Digital Realty shares dip on soft 2025 outlook despite Q4 earnings beat

Published 13/02/2025, 22:48
Digital Realty shares dip on soft 2025 outlook despite Q4 earnings beat

NEW YORK - Digital Realty Trust (NYSE:DLR) reported fourth quarter earnings that beat analyst expectations, but shares slipped 0.4% in after-hours trading as the data center REIT provided softer-than-expected 2025 revenue guidance.

The company reported fourth quarter adjusted funds from operations (FFO) of $1.73 per share, topping the consensus estimate of $1.63. Revenue for the quarter came in at $1.44 billion, slightly below analyst projections of $1.46 billion but up 5% YoY.

For the full year 2025, Digital Realty forecast revenue in the range of $5.8-$5.9 billion, below Wall Street's consensus estimate of $6.13 billion. The company also introduced 2025 constant-currency Core FFO per share guidance of $7.05-$7.15.

"2024 was a remarkable year for Digital Realty, with record leasing driving impressive growth in our revenue backlog, and providing compelling visibility into our accelerating earnings growth," said Digital Realty President & CEO Andy Power.

The data center operator signed total bookings during Q4 expected to generate $100 million of annualized GAAP rental revenue, including a record $76 million from leases under 1 megawatt plus interconnection. Digital Realty reported a backlog of $797 million in annualized GAAP base rent at the end of the quarter.

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