ℹ️ How are these calculated?
🎯 Investment Thesis
Digital Realty is the infrastructure backbone of the AI cloud — hyperscalers lease DLR facilities when they need capacity faster than they can build. Near ATH at 3% below ($185) after earnings. HSBC upgraded to Buy $193, Citi Buy $190, Stifel Buy $200. 2.8% dividend yield adds income. AI-driven data center demand is structural and growing.
⚠️ Key Risk
At 51x forward PE (REIT metric — use FFO instead), expensive even for a DC REIT. Barclays Equal-Weight $164 is bearish. Rate-sensitive REIT model means any "higher for longer" Fed stance is a headwind. Hyperscalers increasingly building their own DCs — reducing need for leased capacity. Competition from EQIX for premium tenants.
By The Numbers
Event Impact
Second-largest data center REIT. AI workloads driving demand for leased DC capacity. Major hyperscaler and enterprise tenant base.
No defense or energy exposure.
No quantum relevance.
Global DC portfolio includes some Asia exposure. Minor.
REITs are the most rate-sensitive sector. Higher rates increase financing costs for DC development and reduce REIT yield attractiveness vs bonds. 2.8% dividend yield competes with 4%+ bond yields.
Massive power consumer — every MW of DC capacity needs grid connection. Grid constraints directly limit DLR's ability to build and lease new capacity.
No significant fiscal exposure.
Price Targets
Upcoming Catalysts
Competitive Landscape
Larger, more interconnection-focused, premium pricing
KKR took private 2022 — shows PE interest in DC assets
Company Background
Founded 2004 in Austin, TX. Owns 300+ data centers across 50+ metros globally. The "boring" AI play — you don't need to pick GPU winners if you own the buildings they sit in.