Digital Realty Trust DLR
Digital Realty Trust is a REIT that owns and operates data centers, offering colocation and connectivity infrastructure for enterprises, cloud providers, and hyperscalers, with a long-term lease revenue model. Digital Realty shows revenue growth of 29.9%, but its profitability is weak (ROE 2.91%, ROIC 3.70%) and its debt is high (Net Debt/EBITDA 5.66), with a 238% payout that puts the dividend at risk. The rise in 10-year yields is a drag on its valuation and financial health.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Digital Realty Trust is a REIT that owns and operates data centers, offering colocation and connectivity infrastructure for enterprises, cloud providers, and hyperscalers, with a long-term lease revenue model. Digital Realty shows revenue growth of 29.9%, but its profitability is weak (ROE 2.91%, ROIC 3.70%) and its debt is high (Net Debt/EBITDA 5.66), with a 238% payout that puts the dividend at risk. The rise in 10-year yields is a drag on its valuation and financial health.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.4 |
| Quality / Moat | 5.1 |
| Valuation | 4.0 |
| Growth | 5.8 |
| Dividend | 1.4 |
| Momentum | 6.2 |
| Risk & Context | 5.7 |
OVERALL SCORE: 4.4/10
Context and risks
The sharp rise in 10-year yields (5.17%) is a direct drag for a long-duration REIT like DLR, which finances its expansion with debt (Net Debt/EBITDA of 5.66). The AI capex cycle supports data center demand, but higher capital costs and elevated debt increase refinancing risk.
News considered in the analysis
- Digital Realty vs. Equinix: Which AI Data-Center REIT Is the Better Buy? — Comparativa genérica entre competidores sin información nueva sobre DLR.
- Is Digital Realty Trust (DLR) Below Fair Value After Its AI Push? — Análisis de valoración especulativo sin datos concretos nuevos.
- Digital Realty Expands Subsea Connectivity With New LA Cable Station — Expansión de infraestructura que refuerza la oferta de conectividad, un factor positivo moderado para el crecimiento.
- Ciena upgraded, Flutter downgraded: Wall Street's top analyst calls — Noticia sobre otras empresas, sin impacto directo en DLR.
- 3 Buy-Rated REITs Collecting Rent From Warehouses, Data Centers and Shopping Centers — Listículo genérico que menciona a DLR sin información nueva.
Verdict: Hold; the demand for data centers from AI is real, but the leveraged balance sheet and sensitivity to high rates limit current appeal.
Main risk: High leverage (Net Debt/EBITDA 5.66) combined with the rise in 10-year yields (5.17%) makes debt refinancing more expensive and pressures an already unsustainable dividend (238% payout).
Other Real Estate companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →