
DLR Stock Forecast & Price Target
DLR Analyst Ratings
Bulls say
Digital Realty Trust reported a significant positive trend in rental rates, with increases of 4.2% on a cash basis for the 0-1MW category and an impressive 14.0% increase for greater than 1MW renewals, compared to prior guidance. The company demonstrated strong total data center revenue growth of 11% year-over-year in Q2, which was fueled by robust leasing spreads and fixed rent escalators in approximately 70% of bookings. Additionally, same capital cash net operating income (NOI) grew by 4.4% year-over-year, supported by a 5.9% increase in data center revenue, further underscoring Digital Realty's solid financial performance.
Bears say
Digital Realty Trust has experienced a significant decline in total GAAP annualized rent signed in the Americas, falling to $47.3 million in Q2 from $187.9 million in Q1, indicating a slowdown in hyperscale leasing. The company's growth prospects are further threatened by the challenges of successful project completions, heightened competition affecting occupancy and rental rates, and the risk of tenant defaults due to global economic conditions. Additionally, issues with power availability, the potential obsolescence of data center infrastructure, and lower escalator rates point to ongoing operational and financial vulnerabilities that could adversely impact the firm.
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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