Digital Realty Trust, Inc. (DLR)

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U.S. equity markets climbed to fresh record highs this week despite a jump in producer prices, but consumer inflation remained "cool enough" to keep the Fed on-course for September rate cuts. Despite the inflation uptick in July, all three major CPI and PPI metrics remained below the annualized levels seen in January preceding the initial wave of tariffs. Ahead of the Chair Powell's "farewell tour" in Jackson Hole, the inevitability of significantly easier monetary policy by mid-2026 - at the latest- has fully taken hold in recent weeks.

DALLAS , Aug. 11, 2025 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today its board of directors has authorized quarterly cash dividends for common and preferred stock for the third quarter of 2025.     Common Stock  Digital Realty's board of directors authorized a cash dividend of $1.22 per share to common stockholders of record as of the close of business on September 15, 2025.

If you're searching for passive income from your investments, dividend stocks can help deliver the goods. Dividend-paying companies share a portion of their profits with shareholders, typically quarterly, although some pay out monthly dividends.

AI-driven demand is transforming data center REITs, with DLR and EQIX well-positioned despite recent volatility and short-term setbacks in 2025. Long-term secular growth remains intact, as AI use cases and power needs are set to expand dramatically through 2030, driving further rent and revenue growth. Recent disruptions, such as DeepSeek's efficient AI model and Microsoft's pullback, have created buying opportunities for active managers with conviction in the sector.

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Digital Realty Trust boasts a strong balance sheet, high asset coverage, and robust fixed-charge coverage, supporting its investment-grade credit ratings. Preferred shares trade below par, offering yields above 6%, presenting an attractive income opportunity for moderate-risk investors. DLR's capital structure is healthy, with 93% fixed-rate debt and a market-adjusted asset coverage of 496%.

Digital Realty Trust offers a compelling mix of passive income and AI-driven growth, benefiting from surging global demand for data centers. Strong financials—double-digit growth in sales, EBITDA, and FFO—underscore robust operational momentum and organic rent spread expansion. The dividend is well-covered, with a consistent 70-74% payout ratio, providing income safety and potential for future dividend growth.

The ongoing AI boom continues in Q2'25, with numerous market players reaffirming the durability of data-center related spending trends, including TSM and GOOG. These reasons may have directly contributed to DLR's double-beat FQ2'25 performance and the raised FY2025 guidance, as the stock retests prior heights. The REIT also reports growing multi-year backlog at a higher base rent per square foot (at more than triple pre-pandemic rates), which explains the aggressive capacity expansion efforts thus far.

LOS ANGELES--(BUSINESS WIRE)-- #aiinfrastructure--Zenlayer named Digital Realty's 2024 APAC Partner of the Year for accelerating enterprise and AI deployments across Asia.

U.S. equity markets rallied to fresh record-highs this week as investors cheered upbeat corporate earnings results and several major trade deals ahead of a frenetic week of potentially narrative-shifting catalysts. Months of tariff bemoaning and general pessimism have surrendered of late to some mid-summer optimism, but a barrage of obstacles loom, including a Fed that is ever-eager to play spoiler. Notching record-highs in four of the past five weeks, the S&P 500 rallied another 1.5% this week, advancing in all five trading sessions.

Retail-driven meme stock mania is back, echoing 2021's irrational exuberance, with surges in fundamentally weak, heavily shorted stocks. Market leadership is shifting from the "Magnificent 7" to the "Fabulous 5" AI giants, driven by proprietary technology and AI infrastructure advantages. Despite market optimism, I remain concerned about persistent tariffs, which threaten corporate margins and are largely ignored by investors.

Andrew Power, CEO of Digital Realty, joins CNBC's 'Money Movers' to discuss outlooks on demand, whether Digital Realty has the capacity to meet increasing data center needs, and more.

DLR beats Q2 estimates and boosts its 2025 FFO outlook as strong leasing and record bookings fuel digital infrastructure growth.

Artificial intelligence (AI) investing has been a key market theme over the past two and a half years, and it's slated to remain a significant part of investing for the next few years as well. The reality is that massive AI infrastructure is still needed, and the build-out isn't slated to slow anytime soon.

Digital Realty Trust, Inc. (NYSE:DLR ) Q2 2025 Earnings Conference Call July 24, 2025 5:00 PM ET Company Participants Andrew P. Power - President, CEO & Director Christopher Sharp - Chief Technology Officer Colin McLean - Chief Revenue Officer Gregory S.