Digital Realty Trust Inc logo

Digital Realty Trust Inc(DLR)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
4-STAR RATING
PASS
LAST CLOSE
$178.61
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for DLR

09/25/2026: DLR (4-star) is currently NOT-A-BUY. Pass it for now.

Digital Realty Trust Inc is a leading global Real Estate Investment Trust (REIT) focused on providing data center, colocation, and interconnection services. The company is well-regarded for its massive global footprint and its ability to host the world's largest cloud service providers. A primary investment story is the long-term tailwind from digital transformation and the increasing demand for high-density, AI-ready infrastructure. However, investors must consider risks associated with high capital expenditure requirements, interest-rate sensitivity, and intense competition. DLR may suit dividend-seeking investors and those looking for stable exposure to the digital economy, though investors should monitor interest rate trends and AI-driven growth metrics closely.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fit while signal remains positiveStrong exposure to cloud and AI infrastructure demand provides significant long-term growth potential.
Momentum investorMixed fitPerformance is often tied to broader interest rate environments and REIT sector cycles.
Value investorMixed fitValuation is often premium due to high-growth characteristics and real estate asset quality.
Dividend investorStrong fitConsistent dividend history makes it attractive for income-focused portfolios.
Low-risk investorMedium fitExposure to real estate and leverage risks balances the utility-like stability of data center leasing.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highEquity prices are sensitive to interest rate fluctuations and macro economic data.
Valuation riskMediumInvestors often pay a premium for infrastructure assets, increasing sensitivity to growth misses.
Competition risk (AI competition)HighRapidly evolving AI requirements place pressure on the company to continuously upgrade facilities.
Business qualityStrongThe company owns essential, high-value real estate assets with long-term lease structures.
Dividend incomeMediumDividends are reliable but typically grow at a moderate pace typical of REITs.
Execution riskMediumLarge-scale international development projects carry inherent construction and integration risks.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 24.45%
Avg. Invested days 53
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
DLR receives a 4-star rating, supported by solid unit economics, solid company fundamentals, and strong analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
DLR has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+117.2%) and strong cash generation (FCF margin 39.5%) are partially offset by very low insider ownership of 0.01%.

Financial Health Rating

★★★★★
DLR's financial health is supported by strong cash strength, including free-cash-flow generation of $2.4B (39.5% of revenue). Operating efficiency is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is DLR's strongest growth driver at +523.0% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+10.0%, solid) and earnings growth (+117.2%, strong) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 105.0% and approximately 94.4% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.01%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 10.65%
Vanguard Portfolio Management, LLC 7.94%
Cohen & Steers Inc 7.88%
Vanguard Capital Management, LLC 5.85%
State Street Corp 5.48%

Unit Economics (Per $1K Revenue)

★★★★★
DLR generates approximately $554 of gross profit, $108 of operating income, and $395 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 2.38%

Quantitative Style Profile

★★★★★
DLR has a large-cap, liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Large / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 67.45B USD
Price to earnings Ratio 87.13
1Y Target Price 223.44
Price to earnings Ratio 87.13
1Y Target Price 223.44
Volume (30-day avg) 2.0M shares
Beta 1.04
52 Weeks Range 143.30 - 206.06
Updated Date 09/27/2026
52 Weeks Range 143.30 - 206.06
Updated Date 09/27/2026
Dividends yield (FY) 2.70%
Basic EPS (TTM) 2.05

How Company Makes Money

Business areaWhat it includesRetail investor read
Data Center LeasingRevenue from base rent for data center space and power usage.The core business of renting out space for servers.
Interconnection ServicesFees for connecting customers to network providers and clouds.High-margin fees for providing network connectivity.
Global OperationsRevenue generated from assets in North America, Europe, Asia, and Latin America.Diversification across global markets lowers regional risk.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 87.13
Forward PE 66.23
Enterprise Value 86.03B
Price to Sales(TTM) 9.98
Enterprise Value 86.03B
Price to Sales(TTM) 9.98
Enterprise Value to Revenue 12.86
Enterprise Value to EBITDA 26.37
Shares Outstanding 371.00M
Shares Floating 350.39M
Shares Outstanding 371.00M
Shares Floating 350.39M
Percent Insiders 0.01
Percent Institutions 104.96

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Digital Realty Trust Inc

Exchange NYSE
Headquarters Austin, TX, United States
IPO Launch date 2004-10-29
CEO -
Sector Real Estate
Industry REIT - Specialty
Full time employees 4282
Full time employees 4282

Digital Realty Trust, Inc. brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. Platform DIGITAL, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. Digital Realty Trust, Inc. was founded in 2004 and is based in Austin, Texas.