Digital Realty — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total operating revenues were $1.90 billion in Q3 2026, a 21% increase year-over-year and 10% higher than Q2 2026 (excluding $201 million of promote income in Q2).
• Net income available to common stockholders was $185 million ($0.48 per share), compared to $57.6 million ($0.15 per share) in Q3 2025 and $443 million ($1.21 per share) in Q2 2026.
• Adjusted EBITDA was $978 million, a 13% increase year-over-year and in line with Q2 2026.
• Funds From Operations (FFO) was $742 million ($1.97 per share), up from $1.65 per share in Q3 2025.
• Core FFO per share (excluding net promote) was $2.10, compared to $1.89 in Q3 2025.
• Net debt-to-Adjusted EBITDA was 5.2x at quarter-end.
• Total debt outstanding was approximately $19.5 billion, comprised of $17.9 billion in unsecured debt and $1.6 billion in secured and other debt.
• Debt-plus-preferred-to-total enterprise value was 23.2%.
• Fixed charge coverage ratio was 4.8x.

Guidance and Future Outlook:

• Raised 2026 Core FFO per share (excluding net promote) outlook to $8.30 - $8.35.
• Raised 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.25 - $8.30.
• Updated 2026 Total Revenue (excluding promote income) guidance to $7.050 - $7.125 billion.
• Updated 2026 Adjusted EBITDA guidance to $3.800 - $3.850 billion.
• Updated 2026 G&A guidance to $640 - $650 million.
• Updated 2026 "Same-Capital" cash NOI growth guidance to 5.25% - 5.75%.
• Updated 2026 Dispositions/Asset Contributions guidance to $1.500 - $2.000 billion.
• Updated 2026 Development CapEx (Net of Partner Contributions) guidance to $4.250 - $4.750 billion.
• Updated 2026 Long-term debt issuance guidance to approximately $1.750 billion with pricing around 4.0%.

Business Segments and Product Lines:

• Signed record total bookings in Q3 2026 expected to generate $855 million of annualized GAAP base rent at 100% share ($627 million at Digital Realty's share).
• Record bookings included $152 million in the 0-1 megawatt plus interconnection category.
• Rental rates on renewal leases increased 11.8% on a cash basis and 17.0% on a GAAP basis.
• Recorded a record total backlog of $2.5 billion of annualized GAAP base rent at 100% share ($1.8 billion at Digital Realty's share) at quarter-end.
• Portfolio consists of 311 data centers with 3.2 gigawatts of IT capacity and 9.8 gigawatts of buildable capacity under active development.
• Occupancy at quarter-end was 91.1%, with same-capital occupancy at 93.4%.
• Signed leases had a weighted-average lag of 17 months to contractual commencement.

Market and Competitive Landscape:

• Digital Realty is the world's largest cloud- and carrier-neutral data center platform.
• Customer demand remains strong for connectivity-rich environments and trusted execution.
• Portfolio spans North America, Europe, South America, Asia, Australia, and Africa.
• Top 20 customers by annualized rent are listed in the supplemental data (specific names not provided in text).

Risks and Challenges:

• The document notes that forward-looking non-GAAP financial measures may vary materially from corresponding GAAP measures due to the inherent difficulty of forecasting timing and amounts of various items.
• Risks include external growth factors such as dispositions and balance sheet items such as debt issuances that are out of the company's control or cannot be reasonably predicted.
• Credit ratings are provided as S&P BBB+ (Stable), Moody's Baa1 (Stable), and Fitch BBB (Stable), with a note that ratings may be revised or withdrawn.

Management Commentary and Tone:

• CEO Andy Power stated the company extended its track record of execution with record leasing, an expanding backlog, and another quarter of double-digit earnings growth.
• Management highlighted the global strength of customer demand for connectivity-rich environments.
• Tone is confident, emphasizing execution capabilities and reach to support evolving customer requirements across the digital infrastructure landscape.

Other Key Points:

• Acquired $742 million of land during the quarter near Indianapolis, Atlanta (Fort Gillem), Chicago (two parcels), Charlotte, Frankfurt (Ostend), and Crete.
• Entered a new joint venture with Rönesans Infrastructure to develop data centers in Türkiye for $33 million, with a first investment in Ankara supporting over 22 megawatts.
• Acquired an additional 16% stake in Teraco for approximately $688 million, increasing ownership from 61% to approximately 77% via issuance of 3.4 million common shares.
• Closed $1.4 billion of initial cornerstone equity commitments for a new perpetual capital strategy focused on stabilized hyperscale data centers in North America subsequent to quarter-end.
• Sold approximately 2.4 million shares under its ATM equity issuance program for net proceeds of approximately $450 million in the quarter; year-to-date proceeds were $2.9 billion.
• Issued €1 billion of 5.125% euro notes due 2036 and CHF508 million of Swiss bonds (due 2029, 2032, and 2036) in October for aggregate net proceeds of approximately $1.7 billion.
• Subsequent to quarter-end, closed on land acquisitions near Brussels, Belgium (€15 million) and the freehold interest in the land underlying the Dugny, France campus (€80 million).
• Dividends per share and common unit remained constant at $1.22 for the quarter.