Digital Realty lifts 2026 core FFO view, $4.5B capex

Digital Realty (DLR) raised its 2026 core funds from operations outlook. The data center REIT now expects $8.15 to $8.20 per share excluding promote. It also outlined a capital spending plan of $4.25 billion to $4.75 billion.

The second quarter results featured record leasing and renewal spreads. Management attributed the strength to demand from AI and hyperscale customers. The backlog grew, and the development pipeline expanded.

The capex plan supports new data center construction in key markets, including northern Virginia and Frankfurt.

AlphaScala's Alpha Score for DLR sits at 48, a mixed reading. The score reflects the stock's current valuation against its growth prospects.

The next catalyst is the pace of lease-up in new builds. That will determine whether the company hits the upper end of its FFO range.