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Digital Realty Trust expects its annual FFO to surpass market estimates, driven by heightened demand for AI-related data center services. The Texas-based REIT serves a diverse clientele across technology, cloud, social networking, communications, and manufacturing sectors. It forecasts adjusted FFO between USD 7.90 and USD 8 per share, higher than the consensus of USD 7.45. In the last quarter of 2025, revenue reached USD 1.63 billion, with adjusted FFO of USD 1.86 per share, beating expectations. Analysts highlight that rising AI infrastructure needs are supporting the company's strong performance and future growth prospects.
Digital Realty Trust has projected its annual funds from operations (FFO) to exceed Wall Street expectations, citing a surge in demand for data center services driven by investments in artificial intelligence. The Texas-based real estate investment trust noted that technology companies are significantly increasing spending on AI infrastructure, including the data centers required to support the rapidly growing sector.
The company provides managed data centers to clients across multiple industries, including cloud services, information technology, social networking, communications, and manufacturing. This broad client base has contributed to a notable rise in leasing activity and overall demand for Digital Realty's facilities.
For the year, the REIT anticipates adjusted FFO between USD 7.90 and USD 8 per share, surpassing analysts average forecast of USD 7.45 per share, according to LSEG data. In the last quarter of 2025, Digital Realty reported revenue of USD 1.63 billion, above the expected USD 1.58 billion. Adjusted funds from operations for the quarter reached USD 1.86 per share, exceeding the estimated USD 1.58.
This strong performance reflects both the growing reliance on AI by enterprises and the REIT's ability to attract and retain major clients in the technology and communications sectors. Analysts note that the company's focus on high-demand markets positions it well to benefit from long-term trends in AI adoption and digital infrastructure expansion.
Source Reuters
5th Jun, 2025
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