Digital Realty Trust's 2026 AI Backlog Monetization - Turnaround Nearly Complete

Summary

• DLR has delivered consistent beat/ raise performances over the past three consecutive quarters, with FQ4'25 likely to be similar based on the robust YTD numbers.
• This is on top of the management already hinting at FY2026 "10% top line growth," with 85% of its "backlog expected to commence through 2026."
• This is not forgetting the 730MW of capacity currently under construction and the overall 5GW of planned overall capacity, buoyed by the higher rental rates and positive cash renewal spreads.
• The Joint Venture financing strategies have also contributed to DLR's healthier balance sheet and growing FFO per share, with a dividend raise more likely than not.
• Combined with the reasonable valuations and the double digits total operational return prospects, DLR remains a compelling way for those looking to tap into the AI boom.