
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust has demonstrated strong financial performance with a notable increase in rental rates across its data center segments, including a 4.2% rise in the 0-1MW segment on a cash basis and a 14.0% increase for greater than 1MW renewals, significantly surpassing prior guidance. The company reported a year-over-year revenue growth of 11% in Q2, driven by strong leasing spreads, fixed rent escalators, and new lease commencements, despite the impact of over $1 billion in asset dispositions. Additionally, same capital cash NOI growth rose by 4.4% year-over-year in Q2, reflecting robust data center revenue growth of 5.9%.
Bears say
Digital Realty Trust has experienced a significant decline in GAAP annualized rent signed, dropping from $187.9 million in the first quarter to $47.3 million in the second quarter of the year, reflecting easing demand in hyperscale leasing within the Americas. The company faces considerable competition that can hinder occupancy and rental rate increases, while adverse global economic conditions may lead to tenant defaults, affecting Digital Realty's financial stability and increasing costs associated with protecting investments. Additionally, challenges in power availability and potential obsolescence of its infrastructure may impede the company's growth prospects and operational efficiency, raising concerns about development delays and unexpected costs.
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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