Digital Realty Trust, Inc. reported record-breaking operational and financial results for Q3 2025, including core FFO per share of $1.89, a 13% rise year over year. Demand from AI workloads is reshaping leasing trends, with over 50% of quarterly bookings tied to AI. Strong near-term revenue predictability is expected with $165 million in leases commencing in Q4 and $555 million scheduled for 2026. The company’s pipeline is at a record level, with customers increasingly focusing on large contiguous capacity blocks for late 2026 and beyond.
Backlog grew to $852 million, with commencements offset by new bookings. Interconnection leasing reached a record $20 million, driven by AI-oriented fiber and service fabric demand. Renewal leases totaled $192 million, with notable 20% cash releasing spreads for renewals greater than one megawatt. Leasing churn remained low at 1.6%. Development CapEx exceeded $900 million, delivering 50 megawatts of new capacity, with a gross project pipeline of $9.7 billion and five gigawatts of future IT load. Leverage reduced to 4.9 times with liquidity at nearly $7 billion.
Guidance for core FFO per share in 2025 increased by 2% to $7.32-$7.38, with revenue and adjusted EBITDA guidance midpoints raised by $75 million. Same capital cash NOI growth midpoint increased to 4.5%, and G&A guidance midpoint increased by $7.5 million. Demand for scalable, connected infrastructure remains robust, with a focus on large contiguous capacity blocks for late 2026 and 2027. The company received an EcoVadis Gold rating for sustainability efforts and signed renewable energy agreements.
AI-related bookings accounted for over 50% of quarterly signings, with a focus on high-density colocation offerings and future developable IT load. The company’s pipeline is at a record level, with customers increasingly seeking large contiguous capacity blocks. Technical capabilities include high-density colocation offerings across 30 metros, tailored for next-generation AI chipsets. The company remains committed to sustainability initiatives, including renewable energy agreements and EcoVadis Gold rating.
Read more at Nasdaq: Digital Realty (DLR) Q3 2025 Earnings Transcript