Is Digital Realty Trust, Inc. overvalued?

In our latest published analysis dated 2026-09-27, DLR looks meaningfully overvalued. The price recorded at analysis is 179 USD versus our fair value of 135 USD; the high endpoint is presented separately as potential value of 168 USD. That implies roughly 24.6% downside to fair value at that date.

What is DLR's fair value?

Our latest published report, analyzed 2026-09-27, gives DLR a fair value of 135 USD and a potential value of 168 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Digital Realty Trust, Inc.'s archetype; it is a dated research output, not a live price.

Should I buy DLR now?

Our latest published rating for DLR, analyzed 2026-09-27, is Sell. Digital Realty Trust, Inc. looks meaningfully overvalued at the analysis-date price of 179 USD versus fair value of 135 USD; potential value is 168 USD. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for DLR?

The dedicated bear-case section in our report analyzed 2026-09-27 documents Digital Realty Trust, Inc.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.

What is DLR's rating?

Our latest published rating for DLR, analyzed 2026-09-27, is Sell, with a published moat assessment of 7/10 (Narrow). It reflects our fair value of 135 USD, the potential value of 168 USD, and the price recorded at analysis (179 USD).

What archetype is DLR?

In the latest published report analyzed 2026-09-27, Digital Realty Trust, Inc. is classified as a REIT stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for DLR.

DLR stock analysis | StockMarketAgent.AI

StockMarketAgent researchAnalysé 2026-09-27

Digital Realty Trust, Inc.

DLR

Vendre

Baisse potentielle de 24,6 % vers la juste valeur

Report-date price

178,61 $US

Recorded 2026-09-25

Juste valeur

134,60 $US

Valeur potentielle

168,08 $US

Borne haute de valorisation

Avantage concurrentiel

Narrow7 / 10

Repli en anglaisFR

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§1 RésuméEN

Réponse en 30 secondesSell

Prix par rapport à la valeur

Cours: $178.61
Juste valeur: $134.60
Valeur potentielle: $168.08
Au: 2026-09-25

Pourquoi le scénario peut fonctionner

Accelerating enterprise cloud and artificial intelligence infrastructure demand in utility-constrained Tier-1 metropolitan markets enables Digital Realty to achieve double-digit positive rental renewal spreads on PlatformDIGITAL, driving FY2026 revenue growth toward 16.55% and expanding operating margins from 10.77% toward normalized levels.

Ce qui changerait notre avis

A 200 bps increase in debt refinancing yields driving pre-tax cost of debt above 8.35% across Digital Realty's $24,182,228,000 total debt burden.

Digital Realty Trust is rated Sell because its share price of $178.61 on September 25, 2026 sits well above its Fair value of $134.60, as high debt and ongoing cash deficits outweigh data center demand.^4,5

The house rating on Digital Realty Trust is Sell. For an ordinary investor, this rating means capital should be protected by selling or trimming existing shares and avoiding new purchases. The market valuation has run ahead of the company's financial results, leaving no margin of safety.⁴

§2 Cas baissierEN

A severe stagflationary environment combining sustained 8.35% borrowing rates with utility substation energization deferrals would severely pressure Digital Realty's financial structure. Because capital expenditures of $3,181,179,000 already exceed operating cash flow of $2,412,136,000 to produce negative free cash flow of -$769,043,000, an escalation in annual interest expense beyond the FY2025 level of $437,947,000 would eliminate dividend coverage and accelerate equity dilution.

Bear scenario

Bear

Probability

25%

Return

-49.7%

Path target

$89.78

Utility energization delays deferring scheduled lease commencements
Higher debt refinancing rates increasing overall interest obligations
Colocation pricing competition restraining operating margin expansion

The downside scenario reflects persistent utility transmission bottlenecks deferring high-density campus deliveries, coupled with rising debt yields across maturing borrowings. Heightened interest expense compresses distributable cash flow while colocation peer competition restrains pricing leverage. Disconfirmation occurs if power energization accelerates or borrowing spreads narrow sharply.

Comment cette thèse peut échouer

Refinancing cost surge on $24.18B debt load elevates debt service and drives cost of capital 200 bps higher

Digital Realty carries $24,182,228,000 in total debt with pre-tax cost of debt at 6.35%. A 200 bps increase in borrowing yields drives pre-tax cost of debt above 8.35%, raising WACC above 8.26% and dropping dividend discount fair value by 24.0%.^2,4

FV impact

-4%

Cost of capital 2 points higher

Trigger

Within 12 months

Signaux d'alerte précoce à surveiller

Les cinq évolutions qui affaibliraient notre thèse d’investissement.

Annual Debt Refinancing Pre-Tax Yield

A sharp increase in refinancing rates escalates debt service requirements across maturing debt tranches, diverting operational cash flow away from capital distributions and severely compressing net margins and per-share cash available to equity investors.

Actuel :6.35% as of 2026-09-27

Alerte siAbove 8.35% within 12 months

§3 Avantage concurrentielEN

Narrow

Digital Realty commands a narrow economic moat rooted in network effects across PlatformDIGITAL, enterprise switching costs, and efficient physical scale. Product Rental and Other Services generated $5,968,918,000 in FY2025, representing 97.65% of consolidated revenue and delivering steady recurring cash flows.

The company's economic profit generation remains temporarily constrained by massive development spending. Heavy capital investments suppress current return on invested capital to 2.31%, trailing its 8.26% computed WACC. Nevertheless, underlying operating cash flow of $2,412,136,000 affirms that its interconnected campus network preserves high customer retention and pricing stability across contract cycles.

Profit économique

Reported return on invested capital of 2.31% sits below computed WACC of 8.26% due to heavy ongoing development capital deployment ($3,181,179,000 capex in FY2025). However, substantial operating cash generation of $2,412,136,000 supports structural economic durability across a 12-year competitive horizon.^2,4,6

7/ 10

Narrow

Sources of advantage

Network EffectsCarrier-neutral interconnection density on PlatformDIGITAL links global enterprises, cloud platforms, and network providers across primary metropolitan markets, generating self-reinforcing network effects.Moderate
Switching CostsMulti-year colocation leases and high technical re-cabling and migration costs create substantial barriers to tenant relocation, ensuring 97.65% recurring rental revenue stability.Wide
Efficient ScaleAn extensive footprint across 50+ metropolitan markets with 48.18% non-US revenue creates an international operational scale that sub-scale colocation providers cannot replicate.

Menaces connues pour l'avantage
Menace	Gravité	Calendrier	Atténuation
Electric utility substation energization bottlenecks delaying capacity deployment in key metropolitan centers	medium	12 to 24 months	Broad international footprint across 50+ metropolitan areas and proactive procurement of electrical substation infrastructure.⁷

§5 Sensibilité

Taux d’actualisation

Croissance terminale

	2.0%	2.3%	2.5%	2.8%	3.0%
7.9%	$152.93	$153.61	$154.35	$155.17	$156.07
8.4%	$142.27	$142.84	$143.45	$144.12	$144.85
8.9%	$133.61	$134.08	$134.60	$135.16	$135.76
9.4%	$126.41	$126.82	$127.25	$127.72	$128.23
9.9%	$120.32	$120.67	$121.05	$121.45	$121.87

Lignes : taux d’actualisation (Ke pour les bénéfices ; WACC pour les flux de trésorerie). Colonnes : croissance terminale.

Variation de durée (années)

None of the valuation methods used to calculate Fair value relies on a separate assumption about how long the competitive advantage lasts.

Sensitivity reference

The highlighted cell is Fair value when every assumption sits at its base level ($134.60). Each row and column shows what Fair value becomes when one assumption moves.

Falaise des FCF

A free-cash-flow drop test is not available in this run; use the discount-rate and terminal-growth grid as the primary valuation pressure test.

§7 Arbre de décision sur les résultatsEN

Dépassé

Upgrade the rating; Use operational strength to trim portfolio exposure, reviewing debt maturity schedules and development capital commitments before reallocating capital.

Déclencheur: Consolidated quarterly revenue and earnings per share exceeding consensus expectations alongside accelerating rental renewal rate spreads.

Quarterly upside from accelerated hyperscale lease commencements confirms strong operational execution but does not eliminate balance sheet debt service headwinds or justify prevailing valuation levels.

Conforme

Maintain Sell; Maintain disciplined underweight positioning, tracking whether operating cash flows adequately cover ongoing development outlays and dividend requirements.

Déclencheur: Consolidated revenue and earnings per share matching consensus forecasts with stable colocation occupancy across major campuses.

In-line quarterly results affirm steady colocation demand while continuing to reflect elevated financing costs and heavy development capital expenditures.

Manqué

Exit the position; Exit residual holdings promptly, monitoring power delivery timelines and liquidity reserves for signs of accelerated deterioration.

Déclencheur: Revenue or earnings per share falling short of consensus targets due to power connection delays or tenant renewal concessions.

A quarterly shortfall signals emerging utility energization friction or leasing slowdowns, exacerbating financing strains across the debt capital structure.

Qualité des résultats

Reported earnings depend heavily on non-cash depreciation adjustments typical of real estate portfolios, while operating cash flows remain insufficient to fund aggressive development capital outlays without ongoing external capital market financing.

Métriques à surveiller avant publication

Métrique:
Utility Power Energization Timelines
ActuelUtility transmission bottlenecks in primary metropolitan markets create delivery lags for hyperscale artificial intelligence halls.
Pourquoi c'est important
Power delivery pacing dictates when newly built data halls can commence billing and convert construction spending into cash revenue.
Métrique:
Debt Refinancing Spreads
ActuelRefinancing yields remain elevated compared to historical debt coupon rates across the debt structure.
Pourquoi c'est important

§8 Historique financier

Compte de résultat — six derniers exercices
Period	2021-12-31	2022-12-31	2023-12-31	2024-12-31	2025-12-31	Trend
Revenue	$4.43B	$4.69B	$5.48B	$5.55B	$6.11B	+8.4%
Gross profit	$2.65B	$2.67B	$2.88B	$3.04B	$3.39B	+6.3%
Operating income	$694.0M	$590.0M	$524.5M	$471.9M	$658.5M	-1.3%
Net income	$1.71B	$377.7M	$948.8M	$602.5M	$1.31B	-6.5%
EPS (diluted)	$5.94	$1.11	$2.88	$1.61	$3.58	-11.9%
EBITDA	$3.60B	$2.29B	$3.16B	$2.87B	$3.59B	-0.1%
R&D	$0	$0	$0	—	—	-31.9%
SG&A	$400.7M	$422.2M	$449.1M	$480.0M	$560.5M	+8.8%

Prévision annuelle retenue
Métrique	2026	2027	2028	2029	2030
Revenue	$7.12B	$7.90B

Flux de trésorerie

Operating cash flow reached $2,412,136,000 in FY2025, but capital expenditures of $3,181,179,000 resulted in negative free cash flow of -$769,043,000. Discretionary growth spending accounts for roughly 80% of total capex, while maintenance capex requires an estimated $636,235,800. Dividend commitments of $1,728,466,000 necessitate ongoing external capital market financing.^4,5,6

Allocation du capital

Capital allocation prioritizes aggressive development buildouts ($3,181,179,000 capex in FY2025) and regular distributions ($1,728,466,000 ). With total debt at $24,182,228,000 and pre-tax borrowing yields at 6.35%, funding deficits require regular equity issuance, expanding from 309,065,000 in FY2023 to 370,999,000 in September 2026.

ROIC

Massive capital deployed in construction work-in-progress dampens near-term return metrics, though cash yields should gradually improve as newly developed campuses reach full billing utilization.

Return on invested capital of 2.31% sits below computed WACC of 8.26%, reflecting significant capital tied up in non-earning development projects.

Rental and colocation operations drive recurring revenue stream

Product Rental and Other Services generated $5,968,918,000 in FY2025, comprising 97.65% of consolidated revenue ($6,112,692,000).

Provides stable baseline operational cash flows ($2,412,136,000 operating cash flow in FY2025) but leaves overall financial performance wholly reliant on data center leasing conditions.

Massive capital expenditure generates persistent negative

Dernier chiffre d’affaires6,1 Md $USTCAC du chiffre d’affaires +12,4 %

Marge opérationnelle10,8 %10 périodes fiscales

Dernier flux de trésorerie disponible-769 M $USFY2025

Dette nette20,7 Md $USFY2025

Décomposition du compte de résultatComment la taille de l’activité se traduit en bénéfice publié.

StockMarketAgent.AI

Données de l’historique financier
Chiffre d'affaires	6 112 692 000 $US
Coût des ventes	2 726 737 000 $US
Marge brute	3 385 955 000 $US
Charges d’exploitation	2 727 463 000 $US
Résultat d'exploitation	658 492 000 $US
Éléments hors exploitation et impôts	650 097 000 $US
Résultat net	1 308 589 000 $US

Aperçu du bilanComment les actifs publiés sont détenus et financés pour la période sélectionnée.

StockMarketAgent.AI

Données de ventilation du bilan
Total de l’actif	36 369 560 000 $US
Trésorerie	142 698 000 $US
Actifs courants	814 419 000 $US
Total du passif	17 845 778 000 $US
Passifs courants	2 617 102 000 $US
Capitaux propres	18 476 787 000 $US

Passerelle des flux de trésorerieComment le flux de trésorerie d’exploitation est devenu du flux de trésorerie disponible en FY2025.

StockMarketAgent.AI

Rapprochement des flux d’exploitation

Résultat net1,3 Md $USDotations aux amortissements+1,9 Md $USRémunération en actions+70,2 M $USAutres ajustements opérationnels−861,3 M $USFlux de trésorerie d'exploitation2,4 Md $US

Rapprochement de la trésorerie d’ouverture à la clôture

Trésorerie d’ouverture3,9 Md $USFlux de trésorerie d'exploitation+2,4 Md $USFlux d’investissement−2,2 Md $USFlux de financement−486,7 M $USEffet de change−113,3 M $USTrésorerie de clôture3,5 Md $US

2,4 Md $US − 3,2 Md $USFlux de trésorerie disponible -769 M $US

Données de la passerelle des flux de trésorerie
Résultat net	1 308 589 000 $US
Entrées d’exploitation	3 273 452 000 $US
Dotations aux amortissements	1 894 636 000 $US
Rémunération en actions	70 227 000 $US
Flux de trésorerie d'exploitation	2 412 136 000 $US
Sorties d’exploitation	861 316 000 $US
Trésorerie disponible	6 288 836 000 $US
Trésorerie d’ouverture	3 876 700 000 $US
Sorties d’investissement	2 230 472 000 $US
Sorties de financement	486 738 000 $US
Effet de change	113 336 000 $US
Trésorerie de clôture	3 458 290 000 $US
Flux d’investissement	-2 230 472 000 $US
Flux de financement	-486 738 000 $US

Chiffre d’affaires par activitéPart du chiffre d’affaires total pour 2025-12-31.

Chiffre d’affaires par activitéPart

Rental And Other Services6 Md $US97,6 %+8,9 % sur un an

Fee Income And Other143,8 M $US2,4 %+98,3 % sur un an

Source: SEC EDGAR · Déposé le 2026-02-13 · SEC EDGAR

Données de répartition du chiffre d’affaires: Chiffre d’affaires par activité
Chiffre d’affaires par activité	Chiffre d'affaires	Part	sur un an
Rental And Other Services	6 Md $US	97,6 %	8,9 %
Fee Income And Other	143,8 M $US	2,4 %	98,3 %

Chiffre d’affaires par zone géographiquePart du chiffre d’affaires total pour 2025-12-31.

Chiffre d’affaires par zone géographiquePart

United States3,2 Md $US51,8 %+8,8 % sur un an

Non Us2,9 Md $US48,2 %+11,4 % sur un an

Source: SEC EDGAR · Déposé le 2026-02-13 · SEC EDGAR

Données de répartition du chiffre d’affaires: Chiffre d’affaires par zone géographique
Chiffre d’affaires par zone géographique	Chiffre d'affaires	Part	sur un an
United States	3,2 Md $US	51,8 %	8,8 %
Non Us	2,9 Md $US	48,2 %	11,4 %

Chiffre d’affaires et résultatsComment la taille de l’activité se traduit en bénéfice publié.

Trésorerie et detteLiquidités disponibles face à l’endettement total.

Génération de trésorerieFlux de trésorerie d’exploitation comparé au flux de trésorerie disponible.

RentabilitéÉvolution des marges brute, opérationnelle et nette.

Données financières ponctuelles utilisées dans l’analyse du 2026-09-27.

Données de l’historique financier
Période	Chiffre d'affaires	EBITDA	Résultat net	Flux de trésorerie d'exploitation	Flux de trésorerie disponible	Capex	Dotations aux amortissements	Rémunération en actions	Rachats d’actions	Dividendes versés	Émission nette de dette	Flux d’investissement	Flux de financement	Trésorerie d’ouverture	Trésorerie de clôture	Trésorerie et placements	Dette totale	Marge opérationnelle	ROIC	WACC	Écart ROIC−WACC
2016-12-31	2,1 Md $US	1,4 Md $US	426,2 M $US	911,2 M $US	136,9 M $US	774,3 M $US	699,3 M $US	17,4 M $US	—	521,6 M $US	—	-1,3 Md $US	350,6 M $US	—	22 M $US	11,5 Md $US	5,8 Md $US	23,2 %	—	4,8 %	—
2017-12-31	2,5 Md $US	1,4 Md $US	248,3 M $US	1 Md $US	-178,2 M $US	1,2 Md $US	842,5 M $US	20,5 M $US	—	646,4 M $US	—	-1,4 Md $US	321,2 M $US	22 M $US	13,2 M $US	16,8 Md $US	8,6 Md $US	18,4 %	—	5,0 %	—
2018-12-31	3 Md $US	1,9 Md $US	331,2 M $US	1,4 Md $US	11,7 M $US	1,4 Md $US	1,2 Md $US	27,2 M $US	—	849,5 M $US	—	-3 Md $US	1,8 Md $US	13,2 M $US	135,2 M $US	146,8 M $US	11,1 Md $US	18,0 %	—	6,0 %	—
2019-12-31	3,2 Md $US	2,1 Md $US	579,8 M $US	1,5 Md $US	-19,5 M $US	1,5 Md $US	1,2 Md $US	34,9 M $US	—	921,8 M $US	—	-275 M $US	-1,3 Md $US	135,2 M $US	97,3 M $US	92,2 M $US	11 Md $US	18,5 %	—	5,1 %	—
2020-12-31	3,9 Md $US	2,1 Md $US	356,4 M $US	1,7 Md $US	-357,5 M $US	2,1 Md $US	1,4 Md $US	74,6 M $US	—	1,2 Md $US	—	-2,6 Md $US	935,7 M $US	97,3 M $US	123,7 M $US	108,5 M $US	14,8 Md $US	14,3 %	—	3,1 %	—
2021-12-31	4,4 Md $US	3,6 Md $US	1,7 Md $US	1,7 Md $US	-818,5 M $US	2,5 Md $US	1,5 Md $US	84,1 M $US	201,3 M $US	1,4 Md $US	—	-1,1 Md $US	-590,6 M $US	123,7 M $US	151,5 M $US	20,9 Md $US	15 Md $US	15,7 %	—	3,2 %	—
2022-12-31	4,7 Md $US	2,3 Md $US	377,7 M $US	1,7 Md $US	-983,7 M $US	2,6 Md $US	1,6 Md $US	92,5 M $US	0 $US	1,5 Md $US	3,4 Md $US	-4,7 Md $US	3 Md $US	151,5 M $US	150,7 M $US	158,9 M $US	18,7 Md $US	12,6 %	—	6,4 %	—
2023-12-31	5,5 Md $US	3,2 Md $US	948,8 M $US	1,6 Md $US	-1,9 Md $US	3,5 Md $US	1,7 Md $US	80,5 M $US	0 $US	1,5 Md $US	334,4 M $US	-1,1 Md $US	963,5 M $US	150,7 M $US	1,6 Md $US	1,6 Md $US	19 Md $US	9,6 %	—	8,1 %	—
2024-12-31	5,6 Md $US	2,9 Md $US	602,5 M $US	2,3 Md $US	-570,3 M $US	2,8 Md $US	1,8 Md $US	75,6 M $US	—	1,6 Md $US	37,3 M $US	-1,9 Md $US	2,1 Md $US	1,6 Md $US	3,9 Md $US	3,9 Md $US	18 Md $US	8,5 %	—	12,7 %	—
2025-12-31	6,1 Md $US	3,6 Md $US	1,3 Md $US	2,4 Md $US	-769 M $US	3,2 Md $US	1,9 Md $US	70,2 M $US	—	1,7 Md $US	190,6 M $US	-2,2 Md $US	-486,7 M $US	3,9 Md $US	3,5 Md $US	3,5 Md $US	24,2 Md $US	10,8 %	—	8,5 %	—

§9 Comparaison de valorisation avec les pairs

Digital Realty Trust, Inc.DLR

Cours / juste valeur

Juste valeur134,6 $USReport-date price178,61 $US

Date d’évaluation27 sept. 2026

Avantage concurrentielNarrow

Score d’investissement49 / 100

American Tower CorporationAMT

Cours / juste valeur

Juste valeur148,44 $USReport-date price169,03 $US

Date d’évaluation27 sept. 2026

Avantage concurrentielNarrow

Score d’investissement57 / 100

Equinix Inc.EQIX

Cours / juste valeur

Juste valeur878,96 $USReport-date price1 048,43 $US

Date d’évaluation20 mai 2026

Avantage concurrentielWide

Score d’investissement56 / 100

Digital Realty Trust, Inc.DLR

Cours / juste valeur

Juste valeur134,6 $USReport-date price178,61 $US

Date d’évaluation27 sept. 2026

Avantage concurrentielNarrow

Score d’investissement49 / 100

Multiples des pairs et rentabilité
Symbole	Nom	Cap. boursière	P/E	P/S	EV/EBITDA	ROE

Digital Realty Trust Inc. (DLR) trades at 66.2x forward earnings against a peer median of 42.1x. Its EV/EBITDA of 27.1x compares with a peer median of 22.8x. The comparison uses 4 peers: American Tower Corporation, Equinix Inc., Simon Property Group Inc. and Welltower Inc., as of 2026-09-27.

§10 Secteur et cycleEN

Phase du cycle

Expansion

Industry capital expenditures represent -12.7% of revenue and 0.17 of depreciation, while Digital Realty deployed $3,181,179,000 in FY2025 capex.⁴

Cycle haussier

The secular upcycle is powered by structural cloud infrastructure migration and artificial intelligence computing workloads, generating intense pre-leasing demand and positive renewal rental spreads across interconnected data halls.

Cycle baissier

A cyclical downturn involves prolonged electric utility transmission delays deferring data center openings, rising corporate debt refinancing yields, and tenant concessions that depress rental growth and colocation pricing.

Tendances séculaires
Tendance	Impact	Note
Generative AI and Cloud Workload Migration	positive	Hyperscale cloud and artificial intelligence infrastructure demand drives massive need for high-density power and cooling across carrier-neutral colocation campuses.
Electric Power Grid Bottlenecks and Interconnection Delays	negative	Electric utility transmission capacity limits in key Tier-1 metropolitan markets delay substation hookups, extending delivery timelines for new data center capacity.

Positionnement

Digital Realty occupies a critical global carrier-neutral colocation position alongside peer Equinix, but its FY2025 operating margin of 10.77% trails Equinix's 27.02% and American Tower's 45.41%, reflecting higher wholesale operational exposure.⁶

§11 Gestion de positionEN

Taille de position

With the shares trading at $178.61 as of 2026-09-25 well above Fair value of $134.60, no long equity allocation is warranted under our sell rating.⁴

Risque

Risk controls center on avoiding equity positions where negative free cash flow (-$769,043,000 in FY2025) and heavy debt maturities ($24,182,228,000 total debt) create persistent refinancing exposure.

Tranches d'entrée
Niveau	Action	Pourquoi
Below $120.00	Initiate fundamental re-evaluation	Requires price contraction to the lower tier of NAV/AFFO valuation ($120.29) alongside verified stabilization of debt refinancing costs.
Below $90.00	Evaluate selective entry

Tranches de sortie
Niveau	Action
At or above $180.00	Liquidate existing long positions
Above $190.00	Complete total position exit

Points de contrôle trimestriels
Métrique	Seuil	Action
Consolidated Revenue Growth	Below 8.0% annual growth in FY2026	Enforce complete exit across all accounts.⁶
Operating Cash Flow

§14 Recommandation finaleEN

Action

Vendre

We recommend a Sell rating on Digital Realty Trust. Trading at $178.61 on September 25, 2026, the stock stands 32.7% above our Fair value of $134.60 and above our Potential value of $168.08. While high-density AI demand drives 16.55% revenue growth in FY2026, the current stock price fails to price in the risks of $24,182,228,000 in total debt, persistent negative free cash flow (-$769,043,000 in FY2025), and ongoing shareholder dilution.^1,4,5

Investors should systematically reduce equity holdings, realizing gains while forward multiples remain elevated at 66.23x earnings. Capital should be redirected toward opportunities with an adequate margin of safety below intrinsic net asset value.

Biggest risk

A 200 bps increase in debt refinancing yields driving pre-tax cost of debt above 8.35% across Digital Realty's $24,182,228,000 total debt burden. Maturing debt obligations must be refinanced at prevailing benchmark yields, sharply expanding annual debt service requirements and raising the overall cost of capital (computed WACC at 8.26%). Annual net interest expense surges significantly beyond the FY2025 level of $437,947,000, compressing net income ($1,308,589,000 in FY2025) and distributable cash flow, while worsening negative free cash flow (-$769,043,000 in FY2025) and compelling dilutive equity issuance to bridge funding gaps. Track effective refinancing borrowing rates against the 8.35% danger threshold and monitor total annual net interest expense against a $550,000,000 ceiling in quarterly SEC filings.^2,4,

DLR	Digital Realty Trust Inc.	$67.5B	66.2x	10.0x	27.1x	2.9%	—
AMT	American Tower Corporation	$78.8B	24.1x	7.2x	18.2x	33.9%	45.4%
EQIX	Equinix Inc.	$99.5B	54.1x	10.0x	26.8x	10.7%	27.0%
SPG	Simon Property Group Inc.	$77.8B	30.1x	11.2x	18.8x	120.5%	46.0%
WELL	Welltower Inc.	$166.7B	72.8x	13.1x	55.6x	3.8%	16.6%

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Digital Realty Trust, Inc.

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Présentation de l’entreprise

Annual Debt Refinancing Pre-Tax Yield

Narrow

Sources of advantage

Lenses that set Fair value

Forward Earnings

Utility Power Energization Timelines

Debt Refinancing Spreads

Sources

Consolidated Annual Free Cash Flow

Consolidated Annual Revenue Growth Rate

Consolidated Operating Margin Level

Annual Non-US Revenue Growth

Owner Earnings

Dividend Discount Model

NAV / AFFO

Checks and reference points

Reverse DCF

Development Free Cash Flow Deficit

Non-US Colocation Lease Absorption

Interconnection Operating Leverage