
NYSE:DLR
This summary was created by AI, based on 3 opinions in the last 12 months.
Digital Realty Trust (DLR-N) stands out as a leading global data center REIT, primarily benefiting from the ongoing demand driven by AI advancements. While traditional models rely on long-term leases to generate recurring revenue, some companies are increasingly opting for in-house data center buildouts, potentially impacting DLR's market share. Nevertheless, DLR is well-positioned within this evolving landscape, particularly because it has both the necessary land availability and power transmission capabilities to support massive data center expansions in the coming years. Experts agree that the growing presence of AI in various sectors will inevitably influence real estate, particularly in operational efficiencies that could reduce costs for data center operators. Consequently, while DLR is a stable and less volatile investment akin to a landlord, experts suggest there may be better opportunities to capitalize on this growth narrative.
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.
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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, 3 stock analysts published opinions about DLR (previously DLR-N on Stockchase). 2 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.
3 stock analysts on Stockchase covered Digital Realty Trust in the last year. It is a trending stock that is worth watching.
On 2026-06-05, Digital Realty Trust (DLR) stock closed at a price of $186.79.
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.