Digital Realty reported record leasing activity in the third quarter of 2026, securing $855 million in annualized rent. This result represents a 20% increase over the company's previous quarterly high, driven largely by demand for artificial intelligence infrastructure.
The company's core funds from operations (FFO) reached $2.10 per share, marking an 11% year-over-year increase. Following these results, management raised its full-year core FFO guidance to a range of $8.30 to $8.35 per share, projecting nearly 13% growth compared to the previous year.
Signed but not yet active leases reached a record backlog of $2.5 billion at 100% share. Additionally, churn dropped to a record low of 0.7%, while cash re-leasing spreads rose to 11.8%, indicating that renewing tenants are paying higher rates under new contracts.
To support ongoing demand, Digital Realty has 1.5 GW of capacity under construction with an estimated cost of $22 billion. Currently, 63% of this development pipeline is pre-leased, with the company projecting an average stabilized yield of 11.6% on these projects.
