Digital Realty Trust has raised its full-year forecast for funds from operations (FFO), citing a surge in leasing activity driven by cloud computing and artificial intelligence (AI) customers.

For fiscal year 2026, the company now projects adjusted funds from operations (AFFO) in the range of $8.15 to $8.20 per share. Additionally, Digital Realty increased its annual revenue guidance to between $6.85 billion and $6.9 billion.

The upward revision reflects sustained strength in demand for data center infrastructure, as enterprises and hyperscale cloud providers continue expanding capacity to support AI workloads and digital transformation initiatives. FFO and AFFO are widely used earnings measures for real estate investment trusts, designed to strip out gains and losses on property sales and depreciation to provide a clearer picture of operating performance from rental and leasing income.

Digital Realty Trust (NYSE: DLR) is one of the world's largest providers of data center, colocation, and interconnection solutions. The real estate investment trust (REIT) owns and operates a global portfolio of facilities across North America, Europe, Asia Pacific, and Latin America. The company is a component of the S&P 500 index. Alongside rival Equinix, Digital Realty is part of a small group of publicly traded data center REITs that investors and analysts track as proxies for enterprise cloud adoption and the buildout of AI-related computing capacity worldwide.

Source: Economic Times Markets