same period in 2025, driven primarily by insurance proceeds received in 2026 for business interruption lost revenue, coupled with insurance proceeds for property damage at a data center in Singapore.
Current report
Interest expense increased $17.9 million in the three months ended March 31, 2026, compared to the same period in 2025, driven primarily by higher unsecured senior notes interest expense tied to i) Euro Notes issued in June 2025 — €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2034 and ii) Euro Notes issued in November 2025 — €600 million aggregate principal amount of 3.750% Guaranteed Notes due 2033 and €800 million aggregate principal amount of 4.250% Guaranteed Notes due 2037.
Current report
In March, we voluntarily paid down Teraco debt of $53 million. The paydown resulted in a loss on debt extinguishment and modifications of approximately $4.1 million.
Current report
As of March 31, 2026, we are under examination for taxable year ended 2021 within the United States. Additionally, we are under examination for various taxable years ended 2017 and onward within various foreign jurisdictions.
Current report
We are investing in our portfolio, which includes consolidated and unconsolidated projects, to organically expand our capacity. As of March 31, 2026, we had 1,169 megawatts of projects underway across multiple metropolitan areas around the world, representing an approximately 52% increase of capacity under development as compared to December 31, 2025. As of March 31, 2026, 61% of the 1,169 megawatts of projects underway was pre-leased. As of March 31, 2026, we had over 5 gigawatts of additional future development capacity, of which approximately 58% came from locations with more than 100 megawatts of buildable capacity, 30% came from locations with between 25 megawatts and 100 megawatts of buildable capacity and 12% came from locations with less than 25 megawatts of buildable capacity. As of March 31, 2026, we estimate that the stabilized yield on our total 1,169 megawatts of capacity under construction across the world was approximately 11.4%. We define the estimated stabilized yield on our in-progress construction as the anticipated stabilized net operating income for a certain project as a percentage of the total estimated cost to complete the construction of such project. We calculate the anticipated stabilized net operating income for any given project by subtracting the project’s estimated stabilized operating expenses and depreciation and amortization from its estimated stabilized revenue, which we estimate based on leases signed and other assumptions based on market conditions. No assurance can be given that we will complete any of these projects on the terms currently contemplated, or at all, that the actual cost of any of these projects will not exceed our estimates or that the actual yield achieved by such projects will be consistent with our estimates.
Current report
Covenants
Current report
The following is a summary of the key financial covenants for our senior unsecured notes, as defined and calculated per the terms of our senior notes. These calculations, which are not based on U.S. GAAP, are presented to show our ability to incur additional debt under the terms of our senior notes as well as to disclose our current compliance with such covenants and are not measures of our liquidity or performance. The actual amounts as of March 31, 2026, are:
Current report
Comparison of Three Months Ended March 31, 2026 to Three Months Ended March 31, 2025
Removed paragraphs (19)
Previous report
On July 4, 2025, a budget reconciliation bill (the “Bill”) was signed into law in the United States. The Bill includes several significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and other changes to the Internal Revenue Code of 1986, as amended (the “Code”), that affect REITs and their investors. We are currently evaluating the full potential impact of the provisions in the Bill, however, we do not expect it to have a material impact on our business.
Previous report
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 report
Transactions and integration expenses increased $62.4 million and $66.9 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 driven primarily by placement fees associated with securing capital commitments to the Fund and lease termination expenses in connection with acquisitions.
Previous report
Gain on Disposition of Properties, Net
Previous report
Gain on disposition of properties increased $20.3 million and $501.8 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024.
Previous report
In May 2025, we received approximately $937 million of gross proceeds from the contribution of operating data centers and development projects to the Fund, recognized a gain on disposition of approximately $873 million, and recognized an investment in the assets of $661 million.
Previous report
In April 2025, we contributed an additional three development projects at the Digital Dulles campus to the joint venture with Blackstone. We received approximately $77 million of gross proceeds from the contribution and as a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $58 million.
Previous report
In January 2024, we closed on the sale of our interest in four data centers to Brookfield Infrastructure Partners L.P., or Brookfield, for approximately $271 million. As a result of the sale, we recognized a total gain on disposition of approximately $194.2 million.
Previous report
In March 2024, we recognized a total gain of $74.4 million from the sale of an easement to a local power provider in Northern Virginia.
Previous report
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 report
In January 2024, we paid down $240 million on the U.S. term loan facility, leaving $500 million outstanding. The paydown resulted in an early extinguishment charge of approximately $1.1 million.
Previous report
In September 2024, we paid down €375 million on the Euro Term Loan Facilities, leaving €375 million outstanding. The paydown resulted in an early extinguishment charge of approximately $1.6 million. We also refinanced our Global Revolving Credit Facilities and wrote off deferred loan costs of approximately $1.2 million.
Previous report
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 report
The costs we incur to develop our properties are a key component of our liquidity requirements. The following table summarizes our cumulative investments in current development projects as well as expected future investments in these projects as of the periods presented, excluding square feet held in and costs incurred or to be incurred by unconsolidated entities.
Previous report
Future development reflects cumulative cost spent pending future development and includes ongoing improvements to building infrastructure in preparation for future data center fit-out. We expect to deliver the space within 12 months; however, lease commencement dates may significantly impact final delivery schedules.
Previous report
On March 1, 2024, we formed a joint venture with Mitsubishi Corporation, or Mitsubishi, to support the development of two data centers in the Dallas metro area. The facilities were 100% pre-leased prior to construction. We contributed the two data center buildings at a contribution value of approximately $261 million. In 2024, we received approximately $153 million of gross proceeds from the contribution of our data centers to the joint venture and retained a 35% interest in the joint venture. Mitsubishi contributed such cash in exchange for a 65% interest in the joint venture. Each partner funded its pro rata share of the remaining $140 million estimated development cost for the first phase of the project, of which one project was completed in June 2024 and another was completed in October 2024. On January 31, 2025, Mitsubishi made an additional cash capital contribution in the amount of $62 million, resulting in an additional 15% ownership in the joint venture. The transaction resulted in a gain of approximately $5.1 million. Currently, Mitsubishi has an 80% interest in the joint venture, and we have retained a 20% interest.
Previous report
On April 3, 2025, we received approximately $77 million of gross proceeds from the contribution of our data centers to the joint venture with Blackstone. As a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $58 million.
Previous report
During the quarter, we sold three non-core data centers in the Atlanta, Miami and Boston metro areas for gross proceeds of approximately $90 million and recognized a gain on disposition of approximately $20 million.
Previous report
Comparison of Nine Months Ended September 30, 2025 to Nine Months Ended September 30, 2024
Reworded paragraphs (45)
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 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.
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, 2025, 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 capacity, capitalization rates, rents to be received in future periods and expected rental rates on new or renewed data center capacity 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 capacity; 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 capacity, and delays or unexpected costs in development of properties; the impact of current global and local economic, credit and market conditions; increased tariffs, global supply chain or procu…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Occupancy percentages included in the following discussion, for some of our properties, are calculated based on factors in addition to contractually leased square feet, including available power, required support space and common area.
Current wording
Occupancy percentages included in the following discussion, for some of our properties, are calculated based on factors including available power, required support capacity and common area.
Previous wording
We completed the following significant activities during the nine months ended September 30, 2025:
Current wording
We completed the following significant activities during the three months ended March 31, 2026:
Previous wording
Most of our revenue consists of rental income generated by the data centers in our portfolio. Our ability to generate and grow revenue depends on several factors, including our ability to maintain or improve occupancy rates. A summary of our data center portfolio and related occupied square feet (in thousands) (excluding space under development or held for development) is shown below. Unconsolidated portfolios shown below consist of assets owned by unconsolidated entities in which we have invested. We often provide management services for these entities under management agreements and receive management fees. These are shown as Managed Unconsolidated Portfolio. Entities for which we do not provide such services are shown as Non-Managed Unconsolidated Portfolio.
Current wording
Most of our revenue consists of rental income generated by the data centers in our portfolio. Our ability to generate and grow revenue depends on several factors, including our ability to maintain or improve occupancy rates. A summary of our data center portfolio and the DLR Share of White Space IT Load (excluding capacity under development or held for development) is shown below.
Previous wording
Note: Table excludes data centers held for sale. Individual items may not add up to total due to rounding.
Current wording
Note: Table excludes data centers held for sale or contribution.
Previous wording
Due to the capital-intensive and long-term nature of the operations we support, our lease terms with customers are generally longer than standard commercial leases. As of September 30, 2025, our average remaining lease term was approximately five years.
Current wording
Due to the capital-intensive and long-term nature of the operations we support, our lease terms with customers are generally longer than standard commercial leases. As of March 31, 2026, our average remaining lease term was approximately four years.
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 nine months ended September 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 (DLR’s share) in the three months ended March 31, 2026 (net rentable square feet (“NRSF”) in thousands):
Previous wording
We continue to see strong demand in most of our key metropolitan areas for data center space and, subject to the supply of available data center space in these metropolitan areas, we expect average aggregate rental rates on renewed data center leases for 2025 expirations to be positive as compared with the rates currently being paid for the same space on a GAAP basis and on a cash basis. Our past performance may not be indicative of future results, and we cannot assure you that leases will be renewed or that our data centers will be re-leased at all or at rental rates equal to or above the current average rental rates. Further, re-leased/renewed rental rates in a particular metropolitan area may not be consistent with rental rates across our portfolio as a whole and may fluctuate from one period to another due to a number of factors, including local economic conditions, local supply and demand for data center space, competition from other data center developers or operators, the condition of the property and whether the property, or space within the property, has been developed.
Current wording
We continue to see strong demand in most of our key metropolitan areas for data center capacity and, subject to the supply of available data center capacity in these metropolitan areas, we expect average aggregate rental rates on renewed data center leases for 2026 expirations to be positive as compared with the rates currently being paid for the same space on a GAAP basis and on a cash basis. Our past performance may not be indicative of future results, and we cannot assure you that leases will be renewed or that our data centers will be re-leased at all or at rental rates equal to or above the current average rental rates. Further, re-leased/renewed rental rates in a particular metropolitan area may not be consistent with rental rates across our portfolio as a whole and may fluctuate from one period to another due to a number of factors, including local economic conditions, local supply and demand for data center capacity, competition from other data center developers or operators, the condition of the property and whether the property, or capacity within the property, has been developed.
Previous wording
Equity in earnings of unconsolidated entities, gain on disposition of properties, interest expense, and income tax expense make up the majority of Other income/(expenses). Equity in earnings of unconsolidated entities represents our share of the income/(loss) of entities in which we invest, but do not consolidate under U.S. GAAP. Refer to additional discussion of Digital Core REIT and Ascenty in the Notes to the Condensed Consolidated Financial Statements.
Current wording
Equity in earnings of unconsolidated entities, interest expense, and income tax expense make up the majority of Other income/(expenses). Equity in earnings of unconsolidated entities represents our share of the net income/(loss) of entities in which we invest, but do not consolidate under U.S. GAAP. Refer to additional discussion of Digital Core REIT and Ascenty in the Notes to the condensed consolidated financial statements.
Previous 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):
Current wording
A roll forward showing changes in the stabilized and non-stabilized portfolios for the three months ended March 31, 2026 as compared to December 31, 2025 is shown below:
Previous 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
Current wording
Comparison of the Results of Operations for the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025
Previous wording
Total operating revenues as shown on our condensed consolidated income statements was as follows (in thousands):
Current wording
Total operating revenues as shown on our condensed consolidated income statements were as follows (in thousands):
Previous 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.
Current wording
Total operating revenues increased by approximately $227.5 million in the three months ended March 31, 2026, compared to the same period in 2025.
Previous 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.
Current wording
Stabilized rental and other services revenue increased by approximately $113.3 million in the three months ended March 31, 2026, compared to the same period in 2025 primarily due to: increases in new leasing and renewals and higher utilities reimbursements 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 $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:
Current wording
Non-stabilized rental and other services revenue increased by approximately $100.1 million in the three months ended March 31, 2026, compared to the same period in 2025 primarily due to:
Previous wording
Property level operating expenses include costs to operate and maintain the properties in our portfolio as well as taxes and insurance.
Current wording
Property level operating expenses include costs to operate and maintain the properties in our portfolio as well as property taxes and insurance.
Previous 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.
Current wording
Total stabilized utilities expenses increased by approximately $34.7 million in the three months ended March 31, 2026, compared to the same period in 2025. 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 $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:
Current wording
Total non-stabilized utilities expenses increased by approximately $24.3 million in the three months ended March 31, 2026, compared to the same period in 2025, primarily due to:
Previous 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.
Current wording
Total stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $21.9 million in the three months ended March 31, 2026, compared to the same period in 2025, 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 $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.
Current wording
Total non-stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $5.6 million in the three months ended March 31, 2026, compared to the same period in 2025, primarily due to increases in data center labor expense throughout the portfolio.
Previous 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.
Current wording
Total stabilized property taxes and insurance increased by approximately $4.7 million in the three months ended March 31, 2026, compared to the same period in 2025, primarily due to timing of property tax assessments throughout our North American portfolio.
Previous 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.
Current wording
The change in Equity in earnings (loss) of unconsolidated entities was approximately $5.8 million in the three months ended March 31, 2026, compared to the same period in 2025. 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
We incurred no losses on debt extinguishment and debt modifications in the three and nine months ended September 30, 2025.
Current wording
We incurred no losses on debt extinguishment and debt modifications in the three months ended March 31, 2025.
Previous 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.
Current wording
Income tax expense decreased $1.1 million in the three months ended March 31, 2026 compared to the same period in 2025 due to jurisdictional rate mix 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
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.
Current wording
The sales of common stock made under the 2024 Sales Agreement 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.
Previous 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.
Current wording
For additional information regarding dividends declared and paid by our Parent on its common and preferred stock for the three months ended March 31, 2026, see Note 10. “Equity and Capital” to our condensed consolidated financial statements contained herein.
Previous 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:
Current wording
As of March 31, 2026, we had $2,426.6 million of cash and cash equivalents, excluding $10.8 million of restricted cash. Restricted cash primarily consists of contractual capital expenditures plus other deposits and is included in Other assets on our Condensed Consolidated Balance Sheets. As circumstances warrant, our Operating Partnership may dispose of stabilized 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
On September 24, 2024, we refinanced our Global Revolving Credit Facility and Yen Revolving Credit Facility. The Global Revolving Credit Facilities provide for borrowings up to $4.5 billion (including approximately $0.3 billion available to be drawn on the Yen Revolving Credit Facility) based on currency commitments and foreign exchange rates as of September 30, 2025. The Global Revolving Credit Facility provides for borrowings in a variety of currencies and can be increased by an additional $1.8 billion, subject to receipt of lender commitments and other conditions precedent. Both facilities mature on January 24, 2029, with two six-month extension options available.
Current wording
The Global Revolving Credit Facilities provide for borrowings up to $4.5 billion (including approximately $0.3 billion available to be drawn on the Yen Revolving Credit Facility) based on currency commitments and foreign exchange rates as of March 31, 2026. The Global Revolving Credit Facility provides for borrowings in a variety of currencies and can be increased by an additional $1.8 billion, subject to receipt of lender commitments and other conditions precedent. Both facilities mature on January 24, 2029, with two six-month extension options available.
Previous wording
The Global Revolving Credit Facility provides for borrowings in a variety of currencies and includes the ability to add additional currencies in the future. We have used and intend to use available borrowings under the Global Revolving Credit Facilities to acquire additional properties, fund development opportunities and for general working capital and other corporate purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities. For additional information regarding our Global Revolving Credit Facility, see Note 8. “Debt of the Operating Partnership” in the Notes to our Condensed Consolidated Financial Statements.
Current wording
The Global Revolving Credit Facility provides for borrowings in a variety of currencies and includes the ability to add additional currencies in the future. We have used and intend to use available borrowings under the Global Revolving Credit Facilities to acquire additional properties, fund development opportunities and for general working capital and other corporate purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities. For additional information regarding our Global Revolving Credit Facilities, see Note 8. “Debt of the Operating Partnership” in the Notes to our Condensed Consolidated Financial Statements.
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 September 30, 2025, we had open commitments, related to construction contracts of approximately $2.3 billion, including amounts reimbursable of approximately $63.8 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 March 31, 2026, we had open commitments, related to construction contracts of approximately $3.2 billion, including amounts reimbursable of approximately $92.8 million.
Previous 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.
Current wording
For the remainder of 2026, we currently expect to incur approximately $2.8 billion to $3.3 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 nine months ended September 30, 2025 and 2024 (in thousands):
Current wording
The table below summarizes our capital expenditure activity for the three months ended March 31, 2026 and 2025 (in thousands):
Previous 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.
Current wording
Indirect costs, including interest, capitalized in the three months ended March 31, 2026 and 2025 were $74.7 million and $59.8 million, respectively. Capitalized interest comprised approximately $35.6 million and $30.1 million of the total indirect costs capitalized for the three months ended March 31, 2026 and 2025, respectively. Capitalized interest in the three months ended March 31, 2026 increased, compared to the same period in 2025, due to an increase in qualifying activities and higher interest rates.
Previous 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.
Current wording
Excluding capitalized interest, indirect costs in the three months ended March 31, 2026 increased compared to the same period in 2025 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, 2026.
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 October 29, 2025, we had approximately $3.2 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 April 29, 2026, we had approximately $3.7 billion of borrowings available under our Global Revolving Credit Facilities.
Previous wording
During the first half of 2025, the Company launched its first U.S. Hyperscale Data Center Fund (the “Fund”), successfully raising more than $3 billion of equity commitments to date. Fund commitments represent a 40% to 80% ownership interest in each individual asset, while the Company will maintain the remaining 20% to 60% stake in the assets and less than a 2% direct interest in the Fund. The initial portfolio includes five operating data centers plus three land sites with access to power for data center development. In May 2025, we received approximately $937 million of gross proceeds from the contribution of operating data centers and development projects to the Fund, recognized a gain on disposition of approximately $873 million, and recognized an investment in the assets of $661 million. The Company will serve as general partner, maintaining operational and management responsibilities for the assets, however, certain governance rights are granted to the limited partners. As such, we concluded we do not own a controlling interest and account for our interest in the assets under the equity method of accounting. These real estate assets were previously classified as held for sale and contribution. Additionally, as of June 30, 2025, one additional development project was classified within Assets held for sale and contribution on our condensed consolidated balance sheet as it is probable it will be contributed to the fund within one year. The disposition of a portion of our interest in the remaining development project met the criteria under ASC 360 for the assets to qualify as held for sale and contribution. However, the operations are not classified as discontinued operations as a result of our continuing interest in the assets. This development project was not representative of a significant component of our portfolio, nor will the contribution represent a significant shift in our strategy.
Current wording
During the first half of 2025, the Company launched the Fund, successfully raising more than $3 billion of equity commitments to date. As of March 31, 2026, the Fund owned an 80% interest in each individual asset, while the Company retained the remaining 20% ownership and less than a 2% direct interest in the Fund. The Company will continue to serve as general partner, maintaining operational and management responsibilities for the assets. However, certain governance rights are granted to the limited partners. As such, we continue to conclude we do not own a controlling interest and account for our interest in the assets under the equity method of accounting.
Previous wording
During the quarter, we sold three non-core data centers in the Atlanta, Miami and Boston metro areas for gross proceeds of approximately $90 million and recognized a gain on disposition of approximately $20 million.
Current wording
During the quarter, we sold a non-core data center in the Boston metro area for gross proceeds of approximately $6.4 million and recognized a loss on disposition of approximately $0.3 million.
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 nine months ended September 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 months ended March 31, 2026, 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 23.0% (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.
Current wording
Our ratio of debt to total enterprise value was approximately 21.7% (based on the closing price of Digital Realty Trust, Inc.’s common stock on March 31, 2026 of $180.21). 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 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).
Current wording
The variable rate debt shown above bears interest based on various one-month EURIBOR, TIBOR, SARON and JIBAR rates and 91-day CD rate, depending on the respective agreement governing the debt, including our Global Revolving Credit Facilities and unsecured term loans. As of March 31, 2026, our debt had a weighted average term to initial maturity of approximately 4.7 years (or approximately 4.8 years assuming exercise of extension options).
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Current report — wording carried from elsewhere
During the three months ended March 31, 2026, Digital Realty Trust, Inc. generated net proceeds of approximately $875 million from the issuance of approximately 4.9 million common shares under the 2024 Sales Agreement at an average price of $178.36 per share after payment of approximately $4.3 million of commissions to the agents. Subsequent to March 31, 2026, Digital Realty Trust, Inc. generated net proceeds of approximately $435 million from the issuance of approximately 2.4 million common shares under the 2024 Sales Agreement at an average price of $181.21 per share after payment of approximately $2.2 million of commissions to the agents. As of April 29, 2026, approximately $570 million remains available for future sales under the 2024 Sales Agreement.