Digital Realty bookings reach $855 million in annualized base rent in third quarter
Key Facts
Digital Realty signed record bookings in the third quarter of 2026, expected to generate $855 million in annualized base rent on a 100% basis, according to results published by the company on October 29. Bookings attributable to the company totaled $627 million, compared with $208 million in the second quarter. The two figures measure expected annual rent from signed contracts and do not represent revenue earned during the quarter. Chief Executive Andy Power said the results confirm “the global strength of customer demand for connectivity-rich environments.” The company also reported growth in its backlog, with a period remaining between contract signing and lease commencement.
On a 100% basis, bookings rose from $307 million in the second quarter to $855 million in the third quarter. On a Digital Realty-attributable basis, they increased from $208 million to $627 million, nearly three times the level recorded in the prior period. The company’s data break down third-quarter bookings attributable to its share: $129.628 million from 0–1 megawatt space contracts and $22.209 million from interconnection services, out of a total of $626.604 million. AI use cases accounted for 44% of bookings in the 0–1 megawatt category, management said on the earnings call. It added that bookings in this category for the fourth quarter had reached 60% of the target by the time of the call, with strength in current activity and the outlook ahead.
At the end of September, the value of signed leases not yet commenced reached a record $2.5 billion in annualized base rent on a 100% basis and $1.8 billion attributable to the company. The weighted average period between signing third-quarter contracts and their commencement date was 17 months. This means bookings expand the base of contracted leases, while their operational impact is spread across later periods. The company’s table shows that $371 million in annualized base rent from uncommenced contracts is expected to start in 2026, $831 million in 2027 and $643 million in 2028 and beyond. These dates place the backlog on a timeline extending into the coming years.
Activity also extended to renewal contracts, which represented $261 million in annual cash rent during the quarter. Rents on these contracts increased 11.8% on a cash basis and 17.0% under generally accepted accounting principles, the company said. Total revenue was $1.9 billion, up 21% from the same period a year earlier. It also increased 10% from the second quarter after excluding $201 million in promotion income recorded in that period. Net income available to common stockholders was $0.48 per share, compared with $0.15 a year earlier, while Core FFO per share excluding net promotion income was $2.10, compared with $1.89.
Power said the quarter included record leasing and a larger backlog, alongside another quarter of double-digit earnings growth. This coincided with a significant increase in capacity under construction: the company had 1,464 megawatts of projects under development on September 30, up nearly 90% from the end of 2025, with 63% pre-leased. The company also estimated that it had more than 8 gigawatts of additional capacity available for future development. The estimated stabilized cash yield before taxes on projects under construction was about 11.6%, according to its filing with the U.S. Securities and Exchange Commission. These figures show the scale of the expansion program alongside bookings and demand that management described as strong.
On October 29, the company raised its 2026 forecast for Core FFO, excluding net promotion income, to a range of $8.30 to $8.35 per share, and to $8.25–$8.30 on a constant-currency basis. It also set full-year revenue guidance, excluding promotion income, at $7.050–$7.125 billion, and forecast cash increases of 10.0% to 12.0% in renewal rental rates. The revenue guidance range excluding promotion income had risen from $6.600–$6.700 billion in the February 5 outlook to $6.850–$6.950 billion on July 23, and then to the October range. The company’s shares closed at $180.7 on October 30, according to EL7 data. The annual guidance update follows third-quarter bookings and revenue.