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Stocks•27 April 2026•

1 min read

HSBC Downgrades Digital Realty Trust to Hold Amid Growth Sustainability Concerns

Key Facts

1HSBC downgraded Digital Realty Trust from Buy to Hold, resulting in a 1.6% decline in the stock price.

2Analysts expressed doubts about the company's ability to maintain low teens growth in Adjusted Funds From Operations (AFFO) per share.

HSBC has downgraded Digital Realty Trust (DLR) from Buy to Hold, triggering a 1.6% decline in the company's stock price. Analysts expressed significant skepticism regarding the firm's ability to sustain low double-digit growth in Adjusted Funds From Operations (AFFO) per share. Despite the robust demand for data centers driven by the AI boom, HSBC highlighted concerns over long-term growth targets and financial execution. The downgrade also pointed to insider selling activity and a high price-to-earnings ratio as potential red flags for investors. This shift in sentiment reflects a more cautious approach toward the REIT's valuation relative to its projected earnings power. Market participants are now closely monitoring whether the company can meet its ambitious financial goals amidst tightening sector conditions.