Digital Realty Trust

Digital Realty pledged a $20 million community investment and will provide every household in De Soto, Kansas, $1,000 in utility and property tax credits annually for 10 years as it develops a 280-acre data center site that could expand to 1,400 acres. The company said the project will generate recurring tax revenue, create about 250 permanent local jobs for suppliers and contractors and support thousands of construction jobs over time. The initiative aims to address local opposition to data center construction by offering direct economic benefits to residents. » More on cbsnews.com

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. » More on 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. » More on 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. » More on de.investing.com

Digital Realty Trust reported Core FFO of $2.13 per share and revenue of $1.92 billion in the second quarter, both well above analysts' expectations. Management raised full-year Core FFO guidance to $8.15–$8.20, citing record new leasing of $307 million, a backlog of $1.9 billion and rents 25.4% higher on renewals. Several analysts issued positive comments and rating upgrades, and the stock gained about 12% to $201.26, trading near its 52-week high. » More on de.investing.com