Q4 2025 Digital Realty Trust Inc Earnings Call Transcript
Key Points
- Digital Realty Trust Inc (DLR) posted a record financial performance in 2025, exceeding full-year guidance and achieving a 10% increase in core FFO per share over 2024.
- The company concluded its second consecutive year with over $1 billion in total bookings, resulting in a record backlog of nearly $1.4 billion.
- DLR successfully raised over $3.2 billion in LP equity commitments for its inaugural closed-end fund, marking its entry into private markets.
- The company expanded its global footprint, particularly in the APAC region, with strategic acquisitions in Indonesia and Malaysia.
- DLR's Interconnection and 0-1 Megawatt product segments continued to outperform, with significant growth in bookings and new customer additions.
- The company faces increasing costs related to labor and construction, which could impact future profitability.
- There is a growing pushback on data centers regarding their impact on consumer electric rates and environmental concerns.
- DLR's interest expense is expected to rise due to a 160 basis points spread between new and redeemed euro bonds.
- The company anticipates a modest interest expense headwind starting in the first quarter of 2026 due to recent bond activities.
- DLR's recurring CapEx and capitalized leasing costs have increased significantly, which may affect cash flow.
Good afternoon and welcome to the Digital Realty fourth-quarter 2025 earnings call.
Please note that this event is being recorded.
(Operator Instructions)
I would now like to turn the call over to Jordan Sadler, Digital Realty's Senior Vice President of Public and Private Investor Relations. Jordan, please go ahead.
Thank you, operator. Welcome, everyone, to Digital Realty's fourth-quarter 2025 earnings conference call.
Joining me on today's call are President and CEO, Andy Power; and CFO, Matt Mercier. Chief Investment Officer, Greg Wright; Chief Technology Officer, Chris Sharp; and Chief Revenue Officer, Colin McLean are also on the call and will be available for Q&A.
Management will be making forward-looking statements, including guidance and underlying assumptions, on today's call. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results
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