Digital Realty Trust

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