
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust has demonstrated strong revenue performance in its data center operations, with total data center revenue growth of 11% year-over-year in Q2, driven by robust leasing spreads and a considerable portion of new bookings (approximately 70%) benefiting from fixed rent escalators. The company's focus on higher-level service offerings has resulted in significant increases in renewal rates, notably a 14.0% uptick in greater than 1MW deals on a cash basis, exceeding previous guidance. Additionally, same capital cash Net Operating Income (NOI) growth reached 4.4% year-over-year, reflecting the healthy demand for data center services amidst the strategic management of asset dispositions.
Bears say
Digital Realty Trust has reported a significant decline in annualized rent signed in the Americas, dropping to $47.3 million in the second quarter from $187.9 million in the first quarter, signaling a slowdown in hyperscale leasing. The company also faces substantial competition that may limit occupancy and rental rate increases, compounded by potential tenant defaults or delayed payments that could negatively impact cash flow and operational stability. Additionally, Digital Realty's growth prospects are hindered by challenges in the successful development of new and existing properties, alongside issues related to aging data center infrastructure and power availability that could affect overall operational efficiency.
This aggregate rating is based on analysts' research of Digital Realty Trust and is not a guaranteed prediction by Public.com or investment advice.
DLR Analyst Forecast & Price Prediction
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