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Digital Realty: 1Q Preview

REAL ESTATE

Digital Realty (DLR: Baa2/ BBB / BBB): 1Q24 Preview


Analysts have been paring back their estimates for 2024 & 2025 revenue over the past few months. The sector is maturing and competition from alternative solutions via the cloud providers is growing.

  • Revenue expected $1.36b
  • Adj EBITDA expected $690m
  • Net Debt / EBITDA expected 6.17x

Digital Realty has a $7bn JV agreement with Blackstone for new development. In the past, DLR has made $7-8bn sized acquisitions but seem focused on own development now. This should be a predictable set of results barring a short-seller attack like with EQIX.

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