Digital Realty Trust

Texas' audit of ERCOT interconnection projects and tighter local permitting are slowing new hyperscale data‑center supply, increasing the value of Digital Realty's existing powered campuses and utility expertise. Slower approvals lengthen development timelines and delay leasing revenue, but limit competition for connected colocation capacity if demand from AI remains strong. Hedge funds have increased stakes in Digital Realty, reflecting investor interest despite potential delays to its own expansion pipeline. » Mere på finance.yahoo.com

At the Bank of America conference, Digital Realty said AI-driven demand, a backlog of $2.3 billion and private capital have fundamentally changed its growth prospects. Management now expects double-digit FFO growth for 2025 and beyond and raised the FFO forecast for 2024 to 8%. The development pipeline totals $20 billion with an expected initial cash yield of 11.5%, while leverage remains at 4.7x EBITDA. Operational risks include talent shortages, increasing local opposition to data-center projects and limited capacity in mature markets. » Mere på de.investing.com

Digital Realty has registered the resale of certain common shares with the SEC via a prospectus supplement that were issued as consideration in the acquisition of Columbia Capital. The filing includes a legal opinion on specific Maryland law issues and emphasizes that the registration does not constitute an offer to sell. Analyst reactions: HSBC upgrades the stock to Buy with a $240 price target, Cantor Fitzgerald raises its target to $221; the stock is described as slightly overvalued. » Mere på de.investing.com