
NYSE:DLR
This summary was created by AI, based on 3 opinions in the last 12 months.
Digital Realty Trust (DLR-N) is recognized as a leading player in the global data center REIT sector, with its growth narrative strongly tied to the rising demand driven by AI advancements. The company's revenues are primarily generated through long-term leases, which provide stability, although some companies are opting to build their own data centers, presenting a mixed outlook. Experts view Digital Realty as well-positioned for future growth, particularly as data center expansion is expected to surge in the coming years, supported by its advantageous land availability and power resources. Despite concerns about operational efficiencies due to the competitive landscape, the integration of AI technology could further decrease operational costs and enhance the appeal of the data center space. Overall, the company is thought to be a decent long-term investment choice in a sector that is experiencing transformative growth.
One of the largest data centre REITs. Great company, growing nicely. Trades at discount to intrinsic value. Sweet spot in the cycle. AI is a further tailwind to all of this.
Data centre expansion will be massive over next 5 years. Biggest hindrance right now is land availability and power transmission, and this company has both.
AI is going to affect every job on the planet, so it will have to touch real estate in some manner. AI can help decrease operating costs in operationally intensive areas.
Data centre space is really exciting in this regard. Supplying power to data centres is the issue here. Those companies that have a great pipeline will do well.
Second-largest data centre REIT globally. Record industry leasing last quarter, 4 times as much as a year ago. Tenants are big tech, with lots of capital to put into data centres to support cloud rollout. Coming AI boom, will benefit. Pricing power. Over 5% internal growth annually, could be higher. Modest premium to NAV, and the NAV will increase over the years. Yield is 3.4%.
(Analysts’ price target is $147.70)One of two pure plays on data centres. Beat on top and bottom raised guidance. 12-month price target of $162.50. Yield is 3.4%.
Owns most of its data centres, whereas EQIX has arrangements with customers. As well, EQIX stock went through the "death cross", which is usually not good.
DLR is a fundamentally strong REIT, with expanding net profit margins and ROE, and it generates good free cash flows. Its yield is attractive, although its Funds From Operations (FFO) to debt have been declining over the past few years, indicating its debt levels have increased at a faster rate than FFO. It trades at a high valuation, but this can be justified given its strong fundamentals. Given a potential peak in interest rates, the underlying secular trend growth in the data center industry, and its strong fundamentals, we would be comfortable holding or adding slowly to this name.
Unlock Premium - Try 5i Free
Digital Realty Trust is a American stock, trading under the symbol DLR (previously DLR-N on Stockchase) on the New York Stock Exchange (DLR). It is usually referred to as NYSE:DLR or DLR
In the last year, 4 stock analysts published opinions about DLR (previously DLR-N on Stockchase). 3 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is HOLD. Read the latest stock experts' ratings for Digital Realty Trust.
Digital Realty Trust was recommended as a Top Pick by Andrew Moffs on 2021-11-29. Read the latest stock experts ratings for Digital Realty Trust.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for help on deciding if you should buy, sell or hold the stock.
4 stock analysts on Stockchase covered Digital Realty Trust in the last year. It is a trending stock that is worth watching.
On 2026-05-28, Digital Realty Trust (DLR) stock closed at a price of $193.48.
Global data center REIT. AI buildout is the growth narrative. Recurring revenue comes from renting long-term leases, but many companies are building their own data centres. Neocloud companies have added improvements and efficiencies. This name is more like a landlord, so less volatile.
An OK compounder, but better ways to play.