Key Highlights

  • Total revenues were $1.9 billion, 21% above the same quarter last year.
  • Core FFO per share was $2.10, compared with $1.89 in the third quarter of 2025.
  • Record bookings will generate $855 million of annualized GAAP base rent at 100% share.
  • Backlog of signed but not commenced leases reached a record $2.5 billion at 100% share.
  • 2026 Core FFO per share guidance was raised to $8.30 to $8.35, excluding net promote.

Record bookings push Backlog to $2.5 billion

Digital Realty (NYSE:DLR), based in Austin, Texas, owns, develops and operates data centers offering colocation and interconnection to cloud, technology, financial services and enterprise customers. As of September 30, 2026, its 311 data centers held about 3.2 gigawatts of IT capacity, with roughly 9.8 gigawatts of buildable capacity. It reported third quarter 2026 results on October 29, 2026.

Bookings were a record, expected to generate $855 million of annualized GAAP base rent at 100% share, or $627 million at the company's share. Backlog of signed but not commenced leases was a record $2.5 billion at 100% share and $1.8 billion at the company's share.

Revenue up 21% while FFO moves with the promote comparison

Total revenues were $1.9 billion, 21% above the third quarter of 2025 and 10% above the prior quarter when excluding $201 million of promote income booked in the second quarter. Net Income available to common stockholders was $185 million, or $0.48 per share, against $0.15 a year earlier.

Funds from operations were $742 million, or $1.97 per share, compared with $1.65 a year ago and $2.73 in the previous quarter. Adjusted EBITDA was $978 million, 13% higher than a year earlier.

Core FFO of $2.10 reflects renewal pricing strength

Core FFO per share, excluding net promote, was $2.10 versus $1.89 in the year earlier quarter and $2.13 in the second quarter. For the nine months ended September 30, 2026, it totaled $6.27.

Renewal leases signed in the quarter represented $261 million of annualized cash rental revenue, with rates up 11.8% on a cash basis and 17.0% on a GAAP basis. CEO Andy Power cited record leasing and an expanding backlog.

Land purchases, a Teraco stake and new Capital sources

During the quarter Digital Realty acquired $742 million of land in the Indianapolis, Atlanta, Chicago and Charlotte metro areas. The Indianapolis site supports over one gigawatt of IT capacity.

After quarter end it agreed an additional 16% stake in Teraco for about $688 million, mainly through 3.4 million new shares, lifting its ownership from 61% to approximately 77%. It also closed $1.4 billion of initial cornerstone Equity commitments to a new perpetual capital strategy focused on stabilized hyperscale data centers in North America.

Balance sheet carries $19.5 billion of debt

Total Debt was approximately $19.5 billion at September 30, 2026, including $17.9 billion of unsecured debt. Net debt to Adjusted EBITDA was 5.2x.

Under its at-the-market program the company sold about 2.4 million shares in the quarter at a weighted average $191.84, for net proceeds of about $450 million, and about $2.9 billion year to date. In October it issued 1 billion euros of 5.125% notes due 2036 and Swiss franc bonds due 2029, 2032 and 2036.

A raised outlook sets the next benchmark

Management lifted 2026 Revenue guidance, excluding promote income, to $7.050 billion to $7.125 billion and Adjusted EBITDA to $3.800 billion to $3.850 billion. Core FFO per share, excluding net promote, is now expected at $8.30 to $8.35. Conversion of the backlog into commenced leases is the item to watch.