Digital Realty Trust, Inc. (NYSE:DLR) will participate in Citi's 30th Annual Global Property CEO Conference Call on March 4, 2025, at 2:10 PM ET. The company will be represented by CEO Andrew Power, along with Jordan Sadler, SVP of Public & Private Investor Relations, and CFO Matt Mercier. The call will be hosted by Michael Rollins from Citigroup Inc.
Last week, I (Tom Yeung) shared two cyclical stocks that you should consider buying right away. These two companies are quite different in terms of their business models: Digital Realty Trust Inc. (DLR) is a $50 billion data center firm that rents out millions of square feet to customers in the AI cloud computing sector.
DLR's recent sharp decline in stock price is justified, according to DeepSeek, as it approaches our fair value estimates and shows potential for significant growth. The REIT's strong performance in the fourth quarter of 2024, along with smart capacity purchases and new partnerships, has greatly enhanced its future outlook and financial stability. Additionally, DLR's forecast for funds from operations per share in 2025 suggests a likely increase in dividends, which strengthens its appeal for dividend investors.
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Digital Realty has revised its fair value range to between $102 and $174, using a required return of 6.9% and dividend growth rates of 1.8% to 3.9% over the long term. Although there is high demand for data centers and lower debt levels, DLR's revenue forecast fell short of what analysts expected, and there are worries about shareholder dilution. Compared to the overall REIT sector and its past performance, DLR's valuation seems unappealing, suggesting that investing at current prices could be risky.
Last month, I (Tom Yeung) recommended eight cyclical stocks to buy right away. These strong companies were doing well, and they have all performed excellently since then.
Digital Realty Trust (DLR 0.97%), a key company in the data center industry, announced its fourth quarter earnings for 2024 on February 13, 2025. The results showed that earnings exceeded predictions, indicating good operational performance, but the company did experience a revenue shortfall.
DLR's results for the fourth quarter show consistent leasing activity due to strong demand and improved rental rates, although high operating costs had some impact on performance.
The main figures for Digital Realty Trust (DLR) provide an overview of the company's performance for the quarter that ended in December 2024. However, it could be useful to compare some of its important metrics with Wall Street predictions and the results from the same period last year.
Digital Realty Trust (DLR) reported quarterly funds from operations (FFO) of $1.73 per share, which is higher than the Zacks Consensus Estimate of $1.70 per share. This is an increase compared to last year's FFO of $1.63 per share.