Digital Realty Trust, Inc. (DLR), headquartered in Austin, Texas, brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. Valued at $68.6 billion by market cap, the company's properties contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants.
Shares of this leading global data center REIT have underperformed the broader market over the past year. DLR has gained 17.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.6%. However, in 2026, DLR stock is up 26.2%, surpassing the SPX’s 8.1% rise on a YTD basis.
Narrowing the focus, DLR’s underperformance is also apparent compared to iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT). The exchange-traded fund has gained about 56.2% over the past year. Moreover, the ETF’s 41.2% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Apr. 23, DLR shares closed down marginally after reporting its Q1 results. Its FFO of $2.04 per share surpassed Wall Street expectations of $1.94 per share. The company’s revenue was $1.64 billion, topping Wall Street forecasts of $1.61 billion. DLR expects full-year FFO in the range of $8 to $8.10 per share.
For the current fiscal year, ending in December, analysts expect DLR’s FFO per share to grow 9.1% to $8.06 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 33 analysts covering DLR stock, the consensus is a “Moderate Buy.” That’s based on 21 “Strong Buy” ratings, two “Moderate Buys,” and 10 “Holds.”
This configuration is more bullish than a month ago, with 20 analysts suggesting a “Strong Buy.”
On May 5, DBS analyst Andy Yu CFA maintained a “Buy” rating on DLR and set a price target of $213, implying a potential upside of 9.1% from current levels.
The mean price target of $215.60 represents a 10.4% premium to DLR’s current price levels. The Street-high price target of $250 suggests an upside potential of 28%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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