AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 2/6 · 18/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Operational disruption from relocation, connected gateways, multi-geography customer relationships and actual renewals support a current incumbent advantage. They do not demonstrate self-reinforcing network effects or a cost lead.
durability · 2/4 · Established relationships and renewals support persistence, but competitive substitution and realized lease buyouts and accelerated expirations constrain confidence. Management's replication claim does not establish exceptional durability.
customer dependency · 3/4 · Customers depend on facilities whose relocation can disrupt operations; large customers use multiple geographies and renewals contribute to revenue. Dependency is supported operationally, without a quantified tenant switching-cost estimate.
erosion resilience · 2/4 · Overall capacity-based occupancy improved from 89.3% to 89.8% and developments leased up, but EMEA occupancy declined from 83.8% to 81.9%. Customer concentration and competitive alternatives limit demonstrated resilience.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Fixed rent increases are disclosed, but observed price changes or renewal spreads are absent. Revenue growth attributed jointly to leasing, renewals, utilities and currency cannot isolate realized pricing.
retention · 2/4 · Renewals and improving overall occupancy support repeat demand, assessed partly from indirect operating evidence. Regional weakness and actual customer lease restructuring make the record mixed; no retention rate is inferred.
margin resilience · 2/4 · Contractual expense recovery and actual utility reimbursements support cost protection. First-half rental and services revenue grew faster than combined property operating expenses and taxes, but reimbursement exceptions remain and promote income boosts headline operating results. This does not establish a moat from margins.
contractual freedom · 2/4 · Many leases include fixed base-rent increases and expense escalations, giving negotiated protection. Fixed terms constrain discretionary repricing, and reimbursement exceptions prevent universal cost recovery.
Predictability—
Missing exact annual revenue, free cash flow or FCF margin; operating cash flow and capex must both be reported for all five years.
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, currentRatioGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 4.58
- Interest coverage (x)
- 1.50
Capital allocation—
Missing required inputs: operatingReturn, sbcRevenue, cashConversionGrade. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 34732.74
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Completed asset contributions, development lease-up and predominantly fixed or hedged debt demonstrate financing and recycling execution. Substantial equity issuance and a large development-land commitment impose dilution and deployment risks; completed transaction gains do not establish sustained per-share returns above capital costs.
incentive alignment · 3/4 · Actual performance measures include per-share Core FFO, same-store cash NOI and signings, with capped annual payouts. Ownership-guideline compliance and completed performance vesting support alignment. Distributions on unvested awards temper the assessment; exact ownership stakes are unavailable.
execution · 3/4 · Development completion and lease-up generated disclosed revenue contributions, stabilized leasing and renewals grew, and contractual performance hurdles generated promote income. These are actual operating achievements, although revenue growth includes currency and reimbursements and EMEA occupancy weakened.
governance · 3/4 · An independent chair, largely independent director slate, annual elections, majority voting, clawback provisions and proxy access support strong disclosed governance arrangements. Section 16 reporting exceptions temper the record. These disclosures do not prove exceptional governance outcomes.
Evidence
Additionally, if we are unable to renew the lease at any of our data centers, we could lose customers due to the disruptions in their operations caused by the relocation.
Risk factors: customer operational disruption from relocation following facility lease nonrenewal · Filed 13/02/2026
Our internet gateway data centers are highly connected, network-dense facilities that serve as hubs for internet and data communications within and between major metropolitan areas.
Business: network-dense internet gateway facilities · Filed 13/02/2026
Segment and Geographic Information A majority of the Company’s largest customers are global entities that transact with the Company across multiple geographies worldwide.
Segment and geographic information: largest customers transact across multiple geographies · Filed 13/02/2026
Stabilized rental and other services revenue increased by approximately $95.8 million and $209.1 million in the three and six months ended June 30, 2026, respectively, compared to the same periods 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.
Results of operations: stabilized revenue growth attributed to leasing, renewals, reimbursements and foreign exchange · Filed 31/07/2026
Non-stabilized rental and other services revenue increased by approximately $121.4 million and $221.5 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025 primarily due to: (i) increases of $145.1 million and $284.7 million, respectively, due to the completion of our global development pipeline and related lease up operating activities (with the biggest contributions in Northern Virginia, Frankfurt, Paris and Johannesburg); and (ii) offset by decreases of $23.7 million and $63.2 million, respectively, related to properties sold or contributed since June 30, 2025.
Results of operations: development completion and related lease-up contributions · Filed 31/07/2026
Inflation Many of our leases provide for separate real estate tax and operating expense escalations.
Inflation: contractual tax and operating expense escalations · Filed 31/07/2026
In addition, many of the leases provide for fixed base rent increases.
Inflation: fixed base rent increases in many leases · Filed 31/07/2026
We compete with numerous data center providers globally, many of whom own or operate properties similar to ours in some of the same metropolitan areas where our data centers are located, including Equinix, Inc.
Competition: similar properties and named global competitor · Filed 13/02/2026
and NTT; various private operators in the U.S.; as well as Global Switch Holdings Limited and various regional operators in Europe, Asia, Latin America, Africa and Australia.
Competition: additional named and regional competitors · Filed 13/02/2026
If our competitors offer space that our customers or potential customers perceive to be superior to ours based on factors such as available power, security, location, or connectivity, or if they offer rental rates below current market rates, or below the rental rates we are offering, we may lose customers or potential customers or be required to incur costs to improve our data centers or reduce our rental rates.
Competition risk: superior competing facilities or lower rents could cause customer losses or concessions · Filed 13/02/2026
As of June 30, 2026 As of December 31, 2025 Region Data Centers White Space IT Load (MW) (1) Occupancy (2) Data Centers White Space IT Load (MW) (1) Occupancy (2) Americas 156 1,421 95.2 % 158 1,324 93.6 % EMEA 130 870 81.9 % 129 822 83.8 % APAC 24 225 85.9 % 24 217 84.2 % Consolidated Portfolio 310 2,515 89.8 % 311 2,363 89.3 % Note: Table excludes data centers held for sale or contribution.
Revenue base: June 2026 and December 2025 capacity-based occupancy by region · Filed 31/07/2026
In conjunction with the sale, we bought out Cyxtera’s leases in three data centers located in Singapore and Frankfurt for approximately $57 million.
Cyxtera restructuring: expenditure to buy out customer leases · Filed 13/02/2026
In addition, Brookfield assumed the leases on three facilities previously leased to Cyxtera and amended the leases on three additional data centers in North America, accelerating the expiration date to September 2024.
Cyxtera restructuring: assumed leases and accelerated expirations · Filed 13/02/2026
As of June 30, 2026, our two largest customers accounted for approximately 11% and 10%, respectively, of our total revenue.
Customer concentration: two largest customers' revenue shares · Filed 31/07/2026
Generally, under the terms of our leases, some of our rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from our customers.
Revenue accounting: contractual recovery of certain rental expenses · Filed 31/07/2026
However, in some cases we are not entitled to reimbursement of property operating expenses, other than utility expense, and real estate taxes under our leases for Turn-Key Flex® facilities.
Operating expenses: limitations on expense reimbursement for certain facilities · Filed 31/07/2026
AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (unaudited, in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating Revenues: Rental and other services $ 1,674,633 $ 1,457,360 $ 3,274,860 $ 2,844,221 Fee income and other 249,407 35,790 284,353 56,566 Total operating revenues 1,924,040 1,493,150 3,559,213 2,900,787 Operating Expenses: Rental property operating and maintenance 687,862 607,012 1,326,362 1,158,997 Property taxes and insurance 59,904 54,516 119,667 107,855 Depreciation and amortization 507,106 461,167 1,006,617 904,176 General and administrative 157,700 136,017 312,458 259,557 Transactions and integration 38,703 22,546 54,388 62,448 Other 13,508 195 13,531 307 Total operating expenses 1,464,783 1,281,453 2,833,023 2,493,340 Operating income before gain on disposition of properties, net 459,257 211,697 726,190 407,447 Gain on disposition of properties, net 7,988 931,830 8,861 932,941 Total operating income 467,245 1,143,527 735,051 1,340,388 Other Income (Expenses): Equity in earnings (loss) of unconsolidated entities 36 (12,062) (1,797) (19,702) Other income, net 137,944 37,747 183,286 70,520 Interest expense (113,943) (109,383) (230,327) (207,847) Loss on debt extinguishment and modifications — — (4,119) — Income tax expense (33,675) (12,883) (49,683) (30,018) Net income 457,607 1,046,946 632,411 1,153,341 Net (income) loss attributable to noncontrolling interests (4,318) (14,790) 152 (11,211) Net income attributable to Digital Realty Trust, Inc.
Condensed consolidated income statements: first-half 2026 and comparative operating results · Filed 31/07/2026
Fee income and other increased by approximately $213.6 million and $227.8 million in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025 primarily due to $201 million of promote income related to achievement of certain performance hurdles associated with the June 2026 Acquisition.
Results of operations: promote income from achieved performance hurdles · Filed 31/07/2026
46 Table of Contents ● In May 2026, we contributed two development projects to Digital Realty DC Partners NA Fund (the “Fund”), with an aggregate carrying value of approximately $439 million, for gross proceeds of $447 million and recognized a gain on disposition of approximately $8 million.
Business overview: completed development contributions, proceeds and disposition gain · Filed 31/07/2026
generated net proceeds of approximately $2.5 billion under its ATM Equity OfferingSM program from the issuance of approximately 13.5 million common shares at an average price of $184.94 per share after payment of approximately $12.6 million of commissions to the agents.
Business overview: actual first-half 2026 equity issuance and proceeds · Filed 31/07/2026
In April 2026, our Operating Partnership also acquired approximately 1,440 acres of development land at Astra Enterprise Park, located near Kansas City, (the “April 2026 Acquisition”) for total consideration of $482 million, comprised of $377.6 million in cash and 517,475 common units of limited partnership interest in our Operating Partnership with a fair value of $104.0 million.
Acquisitions: development land purchase funded with cash and partnership units · Filed 31/07/2026
Outstanding Consolidated Indebtedness The table below summarizes our outstanding debt as of June 30, 2026 (in millions): Debt Summary: Fixed rate $ 14,124 Variable rate debt subject to interest rate swaps 3,442 Total fixed rate debt (including interest rate swaps) 17,566 Variable rate—unhedged 1,202 Total $ 18,768 Percent of Total Debt: Fixed rate (including swapped debt) 93.6 % Variable rate 6.4 % Total 100.0 % Effective Interest Rate as of June 30, 2026 Fixed rate (including hedged variable rate debt) 3.03 % Variable rate 2.46 % Effective interest rate 2.99 % Our ratio of debt to total enterprise value was approximately 21.4% (based on the closing price of Digital Realty Trust, Inc.’s common stock on June 30, 2026 of $179.58).
Liquidity and capital resources: debt amount, hedging and effective interest rates · Filed 31/07/2026
Separate Independent Board Chair and Chief Executive Officer Our directors stand for election each year Majority voting standard for director elections 9 of 10 directors standing for re-election are independent Regular executive sessions of Independent Directors 4 audit committee financial experts Annual Board and committee evaluations, including periodically with third party advisors Oversight of risk by the Board Board orientation and continuing education program Codes of conduct for directors, team members and vendors SEC and NYSE-compliant clawback policy Anti-hedging and anti-pledging policy All directors and officers subject to our Stock Ownership Guidelines are in compliance No poison pill Proxy access Award-winning commitment to sustainability Commitment to our communities Strategy and Our Board Our primary business objectives are to maximize: (i) sustainable long-term growth in earnings and funds from operations per share and unit, (ii) cash flow and returns to our stockholders and our Operating Partnership’s unitholders through the payment of dividends and distributions and (iii) return on invested capital.
Corporate governance overview: independent chair, board structure, ownership compliance and shareholder rights · Filed 17/04/2026
Financial Metrics • Core FFO Per Share • Same Store Cash NOI Revenue Metrics • ≤1 MW and Interconnection signings Individual Performance Goals • Winning new customers and enhancing existing customer relationships • Developing solutions and delivering products on a global platform • Attaining financial and operating metrics • Talent management and corporate responsibility Annual incentive payouts are based on performance against pre-established targets and are subject to defined caps.
Compensation discussion: actual 2025 performance measures and payout caps · Filed 17/04/2026
Also includes, for all named executive officers, the value of the DEUs that vested with respect to performance-vested Class D Units for the performance period ended December 31, 2025 (using the closing price of our Common Stock on December 31, 2025 of $154.71 per share), paid in the form of PIUs.
Compensation table footnotes: dividend equivalent units vested for completed 2025 performance period · Filed 17/04/2026
(b) Includes distributions and Dividend Equivalents paid on unvested long-term incentive awards, including performance-based awards that have satisfied the applicable performance condition and remain subject to time-based vesting.
Compensation table footnotes: distributions on unvested awards · Filed 17/04/2026
Based solely on our review of the copies of such reports received by us, and written representations from certain Reporting Persons that no other reports were required for those persons, we believe that, during the year ended December 31, 2025, the Reporting Persons met all applicable Section 16(a) filing requirements, with the exception of the following reports: • Form 4 relating to withholding of shares associated with the vesting of restricted stock awards (January 1, 2025) for Jeannie Lee and Christine Kornegay.
Section 16 reporting compliance: disclosed reporting exceptions · Filed 17/04/2026
• Form 4 relating to withholding of shares associated with the vesting of a restricted stock award (June 5, 2025) for Jean Mandeville.
Section 16 reporting compliance: additional reporting exception · Filed 17/04/2026
We believe internet gateways are extremely valuable, and a high-quality, highly interconnected global portfolio such as ours could not be easily replicated today on a cost-competitive basis.
Business: management belief regarding portfolio replication costs · Filed 13/02/2026
The costs of relocating data center infrastructure equipment, such as generators, power distribution units and cooling units, to different data centers could be prohibitive and, as such, we could lose the value of this equipment.
Risk factors: potential cost of relocating the company's infrastructure equipment · Filed 13/02/2026
