Digital Realty Trust Reports Q1 2025 Financial Results with $1.41 Billion in Revenues

Digital Realty Trust, Inc. reported its financial results for the first quarter of 2025, revealing total operating revenues of $1.41 billion, a 5.7% increase from $1.33 billion in the same period last year. The growth was driven by a rise in rental and other services revenue, which increased by 5.3% to $1.39 billion, alongside a significant 49.8% increase in fee income. However, net income attributable to common stockholders fell to $99.8 million, or $0.30 per share, compared to $271.3 million, or $0.87 per share, in the prior year, largely due to a substantial decrease in gains from property dispositions.

In terms of operational metrics, the company reported a slight decline in occupancy rates across its consolidated portfolio, which stood at 82.4% as of March 31, 2025, down from 82.9% at the end of 2024. The company’s total investments in real estate increased marginally to approximately $26.84 billion, reflecting ongoing development and acquisition activities. Notably, Digital Realty completed two land acquisitions in Charlotte, North Carolina, for a total of $36.1 million, further expanding its footprint in key markets.

Digital Realty also launched its first U.S. hyperscale data center fund, raising approximately $1.4 billion in equity commitments, with total commitments reaching around $1.7 billion as of April 22, 2025. This fund aims to target $2.5 billion in equity commitments and will focus on operating hyperscale data centers and development sites across major U.S. markets. The company plans to contribute a share of its assets to the fund in the second quarter of 2025, maintaining operational and management responsibilities.

The company’s financial position remains strong, with cash and cash equivalents totaling $2.32 billion as of March 31, 2025, down from $3.87 billion at the end of 2024. Digital Realty's total liabilities decreased to $21.90 billion, while stockholders' equity was reported at $21.30 billion. The company continues to maintain a conservative capital structure, with a debt-to-Adjusted EBITDA ratio around 5.5x and a fixed charge coverage ratio exceeding three times.

Looking ahead, Digital Realty anticipates continued demand for data center space, driven by the ongoing digital transformation across various industries. The company expects to incur capital expenditures between $2.3 billion and $2.8 billion for the remainder of 2025, which includes contributions to joint ventures and development projects. Digital Realty remains committed to maximizing long-term growth in earnings and funds from operations while navigating the evolving market landscape.