Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS


		Page No.
Management’s Reports on Internal Control over Financial Reporting		84
Reports of Independent Registered Public Accounting Firm (Auditor Firm ID: 185)		85
Consolidated Financial Statements of Digital Realty Trust, Inc.
Consolidated Balance Sheets as of December 31, 2025 and 2024		91
Consolidated Income Statements for each of the years in the three-year period ended December 31, 2025		92
Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, 2025		93
Consolidated Statements of Equity for each of the years in the three-year period ended December 31, 2025		96
Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 2025		97
Consolidated Financial Statements of Digital Realty Trust, L.P.
Consolidated Balance Sheets as of December 31, 2025 and 2024		98
Consolidated Income Statements for each of the years in the three-year period ended December 31, 2025		99
Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, 2025		100
Consolidated Statements of Capital for each of the years in the three-year period ended December 31, 2025		101
Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 2025		104
Consolidated Financial Statements of Digital Realty Trust, Inc. and Digital Realty Trust, L.P.
Notes to Consolidated Financial Statements		105
Supplemental Schedule—Schedule III—Properties and Accumulated Depreciation		162
Notes to Schedule III—Properties and Accumulated Depreciation		164

Index to Financial Statements

Management’s Report on Internal Control over Financial Reporting

The management of Digital Realty Trust, Inc. (the Company) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f). Our internal control system was designed to provide reasonable assurance to the Company’s management and board of directors regarding the preparation and fair presentation of published financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated Framework (2013). Based on our assessment, management concluded that as of December 31, 2025, the Company’s internal control over financial reporting was effective based on those criteria.

Our independent registered public accounting firm has issued an audit report on the Company’s internal control over financial reporting. This report appears on page 85.

Management’s Report on Internal Control over Financial Reporting

The management of Digital Realty Trust, L.P. (the Operating Partnership) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f). Our internal control system was designed to provide reasonable assurance to the Operating Partnership’s management regarding the preparation and fair presentation of published financial statements.

Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of our general partner, we assessed the effectiveness of the Operating Partnership’s internal control over financial reporting as of December 31, 2025. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated Framework (2013). Based on our assessment, management concluded that as of December 31, 2025, the Operating Partnership’s internal control over financial reporting was effective based on those criteria.

Index to Financial Statements

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Digital Realty Trust, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Digital Realty Trust, Inc. and subsidiaries (the Company) as of December 31, 2025 and December 31, 2024, the related consolidated income statements, and statements of comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement schedule III, properties and accumulated depreciation (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and December 31, 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 13, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Index to Financial Statements

Evaluation of lease revenue

As discussed in note 2 to the consolidated financial statements, the Company records rental revenue, which includes revenue related to leases that generally provide for 1 megawatt or more of power and have lease terms of 5-10+ years, on a straight-line basis if the Company determines on a lease-by-lease basis it is probable that substantially all lease payments over the term of the lease will be collected. Whenever the results of that assessment indicate that it is not probable that the Company will be able to collect substantially all lease payments over the remaining term of the lease, the Company records a reduction to rental revenue equal to the balance of any deferred rent and rent receivable, and ceases recognizing rental revenue on a straight-line basis and commences recognizing rental revenue on a cash collected basis. Rental and other services revenue was $6.0 billion for the year ended December 31, 2025, and deferred rent, net and accounts receivable - trade, net was $751 million and $729 million, respectively, as of December 31, 2025. A portion of each of these balances included amounts related to leases that generally provide for 1 megawatt or more of power and have lease terms of 5-10+ years.

We identified the evaluation of the probability of collection of certain lease payments as a critical audit matter. Evaluating the Company’s probability assessment of collection of substantially all the lease payments for certain of its leases required significant auditor judgment because of the subjective nature of the evidence obtained. Specifically, evaluating the creditworthiness of the customers and any guarantors required significant auditor judgment.

The following are the primary procedures we performed to address the critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s probability assessment of the lease payment collection process, including controls related to the assessment of the creditworthiness of the customer and any guarantors. For a selection of the leases, we evaluated the Company’s determination of the collectability of substantially all of the lease payments by: (i) comparing the legal name of customer and any guarantor to the underlying lease agreements and third-party credit rating report, (ii) evaluating the creditworthiness of the customer by assessing their credit rating, (iii) reading publicly available information, including the customer’s financial statements, recent public filings, and news articles, and (iv) inquiring of the Company’s employees to obtain evidence regarding creditworthiness of the customer.

.
		/s/ KPMG LLP

We have served as the Company’s auditor since 2004.

Chicago, Illinois
February 13, 2026

Index to Financial Statements

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Digital Realty Trust, Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Digital Realty Trust, Inc. and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and December 31, 2024, the related consolidated income statements, and statements of comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement schedule III, properties and accumulated depreciation (collectively, the consolidated financial statements), and our report dated February 13, 2026 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Index to Financial Statements

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


		/s/ KPMG LLP
Chicago, Illinois
February 13, 2026

Index to Financial Statements

Report of Independent Registered Public Accounting Firm

To the Partners of Digital Realty Trust, L.P. and the Board of Directors of Digital Realty Trust, Inc. and Digital Realty Trust, L.P.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Digital Realty Trust, L.P. and subsidiaries (the Operating Partnership) as of December 31, 2025 and December 31, 2024, the related consolidated income statements and the consolidated statements of comprehensive income, capital, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement schedule III, properties and accumulated depreciation (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Operating Partnership as of December 31, 2025 and December 31, 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These consolidated financial statements are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Operating Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Operating Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

Evaluation of lease revenue

Index to Financial Statements

a straight-line basis if the Company determines on a lease-by-lease basis it is probable that substantially all lease payments over the term of the lease will be collected. Whenever the results of that assessment indicate that it is not probable that the Company will be able to collect substantially all lease payments over the remaining term of the lease, the Company records a reduction to rental revenue equal to the balance of any deferred rent and rent receivable, and ceases recognizing rental revenue on a straight-line basis and commences recognizing rental revenue on a cash collected basis. Rental and other services revenue was $6.0 billion for the year ended December 31, 2025, and deferred rent, net and accounts receivable - trade, net was $751 million and $729 million, respectively, as of December 31, 2025. A portion of each of these balances included amounts related to leases that generally provide for 1 megawatt or more of power and have lease terms of 5-10+ years.


		/s/ KPMG LLP

We have served as the Operating Partnership’s auditor since 2004.

Chicago, Illinois
February 13, 2026

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)


		December 31,			December 31,
		2025			2024
ASSETS
Investments in real estate:
Investments in properties, net		$	26,433,617		$	24,120,782
Investments in unconsolidated entities			3,427,903			2,639,800
Net investments in real estate			29,861,520			26,760,582
Operating lease right-of-use assets, net			1,135,645			1,178,853
Cash and cash equivalents			3,451,647			3,870,891
Accounts and other receivables, net			1,358,895			1,257,464
Deferred rent, net			750,907			642,456
Goodwill			9,711,953			8,929,431
Customer relationship value, deferred leasing costs and other intangibles, net			2,134,698			2,178,054
Assets held for sale and contribution			349,826			—
Other assets			655,377			465,885
Total assets		$	49,410,468		$	45,283,616
LIABILITIES AND EQUITY
Global revolving credit facilities, net		$	899,090		$	1,611,308
Unsecured term loans, net			439,536			386,903
Unsecured senior notes, net of discount			16,194,441			13,962,852
Secured and other debt, net of discount			869,068			753,314
Operating lease liabilities			1,253,217			1,294,219
Accounts payable and other accrued liabilities			2,600,979			2,056,215
Deferred tax liabilities			1,124,724			1,084,562
Accrued dividends and distributions			428,337			418,661
Security deposits and prepaid rents			754,920			539,802
Obligations associated with assets held for sale and contribution			182			—
Total liabilities			24,564,494			22,107,836

Redeemable noncontrolling interests			1,498,975			1,433,185
Commitments and contingencies
Equity:
Stockholders’ Equity:
Preferred Stock: $0.01 par value per share, 110,000 shares authorized; $755,000 liquidation preference ($25.00 per share), 30,200 shares issued and outstanding as of December 31, 2025 and December 31, 2024			731,690			731,690
Common Stock: $0.01 par value per share, 502,000 shares authorized; 343,557 and 336,637 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively			3,406			3,337
Additional paid-in capital			29,350,487			28,079,738
Accumulated dividends in excess of earnings			(6,690,722)			(6,292,085)
Accumulated other comprehensive loss, net			(469,198)			(1,182,283)
Total stockholders’ equity			22,925,663			21,340,397
Noncontrolling interests			421,336			402,198
Total equity			23,346,999			21,742,595
Total liabilities and equity		$	49,410,468		$	45,283,616

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share data)


	Year Ended December 31,
	2025			2024			2023
Operating Revenues:
Rental and other services	$	5,968,918		$	5,482,472		$	5,430,173
Fee income and other		143,774			72,496			46,888
Total operating revenues		6,112,692			5,554,968			5,477,061
Operating Expenses:
Rental property operating and maintenance		2,507,049			2,318,337			2,381,666
Property taxes and insurance		219,688			200,778			216,405
Depreciation and amortization		1,894,636			1,771,797			1,694,859
General and administrative		565,482			480,023			449,056
Transactions and integration		185,090			93,902			84,722
Provision for impairment		78,553			191,184			118,363
Other		3,702			27,083			7,529
Total operating expenses		5,454,200			5,083,104			4,952,600
Operating income		658,492			471,864			524,461
Other Income (Expenses):
Equity in loss of unconsolidated entities		(31,987)			(120,138)			(29,791)
Gain on disposition of properties, net		995,586			595,825			900,531
Other income, net		161,052			154,243			68,431
Interest expense		(437,947)			(452,836)			(437,741)
Gain (loss) on debt extinguishment and modifications		9			(5,871)			—
Income tax expense		(32,040)			(54,760)			(75,579)
Net income		1,313,165			588,327			950,312
Net (income) loss attributable to noncontrolling interests		(4,576)			14,163			(1,474)
Net income attributable to Digital Realty Trust, Inc.		1,308,589			602,490			948,838
Preferred stock dividends		(40,724)			(40,724)			(40,724)
Net income available to common stockholders	$	1,267,865		$	561,766		$	908,114
Net income per share available to common stockholders:
Basic	$	3.73		$	1.74		$	3.04
Diluted	$	3.58		$	1.61		$	2.88
Weighted average common shares outstanding:
Basic		339,807			323,336			298,603
Diluted		347,810			331,547			309,065

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


	Year Ended December 31,
	2025			2024			2023
Net income	$	1,313,165		$	588,327		$	950,312
Other comprehensive income (loss):
Foreign currency translation adjustments		898,531			(605,636)			(209,973)
Increase (decrease) in fair value of derivatives		42,479			162,721			(21,406)
Reclassification to interest expense from derivatives		(26,052)			(40,072)			(32,789)
Other comprehensive income (loss)		914,958			(482,987)			(264,168)
Comprehensive income		2,228,123			105,340			686,144
Comprehensive (income) loss attributable to noncontrolling interests		(206,449)			68,353			105,911
Comprehensive income attributable to Digital Realty Trust, Inc.	$	2,021,674		$	173,693		$	792,055

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in thousands, except share data)


										Accumulated		Accumulated
	Redeemable				Number of			Additional		Dividends in		Other		Total
	Noncontrolling		Preferred		Common	Common		Paid-in		Excess of		Comprehensive		Noncontrolling
	Interests		Stock		Shares	Stock		Capital		Earnings		Loss, Net		Interests		Total Equity

Balance as of December 31, 2022	$	1,514,679	$	731,690	291,148,222	$	2,887	$	22,142,868	$	(4,698,313)	$	(595,798)	$	524,131	$	18,107,465
Conversion of common units to common stock		—		—	112,607		2		8,232		—		—		(8,234)		—
Vesting of restricted stock, net		—		—	265,671		—		—		—		—		—		—
Issuance of common stock, net of costs		—		—	19,957,541		198		2,207,061		—		—		—		2,207,259
Shares issued under equity plans, net of share settlement to satisfy tax withholding upon vesting		—		—	123,539		1		(1,945)		—		—		—		(1,944)
Amortization of unearned compensation regarding share-based awards		—		—	—		—		88,518		—		—		—		88,518
Reclassification of vested share-based awards		—		—	—		—		(41,396)		—		—		41,396		—
Adjustment to redeemable noncontrolling interests		5,354		—	—		—		(5,354)		—		—		—		(5,354)
Dividends declared on preferred stock		—		—	—		—		—		(40,724)		—		—		(40,724)
Dividends and distributions on common stock and common and incentive units		(760)		—	—		—		—		(1,472,449)		—		(30,983)		(1,503,432)
Contributions from (distributions to) noncontrolling interests		129		—	—		—		—		—		—		4,345		4,345
Deconsolidation of noncontrolling interests in consolidated entities		—		—	—		—		—		—		—		(65,358)		(65,358)
Net income (loss)		(17,618)		—	—		—		—		948,838		—		19,092		967,930
Other comprehensive income (loss)		(106,970)		—	—		—		(1,187)		—		(155,595)		(416)		(157,198)
Balance as of December 31, 2023	$	1,394,814	$	731,690	311,607,580	$	3,088	$	24,396,797	$	(5,262,648)	$	(751,393)	$	483,973	$	19,601,507

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY (continued)

(in thousands, except share data)



																Accumulated			Accumulated
		Redeemable						Number of					Additional			Dividends in			Other			Total
		Noncontrolling			Preferred			Common		Common			Paid-in			Excess of			Comprehensive			Noncontrolling
		Interests			Stock			Shares		Stock			Capital			Earnings			Loss, Net			Interests			Total Equity

Balance as of December 31, 2023		$	1,394,814		$	731,690		311,607,580		$	3,088		$	24,396,797		$	(5,262,648)		$	(751,393)		$	483,973		$	19,601,507
Conversion of common units to common stock			—			—		552,869			—			39,573			—			—			(39,573)			—
Vesting of restricted stock, net			—			—		217,478			—			—			—			—			—			—
Common stock offering costs			—			—		—			—			—			—			—			—			—
Issuance of common stock, net of costs			—			—		24,138,787			249			3,650,421			101			—			—			3,650,771
Shares issued under equity plans, net of share settlement to satisfy tax withholding upon vesting			—			—		120,028			—			2,757			—			—			—			2,757
Reclassification of vested share-based awards			—			—		—			—			(27,424)			—			—			27,424			—
Amortization of unearned compensation regarding share-based awards			—			—		—			—			81,803			—			—			—			81,803
Adjustment to redeemable noncontrolling interests			98,601			—		—			—			(98,601)			—			—			—			(98,601)
Dividends declared on preferred stock			—			—		—			—			—			(40,724)			—			—			(40,724)
Dividends and distributions on common stock and common and incentive units			(760)			—		—			—			—			(1,591,304)			—			(31,132)			(1,622,436)
Sale of noncontrolling interest in property to DCRU			—			—		—			—			32,319			—			—			12,115			44,434
Contributions from (distributions to) noncontrolling interests			—			—		—			—			—			—			—			(21,418)			(21,418)
Deconsolidation of consolidated entities			—			—		—			—			—			—			—			(20,308)			(20,308)
Net income (loss)			(26,769)			—		—			—			—			602,490			—			12,606			615,096
Other comprehensive income (loss)			(32,701)			—		—			—			2,093			—			(430,890)			(21,489)			(450,286)
Balance as of December 31, 2024		$	1,433,185		$	731,690		336,636,742		$	3,337		$	28,079,738		$	(6,292,085)		$	(1,182,283)		$	402198		$	21,742,595

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY (continued)

(in thousands, except share data)


										Accumulated		Accumulated
	Redeemable				Number of			Additional		Dividends in		Other		Total
	Noncontrolling		Preferred		Common	Common		Paid-in		Excess of		Comprehensive		Noncontrolling
	Interests		Stock		Shares	Stock		Capital		Earnings		Loss, Net		Interests		Total Equity

Balance as of December 31, 2024	$	1,433,185	$	731,690	336,636,742	$	3,337	$	28,079,738	$	(6,292,085)	$	(1,182,283)	$	402,198	$	21,742,595
Conversion of common units to common stock		—		—	174,860		—		14,609		—		—		(14,609)		—
Vesting of restricted stock, net		—		—	229,386		—		—		—		—		—		—
Issuance of common stock, net of costs		—		—	6,394,820		67		1,105,964		—		—		—		1,106,031
Shares issued under equity plans, net of share settlement to satisfy tax withholding upon vesting		—		—	121,622		2		(15,814)		—		—		—		(15,812)
Reclassification of vested share-based awards		—		—	—		—		(22,773)		—		—		22,773		—
Amortization of unearned compensation regarding share-based awards		—		—	—		—		102,310		—		—		—		102,310
Adjustment to redeemable noncontrolling interests		(95,646)		—	—		—		95,646		—		—		—		95,646
Dividends declared on preferred stock		—		—	—		—		—		(40,724)		—		—		(40,724)
Dividends and distributions on common stock and common and incentive units		(760)		—	—		—		—		(1,666,502)		—		(30,156)		(1,696,658)
Purchase of noncontrolling interests		—		—	—		—		(9,193)		—		—		(1,468)		(10,661)
Contributions from (distributions to) noncontrolling interests		2		—	—		—		—		—		—		3,572		3,572
Deconsolidation of consolidated entities		—		—	—		—		—		—		—		(5,229)		(5,229)
Net income (loss)		(21,983)		—	—		—		—		1,308,589		—		26,559		1,335,148
Other comprehensive income (loss)		184,177		—	—		—		—		—		713,085		17,696		730,781
Balance as of December 31, 2025	$	1,498,975	$	731,690	343,557,430	$	3,406	$	29,350,487	$	(6,690,722)	$	(469,198)	$	421,336	$	23,346,999

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


		Year Ended December 31,
		2025			2024			2023
Cash flows from operating activities:
Net income		$	1,313,165		$	588,327		$	950,312
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on disposition of properties, net			(995,586)			(595,825)			(900,531)
Provision for impairment			78,553			191,184			118,363
Equity in loss of unconsolidated entities			31,987			120,138			29,791
Distributions from unconsolidated entities			122,402			78,269			73,518
Depreciation and amortization			1,894,636			1,771,797			1,694,859
Amortization of share-based compensation			93,766			75,606			80,532
(Gain) loss on debt extinguishment and modifications			(9)			5,871			—
Straight-lined rents and amortization of above and below market leases			(119,720)			(56,465)			(50,931)
Amortization of deferred financing costs and debt discount / premium			32,180			28,666			26,834
Other operating activities, net			(76,494)			29,237			(8,216)
Changes in assets and liabilities:
Increase in accounts receivable and other assets			(339,094)			(342,061)			(155,317)
Increase in accounts payable and other liabilities			376,350			366,733			(224,434)
Net cash provided by operating activities			2,412,136			2,261,477			1,634,780
Cash flows from investing activities:
Improvements to investments in real estate			(3,181,179)			(2,831,740)			(3,525,598)
Cash paid for business combination / asset acquisitions, net of cash acquired			(321,246)			(508,001)			(52,297)
Investments in and advances to unconsolidated entities			(519,098)			(315,623)			(336,456)
Return of investment from unconsolidated entities			153,418			99,864			241,984
Proceeds from sale of assets			1,619,624			1,764,835			2,619,778
Other investing activities, net			18,009			(115,492)			(62,522)
Net cash used in investing activities			(2,230,472)			(1,906,157)			(1,115,111)
Cash flows from financing activities:
Proceeds from credit facilities			1,802,807			1,636,351			2,870,841
Payments on credit facilities			(2,586,749)			(1,715,044)			(3,293,644)
Borrowings on secured / unsecured debt			3,488,908			2,234,999			869,132
Repayments on secured / unsecured debt			(2,514,388)			(2,119,007)			(111,979)
Capital (distribution to) contributions from noncontrolling interests, net			3,574			(21,418)			4,474
Proceeds from issuance of common stock, net			1,106,031			3,650,771			2,207,259
Payments of dividends and distributions			(1,728,466)			(1,633,247)			(1,520,644)
Other financing activities, net			(58,455)			30,028			(61,965)
Net cash (used in) provided by financing activities			(486,738)			2,063,433			963,474
Net (decrease) increase in cash, cash equivalents and restricted cash			(305,074)			2,418,753			1,483,143
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(113,336)			(178,523)			2,631
Cash, cash equivalents and restricted cash at beginning of period			3,876,700			1,636,470			150,696
Cash, cash equivalents and restricted cash at end of period		$	3,458,290		$	3,876,700		$	1,636,470

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per unit data)


		December 31,			December 31,
		2025			2024
ASSETS
Investments in real estate:
Investments in properties, net		$	26,433,617		$	24,120,782
Investments in unconsolidated entities			3,427,903			2,639,800
Net investments in real estate			29,861,520			26,760,582
Operating lease right-of-use assets, net			1,135,645			1,178,853
Cash and cash equivalents			3,451,647			3,870,891
Accounts and other receivables, net			1,358,895			1,257,464
Deferred rent, net			750,907			642,456
Goodwill			9,711,953			8,929,431
Customer relationship value, deferred leasing costs and other intangibles, net			2,134,698			2,178,054
Assets held for sale and contribution			349,826			—
Other assets			655,377			465,885
Total assets		$	49,410,468		$	45,283,616
LIABILITIES AND CAPITAL
Global revolving credit facilities, net		$	899,090		$	1,611,308
Unsecured term loans, net			439,536			386,903
Unsecured senior notes, net of discount			16,194,441			13,962,852
Secured and other debt, net of discount			869,068			753,314
Operating lease liabilities			1,253,217			1,294,219
Accounts payable and other accrued liabilities			2,600,979			2,056,215
Deferred tax liabilities			1,124,724			1,084,562
Accrued dividends and distributions			428,337			418,661
Security deposits and prepaid rents			754,920			539,802
Obligations associated with assets held for sale and contribution			182			—
Total liabilities			24,564,494			22,107,836

Redeemable noncontrolling interests			1,498,975			1,433,185
Commitments and contingencies
Capital:
Partners’ capital:
General Partner:
Preferred units, $755,000 liquidation preference ($25.00 per unit), 30,200 units issued and outstanding as of December 31, 2025 and December 31, 2024			731,690			731,690
Common units, 343,557 and 336,637 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively			22,663,171			21,790,990
Limited Partners, 6,189 and 6,135 units issued and outstanding as of December 31, 2025 and December 31, 2024, respectively			431,600			426,183
Accumulated other comprehensive loss			(485,342)			(1,212,367)
Total partners’ capital			23,341,119			21,736,496
Noncontrolling interests in consolidated entities			5,880			6,099
Total capital			23,346,999			21,742,595
Total liabilities and capital		$	49,410,468		$	45,283,616

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in thousands, except per unit data)


	Year Ended December 31,
	2025			2024			2023
Operating Revenues:
Rental and other services	$	5,968,918		$	5,482,472		$	5,430,173
Fee income and other		143,774			72,496			46,888
Total operating revenues		6,112,692			5,554,968			5,477,061
Operating Expenses:
Rental property operating and maintenance		2,507,049			2,318,337			2,381,666
Property taxes and insurance		219,688			200,778			216,405
Depreciation and amortization		1,894,636			1,771,797			1,694,859
General and administrative		565,482			480,023			449,056
Transactions and integration		185,090			93,902			84,722
Provision for impairment		78,553			191,184			118,363
Other		3,702			27,083			7,529
Total operating expenses		5,454,200			5,083,104			4,952,600
Operating income		658,492			471,864			524,461
Other Income (Expenses):
Equity in loss of unconsolidated entities		(31,987)			(120,138)			(29,791)
Gain on disposition of properties, net		995,586			595,825			900,531
Other income, net		161,052			154,243			68,431
Interest expense		(437,947)			(452,836)			(437,741)
Gain (loss) on debt extinguishment and modifications		9			(5,871)			—
Income tax expense		(32,040)			(54,760)			(75,579)
Net income		1,313,165			588,327			950,312
Net loss attributable to noncontrolling interests		23,424			26,863			19,236
Net income attributable to Digital Realty Trust, L.P.		1,336,589			615,190			969,548
Preferred units distributions		(40,724)			(40,724)			(40,724)
Net income available to common unitholders	$	1,295,865		$	574,466		$	928,824
Net income per unit available to common unitholders:
Basic	$	3.75		$	1.74		$	3.05
Diluted	$	3.60		$	1.62		$	2.89
Weighted average common units outstanding:
Basic		345,717			329,485			304,651
Diluted		353,720			337,696			315,113

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


	Year Ended December 31,
	2025			2024			2023
Net income	$	1,313,165		$	588,327		$	950,312
Other comprehensive income (loss):
Foreign currency translation adjustments		898,531			(605,636)			(209,973)
Increase (decrease) in fair value of derivatives		42,479			162,721			(21,406)
Reclassification to interest expense from derivatives		(26,052)			(40,072)			(32,789)
Other comprehensive income (loss)		914,958			(482,987)			(264,168)
Comprehensive income	$	2,228,123		$	105,340		$	686,144
Comprehensive (income) loss attributable to noncontrolling interests		(164,509)			69,942			122,972
Comprehensive income attributable to Digital Realty Trust, L.P.	$	2,063,614		$	175,282		$	809,116

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CAPITAL

(in thousands, except unit data)


																				Accumulated
		Redeemable			General Partner										Limited Partners					Other
		Noncontrolling			Preferred Units					Common Units					Common Units					Comprehensive			Noncontrolling
		Interests			Units		Amount			Units		Amount			Units		Amount			(Loss)			Interests			Total Capital

Balance as of December 31, 2022		$	1,514,679		30,200,000		$	731,690		291,148,222		$	17,447,442		6,288,669		$	436,942		$	(613,423)		$	104,814		$	18,107,465
Conversion of limited partner common units to general partner common units			—		—			—		112,607			8,234		(112,607)			(8,234)			—			—			—
Vesting of restricted common units, net			—		—			—		265,671			—		—			—			—			—			—
Issuance of common units, net of costs			—		—			—		19,957,541			2,207,260		—			—			—			—			2,207,260
Issuance of limited partner common units, net			—		—			—		—			—		272,925			—			—			—			—
Units issued under equity plans, net of unit settlement to satisfy tax withholding upon vesting			—		—			—		123,539			(1,945)		—			—			—			—			(1,945)
Amortization of share-based compensation			—		—			—		—			88,518		—			—			—			—			88,518
Reclassification of vested share-based awards			—		—			—		—			(41,396)		—			41,396			—			—			—
Adjustment to redeemable partnership units			5,354		—			—		—			(5,354)		—			—			—			—			(5,354)
Distributions			(760)		—			(40,724)		—			(1,472,449)		—			(30,983)			—			—			(1,544,156)
Contributions from noncontrolling interests in consolidated entities			129		—			—		—			—		—			—			—			4,345			4,345
Deconsolidation of noncontrolling interest in consolidated entities			—		—			—		—			—		—			—			—			(65,358)			(65,358)
Net income (loss)			(17,618)		—			40,724		—			908,114		—			20,235			—			(1,143)			967,930
Other comprehensive income (loss)			(106,970)		—			—		—			(1,187)		—			—			(159,245)			3,234			(157,198)
Balance as of December 31, 2023		$	1,394,814		30,200,000		$	731,690		311,607,580		$	19,137,237		6,448,987		$	459,356		$	(772,668)		$	45,892		$	19,601,507

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CAPITAL (continued)

(in thousands, except unit data)


																				Accumulated
		Redeemable			General Partner										Limited Partners					Other
		Noncontrolling			Preferred Units					Common Units					Common Units					Comprehensive			Noncontrolling
		Interests			Units		Amount			Units		Amount			Units		Amount			(Loss)			Interests			Total Capital

Balance as of December 31, 2023		$	1,394,814		30,200,000		$	731,690		311,607,580		$	19,137,237		6,448,987		$	459,356		$	(772,668)		$	45,892		$	19,601,507
Conversion of limited partner common units to general partner common units			—		—			—		552,869			39,573		(552,869)			(39,573)			—			—			—
Vesting of restricted common units, net			—		—			—		217,478			—		—			—			—			—			—
Issuance of common units, net of costs			—		—			—		24,138,787			3,650,771		—			—			—			—			3,650,771
Issuance of limited partner common units, net			—		—			—		—			—		238,694			—			—			—			—
Units issued under equity plans, net of unit settlement to satisfy tax withholding upon vesting			—		—			—		120,028			2,757		—			—			—			—			2,757
Amortization of share-based compensation			—		—			—		—			81,803		—			—			—			—			81,803
Reclassification of vested share-based awards			—		—			—		—			(27,424)		—			27,424			—			—			—
Adjustment to redeemable partnership units			98,601		—			—		—			(98,601)		—			—			—			—			(98,601)
Distributions			(760)		—			(40,724)		—			(1,591,304)		—			(31,132)			—			—			(1,663,160)
Sale of noncontrolling interest in property to DCRU			—		—			—		—			32,319		—			—			—			12,115			44,434
Contributions from (distributions to) noncontrolling interests in consolidated entities			—		—			—		—			—		—			—			—			(21,418)			(21,418)
Deconsolidation of consolidated entities			—		—			—		—			—		—			—			—			(20,308)			(20,308)
Net income (loss)			(26,769)		—			40,724		—			561,766		—			12,410			—			196			615,096
Other comprehensive income (loss)			(32,701)		—			—		—			2,093		—			(2,302)			(439,699)			(10,378)			(450,286)
Balance as of December 31, 2024		$	1,433,185		30,200,000		$	731,690		336,636,742		$	21,790,990		6,134,812		$	426,183		$	(1,212,367)		$	6,099		$	21,742,595

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CAPITAL (continued)

(in thousands, except unit data)


																				Accumulated
		Redeemable			General Partner										Limited Partners					Other
		Noncontrolling			Preferred Units					Common Units					Common Units					Comprehensive			Noncontrolling
		Interests			Units		Amount			Units		Amount			Units		Amount			(Loss)			Interests			Total Capital

Balance as of December 31, 2024		$	1,433,185		30,200,000		$	731,690		336,636,742		$	21,790,990		6,134,812		$	426,183		$	(1,212,367)		$	6,099		$	21,742,595
Conversion of limited partner common units to general partner common units			—		—			—		174,860			14,609		(174,860)			(14,609)			—			—			—
Vesting of restricted common units, net			—		—			—		229,386			—		—			—			—			—			—
Issuance of common units, net of costs			—		—			—		6,394,820			1,105,995		—			—			—			—			1,105,995
Issuance of limited partner common units, net			—		—			—		—			—		228,909			—			—			—			—
Units issued under equity plans, net of unit settlement to satisfy tax withholding upon vesting			—		—			—		121,622			(15,776)		—			—			—			—			(15,776)
Amortization of share-based compensation			—		—			—		—			102,310		—			—			—			—			102,310
Reclassification of vested share-based awards			—		—			—		—			(22,773)		—			22,773			—			—			—
Adjustment to redeemable partnership units			(95,646)		—			—		—			95,646		—			—			—			—			95,646
Distributions			(760)		—			(40,724)		—			(1,666,502)		—			(30,156)			—			—			(1,737,382)
Purchase of noncontrolling interests			—		—			—		—			(9,193)		—			—			—			(1,468)			(10,661)
Contributions from (distributions to) noncontrolling interests in consolidated entities			2		—			—		—			—		—			19			—			3,553			3,572
Deconsolidation of consolidated entities			—		—			—		—			—		—			—			—			(5,229)			(5,229)
Net income (loss)			(21,983)		—			40,724		—			1,267,865		—			27,390			—			(831)			1,335,148
Other comprehensive income (loss)			184,177		—			—		—			—		—			—			727,025			3,756			730,781
Balance as of December 31, 2025		$	1,498,975		30,200,000		$	731,690		343,557,430		$	22,663,171		6,188,861		$	431,600		$	(485,342)		$	5,880		$	23,346,999

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	Year Ended December 31,
	2025			2024			2023
Cash flows from operating activities:
Net income	$	1,313,165		$	588,327		$	950,312
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on disposition of properties, net		(995,586)			(595,825)			(900,531)
Provision for impairment		78,553			191,184			118,363
Equity in loss of unconsolidated entities		31,987			120,138			29,791
Distributions from unconsolidated entities		122,402			78,269			73,518
Depreciation and amortization		1,894,636			1,771,797			1,694,859
Amortization of share-based compensation		93,766			75,606			80,532
(Gain) loss on debt extinguishment and modifications		(9)			5,871			—
Straight-lined rents and amortization of above and below market leases		(119,720)			(56,465)			(50,931)
Amortization of deferred financing costs and debt discount / premium		32,180			28,666			26,834
Other operating activities, net		(76,494)			29,237			(8,216)
Changes in assets and liabilities:
Increase in accounts receivable and other assets		(339,094)			(342,061)			(155,317)
Increase in accounts payable and other liabilities		376,350			366,733			(224,434)
Net cash provided by operating activities		2,412,136			2,261,477			1,634,780
Cash flows from investing activities:
Improvements to investments in real estate		(3,181,179)			(2,831,740)			(3,525,598)
Cash paid for business combination / asset acquisitions, net of cash acquired		(321,246)			(508,001)			(52,297)
Investments in and advances to unconsolidated entities		(519,098)			(315,623)			(336,456)
Return of investment from unconsolidated entities		153,418			99,864			241,984
Proceeds from sale of assets		1,619,624			1,764,835			2,619,778
Other investing activities, net		18,009			(115,492)			(62,522)
Net cash used in investing activities		(2,230,472)			(1,906,157)			(1,115,111)
Cash flows from financing activities:
Proceeds from credit facilities		1,802,807			1,636,351			2,870,841
Payments on credit facilities		(2,586,749)			(1,715,044)			(3,293,644)
Borrowings on secured / unsecured debt		3,488,908			2,234,999			869,132
Repayments on secured / unsecured debt		(2,514,388)			(2,119,007)			(111,979)
Capital (distribution to) contributions from noncontrolling interests, net		3,574			(21,418)			4,474
General partner contributions		1,106,031			3,650,771			2,207,259
Payments of dividends and distributions		(1,728,466)			(1,633,247)			(1,520,644)
Other financing activities, net		(58,455)			30,028			(61,965)
Net cash (used in) provided by financing activities		(486,738)			2,063,433			963,474
Net (decrease) increase in cash, cash equivalents and restricted cash		(305,074)			2,418,753			1,483,143
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(113,336)			(178,523)			2,631
Cash, cash equivalents and restricted cash at beginning of period		3,876,700			1,636,470			150,696
Cash, cash equivalents and restricted cash at end of period	$	3,458,290		$	3,876,700		$	1,636,470

See accompanying notes to the consolidated financial statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-

December 31, 2025 and 2024

General

Organization and Description of Business. Digital Realty Trust, Inc. (the Parent), through its controlling interest in Digital Realty Trust, L.P. (the Operating Partnership or the OP) and the subsidiaries of the OP (collectively, we, our, us or the Company), is a leading global provider of data center (including colocation and interconnection) solutions for customers across a variety of industry verticals ranging from cloud and information technology services, social networking and communications to financial services, manufacturing, energy, healthcare, and consumer products. The OP, a Maryland limited partnership, is the entity through which the Parent, a Maryland corporation, conducts its business of owning, acquiring, developing and operating data centers. The Parent operates as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.

The Parent’s only material asset is its ownership of partnership interests of the OP. The Parent generally does not conduct business itself, other than acting as the sole general partner of the OP, issuing public securities from time to time and guaranteeing certain unsecured debt of the OP and certain of its subsidiaries and affiliates. The Parent has not issued any debt but guarantees the unsecured debt of the OP and certain of its subsidiaries and affiliates.

The OP holds substantially all the assets of the Company. The OP conducts the operations of the business and has no publicly traded equity. Except for net proceeds from public equity issuances by the Parent, which are generally contributed to the OP in exchange for partnership units, the OP generally generates the capital required by the Company’s business primarily through the OP’s operations, by the OP’s or its affiliates’ direct or indirect incurrence of indebtedness or through the issuance of partnership units.

Accounting Principles and Basis of Presentation. The accompanying consolidated financial statements and accompanying notes (the “Consolidated Financial Statements”) are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and are presented in our reporting currency, the U.S. dollar. All of the accounts of the Parent, the OP, and the subsidiaries of the OP are included in the Consolidated Financial Statements. All material intercompany transactions with consolidated entities have been eliminated.

Management Estimates and Assumptions. U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of revenue and expenses during the reporting period, reported amounts for assets and liabilities as of the date of the financial statements, and disclosures of contingent assets and liabilities as of the date of the financial statements. Although we believe the estimates and assumptions we made are reasonable and appropriate, as discussed in the applicable sections throughout the Consolidated Financial Statements, different assumptions and estimates could materially impact our reported results. Actual results and outcomes may differ from our assumptions.

Summary of Significant Accounting Policies

Consolidation. We consolidate all entities that are wholly owned as well as all partially-owned entities that we control. In addition, we consolidate any variable interest entities (“VIEs”) for which we are the primary beneficiary. We evaluate whether or not an entity is a VIE (and we are the primary beneficiary) through consideration of substantive terms in the arrangement to identify which enterprise has the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses/receive benefits from the entity.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

For entities that do not meet the definition of VIEs, we first consider if we are the general partner or a limited partner (or the equivalent in investments not structured as partnerships). We consolidate entities in which we are the general partner and the limited partners do not have rights that would preclude control. For entities in which we are the general partner, but the limited partners hold substantive participating or kick-out rights that prohibit our ability to control the entity, we apply the equity method of accounting since, as the general partner, we have the ability to exercise significant influence over the operating and financial policies of the entities. For entities in which we are a limited partner, or that are not structured similar to a partnership, we consider factors such as ownership interest, voting control, authority to make decisions and contractual and substantive participating rights of the partners. When factors indicate we have a controlling financial interest in an entity, we consolidate the entity.

Foreign Operations and Foreign Currencies. The functional currency of each of our consolidated subsidiaries and unconsolidated entities operating in other countries is the principal currency in which each entity’s assets, liabilities, income and expenses are denominated, which may be different from the local currency of incorporation or the currency with which the entities conduct their operations. The primary functional currencies impacting our business include the Euro, Japanese yen, British pound sterling, Singapore dollar, South African rand and Brazilian real.

For our consolidated subsidiaries whose functional currency is not the U.S. dollar, we translate financial statements into U.S. dollars at the time we consolidate these subsidiaries’ financial statements. Generally, assets and liabilities are translated at the exchange rate in effect at the balance sheet date. Certain balance sheet items, such as equity and capital-related accounts are reflected at historical exchange rates. Income statement accounts are generally translated at the average exchange rates for the reporting periods.

We and certain of our consolidated subsidiaries have intercompany and third-party debt that is not denominated in the functional currency of the entities. When debt is denominated in a currency other than the functional currency of an entity, a gain or loss can result. The associated adjustment is reflected in Other income, net, in the consolidated income statements, unless it is intercompany debt that is deemed to be long-term in nature or third-party debt that has been designated as a nonderivative net investment hedge – in which case the associated adjustments are reflected as a cumulative translation adjustment as a component of other comprehensive income. In the statement of cash flows, cash flows denominated in foreign currencies are translated using the exchange rates in effect at the time of the respective cash flows or at average exchange rates for the period, depending on the nature of the cash flow items.

Acquisition Accounting. We evaluate whether or not substantially all of the value of acquired assets is concentrated in a single identifiable asset or group of identifiable assets to determine whether a transaction is accounted for as an asset acquisition or a business combination. For asset acquisitions: (1) transaction costs are included in the total costs of the acquisition and are allocated on a pro-rata basis to the carrying value of the assets and liabilities acquired, (2) real estate assets acquired are measured based on their cost or total consideration exchanged with any excess consideration or bargain purchase amount allocated to real estate properties and their associated intangibles such as above and below-market leases, in-place leases, acquired ground leases, and customer relationship value and (3) all other assets and liabilities assumed, including any debt, are recorded at fair value. For business combinations: (1) transaction costs are expensed as incurred, (2) all acquired tangible and identifiable intangible assets are recognized at fair value, (3) the amount of any purchase consideration that exceeds the fair value of the tangible and identifiable intangible assets acquired is recognized as goodwill, and (4) to the extent the purchase consideration is less than the fair value of the tangible and identifiable intangible assets acquired, a gain on bargain purchase is recognized.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

When we obtain control of an unconsolidated entity that we previously held as an equity method investment and the acquisition qualifies as a business combination, we remeasure our previously held interest in the unconsolidated entity at its acquisition-date fair value, derecognize the book value associated with that interest, and recognize any resulting gain or loss in earnings.

We allocate purchase price primarily using Level 2 and Level 3 inputs (further defined in Fair Value Measurements) as follows:

Real Estate. The fair value of acquired land is determined based on relevant market data, such as comparable land sales. The fair value of acquired improvements is determined based on replacement cost as adjusted for any physical and/or market obsolescence. Operating properties are valued as if they are vacant (“as-if-vacant”) by applying an income approach methodology using either a discounted cash flow analysis or by applying a capitalization rate to the estimated Net Operating Income (“NOI”) of a property. As-if-vacant values consider estimated carrying costs during expected lease-up periods and costs to execute similar leases (based on current market conditions). Carrying costs during expected lease up periods include real estate taxes, insurance and other operating expenses as well as estimates of lost rental revenue during the expected lease-up periods. Costs to execute similar leases include lease commissions, tenant improvements, legal and other related costs.

Lease Intangibles. The portion of the purchase price related to acquired in-place leases is recorded as intangible assets and liabilities as follows:

	●	Above and below market leases: We use a discounted cash flow approach to determine the estimated present value of any difference between contractual rents for acquired in-place leases as compared to current market rents. If rents on acquired in-place leases are higher than current market rents, we record an intangible asset for the favorable rents. If rents on acquired in-place leases are lower than current market rents, we record a liability for the unfavorable rents. Favorable rent assets are amortized as a reduction to rental income over the remaining non-cancelable term of the lease. Unfavorable rent liabilities are amortized as an increase to rental income over the initial lease term plus any below-market fixed rate renewal periods.

	●	In-place lease value: Since the as-if-vacant model is used to determine the value of acquired operating properties, the value of such properties does not include the value associated with having existing tenants who are leasing space in the purchased properties. Having in-place tenants allows buyers to avoid costs associated with leasing the property as well as any rent losses and unreimbursed operating expenses during the lease-up period. An asset for such benefits is recorded separately as in-place lease value. In-place lease value is determined based on estimated carrying costs during hypothetical expected lease-up periods as well as costs to execute similar leases. We determine expected carrying costs and costs to execute similar leases in the same manner as described in the previous discussion of the valuation of operating properties using the as-if-vacant model. The value of in-place leases is amortized to expense over the remaining initial terms of the respective leases.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

	●	Customer relationship value: In some transactions, customers acquired are expected to generate recurring revenues beyond existing in-place lease terms. We utilize the multi-period excess earnings method to determine customer relationship value, if any. Key factors reflected in this approach include: (1) projected revenue growth from existing customers, (2) historical customer lease renewals and attrition rates, (3) rental renewal probabilities and related market terms, (4) estimated operating costs, and (5) discount rate. Customer relationship value is amortized to expense ratably over the anticipated life of substantially all of the acquired customer relationships that are expected to generate excess earnings.

Debt. We recognize the fair value of any acquired debt based on contractual future cash flows discounted using borrowing spreads and market interest rates that would be available to us for issuance of debt with similar terms and remaining maturities. If acquired debt is publicly traded, we utilize available market data to determine fair value of the debt. Any discount or premium on the principal is included in the carrying value of the debt and amortized to interest expense over the remaining term of the debt using the effective interest method.

Noncontrolling interests. The fair value of the ownership percentage of acquired entities held by third parties is determined based on the fair value of the consolidated net assets acquired, adjusted for any put or call options or other such features associated with the noncontrolling interests.

Other acquired assets and liabilities. The fair value of other acquired assets and liabilities is determined using the best information available. For working capital items that are short-term in nature, fair value is generally presumed to equal the seller’s carrying value, unless facts and circumstances suggest otherwise.

Fair Value Measurements. Fair value is intended to reflect the price that would be received for the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants at the measurement date (the exit price). We estimate fair value using available market information and valuation methods we believe to be appropriate for these purposes. Given the significant amount of judgment and subjectivity involved in the determination of fair value, estimated fair value is not necessarily indicative of amounts that would be realized on disposition. There are three levels in the fair value hierarchy under U.S. GAAP, which are:

	●	Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that an entity can access at the measurement date.

	●	Level 2 – Inputs that are directly or indirectly observable for the associated asset or liability, but which do not qualify as Level 1 inputs.

	●	Level 3 – Unobservable inputs for the asset or liability.

In instances where inputs from multiple different levels of the fair value hierarchy are used to determine fair value, the lowest level input that is significant is used to determine the fair-value measurement in its entirety. Our assessment of the significance of a particular input to a fair-value measurement requires judgment and considers factors specific to the asset or liability. We utilize fair value measurements on a recurring basis to determine the fair value of: marketable equity securities, share-based compensation awards, derivative instruments, and outstanding debt. Such measurements are also regularly utilized in assessing whether or not impairments may exist on intangible assets (including goodwill). In addition, we utilize fair value measurements on a non-recurring basis to determine the fair value associated with assets held for sale, acquisitions of assets, and acquisitions of businesses.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Investments in Unconsolidated Entities. Investments in unconsolidated entities as reflected on the consolidated balance sheets includes all investments accounted for using the equity method. We use the equity method to account for these investments, because we have the ability to exercise significant influence over their operating and financial policies, but do not control them. Equity method investments are initially recognized at our cost. Transaction costs related to the formation of equity method investments are also capitalized. We subsequently adjust these balances to reflect: (1) our proportionate share of net earnings/losses of the entities and accumulated other comprehensive income or loss, (2) distributions received, (3) contributions made, (4) sales and redemptions of our investments, and (5) certain other adjustments, as appropriate. When circumstances indicate there may have been a reduction in the value of an equity method investment, we evaluate whether or not the loss in value is other than temporary. If we determine that a loss in value is other than temporary, we recognize an impairment charge to reflect the equity investment at fair value.

With regard to the cash flow classifications of distributions from unconsolidated entities, we have elected the nature of the distribution approach as the information is available to us to determine the nature of the underlying activity that generated the distributions. In accordance with this approach, cash flows generated from the operations of an unconsolidated entity are classified as a return on investment (cash inflow from operating activities) and cash flows that are generated from property sales, debt refinancing or sales and redemptions of our investments are classified as a return of investment (cash inflow from investing activities).

The Company has a negligible value of investments accounted for under the cost-method. These investments are included in Other assets on the consolidated balance sheets.

Cash and Cash Equivalents. We consider all cash on hand, demand deposits with financial institutions, and short-term highly liquid investments with original maturities of 90 days or less to be cash and cash equivalents. Our cash and cash equivalents are financial instruments exposed to concentrations of credit risk. We invest our cash with high-credit quality institutions. We may invest our cash balances in money market accounts that are not insured. We do not believe we are exposed to any significant credit risk associated with our cash and cash equivalents and have not realized any losses associated with cash investments or accounts.

Restricted Cash**.** Cash that is held for a specific purpose and thus not available to us for immediate or general business use is categorized separately from cash and cash equivalents and is included in Other assets on the consolidated balance sheets. Restricted cash primarily consists of contractual capital expenditures and other deposits.

Assets Held for Sale. We classify an asset as held for sale when the following criteria are met: (1) management that has the proper authority has approved and committed to a plan to sell, (2) the asset is available for immediate sale, (3) an active program to locate a buyer has commenced, (4) the sale of the asset is probable, and (5) transfer of the asset is expected to occur within one year. Assets classified as held for sale are recorded at the lower of carrying value or fair value less costs to sell and are no longer depreciated.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Investments in Real Estate. Investments in real estate are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the respective assets. Depreciable lives of assets are stated below.

Investments in Real Estate. Investments in real estate are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. Depreciation and amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets. Depreciable lives of assets are stated below. Vestments in Real Estate. Investments in real estate are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. Depreciation and amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets. Depreciable lives of assets are stated below.
Acquired ground leases		Terms of the related lease
Buildings and improvements		5-39 years
Machinery and equipment		7-15 years
Furniture and fixtures		3-5 years
Leasehold improvements		Shorter of the estimated useful lives or the terms of the related leases
Tenant improvements		Shorter of the estimated useful lives or the terms of the related leases

Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Repairs and maintenance are charged to expense as incurred.

Capitalization of Costs.

Development costs – During the land development and construction periods of qualifying projects, we capitalize direct and indirect project costs that are clearly associated with the development of properties. Capitalized project costs include all costs associated with the development of a property. Such costs include the cost of land and buildings, improvements and fixed equipment, design and engineering, other construction costs, interest, property taxes, insurance, legal fees, personnel working on the project, and corporate supervision. Capitalization of costs ceases when development projects are substantially complete and ready for their intended use. We generally consider development projects to be substantially complete and ready for intended use upon receipt of a certificate of occupancy.

Leasing commissions – Leasing commissions and other direct costs associated with the acquisition of tenants are capitalized and amortized on a straight-line basis over the terms of the related leases. During the years ended December 31, 2025, 2024 and 2023, we capitalized deferred leasing costs of approximately $36.4 million, $49.3 million and $43.1 million, respectively. Deferred leasing costs are included in Customer relationship value, deferred leasing costs and intangibles on the consolidated balance sheets and amounted to approximately $279.4 million and $207.9 million, net of accumulated amortization of $670.9 million and $605.1 million, as of December 31, 2025 and 2024, respectively. Amortization expense on leasing costs was approximately $76.1 million, $74.3 million, and $76.8 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Recoverability of Real Estate Assets. We assess the carrying value of our properties whenever events or circumstances indicate carrying amounts of these assets may not be fully recoverable (“triggering events"). Triggering events typically relate to a change in the expected holding period of a property, an adverse change in expected future cash flows of the property, or a trend of past cash flow losses that is expected to continue in the future. If our assessment of triggering events indicates the carrying value of a property or asset group might not be recoverable, we estimate the future undiscounted net cash flows expected to be generated by the assets and compare that amount to the book value of the assets. If our future undiscounted net cash flow evaluation indicates we are unable to recover the carrying value of a property or asset group, we record an impairment loss to provision for impairment in our consolidated income statements to the extent the carrying value of the property or asset group exceeds fair value.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

We generally estimate fair value of rental properties using a discounted cash flow analysis that includes projections of future revenues, expenses, and capital improvements that a market participant would use. In certain cases, we may supplement this analysis by obtaining outside broker opinions of value. When determining undiscounted future cash flows, we consider factors such as future operating income trends and prospects as well as the effects of leasing demand, competition and other factors.

Goodwill and Other Acquired Intangible Assets. Goodwill represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired in a business combination. Goodwill is not amortized. Goodwill is evaluated for impairment at the reporting unit level. The Company has one reportable segment and one reporting unit. We evaluate goodwill for impairment whenever events or changes in circumstances occur that would more likely than not reduce the fair value of the reporting unit below its carrying value. In addition to monitoring for impactful events and circumstances, we perform an annual one-step quantitative test in which we compare the reporting unit’s carrying value to its fair value. We determine the fair value of the reporting unit based on quoted market prices of the Company’s publicly traded shares. To the extent the fair value of the reporting unit is less than its carrying value, we would record an impairment charge equal to the amount by which the carrying value of the reporting unit exceeds its fair value. We have not recognized any goodwill impairments since our inception. Since a significant aspect of our goodwill is denominated in foreign currencies, changes to our goodwill balance can occur over time due to changes in foreign currency exchange rates.

Other acquired intangible assets consist primarily of customer relationship value and in-place lease value. All of our other acquired intangible assets have finite useful lives. If impairment indicators arise with respect to these finite-lived intangible assets, we evaluate for impairment by comparing the carrying amount of the assets to the estimated future undiscounted net cash flows expected to be generated by the assets. If estimated future undiscounted cash flows exceed the carrying value of the assets, we record an impairment charge equal to the amount by which the carrying value exceeds the estimated fair value of the assets. We have no indefinite-lived intangible assets other than goodwill.

Share-Based Compensation. The Company provides a variety of share-based compensation awards to employees and directors, including awards that contain time-based vesting criteria and a combination of time-based and performance-based criteria. The Company measures all share-based compensation awards at grant date fair value. The fair value of awards that include only a time-based service condition (“time-based awards”) and / or a performance-based condition is the closing price of the Company’s publicly traded shares at the grant date – and is expensed over the requisite service period. The fair value of awards that include a combination of market-based criteria and time-based vesting is measured using a Monte Carlo simulation method. The fair value of these awards is expensed over the requisite service period – and is not adjusted based on actual achievement of the market performance condition.

Derivative Instruments. As part of the Company’s risk management program, a variety of financial instruments, such as interest rate swaps and foreign exchange contracts, may be used to mitigate interest rate and foreign currency exposures. The Company utilizes derivative instruments to manage risks, and not for trading or speculative purposes. All derivatives are recorded at fair value. The majority of inputs used to value our derivatives fall within Level 2 of the fair value hierarchy. However, credit valuation adjustments utilize Level 3 inputs (such as estimates of current credit spreads). Based on the insignificance of credit valuation adjustments to the overall valuation of our derivatives, we have determined that valuation of our outstanding derivatives is properly categorized in Level 2 of the fair value hierarchy.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Changes in the fair value of derivatives are recognized periodically either in earnings or in other comprehensive income (loss), depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income (loss) would be recognized in earnings.

Gains and losses representing components excluded from the assessment of effectiveness for cash flow and fair value hedges are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Gains and losses representing components excluded from the assessment of effectiveness for net investment hedges are recognized in earnings on a straight-line basis over the term of the hedge.

Interest Rate Swaps – The Company uses interest rate swaps to add stability to interest expense and to manage our exposure to interest rate movements related to certain floating rate debt obligations. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We record all interest rate swaps on the consolidated balance sheets at fair value. The fair value of interest rate swaps is determined using the market standard methodology of netting discounted future fixed cash receipts (or payments) and discounted expected variable cash payments (or receipts). Variable cash payments (or receipts) are based on expected future interest rates derived from observable market interest rate curves. We incorporate credit valuation adjustments to appropriately reflect nonperformance risk for the Company and for the respective counterparties. The counterparties of interest rate swaps are generally larger financial institutions engaged in providing a variety of financial services.

Interest rate derivatives are presented on a gross basis on the consolidated balance sheets – with interest rate swap assets presented in other assets, and interest rate swap liabilities presented in accounts payable and other accrued liabilities. As of December 31, 2025, there was no impact from netting arrangements, because it is the Company’s policy to not offset our derivative contracts in presenting the fair value of these contracts as assets and liabilities in our consolidated balance sheets. Net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap.

Foreign Currency Contracts – The Company may, from time to time, enter into forward contracts pursuant to which we agree to sell an amount of one currency in exchange for an agreed-upon amount of another currency. These agreements are typically entered into to manage exposures related to transactions that are settled in currencies other than the functional currency of the legal entity that is party to the transactions. To the extent the Company does not designate such instruments as hedges, changes in the fair value of these instruments are reflected in earnings. The Company had no outstanding derivative foreign currency contracts as of December 31, 2025.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Hedge of Net Investment in Foreign Operations – The Company has no outstanding derivatives that function as hedges of net investments in foreign operations. However, notes denominated in the Swiss franc with a total outstanding principal balance of 545 million Swiss francs (“CHF”) issued by Digital Intrepid Holding B.V. (“DIH”, a wholly-owned subsidiary of the OP with Euro functional currency) are designated as non-derivative hedges of DIH’s net investment in certain of its subsidiaries that have CHF as the functional currency. Changes in the fair value of these hedges, to the extent they are included in the assessment of effectiveness, are reported in other comprehensive income (loss) and will be deferred until disposal of the underlying assets (which is currently not expected to occur). Any amounts excluded from the assessment of effectiveness are reflected as foreign-currency transaction gains/losses which are included as Other (expense) income, net in the consolidated income statements.

Cross-Currency Interest Rate Swaps – The Company's cross-currency interest rate swap agreements synthetically swap U.S. dollar-denominated fixed rate debt for foreign currency-denominated fixed rate debt and are designated as net investment hedges for accounting purposes. The gain or loss on the net investment hedge derivative instruments is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted, or liquidated. Interest payments received from the cross-currency swaps are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense on the consolidated income statements.

See Note 16. “Derivative Instruments” for further discussion on the Company’s outstanding derivative instruments.

Income Taxes. Digital Realty Trust, Inc. has elected to be treated as a real estate investment trust (a “REIT”) for U.S. federal income tax purposes. As a REIT, Digital Realty Trust, Inc. generally is not required to pay U.S. federal corporate income tax to the extent taxable income is currently distributed to its stockholders. If Digital Realty Trust, Inc. were to fail to qualify as a REIT in any taxable year, it would be subject to U.S. federal and state income taxes (including any applicable alternative minimum tax) on its taxable income.

The Company is subject to foreign, state and local income taxes in the jurisdictions in which it conducts business. The Company’s taxable REIT subsidiaries are subject to federal, state, local and foreign income taxes to the extent there is taxable income. Accordingly, the Company recognizes current and deferred income taxes for the Company and its taxable REIT subsidiaries, including for U.S. federal, state, local and foreign jurisdictions, as applicable.

We assess our significant tax positions in accordance with U.S. GAAP for all open tax years and determine whether we have any material unrecognized liabilities from uncertain tax benefits. If a tax position is not considered “more-likely-than-not” to be sustained solely on its technical merits, no benefits of the tax position are to be recognized (for financial statement purposes). We classify interest and penalties from significant uncertain tax positions as current tax expense in our consolidated income statements. We are open to examination by the major taxing jurisdictions for the tax years that are within the statute of limitations for those jurisdictions. For further discussion related to tax reserves, see Note 12. “Income Taxes”.

Transactional-based Taxes. We account for transactional-based taxes, such as value added tax, or VAT, for our international properties on a net basis.

Noncontrolling Interests and Redeemable Noncontrolling Interests. Noncontrolling interests represent the share of consolidated entities owned by third parties. We recognize each noncontrolling holder’s share of the fair value of the respective entity’s net assets as noncontrolling interest on our consolidated balance sheets at the date of formation or acquisition. Noncontrolling interest balances are adjusted for the noncontrolling holder’s share of additional contributions, distributions, net earnings or losses, and other comprehensive income or loss.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Partnership units which are contingently redeemable for cash are classified as redeemable noncontrolling interests and presented in the mezzanine section of the Company’s consolidated balance sheets between total liabilities and stockholder’s equity. Redeemable noncontrolling interests include amounts related to partnership units issued by consolidated subsidiaries of the Company in which redemption for equity is outside the control of the Company.

The amounts of consolidated net income attributable to noncontrolling interests and redeemable noncontrolling interests are presented on the Company’s consolidated income statements as income (or loss) attributable to noncontrolling interests.

Revenue Recognition.

Rental and Other Services Revenue – We generate the majority of our revenue by leasing our properties to customers under operating lease agreements, which are accounted for under Accounting Standards Codification 842, Leases (“ASC 842”). We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term if we determine it is probable that substantially all of the lease payments will be collected over the lease term. We commence recognition of revenue from rentals at the date the property is ready for its intended use by the tenant and the tenant takes possession or controls the physical use of the leased asset. The excess of rents recognized as revenue over amounts contractually due pursuant to the underlying leases is included in Deferred rent, net on the consolidated balance sheets. Rental payments received in excess of revenue recognized are classified as Accounts payable and other accrued liabilities on the consolidated balance sheets. Unpaid rents that are contractually due are included in Accounts and other receivables, net on the consolidated balance sheets.

We estimate the probability of collection of lease payments based on customer creditworthiness, outstanding accounts receivable balances, and historical bad debts – as well as current economic trends. If collection of substantially all lease payments over the lease term is not probable, rental revenue is recognized when payment is received, and we record a reduction to rental revenue equal to the balance of any deferred rent and rent receivable, less the balance of any security deposits or letters of credit. If collection is subsequently determined to be probable, we: (1) resume recognizing rental revenue on a straight-line basis, (2) record incremental revenue such that the cumulative amount recognized is equal to the amount that would have been recorded on a straight-line basis since inception of the lease, and (3) reverse the allowance for bad debt recorded on outstanding receivables.

Generally, under the terms of our leases, the majority of our rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from our customers. We record amounts reimbursable by customers (“tenant recoveries”) as revenue in the period the applicable expenses are incurred – which is generally on a ratable basis through the term of the lease.

We account for and present rental revenue and tenant recoveries as a single component under rental and other services as the timing of recognition is the same, the pattern with which we transfer the right of use of the property and related services to the lessee are both on a straight-line basis and our leases qualify as operating leases.

Interconnection services include port and cross-connect services generally provided on a month-to-month, one-year or multi-year term. We bill for these services on a monthly basis and recognize the revenue over the period the service is provided. Revenue for cross-connect installations is generally recognized in the period the cross-connect is installed. Interconnection services that are not specific to a particular leased space are accounted for under Topic 606 and have terms that are generally one year or less.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Fee Income and Other – Fee income arises primarily from contractual management agreements with entities in which we have a noncontrolling interest. Management fees are recognized as earned under the respective agreements. The Company also provides property and construction management services. Depending on the nature of the agreements, revenue for these services is recognized either on a ratable monthly basis as the service is provided, or when certain performance milestones are met. Service revenues are typically recognized on an equal monthly basis based on the minimum fee to be earned. The monthly amounts could be adjusted depending on whether certain performance milestones are met.

We utilize the practical expedient in ASC 842 that allows us to account for lease and non-lease components associated with each lease as a single lease component recorded within rental and other services, instead of accounting for such items separately under Accounting Standards Codification 606, Revenue (“ASC 606”). We recognize revenue for items that do not qualify for revenue recognition under ASC 842 under ASC 606. Revenue recognized as a result of applying ASC 606 was less than 11% of total rental and other services revenue for the years ended December 31, 2025, 2024 and 2023.

Transaction and Integration Expense. Transaction expenses include closing costs, broker commissions and other

professional fees, including legal and accounting fees related to business combinations or acquisitions that were not consummated. Integration costs include transition costs associated with organizational restructuring (such as severance and retention payments and recruiting expenses), third-party consulting expenses directly related to the integration of acquired companies (in areas such as cost savings and synergy realization, technology and systems work), and internal costs such as training, travel and labor, reflecting time spent by Company personnel on integration activities and projects. Recurring costs are recorded in general and administrative expense.

Gains on Disposition of Properties. We recognize gains on the disposition of real estate when the recognition criteria have been met, generally at the time the risks and rewards and title have transferred, and we no longer have control of the real estate sold. We recognize losses from the disposition of real estate when known.

New Accounting Pronouncements.

Income Taxes. In December 2023, FASB issued ASU 2023-09, Income Taxes ("Topic 740"): Improvements to Income Tax Disclosures. This ASU is intended to enhance the transparency and decision usefulness of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The ASU is effective for fiscal years beginning after December 15, 2024 and to be applied prospectively, with retrospective application and early adoption both permitted. During 2025, we adopted this ASU. See Note 12. “Income Taxes” for further discussion.

Income Statement. In November 2024, the FASB issued an ASU 2024-03, Disaggregation of Income Statement Expenses, that will require entities to provide enhanced disclosures related to certain expense categories included in income statement captions. The ASU aims to increase transparency and provide investors with more detailed information about the nature of expenses reported on the face of the income statement. The new standard does not change the requirements for the presentation of expenses on the face of the income statement.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Under this ASU, entities are required to disaggregate, in a tabular format, expense captions presented on the face of the income statement - excluding earnings or losses from equity method investments - if they include any of the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation or depletion. For any remaining items within each relevant expense caption, entities must provide a qualitative description of the nature of those expenses. The new ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We expect to adopt this ASU on January 1, 2027. While the adoption is not expected to have an impact on our financial statements, it is expected to result in incremental disclosures within the footnotes to our Consolidated Financial Statements.

We determined that all other recently issued accounting pronouncements that have yet to be adopted by the Company will not have a material impact on our Consolidated Financial Statements or do not apply to our operations.

3. Leases

Lessor Accounting

We generate the majority of our revenue by leasing operating properties to customers under operating lease agreements. The manner in which we recognize these transactions in our financial statements is described in Note 2. “Summary of Significant Accounting Policies—Revenue Recognition” to these Consolidated Financial Statements. Our largest customer’s total revenue is approximately 12% of our total revenue base. No other individual customer makes up more than approximately 10% of our total revenue.

A summary of minimum lease payments due from our customers under operating leases of land, prestabilized development properties, and operating properties with lease periods of greater than one year at December 31, 2025 is shown below. These amounts do not reflect future rental revenues from renewal or replacement of existing leases unless we are reasonably certain we will exercise the option or the lessee has the sole ability to exercise the option. Reimbursements of operating expenses and variable rent increases are excluded from the table below.


(Amounts in thousands)		Operating leases
2026		$	3,503,924
2027			2,747,964
2028			2,349,926
2029			1,960,418
2030			1,549,211
Thereafter			6,439,048
Total		$	18,550,491

Lessee Accounting

We lease space and equipment at certain of our data centers from third parties under noncancelable lease agreements. Leases for our data centers expire on various dates through 2069. Certain of our data centers, primarily in Europe and Singapore, are subject to ground leases. As of December 31, 2025, the termination dates of these ground leases ranged from 2038 to 2073. In addition, our corporate headquarters along with several regional office locations are subject to leases with termination dates ranging from 2026 to 2037.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

The leases generally require us to make fixed rental payments that increase at defined intervals during the term of the lease, plus pay our share of common area, real estate and utility expenses as incurred. The leases neither contain residual value guarantees nor impose material restrictions or covenants on us. Further, the leases have been classified and accounted for as either operating or finance leases. Rent expense related to operating leases included in Rental property operating and maintenance expense in the consolidated income statements amounted to approximately $158.7 million, $153.5 million and $153.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

As of December 31, 2025, the weighted average remaining lease term for our operating leases and finance leases was 12 years and 17 years, respectively. We do not include renewal options in the lease term for calculating the lease liability unless we are reasonably certain we will exercise the option or the lessor has the sole ability to exercise the option. The weighted average incremental borrowing rate was 3.5% for operating leases and 2.4% for finance leases at December 31, 2025. We assigned a collateralized interest rate to each lease based on the term of the lease and the currency in which the lease is denominated.

Maturities of lease liabilities as of December 31, 2025 were as follows (in thousands):


		Operating			Finance
		lease liabilities			lease liabilities (1)
2026		$	164,355		$	78,390
2027			167,000			22,168
2028			159,626			96,013
2029			159,701			13,739
2030			149,969			13,358
Thereafter			723,775			186,227
Total undiscounted future cash flows			1,524,426			409,895
Less: Imputed interest			(271,209)			(69,265)
Present value of undiscounted future cash flows		$	1,253,217		$	340,630

(1) Included in Accounts payable and other accrued liabilities on the consolidated balance sheets.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

4. Receivables

Refer to Note 2 “Summary of Significant Accounting Policies—Revenue Recognition” for discussion of our accounting policies related to accounts receivable, deferred rent and related allowances.

Accounts and Other Receivables, Net

Accounts and Other Receivables, net is primarily comprised of contractual rents and other lease-related obligations currently due from customers. These amounts (net of an allowance for estimated uncollectible amounts) are shown in the subsequent table as Accounts receivable – trade, net. The other receivables shown separately from Accounts receivable – trade, net consist primarily of value-added tax receivables, various management fees for functions provided to managed joint ventures, as well as amounts that have not yet been billed to customers, such as for utility reimbursements and installation fees.


	Balance as of		Balance as of
(Amounts in thousands):	December 31, 2025		December 31, 2024
Accounts receivable – trade	$	815,146	$	629,250
Allowance for doubtful accounts		(86,351)		(59,224)
Accounts receivable – trade, net		728,795		570,026

Accounts receivable – customer recoveries		213,023		178,827
Value-added tax receivables		109,816		160,369
Accounts receivable – installation fees		119,295		157,409
Other receivables		187,966		190,833
Accounts and other receivables, net	$	1,358,895	$	1,257,464

Deferred Rent, Net

Deferred rent, net represents rental income that has been recognized as revenue under ASC 842, but which is not yet due from customers under their existing rental agreements. The Company recognizes an allowance against deferred rent receivables to the extent it becomes no longer probable that a customer or group of customers will be able to make substantially all of their required cash rental payments over the entirety of their respective lease terms.


	Balance as of		Balance as of
(Amounts in thousands):	December 31, 2025		December 31, 2024
Deferred rent receivables	$	752,531	$	644,566
Allowance for deferred rent receivables		(1,624)		(2,110)
Deferred rent, net	$	750,907	$	642,456

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Investments in Properties

A summary of our investments in properties is below (in thousands):


Property Type	As of December 31, 2025		As of December 31, 2024
Land	$	1,247,624	$	1,108,251
Acquired ground lease		97		86
Buildings and improvements		29,152,994		25,567,155
Tenant improvements		958,583		883,502
		31,359,298		27,558,994
Accumulated depreciation and amortization		(9,993,596)		(8,641,331)
Investments in operating properties, net		21,365,702		18,917,663
Construction in progress and space held for development		4,976,785		5,164,334
Land held for future development		91,130		38,785
Investments in properties, net	$	26,433,617	$	24,120,782

During 2025 we determined that certain non-core properties in secondary U.S. markets had carrying amounts that may not be fully recoverable. Accordingly, the recorded amounts were reduced to reflect management’s estimate of fair value based on a forecast of cash flows and market capitalization rates. During the year ended December 31, 2025, we recorded a provision for impairment on real estate investments of $78.6 million.

During 2024 we determined that certain non-core properties in secondary U.S. markets had carrying amounts that may not be fully recoverable as we determined that we no longer intend to hold these properties long-term. Accordingly, the recorded amounts were reduced to reflect management’s estimate of fair value based principally on sales of similar properties and ongoing negotiations with third parties. During the year ended December 31, 2024, we recorded a provision for impairment on real estate investments of $191.2 million.

Acquisitions and Dispositions of Properties

Acquisitions of Properties

For the years ended December 31, 2025, 2024 and 2023, acquisitions of properties that did not qualify as business combinations were immaterial to our financial statements – both individually and in the aggregate.

During the year ended December 31, 2025, we closed on acquisitions of land parcels for approximately $309 million.

In January 2024, we acquired a 16-acre site in Paris for $80 million. Prior to the acquisition, we leased the land, which consisted of two completed data centers and two data centers under construction. As a result of the land acquisition, we derecognized the right-of-use assets and lease liabilities of $145 million and $150 million, respectively.

In July 2024, the Company acquired two data centers located in the Slough Trading Estate for $200 million. The newly acquired campus features two individual data centers with a combined capacity of 15 megawatts (MW).

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Disposition of Other Properties

The Company sold or contributed the following other real estate properties during the years ended December 31, 2025, 2024 and 2023:


		Date Sold /	Gross Proceeds / Fair Value			Gain on Sale / contribution
Property Type	Metro Area	contributed	(in millions)			(in millions)
Digital Realty DC Partners NA Fund	Various	2025	$	1,364.3		$	903.5
Joint venture contributions	Northern Virginia	2025		139.4			58.8
Non-core assets	Various	2025		123.7			33.2
Joint venture contributions	Various	2024		1,246.4	(1)		304.1
Brookfield transaction	Various	2024		271.0			191.6
Non-core assets	Various	2024		158.7			(1.0)
Sale of noncontrolling interest in property	Frankfurt	2024		497.5	(2)		101.1
Joint venture contributions	Various	2023		2,278.5	(3)		814.0
Non-core assets	Various	2023		341.3			86.6

	(1)	Includes Blackstone Inc., GI Partners, and Mitsubishi Corporation.

	(2)	Includes sale of noncontrolling interest in DCREIT (see Note 7. “Investments in Unconsolidated Entities”).

	(3)	Includes GI Partners, Realty Income, and TPG Real Estate.

2025 Dispositions and Contributions

Digital Realty DC Partners NA Fund – During the first half of 2025, the Company launched its Digital Realty DC Partners NA Fund (the “Fund”), successfully raising more than $3 billion of equity commitments to date. At inception, Fund commitments represented a 40% to 80% ownership interest in each individual asset, while the Company maintained the remaining 20% to 60% stake in the assets and less than a 2% direct interest in the Fund. The initial portfolio included five operating data centers plus three land sites with access to power for data center development. In May 2025, we received approximately $937 million of gross proceeds from the contribution of operating data centers and development projects to the Fund, recognized a gain on disposition of approximately $873 million, and recognized an investment in the assets of $661 million. The Company will serve as general partner, maintaining operational and management responsibilities for the assets. However, certain governance rights are granted to the limited partners. As such, we concluded we do not own a controlling interest and account for our interest in the assets under the equity method of accounting. These real estate assets were previously classified as held for sale and contribution. Additionally, as of December 31, 2025, two additional development projects were classified within Assets held for sale and contribution on our consolidated balance sheet as it is probable they will be contributed to the Fund within one year. As of December 31, 2025, real estate assets for the two development projects that qualified as held for sale had an aggregate carrying value of $336.4 million. The disposition of a portion of our interest in the remaining development projects met the criteria under ASC 360 for the assets to qualify as held for sale and contribution. However, the operations are not classified as discontinued operations as a result of our continuing interest in the assets. This development project was not representative of a significant component of our portfolio, nor will the contribution represent a significant shift in our strategy.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

During the year, Digital Realty contributed an additional 40% of its interest in five operating data centers to the Fund for approximately $427 million. The transaction resulted in a gain of approximately $30.2 million, which is included within Gain on disposition of properties, net on the consolidated income statements. As a result of this transaction, Digital Realty owns a 20% stake in each of the assets held in the Fund. The Company will continue to serve as general partner, maintaining operational and management responsibilities for the assets. However, certain governance rights are granted to the limited partners. As such, we continue to conclude we do not own a controlling interest and account for our interest in the assets under the equity method of accounting.

On April 3, 2025, we received approximately $77 million of gross proceeds from the contribution of our data centers to the joint venture with Blackstone. As a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $58 million.

In 2025, we sold non-core data centers in the Atlanta, Miami, Boston and Dallas metro areas for gross proceeds of approximately $124 million and recognized a gain on disposition of approximately $33 million.

As of December 31, 2025, in addition to the real estate assets mentioned above that qualified as held for contribution to the Fund, a non-core asset in Texas is anticipated to be sold to a third party within one year. The non-core asset has an aggregate carrying value of $13.4 million within total assets and $0.2 million within total liabilities and is shown within Assets held for sale and contribution and Obligations associated with assets held for sale and contribution, respectively, on the consolidated balance sheets.

2024 Dispositions and Contributions

Blackstone Inc. Joint Venture – On January 11, 2024, we formed a joint venture with Blackstone Inc. to develop four hyperscale data center campuses across Frankfurt, Paris and Northern Virginia. During 2024, we received approximately $616 million of net proceeds from the contribution of our data centers to the joint venture and retained a 20% interest in the joint venture. As a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $44.2 million.

Brookfield Transaction – In January 2024, we closed on the sale of our interest in four data centers to Brookfield Infrastructure Partners L.P., or Brookfield, for approximately $271 million. Two of the data centers were consolidated by us; while two of the data centers were owned by Digital Core REIT (see Note 7. “Investments in Unconsolidated Entities”). The sale was completed subsequent to Brookfield’s November 2023 acquisition of one of our customers, Cyxtera Technologies. The acquisition was part of Cyxtera’s plan of reorganization under its Chapter 11 bankruptcy proceedings. In conjunction with the sale, we bought out Cyxtera’s leases in three data centers located in Singapore and Frankfurt for approximately $57 million. In addition, Brookfield assumed the leases on three facilities previously leased to Cyxtera and amended the leases on three additional data centers in North America, accelerating the expiration date to September 2024. As a result of the sale, we recognized a total gain on disposition of approximately $200.5 million, of which $191.6 million is included within Gain on disposition of properties, net and $8.9 million is included within Equity in (loss) earnings of unconsolidated entities on our condensed consolidated income statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Mitsubishi Joint Venture – On March 1, 2024, we formed a joint venture with Mitsubishi Corporation, or Mitsubishi, to support the development of two data centers in the Dallas metro area. The facilities were 100% pre-leased prior to construction. We contributed the two data center buildings at a contribution value of approximately $261 million. We received approximately $153 million of gross proceeds from the contribution of our data centers to the joint venture and retained a 35% interest in the joint venture. Mitsubishi paid such cash in exchange for a 65% interest in the joint venture. As a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $7.0 million. On January 31, 2025, Mitsubishi made an additional cash capital contribution in the amount of $62 million, resulting in an additional 15% ownership in the joint venture. The transaction resulted in a gain of approximately $5.1 million. Currently, Mitsubishi has an 80% interest in the joint venture, and we have retained a 20% interest.

GI Partners Joint Venture – On April 16, 2024, we expanded our existing joint venture with GI Partners with the sale to GI Partners of a 75% interest in an additional facility in Chicago. We contributed the data center at a value of approximately $453 million. We received approximately $386 million of net proceeds from the contribution of our data center to the joint venture and the associated financing and retained a 25% interest in the joint venture. As a result of transferring control, we derecognized the data center and recognized a gain on disposition of approximately $172 million.

2023 Dispositions and Contributions

GI Partners Joint Venture – On July 13, 2023, we formed a joint venture with GI Partners, and GI Partners acquired a 65% interest in two stabilized hyperscale data center buildings in the Chicago metro area that we contributed. We received approximately $0.7 billion of gross proceeds from the contribution of our data centers to the joint venture and the associated financing and retained a 35% interest in the joint venture. As a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $238 million. We also granted GI Partners an option to purchase an interest in the third facility on the same hyperscale data center campus in Chicago. In addition, GI Partners has a call option to increase their ownership interest in the joint venture from 65% to 80%. The call option top-up election notice was delivered to the Company on December 21, 2023. On January 12, 2024, GI Partners made an additional cash capital contribution in the amount of $68 million, resulting in an additional 15% ownership in the joint venture. Currently, GI Partners has an 80% interest in the joint venture, and we have retained a 20% interest. We perform the day-to-day accounting and property management functions for the joint venture and, as such, will earn a management fee.

TPG Real Estate Joint Venture – On July 25, 2023, we formed a joint venture with TPG Real Estate, and TPG Real Estate acquired an 80% interest in three stabilized hyperscale data center buildings in Northern Virginia that we contributed. We received approximately $1.4 billion of gross proceeds from the contribution of our data centers to the joint venture and the associated financing and retained a 20% interest in the joint venture. As a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $576 million. We perform the day-to-day accounting and property management functions for the joint venture and, as such, will earn a management fee.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Realty Income Joint Venture - On November 10, 2023, we formed a joint venture with Realty Income to support the development of two data centers in Northern Virginia. The facilities were 100% pre-leased prior to construction. We contributed the two data center buildings at a purchase price of $185 million, which represented costs spent through November 10, 2023, to the new joint venture. We received approximately $148 million of gross proceeds from the contribution of our data centers to the joint venture and retained a 20% interest in the joint venture. Realty Income contributed such cash to the joint venture in exchange for an 80% interest in the joint venture. Each partner will fund its pro rata share of the remaining $150 million estimated development cost for the first phase of the project, which was completed in mid-2024. We perform the day-to-day accounting and property management functions for the joint venture and, as such, will earn a management fee.

7. Investments in Unconsolidated Entities

A summary of the Company’s investments in unconsolidated entities accounted for under the equity method of accounting is shown below (in thousands):


	Balance as of		Balance as of
		December 31, 2025		December 31, 2024
Americas (1)	$	1,995,074	$	1,311,950
APAC (2)		707,368		615,687
EMEA (3)		269,344		252,791
Global (4)		456,117		459,372
Total	$	3,427,903	$	2,639,800

Includes the following unconsolidated entities along with our ownership percentage as of December 31, 2025:

	(1)	Ascenty (49%), Blackstone (ranging from 20% to 50%), Clise (50%), GI Partners (ranging from 20% to 25%), Mapletree (20%), Menlo (20%), Mitsubishi (20%), Realty Income (20%), TPG Real Estate (20%), Fund (20%), and Walsh (88%).

	(2)	Digital Connexion (33%), Digital Realty Bersama (50%), Lumen (50%), and MC Digital Realty (50%).

	(3)	Blackstone (20%), Medallion (60%), and Mivne (50%).

	(4)	Digital Core REIT (39%).

Generally, we serve as the managing member responsible for operations in the ordinary course of business of the unconsolidated entities. We perform the day-to-day accounting and property management functions for the unconsolidated entities and, as such, will earn management fees. In certain unconsolidated entities, we may also earn incentive fees upon liquidation of individual unconsolidated entities’ assets based primarily on the total return of the investments over certain financial hurdles. The incentive fee and financial hurdle vary by each entity. However, certain approval rights are granted through the terms of the operating agreements and require unanimous consent of both members with respect to any major decisions. Generally, major decisions are defined to include the annual plan which sets out unconsolidated entity and property level budgets, including lease revenues, operating expenses, and capital expenditures. As such, we concluded we do not own a controlling interest and accounted for our interest in the unconsolidated entities under the equity method of accounting.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Digital Realty DC Partners NA Fund – During the first half of 2025, the Company launched the Fund, successfully raising more than $3 billion of equity commitments to date. At inception, Fund commitments represented a 40% to 80% ownership interest in each individual asset, while the Company maintained the remaining 20% to 60% stake in the assets and less than a 2% direct interest in the Fund. Upon contribution of the assets into the Fund, the Company recognized an investment in the assets of $661 million. In the three months ended December 31, 2025, Digital Realty contributed an additional 40% of its interest in five operating data centers to the Fund for approximately $427 million. The transaction resulted in a gain of approximately $30.2 million. After this contribution, Digital Realty owns a 20% stake in each of the assets held in the Fund. The Company will continue to serve as general partner, maintaining operational and management responsibilities for the assets. However, certain governance rights are granted to the limited partners. As such, we continue to conclude we do not own a controlling interest and account for our interest in the assets under the equity method of accounting.

Blackstone Joint Venture – On January 11, 2024, we formed a joint venture with Blackstone Inc. to develop four hyperscale data center campuses across Frankfurt, Paris and Northern Virginia. The campuses are planned to support the construction of 10 data centers with approximately 500 megawatts of potential IT load capacity. As a result of transferring control, we derecognized the data centers. On April 3, 2025, we contributed an additional three development projects at Digital Dulles campus to the joint venture with Blackstone. After the April contribution, we maintained a 50% interest in all four Blackstone joint venture properties at Digital Dulles campus.

Digital Realty Bersama Joint Venture – On March 18, 2025, we formed a joint venture with Bersama Digital Infrastructure Asia (BDIA) to develop and operate data centers across Indonesia. We acquired a 50% interest in the joint venture, which consists of two land parcels and two buildings in Jakarta, Indonesia for approximately $94.7 million. The 6 acres of land and two buildings can support up to approximately 32 megawatts of IT load.

Mitsubishi Joint Venture - On March 1, 2024, we formed a joint venture with Mitsubishi Corporation, or Mitsubishi, to support the development of two data centers in the Dallas metro area. We retained a 35% interest in the joint venture. On January 31, 2025, Mitsubishi made an additional cash capital contribution in the amount of $62 million, resulting in an additional 15% ownership in the joint venture. Currently, Mitsubishi has an 80% interest in the joint venture, and we have retained a 20% interest.

GI Partners Joint Venture – On July 13, 2023, we formed a joint venture with GI Partners, and GI Partners acquired a 65% interest in two stabilized hyperscale data center buildings in the Chicago metro area that we contributed. We retained a 35% interest in the joint venture. As a result of transferring control, we derecognized the data centers. In addition, GI Partners had a call option to increase their ownership interest in the joint venture from 65% to 80%. The call option top-up election notice was delivered to the Company on December 21, 2023. On January 12, 2024, GI Partners made an additional cash capital contribution, pursuant to the exercise of such call option, in the amount of $68 million, resulting in such additional 15% ownership in the joint venture. Currently, GI Partners has an 80% interest in the joint venture, and we have retained a 20% interest. We also granted GI Partners an option to purchase an interest in the third facility on the same hyperscale data center campus in Chicago. On April 16, 2024, we expanded our existing joint venture with GI Partners with the sale to GI Partners of a 75% interest in this third facility, see Note 6. “Acquisitions and Dispositions of Properties”.

As of the date of the joint venture formation, we used a discounted cash flow model to calculate the fair value of our retained equity interest. The fair value of the retained interest was $157 million and is classified as a Level 3 investment in the fair value hierarchy. The primary inputs to the valuation included volatility, hold period, and dividend yield.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

TPG Real Estate Joint Venture – On July 25, 2023, we formed a joint venture with TPG Real Estate. We contributed three stabilized hyperscale data center buildings in Northern Virginia, at a purchase price of $1.5 billion, to the new joint venture. We received approximately $1.4 billion of gross proceeds from the contribution of our data centers to the joint venture and the associated financing and retained a 20% interest in the joint venture. TPG Real Estate contributed such cash to the joint venture in exchange for an 80% interest in the joint venture. We perform the day-to-day accounting and property management functions for the joint venture and, as such, will earn a management fee. We serve as the managing member responsible for operations in the ordinary course of business. However, certain approval rights are granted through the terms of the joint venture agreement and require unanimous consent of both members with respect to any major decisions. Major decisions are defined to include the annual plan which sets out joint venture and property level budgets, including lease revenues, operating expenses, and capital expenditures. As such, we concluded we do not own a controlling interest and accounted for our interest in the joint venture under the equity method of accounting.

As of the date of the joint venture formation, we used a discounted cash flow model to calculate the fair value of our retained equity interest. The fair value of the retained interest was $121 million and is classified as a Level 3 investment in the fair value hierarchy. The primary inputs to the valuation included volatility, hold period, and dividend yield.

Realty Income Joint Venture – On November 10, 2023, we formed a joint venture with Realty Income to support the development of two data centers in Northern Virginia. The facilities were 100% pre-leased prior to construction. We contributed the two data center buildings at a purchase price of $185 million, which represented costs spent through November 10, 2023, to the new joint venture. We received approximately $148 million of gross proceeds from the contribution of our data centers to the joint venture and retained a 20% interest in the joint venture. Realty Income contributed such cash to the joint venture in exchange for an 80% interest in the joint venture. Each partner will fund its pro rata share of the remaining $150 million estimated development cost for the first phase of the project, which was completed in mid-2024. We perform the day-to-day accounting and property management functions for the joint venture and, as such, will earn a management fee. We serve as the managing member responsible for operations in the ordinary course of business. However, certain approval rights are granted through the terms of the joint venture agreement and require unanimous consent of both members with respect to any major decisions. Major decisions are defined to include the annual plan which sets out joint venture and property level budgets, including lease revenues, operating expenses, and capital expenditures. As such, we concluded we do not own a controlling interest and accounted for our interest in the joint venture under the equity method of accounting.

DCREIT – Digital Core REIT is a standalone real estate investment trust formed under Singapore law, which is publicly traded on the Singapore Exchange under the ticker symbol “DCRU”. DCREIT owns 12 operating data center properties. The Company has ownership interest in the units of DCREIT, as well as ownership interests in the operating properties of DCREIT.

As of December 31, 2025, the Company held 32% of the outstanding DCREIT units and separately owned a 10% direct retained interest in the underlying North American operating properties and a 35% direct retained interest in a Frankfurt asset.

The Company’s 32% interest in DCREIT consisted of 420 million units and 418 million units as of December 31, 2025 and 2024, respectively. Based on the closing price per unit of $0.51 and $0.58 as of December 31, 2025 and 2024, respectively, the fair value of the units the Company owned in DCREIT was approximately $214 million and $242 million as of December 31, 2025 and 2024, respectively.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Pursuant to contractual agreements with DCREIT and its operating properties, the Company will earn fees for asset and property management services as well as fees for aiding in future acquisition, disposition and development activities. Certain of these fees are payable to the Company in the form of additional units in DCREIT or in cash. During the years ended December 31, 2025 and 2024, the Company earned fees pursuant to these contractual agreements of approximately $11.7 million and $9.1 million, respectively, which is recorded as fee income and other on the consolidated income statements.

On April 19, 2024, we completed the sale of an additional 24.9% interest in a data center facility in Frankfurt, Germany to DCREIT for total consideration of approximately $126 million, and DCREIT then had a 49.9% interest in the Frankfurt data center. Because the Company still controlled this asset, no gain or loss was recorded on this 49.9% interest. In connection with this transaction, DCREIT loaned the consolidated subsidiary that owns the data center approximately $80 million. In addition, on December 5, 2024, we completed the sale of an additional 15.1% interest in the data center facility in Frankfurt for total consideration of approximately $77 million, and DCREIT now owns a 65.0% interest in the Frankfurt data center. As a result, the Company accounts for its retained ownership interest in accordance with the equity method of accounting.

During the year ended December 31, 2023, we concluded that the decline in fair value of our equity investment in DCREIT was other than temporary due to the length of time and extent to which the fair value of our investment has been less than the carrying value. As a result, we recorded an impairment charge of $95 million for the three months ended September 30, 2023, which was recorded to provision for impairment in our consolidated income statements. The charge reflected the difference between the fair value of our equity investment in DCREIT using DCREIT's unit price as of September 30, 2023 and the carrying value of our equity investment in DCREIT at September 30, 2023.

Ascenty – The Company’s ownership percentage in Ascenty includes an approximate 2% interest held by one of the Company’s non-controlling interest holders. This 2% interest had a carrying value of approximately $23 million as of December 31, 2025 and 2024. Ascenty is a variable interest entity (“VIE”) and the Company’s maximum exposure to loss related to this VIE is limited to our equity investment in the entity.

Summarized Financial Information of Investments in Unconsolidated Entities

The subsequent tables provide summarized financial information for all of our investments in unconsolidated entities accounted for using the equity method. Amounts are shown in thousands.


														Net			Net
		Total			Total									Operating			Income
December 31, 2025		Assets			Liabilities			Equity			Revenues			Income			(Loss)
Unconsolidated entities
Americas		$	10,782,799		$	4,886,672		$	5,896,128		$	1,065,673		$	607,184		$	(114,843)
APAC			2,615,038			1,127,446			1,487,592			340,147			181,802			61,164
EMEA			1,269,336			703,538			565,798			54,408			36,234			(6,938)
Global			2,074,290			1,182,273			892,017			189,166			103,019			(87,856)
Total Unconsolidated entities		$	16,741,463		$	7,899,929		$	8,841,534		$	1,649,394		$	928,239		$	(148,473)
Our investment in and share of equity in earnings of unconsolidated entities								$	3,427,903								$	(31,987)

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024


														Net			Net
		Total			Total									Operating			Income
December 31, 2024		Assets			Liabilities			Equity			Revenues			Income			(Loss)
Unconsolidated entities
Americas		$	7,473,799		$	3,532,248		$	3,941,551		$	824,027		$	464,637		$	(336,627)
APAC			2,127,166			823,921			1,303,245			273,833			140,594			55,376
EMEA			1,009,055			740,433			268,622			11,976			5,108			(14,016)
Global			2,007,082			995,721			1,011,361			106,705			66,258			(17,785)
Total Unconsolidated entities		$	12,617,102		$	6,092,323		$	6,524,779		$	1,216,541		$	676,597		$	(313,052)
Our investment in and share of equity in loss of unconsolidated entities								$	2,639,800								$	(120,138)


														Net			Net
		Total			Total									Operating			Income
December 31, 2023		Assets			Liabilities			Equity			Revenues						(Loss)
Unconsolidated entities
Americas		$	6,627,520		$	3,105,127		$	3,522,393		$	590,264		$	326,042		$	(13,097)
APAC			2,097,115			880,972			1,216,143			257,905			121,053			42,244
EMEA			80,525			83,819			(3,294)			1,601			939			(8,225)
Global			1,542,331			591,470			950,861			112,931			73,390			(60,867)
Total Unconsolidated entities		$	10,347,491		$	4,661,388		$	5,686,103		$	962,701		$	521,424		$	(39,945)
Our investment in and share of equity in earnings of unconsolidated entities								$	2,295,889								$	(29,791)

The amounts reflected in the previous tables on this topic are based on the historical financial information of the respective individual entities and have not been adjusted to show only the portion that is owned by the Company. The debt of our unconsolidated entities generally is non-recourse to us, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions, and material misrepresentations.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

8. Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired in a business combination. Changes in the value of goodwill at December 31, 2025 as compared to December 31, 2024 were primarily driven by changes in exchange rates associated with goodwill balances denominated in foreign currencies.

The following is a summary of goodwill activity for the years ended December 31, 2025 and 2024 (in thousands):


		Balance as of									Impact of Change			Balance as of
		December 31,						Goodwill			in Foreign			December 31,
Merger / Portfolio Acquisition		2024			Acquisition			Adjustments			Exchange Rates			2025
Telx Acquisition		$	330,845		$	—		$	—		$	—		$	330,845
European Portfolio Acquisition			414,977			—			—			40,537			455,514
DFT Merger			2,592,147			—			—			—			2,592,147
Interxion Combination			4,153,316			—			—			545,566			4,698,882
Teraco Combination			1,425,628			—			—			196,419			1,622,047
Other Combination			12,518			—			—			—			12,518
Total		$	8,929,431		$	—		$	—		$	782,522		$	9,711,953

		Balance as of									Impact of Change			Balance as of
		December 31,						Goodwill			in Foreign			December 31,
Merger / Portfolio Acquisition		2023			Acquisition			Adjustments			Exchange Rates			2024
Telx Acquisition		$	330,845		$	—		$	—		$	—		$	330,845
European Portfolio Acquisition			429,510			—			—			(14,533)			414,977
DFT Merger			2,592,147			—			—			—			2,592,147
Interxion Combination			4,411,857			598			—			(259,139)			4,153,316
Teraco Combination			1,462,994			—			—			(37,366)			1,425,628
Other Combination			12,518			—			—			—			12,518
Total		$	9,239,871		$	598		$	—		$	(311,038)		$	8,929,431

Acquired Intangible Assets and Liabilities

The following table summarizes our acquired intangible assets and liabilities:


	Balance as of
	December 31, 2025						December 31, 2024
(Amounts in thousands)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationship value	$	2,921,841	$	(1,271,137)	$	1,650,704	$	2,783,428	$	(1,080,547)	$	1,702,881
Acquired in-place lease value		987,495		(853,333)		134,162		1,043,706		(863,021)		180,685
Other		114,397		(61,403)		52,994		122,638		(36,038)		86,600
Acquired above-market leases		111,036		(109,352)		1,684		126,322		(122,714)		3,608
Acquired below-market leases		(241,779)		209,607		(32,172)		(258,243)		219,672		(38,571)
Total	$	3,892,990	$	(2,085,618)	$	1,807,372	$	3,817,851	$	(1,882,648)	$	1,935,203

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Amortization of customer relationship value, acquired in-place lease value and other intangibles (a component of depreciation and amortization expense) was approximately $231.3 million, $240.4 million and $252.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase in rental and other services revenue of $5.2 million, $5.2 million and $6.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. Estimated annual amortization for each of the five succeeding years and thereafter, commencing January 1, 2026 is as follows:


(Amounts in thousands)		Customer relationship value		Acquired in-place lease value		Other		Acquired above-market leases		Acquired below-market leases
2026	$	249,361	$	54,809	$	6,456	$	380	$	(5,454)
2027		252,941		44,596		6,456		380		(5,624)
2028		237,229		23,636		6,475		380		(5,544)
2029		213,109		10,490		6,529		348		(5,544)
2030		213,109		534		6,529		196		(5,544)
Thereafter		484,955		97		20,549		—		(4,462)
Total	$	1,650,704	$	134,162	$	52,994	$	1,684	$	(32,172)

Remaining Contractual Life (in years)		10.9		2.8		9.4		1.2		5.1

Debt of the Operating Partnership

All debt is currently owed by the OP or its consolidated subsidiaries, and the Parent is the guarantor or co-guarantor of the Global Revolving Credit Facility and the Yen Revolving Credit Facility, the unsecured term loans and the unsecured senior notes. A summary of outstanding indebtedness is as follows (in thousands):


		December 31, 2025					December 31, 2024
		Weighted-					Weighted-
		average		Amount			average		Amount
		interest rate		Outstanding			interest rate		Outstanding
Global Revolving Credit Facilities		2.63	%	$	918,540		3.81	%	$	1,637,922
Unsecured term loans		2.73	%		440,475		3.23	%		388,275
Unsecured senior notes		2.60	%		16,321,227		2.26	%		14,059,415
Secured and other debt		9.02	%		876,528		8.52	%		761,263
Total		2.90	%	$	18,556,770		2.72	%	$	16,846,875

The weighted-average interest rates shown represent interest rates at the end of the periods for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rates on certain variable rate debt, along with cross-currency interest rate swaps, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt in order to hedge the currency exposure associated with our net investment in foreign subsidiaries.

We primarily borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies (in thousands, U.S. dollars):

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024


		December 31, 2025				December 31, 2024
		Amount				Amount
Denomination of Draw		Outstanding		% of Total		Outstanding		% of Total
U.S. dollar ($)		$	2,922,170	15.8	%	$	2,852,102	16.9	%
British pound sterling (£)			1,212,750	6.5	%		1,627,080	9.7	%
Euro (€)			12,199,575	65.7	%		10,327,404	61.3	%
Other			2,222,275	12.0	%		2,040,289	12.1	%
Total		$	18,556,770			$	16,846,875

The table below summarizes our debt maturities and principal payments as of December 31, 2025 (in thousands):


		Global Revolving			Unsecured			Unsecured			Secured and
		Credit Facilities (1)(2)			Term Loans(3)			Senior Notes			Other Debt			Total Debt
2026		$	—		$	440,475		$	346,918		$	117,290		$	904,683
2027			—			—			1,189,228			252,026			1,441,254
2028			—			—			2,137,300			421,924			2,559,224
2029			918,540			—			2,862,236			20,756			3,801,532
2030			—			—			1,622,075			64,532			1,686,607
Thereafter			—			—			8,163,470			—			8,163,470
Subtotal		$	918,540		$	440,475		$	16,321,227		$	876,528		$	18,556,770
Unamortized net discounts			—			—			(46,316)			(4,162)			(50,478)
Unamortized deferred financing costs			(19,450)			(939)			(80,470)			(3,298)			(104,157)
Total		$	899,090		$	439,536		$	16,194,441		$	869,068		$	18,402,135

(1)	Includes amounts outstanding for the Global Revolving Credit Facilities.

(2)	The Global Revolving Credit Facilities are subject to two six-month extension options exercisable by us; provided that the Operating Partnership must pay a 0.0625% extension fee based on each lender’s revolving commitments then outstanding (whether funded or unfunded).

(3)

The €375.0 million Euro Term Loan Facility is subject to a maturity extension option of one year, provided that the Operating Partnership must pay a 0.125% extension fee based on the then-outstanding principal amount of such facility commitments then outstanding. The current maturity date is August 11, 2026. Upon maturity, we intend to either exercise the one-year extension option or refinance the loan.

On September 24, 2024, we refinanced our Global Revolving Credit Facilities. Below are key terms for our Global Revolving Credit Facility and Yen Revolving Credit Facility.

Global Revolving Credit Facility

We have a Global Revolving Credit Facility under which we may draw up to $4.2 billion equivalent on a revolving basis (subject to currency fluctuations). The Global Revolving Credit Facility can be drawn in Australian dollars, British pound sterling, Canadian dollars, Euros, Hong Kong dollars, Indonesian rupiah, Japanese yen, Korean won, Singapore dollars, Swiss francs and U.S. dollars (with the ability to add other currencies in the future). As of December 31, 2025, approximately $94.2 million of letters of credit were issued.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

We have the ability to increase the size of the Global Revolving Credit Facility by up to $1.8 billion, subject to the receipt of lender commitments and the satisfaction of certain customary conditions precedent. Other key terms of the Global Revolving Credit Facility are as follows:

	●	Maturity date: January 24, 2029, with two six-month extension options available. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the Global Revolving Credit Facility.

	●	Interest rate: the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 77.5 basis points (subject to a sustainability-linked pricing component).

	●	Annual facility fee: based on the total commitment amount of the facility and the credit ratings of our long-term debt is currently 15 basis points (subject to a sustainability-linked pricing component) and is payable quarterly.

	●	Sustainability-linked pricing component: pricing can increase by up to 5 basis points or decrease by up to 5 basis points depending on whether or not the OP or its subsidiaries meet certain sustainability performance targets.

Yen Revolving Credit Facility

In addition to the Global Revolving Credit Facility, we have a revolving credit facility that provides for borrowings in Japanese Yen of up to ¥42.5 billion (approximately $271.3 million based on the exchange rate on December 31, 2025), hereafter referred to as the “Yen Revolving Credit Facility”). We have the ability from time to time to increase the size of the Yen Revolving Credit Facility to up to ¥102.5 billion, subject to receipt of lender commitments and other conditions precedent. Other key terms of the Yen Revolving Credit Facility are as follows:

	●	Maturity date: January 24, 2029, with two six-month extension options available. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the Yen Revolving Credit Facility.

	●	Interest rate: the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 45 basis points (subject to a sustainability-linked pricing component).

	●	Quarterly unused commitment fee: currently is 10 basis points (subject to a sustainability-linked pricing component), calculated using the average daily unused revolving credit commitment and is based on the credit ratings of our long-term debt.

	●	Sustainability-linked pricing component: pricing can increase by up to 5 basis points or decrease by up to 5 basis points depending on whether or not the OP or its subsidiaries meet certain sustainability performance targets.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Restrictive Covenants in Global Revolving Credit Facility and Yen Revolving Credit Facility

The Global Revolving Credit Facility and the Yen Revolving Credit Facility both contain various restrictive covenants, including limitations on our ability to incur additional indebtedness, make certain investments, or merge with another company. In addition, we are required to maintain financial coverage ratios, including with respect to unencumbered assets. After the occurrence of and during the continuance of any event of default, these credit facilities restrict the Parent’s ability to make distributions to stockholders or redeem or otherwise repurchase shares of its capital stock, except in limited circumstances (such as those necessary to enable Digital Realty Trust, Inc. to maintain its qualification as a REIT and to minimize the payment of income or excise tax). As of December 31, 2025, we were in compliance with all of such covenants for both of these revolving credit facilities.

Unsecured Term Loans

Euro Term Loan Agreement

On August 11, 2022, the Company, the Operating Partnership, and certain of the Operating Partnership’s subsidiaries entered into a term loan agreement (the “Euro Term Loan Agreement”) which governs (i) a €375,000,000 three-year senior unsecured term loan facility (the “2025 Term Facility”), the entire amount of which was funded on such date, and (ii) a €375,000,000 five-year senior unsecured term loan facility (the “2025-27 Term Facility” and, together with the 2025 Term Facility, collectively, the “Euro Term Loan Facilities”), comprised of €125,000,000 of initial term loans, the entire amount of which was funded on such date, and €250,000,000 of delayed draw term loan commitments that were funded on September 9, 2023. The Euro Term Loan Facilities provide for borrowings in Euros. On September 13, 2024, we paid off the 2025 Term Facility on the Euro Term Loan Facilities, leaving the 2025-27 Term Facility outstanding. The paydown resulted in an early extinguishment charge of approximately $1.6 million during the year ended December 31, 2024. The 2025-27 Term Facility matures on August 11, 2026, subject to a maturity extension option of one year; provided that the Operating Partnership must pay a 0.125% extension fee based on the then-outstanding principal amount of the 2025-27 Term Facility commitments then outstanding. Upon maturity, we intend to either exercise the one-year extension option or refinance the loan.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Unsecured Senior Notes

The following table provides details of our unsecured senior notes (balances in thousands):


	Aggregate Principal Amount at Issuance					Balance as of
	Borrowing Currency		USD		Maturity Date	December 31, 2025		December 31, 2024
4.250% notes due 2025(1)	£	400,000	$	634,480	Jan 17, 2025	$	—		500,640
0.625% notes due 2025(2)	€	650,000	$	720,980	Jul 15, 2025		—		673,010
2.500% notes due 2026(3)	€	1,075,000	$	1,224,640	Jan 16, 2026		—		1,113,055
0.200% notes due 2026	CHF	275,000	$	298,404	Dec 15, 2026		346,918		302,987
1.700% notes due 2027	CHF	150,000	$	162,465	Mar 30, 2027		189,228		165,265
3.700% notes due 2027(4)	$	1,000,000	$	1,000,000	Aug 15, 2027		1,000,000		1,000,000
5.550% notes due 2028(4)	$	900,000	$	900,000	Jan 15, 2028		900,000		900,000
1.125% notes due 2028	€	500,000	$	548,550	Apr 09, 2028		587,300		517,700
4.450% notes due 2028	$	650,000	$	650,000	Jul 15, 2028		650,000		650,000
0.550% notes due 2029	CHF	270,000	$	292,478	Apr 16, 2029		340,611		297,478
3.600% notes due 2029	$	900,000	$	900,000	Jul 01, 2029		900,000		900,000
3.300% notes due 2029	£	350,000	$	454,895	Jul 19, 2029		471,625		438,060
1.875% Exchangeable Notes due 2029(4)	$	1,150,000	$	1,150,000	Nov 15, 2029		1,150,000		1,150,000
1.500% notes due 2030	€	750,000	$	831,900	Mar 15, 2030		880,950		776,550
3.750% notes due 2030	£	550,000	$	719,825	Oct 17, 2030		741,125		688,380
1.250% notes due 2031	€	500,000	$	560,950	Feb 01, 2031		587,300		517,700
0.625% notes due 2031	€	1,000,000	$	1,220,700	Jul 15, 2031		1,174,600		1,035,400
1.000% notes due 2032	€	750,000	$	874,500	Jan 15, 2032		880,950		776,550
1.375% notes due 2032	€	750,000	$	849,375	Jul 18, 2032		880,950		776,550
3.750% notes due 2033	€	600,000	$	691,680	Jan 15, 2033		704,760		—
3.875% notes due 2033	€	850,000	$	941,375	Sep 13, 2033		998,410		880,090
3.875% notes due 2034	€	850,000	$	991,015	Jul 15, 2034		998,410		—
3.875% notes due 2035	€	850,000	$	876,180	Mar 15, 2035		998,410		—
4.250% notes due 2037	€	800,000	$	922,240	Nov 20, 2037		939,680		—
						$	16,321,227	$	14,059,415
Unamortized discounts, net of premiums							(46,316)		(27,476)
Deferred financing costs, net							(80,470)		(69,087)
Total unsecured senior notes, net of discount and deferred financing costs						$	16,194,441	$	13,962,852

(1)	Paid at maturity on January 17, 2025.

(2)	Paid at maturity on July 15, 2025.

(3)	Redeemed prior to maturity on December 18, 2025.

(4)	Subject to cross-currency swaps.

Restrictive Covenants in Unsecured Senior Notes

The indentures governing our senior notes contain certain covenants, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50. The covenants also require us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At December 31, 2025, we were in compliance with each of these financial covenants.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Issuance of Unsecured Senior Notes

On January 14, 2025, Digital Dutch Finco B.V., an indirect wholly owned finance subsidiary of the Operating Partnership, issued and sold €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2035. Net proceeds from the offering were approximately €838 million (approximately $864 million based on the exchange rate on January 14, 2025) after deducting managers’ discounts and estimated offering expenses.

On June 25, 2025, Digital Dutch Finco B.V. issued and sold €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2034. Net proceeds from the offering were approximately €836.6 million (approximately $975 million based on the exchange rate on June 25, 2025) after deducting managers’ discounts and estimated offering expenses.

On November 20, 2025, Digital Euro Finco, LLC, a wholly owned indirect finance subsidiary of the Operating Partnership, issued and sold €600 million aggregate principal amount of 3.750% Guaranteed Notes due 2033 and €800 million aggregate principal amount of 4.250% Guaranteed Notes due 2037. Net proceeds from the offering were approximately €1,384.7 million (approximately $1,596 million based on the exchange rate on November 20, 2025) after deducting managers’ discounts and estimated offering expenses.

On September 13, 2024, Digital Dutch Finco B.V. issued and sold €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2033. Net proceeds from the offering were approximately €843 million (approximately $933 million based on the exchange rate on September 13, 2024) after deducting managers’ discounts and estimated offering expenses.

On November 12, 2024, Digital Realty Trust, L.P. issued $1.2 billion principal amount of its 1.875% Exchangeable Senior Notes due 2029 (the “Exchangeable Notes”). Net proceeds from the offering were approximately $1.13 billion after deducting managers’ discounts and offering expenses. The holders of the Exchangeable Notes will have the right to exchange their notes on or after August 15, 2029 and in certain other circumstances prior to this date. Upon exchange, the Company may choose to pay or deliver cash or a combination of cash and shares of the Company’s common stock. Pursuant to the terms of the Exchangeable Notes, the principal of the notes must always be cash settled, while the excess may be settled via cash, shares, or a combination at the Company’s election. The Exchangeable Notes will also be subject to redemption at the Company’s option, on or after November 22, 2027, through September 19, 2029, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the exchange price for a specified period of time and certain other conditions are satisfied. The initial exchange rate is 4.7998 shares of our common stock per $1,000 principal amount of the Exchangeable Notes, which represents an initial exchange price of approximately $208.34 per share of our common stock. The initial exchange price represents a premium of approximately 20.0% over the last reported sale price of $173.62 per share of our common stock on November 6, 2024. We account for our Exchangeable Notes in accordance with ASC 470-20, Debt with Conversion and Other Options (Subtopic 470-20) and ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity. The embedded exchange feature is eligible for an exception from derivative accounting because it is indexed to our own stock and meets the equity classification under ASC 815-40; therefore, the exchange feature is not bifurcated. At each reporting period, we calculate the effect of the Exchangeable Notes on our dilutive earnings per common share and per common unit using the if-converted method.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

In connection with the offering of Exchangeable Notes, we entered into a registration rights agreement pursuant to which we agreed to register the resale of the shares of our common stock, if any, deliverable upon exchange of the Exchangeable Notes. If certain conditions relating to our obligations under the registration rights agreement are not satisfied, then we will pay additional interest on the Exchangeable Notes, in certain circumstances, at a rate per annum not exceeding 0.5%. In addition, if those conditions are not satisfied after the regular record date immediately preceding the maturity date of Exchangeable Notes, then we will pay an additional interest payment at maturity for an amount equal to 3% of principal of Exchangeable Notes. We account for such additional interest amounts as contingent obligations in accordance with ASC Subtopic 825-20: Financial Instrument - Registration Payment Arrangements, which are measured separately in accordance with ASC Subtopic 450-20: Loss Contingencies. Because payment of such additional interest amounts is not probable as of December 31, 2025, they have not been recognized or included in the allocation of the proceeds from Exchangeable Notes as of December 31, 2025.

Secured and Other Debt

This amount consists of a variety of loans at fixed and floating rates ranging from 3.29% to 14.50%. The largest component of the balance is Teraco debt facilities in the amount of $657.3 million, with an effective interest rate of 10.15%, along with a $135.0 million mortgage loan for the Company’s Westin building in Seattle – which bears interest at 3.29%. The loan bearing interest ranging from 11.65% to 14.50% is an unsecured loan with a balance of approximately $18.2 million.

Earnings per Common Share or Unit

The following is a summary of basic and diluted income per share/unit (in thousands, except per share/unit amounts):

Digital Realty Trust, Inc. Earnings per Common Share


	Year Ended December 31,
	2025			2024			2023
Numerator:
Net income available to common stockholders	$	1,267,865		$	561,766		$	908,114
Loss attributable to redeemable noncontrolling interest (1)		(22,593)			(27,059)			(18,093)
Net income available to common stockholders - diluted EPS		1,245,272			534,707			890,021

Denominator:
Weighted average shares outstanding—basic		339,807			323,336			298,603
Potentially dilutive common shares:
Unvested incentive units		110			98			118
Unvested restricted stock		30			44			9
Forward equity offering		—			—			248
Market performance-based awards		229			271			112
Redeemable noncontrolling interest shares (1)		7,634			7,798			9,975
Weighted average shares outstanding—diluted		347,810			331,547			309,065
Income per share:
Basic	$	3.73		$	1.74		$	3.04
Diluted	$	3.58		$	1.61		$	2.88

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Digital Realty Trust, L.P. Earnings per Unit


	Year Ended December 31,
	2025			2024			2023
Numerator:
Net income available to common unitholders	$	1,295,865		$	574,466		$	928,824
Loss attributable to redeemable noncontrolling interest (1)		(22,593)			(27,059)			(18,093)
Net income available to common unitholders - diluted EPS		1,273,272			547,407			910,731

Denominator:
Weighted average units outstanding—basic		345,717			329,485			304,651
Potentially dilutive common units:
Unvested incentive units		110			98			118
Unvested restricted units		30			44			9
Forward equity offering		—			—			248
Market performance-based awards		229			271			112
Redeemable noncontrolling interest shares (1)		7,634			7,798			9,975
Weighted average units outstanding—diluted		353,720			337,696			315,113
Income per unit:
Basic	$	3.75		$	1.74		$	3.05
Diluted	$	3.60		$	1.62		$	2.89

(1)

Pursuant to the Put/Call Agreement with the Rollover Shareholders who remained after the Teraco Acquisition, the Rollover Shareholders have a put right on the Remaining Interest of Teraco that can be settled by the Company in Digital Realty Trust, Inc. shares, in cash, or a combination of cash and shares. Under U.S. GAAP, diluted earnings per share must be reflected in a manner that assumes such put right was exercised at the beginning of the respective periods and settled entirely in shares. The amounts shown represent the redemption value of the Remaining Interest of Teraco divided by Digital Realty Trust, Inc.’s average share price for the respective periods. The put right is exercisable by the Rollover Shareholders for a two-year period commencing on February 1, 2026. For additional information regarding the defined terms used above, see Note 13. “Equity and Capital” to Consolidated Financial Statements contained herein.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

In November 2024, Digital Realty Trust, L.P. issued $1.2 billion principal amount of its 1.875% Exchangeable Senior Notes due 2029 (the “Exchangeable Notes”). Net proceeds from the offering were approximately $1.1 billion after deducting managers’ discounts and offering expenses. As of December 31, 2025, the holders of the Exchangeable Notes will have an option on or after August 15, 2029, or at an earlier date under certain circumstances, to exchange the notes. The Company must always cash settle the principal amount of the Exchangeable Notes, while any excess may be settled via cash, common shares or a combination at the election of the Company. Accordingly, the Company applies the if converted method to determine the dilutive impact on EPS related to the Exchangeable Notes. There is no interest expense adjustment to the numerator as the principal will always be cash settled. In order to compute the dilutive effect, the number of shares included in the denominator of diluted EPS is determined by dividing the “conversion spread value” of the share-settled portion (value above principal and interest component) of the instrument by the average share price during the period. The “conversion spread value” is the value that would be delivered to the holders in shares based on the terms of the Exchangeable Notes upon an assumed conversion. As of December 31, 2025, the conversion spread value is currently zero, since the weighted average price of our common stock does not exceed the conversion rate (strike price) and is “out-of-the-money”, resulting in no impact on diluted EPS.

The table below shows the securities that would be antidilutive or not dilutive to the calculation of earnings per share and unit. Common units of the Operating Partnership not owned by Digital Realty Trust, Inc. were excluded only from the calculation of earnings per share as they are not applicable to the calculation of earnings per unit. All other securities shown below were excluded from the calculation of both earnings per share and earnings per unit (in thousands).


	Year Ended December 31,
	2025		2024		2023
Exchangeable Notes	6,624		6,624		—
Weighted average of Operating Partnership common units not owned by Digital Realty Trust, Inc.	5,910		6,149		6,048
Potentially dilutive Series J Cumulative Redeemable Preferred Stock	1,254		1,298		1,794
Potentially dilutive Series K Cumulative Redeemable Preferred Stock	1,319		1,365		1,887
Potentially dilutive Series L Cumulative Redeemable Preferred Stock	2,164		2,238		3,095
Total	17,271		17,674		12,824

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Income Taxes

Digital Realty Trust, Inc. has elected to be treated and believes that it has been organized and has operated in a manner that has enabled it to qualify as a REIT for U.S. federal income tax purposes. As a REIT, Digital Realty Trust, Inc. is generally not subject to corporate level U.S. federal income taxes on taxable income distributed currently to its stockholders. Since inception, Digital Realty Trust, Inc. has distributed at least 100% of its taxable income annually. As such, no provision for U.S. federal income taxes has been included in the Company’s accompanying Consolidated Financial Statements for the years ended December 31, 2025, 2024 and 2023.

The Operating Partnership is a partnership and is generally not required to pay U.S. federal income tax. Instead, taxable income is allocated to its partners, who include such amounts on their U.S. federal income tax returns. As such, no provision for U.S. federal income taxes has been included in the Operating Partnership’s accompanying Consolidated Financial Statements.

We have elected taxable REIT subsidiary (“TRS”) status for some of our consolidated subsidiaries. In general, a TRS may provide services that would otherwise be considered impermissible for REITs to provide and may hold assets that REITs cannot hold directly. Income taxes for TRS entities were accrued, as necessary, for the years ended December 31, 2025, 2024 and 2023.

For our TRS entities and foreign subsidiaries that are subject to U.S. federal, state, local and foreign income taxes, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe it is more likely than not that the deferred tax asset may not be realized, based on available evidence at the time the determination is made. An increase or decrease in the valuation allowance that results from the change in circumstances that causes a change in our judgment about the realizability of the related deferred tax asset is included in the income statement. Deferred tax assets (net of valuation allowance) and liabilities for our TRS entities and foreign subsidiaries were accrued, as necessary, for the years ended December 31, 2025, 2024 and 2023.

Income (loss) from continuing operations before income taxes is attributable to the following geographic locations (in thousands):


	Year Ended December 31,
	2025
Domestic	$	1,518,286
Foreign		(173,079)
Income from continuing operations before provision for income taxes	$	1,345,207

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Income tax expense (benefit) from continuing operations consists of the following components (in thousands):


	Year Ended December 31,
	2025
Current:
Federal	$	—
State and local		2,564
Foreign		130,561
Total current income tax expense (benefit)		133,125

Deferred:
Federal		(34)
State and local		—
Foreign		(101,051)
Total deferred income tax expense (benefit)		(101,085)

Total income tax expense (benefit)	$	32,040

The reconciliation of the tax provision at the U.S. federal statutory rate to income tax expense is as follows (in thousands):


	Year Ended December 31,
	2025
Earnings from continuing operations, before income tax expense	$	1,345,207

U. S. Federal Statutory Tax Rate		282,493	21.00	%
United States
State and Local Income Taxes(1)		2,482	0.18	%
Nontaxable or Nondeductible Items
US REIT Status		(318,874)	(23.70)	%
Other Adjustments		21	—	%
Germany		—	—
Changes in tax laws or rates enacted in the current period		(22,820)	(1.70)	%
Other		27,500	2.04	%
Netherlands
Valuation Allowance		16,210	1.21	%
Other		(1,729)	(0.13)	%
Other Foreign Jurisdictions		18,088	1.35	%
Changes in Unrecognized Tax Benefits		28,669	2.13	%
Income Tax Expense	$	32,040	2.38	%

(1)	State taxes in Oregon made up the majority (greater than 50%) of the tax effect in this category.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Income taxes paid (net of refunds) consist of the following components (in thousands):


	Year Ended December 31,
	2025
Federal	$	—
State		1,630
Foreign		111,398
Total	$	113,028

Income taxes paid (net of refunds) exceeded 5% of total in the following jurisdictions (in thousands):


	Year Ended December 31,
	2025
Foreign
Austria	$	6,463
Germany(1)		60,006
Singapore		14,690
South Africa		8,089
Spain		6,076

(1)	Germany income tax paid mainly represents prior year tax liability, net of refunds that were paid during the current year..

As of December 31, 2025 and 2024, we had deferred tax liabilities net of deferred tax assets of approximately $1,110.9 million and $1,081.1 million, respectively, primarily related to our foreign properties, classified within Other assets (deferred tax assets) and separately stated Deferred tax liabilities in the consolidated balance sheets. The majority of our net deferred tax liability relates to differences between foreign tax basis and book basis of the assets acquired in the Teraco Acquisition in August 2022 and Interxion Combination in March 2020. The valuation allowance against the deferred tax assets as of December 31, 2025 and 2024 relate primarily to net operating loss carryforwards, nondeductible interest expense carryforwards and hybrid attributes that we do not expect to utilize attributable to certain foreign jurisdictions.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Deferred income tax assets and liabilities as of December 31, 2025 and 2024 were as follows (in thousands):


		2025			2024
Gross deferred income tax assets:
Net operating loss carryforwards		$	262,543		$	197,039
Basis difference - real estate property			28,776			17,363
Basis difference - intangibles			14,008			12,561
Tax credit carryforward			2,899			2,407
Capital loss carryforward			124			—
Other - temporary differences			295,316			237,342
Total gross deferred income tax assets			603,666			466,711
Valuation allowance			(296,590)			(213,984)
Total deferred income tax assets, net of valuation allowance			307,076			252,728
Gross deferred income tax liabilities:
Basis difference - real estate property			1,217,185			1,138,120
Basis difference - intangibles			171,407			175,267
Basis difference - equity investments			3			—
Straight line rent			13,664			9,970
Other - temporary differences			15,751			10,466
Total gross deferred income tax liabilities			1,418,010			1,333,822
Net deferred income tax liabilities(1)		$	1,110,934		$	1,081,094

(1)	Net of deferred tax assets of $13.8 million and $3.5 million for the years ended December 31, 2025 and 2024, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows (in thousands):


	Year Ended December 31,
	2025
Balance at January 1	$	40,026
Additions based on tax positions related to the current year		20,838
Additions based on tax positions related to the prior year		5,411
Reductions for tax positions of prior years		—
Lapse of statue of limitation		—
Settlements with taxing authorities		(1,751)
Balance at December 31	$	64,524

There is approximately $19 million of unrecognized tax benefit that if recognized would affect the effective tax rate.

We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. During the year ended December 31, 2025, we recorded approximately $4 million of interest and penalties through the income tax provision, prior to any reversals for lapses of statutes of limitations and settlements. As of the year ended December 31, 2025, we had accumulated interest and penalties of approximately $5 million attributable to the unrecognized tax benefits.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

As of December 31, 2025, we are under examination for taxable year ended 2021 within the United States. Additionally, we are under examination for various taxable years ended 2017 onward within various foreign jurisdictions.

As a result of operating as a REIT, we conduct business through domestic and foreign TRSs, as well as other foreign subsidiaries and foreign corporate joint ventures. For foreign subsidiaries, no deferred tax liability has been recorded on potential basis difference as the Company expects any U.S. federal tax liability to be immaterial. We continue to assess foreign withholding taxes but do not expect future distributions to trigger significant withholding tax liabilities. The amount of the unrecognized deferred tax liabilities is not practicably determinable due to ongoing decisions regarding future distribution treatment.

Equity and Capital

Equity Distribution Agreement

Digital Realty Trust, Inc. and Digital Realty Trust, L.P. are parties to an ATM Equity OfferingSM Sales Agreement dated December 23, 2024 (the “2024 Sales Agreement”). Pursuant to the 2024 Sales Agreement, Digital Realty Trust, Inc. can issue and sell common stock having an aggregate offering price of up to $3.0 billion through various named agents from time to time.

During the year ended December 31, 2025, Digital Realty Trust, Inc. generated net proceeds of approximately $1.1 billion from the issuance of approximately 6.4 million common shares under the 2024 Sales Agreement at an average price of $173.09 per share after payment of approximately $6.8 million of commissions to the agents. The proceeds from the issuances under the 2024 Sales Agreement for the year ended December 31, 2025, were contributed to our Operating Partnership in exchange for the issuance of approximately 6.4 million common units to our Parent Company. As of December 31, 2025, $1.9 billion remains available for future sales under the 2024 Sales Agreement.

Digital Realty Trust, Inc. and Digital Realty Trust, L.P. were parties to an ATM Equity OfferingSM Sales Agreement dated August 4, 2023 (the “2023 Sales Agreement”). Pursuant to the 2023 Sales Agreement, Digital Realty Trust, Inc. could issue and sell common stock having an aggregate offering price of up to $1.5 billion through various named agents from time to time. From January 1, 2024 through February 23, 2024, Digital Realty Trust, Inc. generated net proceeds of approximately $99 million from the issuance of approximately 0.6 million common shares under the 2023 Sales Agreement at an average price of $133.43 per share after payment of approximately $0.6 million of commissions to the agents. The proceeds from the issuances under the 2023 Sales Agreement for the year ended December 31, 2024, were contributed to our Operating Partnership in exchange for the issuance of approximately 0.6 million common units to our Parent Company. The 2023 Sales Agreement was amended on February 23, 2024 (the “Sales Agreement Amendment”). At the time of the amendment, $258.3 million remained unsold under the 2023 Sales Agreement. Following the Sales Agreement Amendment, Digital Realty Trust, Inc. could issue and sell common stock having an aggregate offering price of up to $2.0 billion through various named agents from time to time pursuant to the 2023 Sales Agreement. During the year ended December 31, 2024, Digital Realty Trust, Inc. generated net proceeds of approximately $1.9 billion from the issuance of approximately 11.4 million common shares under the 2023 Sales Agreement at an average price, net of commissions, of $166.85 per share. Commissions to the agents amounted to approximately $17.4 million. The proceeds from the issuances under the 2023 Sales Agreement for the year ended December 31, 2024, were contributed to our Operating Partnership in exchange for the issuance of approximately 11.4 million common units to our Parent Company.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

The sales of common stock made under the 2024 Sales Agreement will be made in “at the market” offerings as defined in Rule 415 of the Securities Act. Our Parent has used and intends to use the net proceeds from the program to temporarily repay borrowings under our Operating Partnership’s Global Revolving Credit Facilities, to acquire additional properties or businesses, to fund development opportunities and for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption or retirement of outstanding debt securities.

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interest (“Redeemable NCI”) — As part of the Teraco Acquisition, the Company and certain of its subsidiaries entered into a put/call agreement with the owners of the interest in Teraco that was not acquired by the Company (the “Put/Call Agreement”). The interest retained by these owners is hereafter referred to as the “Remaining Teraco Interest” and the owners of such interest are hereafter referred to as the “Rollover Shareholders”. Pursuant to the Put/Call Agreement, the Rollover Shareholders have the right to sell all or a portion of the Remaining Teraco Interest to the Company for a two-year period beginning on February 1, 2026, and the Company has the right to purchase all or a portion of the Remaining Teraco Interest from the Rollover Shareholders for a one-year period beginning on February 1, 2028. Per the terms of the agreement, the purchase price of the Remaining Teraco Interest for the put right and the call right can be settled by the Company with cash, shares in the Company, or a combination of cash and shares. In the event the Company elects to settle a put or call in whole or in part with shares of Digital Realty Trust, Inc.’s common stock, such shares will be issued in a private placement transaction with customary accompanying registration rights.

Since the Rollover Shareholders can redeem the put right at their discretion and such redemption, which could be in cash, is outside the Company’s control, the Company recorded the noncontrolling interest as Redeemable NCI and classified it in temporary equity within its consolidated balance sheets. The Redeemable NCI was initially recorded at its acquisition-date fair value and will be adjusted each reporting period for income (or loss) attributable to the noncontrolling interest ($22.6 million and $27.1 million net loss for the years ended December 31, 2025 and 2024, respectively). If the contractual redemption value of the Redeemable NCI is greater than its carrying value, an adjustment is made to reflect Redeemable NCI at the higher of its contractual redemption value or its carrying value each reporting period. Changes to the redemption value are recognized immediately in the period the change occurs. If the redemption value of the Redeemable NCI is equal to or less than the fair market value of the Remaining Teraco Interest, the change in the redemption value will be adjusted through Additional Paid in Capital. If the redemption value is greater than the fair market value of the Remaining Teraco Interest, the change in redemption value will be adjusted through Retained Earnings. These adjustments are not reflected on the Company’s income statement, but are instead reflected as adjustments to the net income component of the Company’s earnings per share calculations. When calculating earnings per share attributable to Digital Realty Trust, Inc., the Company adjusts net income attributable to Digital Realty Trust, Inc. to the extent the redemption value exceeds the fair value of the Redeemable NCI on a cumulative basis.

For the year ended December 31, 2024, we made an adjustment of approximately $91.9 million to Redeemable NCI as the contractual redemption value of the Redeemable NCI was greater than its carrying value. For the year ended December 31, 2025, we reversed the previous year's adjustment of $91.9 million as the carrying value was greater than the contractual redemption value. The change in the redemption value was adjusted through Additional Paid in Capital. For the year ended December 31, 2023, no such adjustment was required.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Redeemable Preferred Stock

The Company has issued and outstanding the following series of cumulative redeemable preferred stock, which are governed by the articles supplementary for the applicable series of preferred stock as of December 31, 2025 and 2024 (in thousands, except for share cap and annual dividend rate).



								Total			Annual			Shares Outstanding as of				Balance (net of issuance costs)
		Date(s)		Initial Date to				Liquidation			Dividend			December 31,				as of December 31,
Preferred Stock (1)		Issued		Redeem (2)		Share Cap (3)		Value (4)			Rate (5)			2025		2024		2025			2024
5.250% Series J Cumulative Redeemable Preferred Stock		Aug 7, 2017		Aug 7, 2022		0.4252100		$	200,000			1.31250		8,000		8,000		$	193,540		$	193,540
5.850% Series K Cumulative Redeemable Preferred Stock		Mar 13, 2019		Mar 13, 2024		0.4361100			210,000			1.46250		8,400		8,400			203,264			203,264
5.200% Series L Cumulative Redeemable Preferred Stock		Oct 10, 2019		Oct 10, 2024		0.3851800			345,000			1.30000		13,800		13,800			334,886			334,886
								$	755,000					30,200		30,200		$	731,690		$	731,690

(1)

All series of preferred stock do not have a stated maturity date and are not subject to any sinking fund or mandatory redemption provisions. Upon liquidation, dissolution or winding up, each series of preferred stock will rank senior to Digital Realty Trust, Inc. common stock and on parity with the other series of preferred stock. Holders of each series of preferred stock generally have no voting rights except for limited voting rights if Digital Realty Trust, Inc. fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances.

(2)	Except in limited circumstances, reflects earliest date that Digital Realty Trust, Inc. may exercise its option to redeem the preferred stock, at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to but excluding the date of redemption.

(3)

Upon the occurrence of specified changes of control, as a result of which neither Digital Realty Trust, Inc.’s common stock nor the common securities of the acquiring or surviving entity (or American Depositary Receipts representing such securities) is listed on the New York Stock Exchange, the NYSE MKT, LLC or the NASDAQ Stock Market or listed or quoted on a successor exchange or quotation system, each holder of preferred stock will have the right (unless, prior to the change of control conversion date specified in the applicable Articles Supplementary governing the preferred stock, Digital Realty Trust, Inc. has provided or provides notice of its election to redeem the preferred stock) to convert some or all of the preferred stock held by it into a number of shares of Digital Realty Trust, Inc.’s common stock per share of preferred stock to be converted equal to the lesser of (i) the quotient obtained by dividing (a) the sum of the $25.00 liquidation preference plus the amount of any accrued and unpaid dividends to, but not including, the change of control conversion date (unless the change of control conversion date is after a record date for a preferred stock dividend payment and prior to the corresponding dividend payment date, in which case no additional amount for such accrued and unpaid dividend will be included in this sum) by (b) the common stock price specified in the applicable Articles Supplementary governing the preferred stock; and (ii) the Share Cap, subject to certain adjustments; subject, in each case, to provisions for the receipt of alternative consideration as described in the applicable Articles Supplementary governing the preferred stock. Except in connection with specified change of control transactions, the preferred stock is not convertible into or exchangeable for any other property or securities of Digital Realty Trust, Inc.

(4)	Liquidation preference is $25.00 per share.

(5)	Dividends on preferred shares are cumulative and payable quarterly in arrears.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Noncontrolling Interests in Operating Partnership

Noncontrolling interests in the Operating Partnership relate to the proportion of entities consolidated by the Company that are owned by third parties. The following table shows the ownership interest in the Operating Partnership as of December 31, 2025 and 2024:


		December 31, 2025				December 31, 2024
		Number of		Percentage of		Number of		Percentage of
(Units in thousands)		units		total		units		total
Digital Realty Trust, Inc.		343,557		98.2	%	336,637		98.2	%
Noncontrolling interests consist of:
Common units held by third parties		4,045		1.2	%	4,049		1.2	%
Incentive units held by employees and directors (see Note 15. ''Incentive Plans'')		2,144		0.6	%	2,086		0.6	%
		349,746		100.0	%	342,772		100.0	%

Limited partners have the right to require the Operating Partnership to redeem all or a portion of their common units for cash based on the fair market value of an equivalent number of shares of Digital Realty Trust, Inc. common stock at the time of redemption. Alternatively, Digital Realty Trust, Inc. may elect to acquire those common units in exchange for shares of its common stock on a one-for-one basis, subject to adjustment in the event of stock splits, stock dividends, issuance of stock rights, specified extraordinary distributions and similar events. The common units and incentive units of the Operating Partnership are classified within equity, except for certain common units issued to certain former DuPont Fabros Technology, L.P. unitholders in the Company’s acquisition of DuPont Fabros Technology, Inc., which are subject to certain restrictions and, accordingly, are not presented as permanent equity in the consolidated balance sheets.

The redemption value of the noncontrolling Operating Partnership common units and the vested incentive units was approximately $952.5 million and $1,090.4 million based on the closing market price of Digital Realty Trust, Inc. common stock on December 31, 2025 and December 31, 2024, respectively.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

The following table shows activity for the noncontrolling interests in the Operating Partnership for the years ended December 31, 2025 and 2024:


(Units in thousands)		Common Units		Incentive Units		Total
As of December 31, 2023		4,343		2,106		6,449
Conversion of incentive units held by employees and directors for shares of Digital Realty Trust, Inc. common stock (1)		(294)		(259)		(553)
Incentive units issued upon achievement of market performance condition		—		88		88
Grant of incentive units to employees and directors		—		155		155
Cancellation / forfeitures of incentive units held by employees and directors		—		(4)		(4)
As of December 31, 2024		4,049		2,086		6,135
Conversion of incentive units held by employees and directors for shares of Digital Realty Trust, Inc. common stock (1)		(4)		(171)		(175)
Incentive units issued upon achievement of market performance condition		—		68		68
Grant of incentive units to employees and directors		—		165		165
Cancellation / forfeitures of incentive units held by employees and directors		—		(4)		(4)
As of December 31, 2025		4,045		2,144		6,189

(1)	These redemptions and conversions were recorded as a reduction to noncontrolling interests in the Operating Partnership and an increase to common stock and additional paid in capital based on the book value per unit in the accompanying consolidated balance sheets of Digital Realty Trust, Inc.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Dividends and Distributions

Digital Realty Trust, Inc. Dividends

We have declared and paid the following dividends on our common and preferred stock for the years ended December 31, 2025, 2024 and 2023 (in thousands, except per share data):


				Series J			Series K			Series L
				Preferred			Preferred			Preferred		Common
Date dividend declared		Dividend payment date		Stock			Stock			Stock		Stock(1)

February 22, 2023		March 31, 2023		$	2,625		$	3,071		$	4,485	$	356,214
May 24, 2023		June 30, 2023			2,625			3,071			4,485		365,937
August 8, 2023		September 29, 2023			2,625			3,071			4,485		370,278
November 28, 2023		December 29, 2023 for Preferred Stock; January 19, 2024 for Common Stock			2,625			3,071			4,485		380,019
				$	10,500		$	12,284		$	17,940	$	1,472,448

February 28, 2024		March 28, 2024		$	2,625		$	3,071		$	4,485	$	382,208
May 8, 2024		June 28, 2024			2,625			3,071			4,485		397,429
August 7, 2024		September 30, 2024			2,625			3,071			4,485		400,659
November 4, 2024		December 31, 2024 for Preferred Stock; January 17, 2025 for Common Stock			2,625			3,071			4,485		410,831
				$	10,500		$	12,284		$	17,940	$	1,591,127

February 26, 2025		March 31, 2025		$	2,625		$	3,071		$	4,485	$	411,925
May 29, 2025		June 30, 2025			2,625			3,071			4,485		415,365
August 11, 2025		September 30, 2025			2,625			3,071			4,485		418,525
November 3, 2025		December 31, 2025 for Preferred Stock; January 16, 2026 for Common Stock			2,625			3,071			4,485		420,687
				$	10,500		$	12,284		$	17,940	$	1,666,502
Annual rate of dividend per share				$	1.31250		$	1.46250		$	1.30000	$	4.88000

(1)	$4.880 annual rate of dividend per share.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Digital Realty Trust, L.P. Distributions

All distributions on the Operating Partnership’s units are at the discretion of Digital Realty Trust, Inc.’s Board of Directors. The table below shows the distributions declared and paid by the Operating Partnership on its common and preferred units for years ended December 31, 2025, 2024 and 2023, (in thousands, except for per unit data):


				Series J			Series K		Series L
				Preferred			Preferred		Preferred		Common
Date distribution declared		Distribution payment date		Units			Units		Units		Units(1)

February 22, 2023		March 31, 2023		$	2,625		$	3,071	$	4,485	$	364,204
May 24, 2023		June 30, 2023			2,625			3,071		4,485		373,833
August 8, 2023		September 29, 2023			2,625			3,071		4,485		378,352
November 28, 2023		December 29, 2023 for Preferred Units; January 19, 2024 for Common Units			2,625			3,071		4,485		387,988
				$	10,500		$	12,284	$	17,940	$	1,504,377

February 28, 2024		March 28, 2024		$	2,625		$	3,071	$	4,485	$	390,356
May 8, 2024		June 28, 2024			2,625			3,071		4,485		405,421
August 7, 2024		September 30, 2024			2,625			3,071		4,485		408,577
November 4, 2024		December 31, 2024 for Preferred Units; January 17, 2025 for Common Units			2,625			3,071		4,485		418,665
				$	10,500		$	12,284	$	17,940	$	1,623,019

February 26, 2025		March 31, 2025		$	2,625		$	3,071	$	4,485	$	419,771
May 29, 2025		June 30, 2025			2,625			3,071		4,485		423,116
August 11, 2025		September 30, 2025			2,625			3,071		4,485		426,194
November 3, 2025		December 31, 2025 for Preferred Units; January 16, 2026 for Common Units			2,625			3,071		4,485		428,337
				$	10,500		$	12,284	$	17,940	$	1,697,418
Annual rate of distribution per unit				$	1.31250		$	1.46250	$	1.30000	$	4.88000

(1)	$4.880 annual rate of distribution per unit.

For U.S. federal income tax purposes, distributions out of Digital Realty Trust, Inc.’s current or accumulated earnings and profits are generally classified as dividends, whereas distributions in excess of its current and accumulated earnings and profits are generally classified as a return of capital to the extent of a stockholder’s tax basis in Digital Realty Trust, Inc.’s stock. Distributions in excess of a stockholder’s tax basis in Digital Realty Trust, Inc.’s stock are generally characterized as capital gain. Cash provided by operating activities has generally been sufficient to fund all distributions. However, in the future we may also need to utilize borrowings under the Global Revolving Credit Facility to fund all or a portion of distributions.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

14. Accumulated Other Comprehensive Income (Loss), Net

The accumulated balances for each item within Accumulated other comprehensive income (loss) are shown below (in thousands) for Digital Realty Trust, Inc. and separately for Digital Realty Trust, L.P:

Digital Realty Trust, Inc.


		Foreign currency			Increase (decrease) in			Accumulated other
		translation			fair value of derivatives,			comprehensive
		adjustments			net of reclassification			income (loss), net
Balance as of December 31, 2023		$	(638,583)		$	(112,810)		$	(751,393)
Net current period change			(551,066)			120,176			(430,890)
Balance as of December 31, 2024		$	(1,189,649)		$	7,366		$	(1,182,283)
Net current period change			696,975			16,110			713,085
Balance as of December 31, 2025		$	(492,674)		$	23,476		$	(469,198)

Digital Realty Trust, L.P.


		Foreign currency			Increase (decrease) in			Accumulated other
		translation			fair value of derivatives,			comprehensive
		adjustments			net of reclassification			income (loss)
Balance as of December 31, 2023		$	(656,063)		$	(116,605)		$	(772,668)
Net current period change			(562,349)			122,650			(439,699)
Balance as of December 31, 2024		$	(1,218,412)		$	6,045		$	(1,212,367)
Net current period change			710,599			16,426			727,025
Balance as of December 31, 2025		$	(507,813)		$	22,471		$	(485,342)

Incentive Plans

2014 Incentive Award Plan

The Company provides incentive awards in the form of common stock or awards convertible into common stock pursuant to the Digital Realty Trust, Inc., Digital Services, Inc. and Digital Realty Trust, L.P. 2014 Incentive Award Plan, as amended (the “Incentive Plan”). The major categories of awards that can be issued under the Incentive Plan include:

Long-Term Incentive Units (“LTIP Units”)****: LTIP Units, in the form of profits interest units of the Operating Partnership, may be issued to eligible participants for the performance of services to or for the benefit of the Operating Partnership. LTIP Units (other than Class D units), whether vested or not, receive the same quarterly per-unit distributions as Operating Partnership common units. Initially, LTIP Units do not have full parity with common units with respect to liquidating distributions. However, if such parity is reached, vested LTIP Units may be converted into an equal number of common units of the Operating Partnership at any time. The awards generally vest over periods between two and four years.

Service-Based Restricted Stock Units**:** Service-based restricted stock units covering shares of Digital Realty Trust, Inc. common stock (“Restricted Stock Units”), which vest over periods between two and four years, are settled in shares of Digital Realty Trust, Inc.’s common stock upon vesting.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Performance-Based Awards (“the Performance Awards”)****: Performance-based Class D units of the Operating Partnership and performance-based Restricted Stock Units may be issued to officers and employees of the Company. The Performance Awards include performance-based and time-based vesting criteria. Depending on the type of award, the total number of units that qualify to fully vest is determined based on either a market performance criterion (“Market-Based Performance Awards”) or financial performance criterion (“Financial-Based Performance Awards”), in each case, subject to time-based vesting.

Market-Based Performance Awards.

The market performance criterion compares Digital Realty Trust, Inc.’s total stockholder return (“TSR”) relative to the MSCI US REIT Index (“RMS”) over a three-year performance period (“Market Performance Period”), subject to continued service, in order to determine the percentage of the total eligible pool of units that qualifies to be awarded. Following the completion of the Market Performance Period, the awards then have a time-based vesting element pursuant to which 50% of the performance-vested units will fully vest in the February immediately following the end of the Market Performance Period and 50% of the performance-vested units will fully vest in the subsequent February.

Vesting with respect to the market condition is measured based on the difference between Digital Realty Trust, Inc.’s TSR percentage and the TSR percentage of the RMS as is shown in the subsequent table (the “RMS Relative Market Performance”).


		Market
		Performance
	RMS Relative	Vesting
Level	Market Performance	Percentage
Below Threshold Level	≤ -500 basis points	0	%
Threshold Level	-500 basis points	25	%
Target Level	0 basis points	50	%
High Level	≥ 500 basis points	100	%

If the RMS Relative Market Performance falls between the levels specified in the above table, the percentage of the award that will vest with respect to the market condition will be determined using straight-line linear interpolation between such levels.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Following the completion of the applicable Market Performance Period, the Talent and Compensation Committee made the following determinations regarding the vesting of these awards.

2023 Awards

	●	In January 2026 the RMS Relative Market Performance was achieved at the high level of performance and, accordingly, 93,116 Class D units and 5,450 Restricted Stock Units performance vested and qualified for time-based vesting.

	●	The Class D units included 9,820 distribution equivalent units that immediately vested on December 31, 2025.

	●	On February 27, 2026, 50% of the 2023 awards will vest and the remaining 50% will vest on February 27, 2027, subject to continued employment through the applicable vesting date.

2022 Awards

	●	In January 2025 the RMS Relative Market Performance was achieved at the high level of performance and, accordingly, 61,661 Class D units and 5,654 Restricted Stock Units performance vested and qualified for time-based vesting.

	●	The Class D units included 6,997 distribution equivalent units that immediately vested on December 31, 2024.

	●	On February 27, 2025, 50% of the 2022 awards vested and the remaining 50% will vest on February 27, 2026, subject to continued employment through the applicable vesting date.

2021 Awards

	●	In January 2024, the RMS Relative Market Performance fell between the threshold and target level for the 2021 awards and, accordingly, 71,926 Class D units and 7,066 Restricted Stock Units performance vested and qualified for time-based vesting.

	●	The Class D units included 5,131 distribution equivalent units that immediately vested on December 31, 2023.

	●	On February 27, 2024, 50% of the 2021 awards vested and the remaining 50% vested on February 27, 2025, subject to continued employment through the applicable vesting date.

Financial-Based Performance Awards.

On January 1, 2025, the Company granted Financial-Based Performance Awards, which vest based on growth in same-store cash net operating income during the three-year period commencing on January 1, 2025. The awards have a time-based vesting element consistent with the Market-Based Performance Awards discussed above. For these awards, fair value is based on market value on the date of grant and compensation cost is recognized based on the probable achievement of the performance condition at each reporting period. The grant date fair value of these awards was $12.3 million, based on Digital Realty Trust, Inc.’s closing stock price at the grant date.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

On January 1, 2024, the Company granted Financial-Based Performance Awards, which vest based on growth in same-store cash net operating income during the three-year period commencing on January 1, 2024. The awards have a time-based vesting element consistent with the Market-Based Performance Awards discussed above. For these awards, fair value is based on market value on the date of grant and compensation cost is recognized based on the probable achievement of the performance condition at each reporting period. The grant date fair value of these awards was $9.8 million, based on Digital Realty Trust, Inc.’s closing stock price at the grant date.

On April 8, 2023, the Company granted Financial-Based Performance Awards, which vest based on growth in same-store cash net operating income during the three-year period commencing on January 1, 2023. The awards have a time-based vesting element consistent with the Market-Based Performance Awards discussed above. For these awards, fair value is based on market value on the date of grant and compensation cost is recognized based on the probable achievement of the performance condition at each reporting period. The grant date fair value of these awards was $8.1 million, based on Digital Realty Trust, Inc.’s closing stock price at the grant date.

Fair Value of Market Performance-Based Awards

The fair values of the Performance Awards granted were measured using a Monte Carlo simulation to estimate the probability of the market vesting condition being satisfied. The Monte Carlo simulation is a probabilistic technique based on the underlying theory of the Black-Scholes formula, which was run for 100,000 trials to determine the fair value of the awards. For each trial, the payoff to an award is calculated at the settlement date and is then discounted to the grant date at a risk-free interest rate. The total expected value of the awards on the grant date was determined by multiplying the average value per award over all trials by the number of awards granted. Assumptions used in the valuations are summarized as follows:


		Expected Stock Price		Risk-Free Interest
Award Date		Volatility		rate
January 1, 2023		32	%	4.18	%
January 1, 2024		29	%	3.97	%
January 1, 2025		31	%	4.23	%

The expected stock price volatility assumption is calculated based on our historical volatility, which is calculated over a period of time commensurate with the expected term of the awards being valued. The expected dividend yield assumption used in the Monte Carlo simulation represents the percent of return to a stock that is available to the holder of an award. Because the holders of the awards receive dividend equivalents, an expected dividend yield assumption of 0.00% was used in the valuation. These valuations were performed in a risk-neutral framework, and no assumption was made with respect to an equity risk premium.

	●	The grant date fair value of the Performance Awards was approximately $12.3 million, $9.8 million and $8.2 million for years ended December 31, 2025, 2024 and 2023, respectively. We recognize compensation expense on a straight-line basis over the expected service period of approximately four years.

The aggregate intrinsic value of the Performance Awards that vested in 2025, 2024 and 2023 was $13.9 million, $18.5 million and $36.4 million, respectively.

As of December 31, 2025, approximately 2.9 million shares of common stock, including awards that can be converted to or exchanged for shares of common stock, remained available for future issuance under the Incentive Plan.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Each LTIP unit and each Class D unit issued under the Incentive Plan counts as one share of common stock for purposes of calculating the limit on shares that may be issued under the Incentive Plan and the individual award limits set forth therein.

Below is a summary of compensation expense and unearned compensation (in millions):


																										Expected
																										period to
		Deferred Compensation																		Unearned Compensation						recognize
		Expensed									Capitalized									As of			As of			unearned

		Year Ended December 31,																		December 31,			December 31,			compensation
Type of incentive award		2025			2024			2023			2025			2024			2023			2025			2024			(in years)
Long-term incentive units		$	20.0		$	15.5		$	14.5		$	0.2		$	0.1		$	0.2		$	29.0		$	22.1		2.2
Performance-based awards			8.0			12.8			12.9			0.5			0.2			0.2			30.3			24.1		2.2
Service-based restricted stock units			40.2			33.5			27.1			7.9			5.9			7.6			80.7			70.3		2.5

The following table sets forth the weighted-average fair value per share/unit for each type of incentive award at the date of grant for the years ended December 31, 2025, 2024 and 2023:


		Weighted Average Fair Value at Date of Grant
Type of incentive award		2025			2024			2023
Long-term incentive units		$	164.88		$	137.44		$	104.82
Performance-based awards			176.79			134.58			97.06
Restricted stock			159.24			143.98			122.25

Activity for LTIP Units and service-based Restricted Stock Units for the year ended December 31, 2025 is shown below.


				Weighted-Average		Weighted-Average		Aggregate
				Grant Date Fair		Remaining Contractual		Intrinsic Value (1)
Unvested LTIP Units		Units		Value		Life (Years)		(in millions)
Unvested, beginning of period		263,130		$	129.93
Granted		164,541			164.88
Vested		(120,216)			143.26
Cancelled or expired		(3,628)			155.19
Unvested, end of period		303,827		$	148.28		2.2	$	47.0

(1)	The intrinsic value is calculated based on the market value of our common stock as of December 31, 2025.

The grant date fair values, which equal the market price of Digital Realty Trust, Inc. common stock on the applicable grant date(s), are being expensed on a straight-line basis for service awards between two and four years, the current vesting periods of the long-term incentive units.

The aggregate intrinsic value of long-term incentive units that vested in 2025, 2024 and 2023 was $19.1 million, $15.6 million and $18.3 million, respectively. As of December 31, 2025, we had approximately 1.2 million long-term incentive units that were outstanding and exercisable with an aggregate intrinsic value of approximately $189.1 million (based on the market price of our common stock as of December 31, 2025).

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024


				Weighted-Average		Weighted-Average			Aggregate
				Grant Date Fair		Remaining Contractual			Intrinsic Value (1)
Unvested Restricted Stock Units		Shares		Value		Life (Years)			(in millions)
Unvested, beginning of period		591,797		$	145.15
Granted		427,309			159.24
Vested		(341,504)			133.77
Cancelled or expired		(62,945)			136.31
Unvested, end of period		614,657		$	145.77		2.5	$		95.1

(1)	The intrinsic value is calculated based on the market value of our common stock as of December 31, 2025.

The grant date fair values, which equal the market price of Digital Realty Trust, Inc. common stock on the grant date, are expensed on a straight-line basis for service awards over the vesting period of the restricted stock, which is generally four years.

The aggregate intrinsic value of restricted stock that vested in 2025, 2024 and 2023 was $55.3 million, $39.1 million and $41.5 million, respectively.

2025 Carried Interest Plan

On August 27, 2025, the Board of Directors of Digital Realty Trust, Inc. approved the Digital Realty 2025 Carried Interest Plan (the “Carried Interest Plan”), pursuant to which certain employees of the Company, including our named executive officers, will be eligible to receive certain awards with respect to certain strategic capital ventures of the Company (each, a “Vehicle”). The purpose of the Carried Interest Plan is to attract, retain and incentivize certain executives and other employees of the Company in connection with, and to recognize the success of, such investments.

Types of Awards. The Carried Interest Plan provides for the grant of carried interest awards and appreciation interest awards.

	●	Carried Interest Awards. Awards of carried interests under the Carried Interest Plan consist of interests in one or more Vehicles (a “carry vehicle”) holding the right to receive a portion of the carried interest or promote distributions generated from each of the Vehicles. When a carry vehicle receives, directly or indirectly, a distribution of the carried interest or promote (a “Carried Interest Payment Date”), the carry vehicle will distribute the net proceeds to participants holding fully vested carried interest awards in accordance with the Carried Interest Plan and applicable award agreement. The carried interest awards are intended to be treated as “profits interests” for U.S. federal income tax purposes.

	●	Appreciation Interest Awards. Awards of appreciation interests are notional interests granted under the Carried Interest Plan that track the value of a corresponding carried interest award.

Vesting. Awards under the Plan will vest in full upon the satisfaction of both a service condition and a performance condition.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

The service condition will be satisfied with respect to 25% of an award on each of the first four anniversaries of the applicable vesting commencement date, subject to the participant’s continued service through the applicable vesting date. The performance condition will be satisfied with respect to 100% of an award on the first Carried Interest Payment Date on which the applicable performance hurdles for the Vehicle are satisfied (the “Initial Carried Interest Payment Date”).

In the event that the performance condition is satisfied prior to the full satisfaction of the service condition, (i) with respect to any carried interest award, the service condition will accelerate and be deemed fully satisfied upon the date the performance condition is satisfied, subject to the participant’s continued service through such date; and (ii) with respect to any appreciation interest award, the service condition will continue to be eligible to be satisfied on the applicable service condition satisfaction date(s) following the Initial Carried Interest Payment Date, subject to the participant’s continued service through the applicable vesting date.

Payment. Any participant holding a fully vested carried interest award on any Carried Interest Payment Date that occurs with respect to the carry vehicle to which the award relates will be entitled to cash distributions of the carried interest or promote from such carry vehicle. Payments in respect of fully vested appreciation interest awards may be in the form of cash, fully-vested shares of our common stock, fully-vested units in our Operating Partnership or a combination thereof, as determined by the plan administrator. Any shares issued may (or, to the extent required by applicable stock exchange rules, will) be issued under the Incentive Plan or any successor plan. As of December 31, 2025, no amount is anticipated to be paid in the next 12 months.

Individual Payment Limit. In no event may any participant receive aggregate payments or distributions pursuant to awards under the Carried Interest Plan in any calendar year in excess of three times the sum of the participant’s annual base salary rate, target annual bonus and target annual equity award value at the time of payment (or, if a participant is not employed on the payment date, three times the participant’s annual base salary rate, target annual bonus and target annual equity award value as of the day immediately prior to the date on which the participant’s employment terminated).

Award Limit. In no event will more than 50% of the aggregate carried interest or promote distributions made with respect to any Vehicle be paid to participants in respect of awards in the applicable carry vehicle under the Carried Interest Plan. During the year ended December 31, 2025, we have granted 13.75% of the 50% permitted to be granted under the Carried Interest Plan.

Defined Contribution Plans

We have a 401(k) plan whereby our U.S. employees may contribute a portion of their compensation to their respective retirement accounts, in an amount not to exceed the maximum allowed under the Code. The 401(k) plan complies with Internal Revenue Service requirements as a 401(k) safe harbor plan whereby matching contributions made by us are 100% vested. The aggregate cost of our contributions to the 401(k) plan was approximately $10.2 million, $9.4 million, and $6.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. In addition, Interxion has a defined contribution pension plan for most of its employees. Contributions are made in accordance with the terms of such defined contribution pension plan and are expensed as incurred.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

Derivative Instruments

Derivatives Designated as Hedging Instruments

Net Investment Hedges

In September 2022 and November 2024, we entered into cross-currency interest rate swaps, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt in order to hedge the currency exposure associated with our net investment in foreign subsidiaries. As of December 31, 2025 and 2024, we had cross-currency interest rate swaps outstanding with notional amounts of approximately $2.3 billion and maturity dates ranging through 2029.

The effect of these net investment hedges on accumulated other comprehensive loss and the consolidated income statements for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):


		Year Ended December 31,
		2025			2024			2023
Cross-currency interest rate swaps (included component) (1)		$	(240,789)		$	136,880		$	(22,703)
Cross-currency interest rate swaps (excluded component) (2)			51,053			(22,841)			(25,428)
Total		$	(189,736)		$	114,039		$	(48,131)

	Location of	Year Ended December 31,
	gain or (loss)	2025			2024			2023
Cross-currency interest rate swaps (excluded component) (2)	Interest expense	$	26,944		$	25,037		$	21,836

(1)	Included component represents foreign exchange spot rates.

(2)	Excluded component represents cross-currency basis spread and interest rates.

Cash Flow Hedges

As of December 31, 2025, we had derivatives designated as cash flow hedges on 100% of the Euro Term Loan Facilities (€375 million notional amount). Amounts reported in Accumulated other comprehensive loss related to interest rate swaps are reclassified to interest expense as interest payments are made on our debt. As of December 31, 2025, we estimate that an additional $0.2 million will be reclassified as a decrease to interest expense during the year ending December 31, 2026, when the hedged forecasted transactions impact earnings.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

The effect of these cash flow hedges on accumulated other comprehensive loss and the consolidated income statements for the years ended December 31, 2025, 2024 and 2023, was as follows (in thousands):


	Year Ended December 31,
	2025			2024			2023
Interest rate swaps	$	(3,805)		$	(5,439)		$	(7,221)


	Location of	Year Ended December 31,
	gain or (loss)	2025			2024			2023
Interest rate swaps	Interest expense	$	(893)		$	15,027		$	10,953

Fair Value of Derivative Instruments

The subsequent table presents the fair value of derivative instruments recognized in our consolidated balance sheets as of December 31, 2025 and 2024 (in thousands):


		December 31, 2025						December 31, 2024
		Assets (1)			Liabilities (2)			Assets (1)			Liabilities (2)
Cross-currency interest rate swaps		$	30,093		$	262,543		$	32,883		$	75,597
Interest rate swaps			5,865			29,443			6,130			11,253
		$	35,958		$	291,986		$	39,013		$	86,850

(1)	As presented in our consolidated balance sheets within Other assets.

(2)	As presented in our consolidated balance sheets within Accounts payable and other accrued liabilities.

Credit-Risk Related Contingent Features

Upon entering into derivatives, we have agreements with each of our derivative counterparties that contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness.

Fair Value

We disclose fair value information for all financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate fair value. Considerable judgment is necessary to interpret market data in order to estimate the fair value of financial instruments. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

The carrying amounts for cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable and other accrued liabilities, accrued dividends and distributions, security deposits and prepaid rents approximate fair value because of the short-term nature of these instruments. The carrying value of our Global Revolving Credit Facilities and the Euro Term Loan Facility approximates the estimated fair value, because these liabilities have variable interest rates and our credit ratings have remained stable. Differences between the carrying value and the fair value of our unsecured senior notes and secured and other debt are caused by differences in interest rates or borrowing spreads that were available to us on December 31, 2025 and 2024 as compared to those in effect when the debt was issued or assumed. As described in Note 17. "Derivative Instruments", outstanding derivative contracts are recorded at fair value.

We calculate the fair value of our secured and other debt and unsecured senior notes based on currently available market rates assuming the loans are outstanding through maturity and considering the collateral and other loan terms. In determining the current market rate for fixed rate debt, a market spread is added to the quoted yields on federal government treasury securities with similar maturity dates to our debt.

The aggregate estimated fair value and carrying value of our Global Revolving Credit Facilities, Euro Term Loan Facilities, unsecured senior notes and secured and other debt as of the respective periods are shown below (in thousands):


		Categorization		As of December 31, 2025						As of December 31, 2024
		under the fair value		Estimated Fair			Amount			Estimated Fair			Amount
		hierarchy		Value			Outstanding			Value			Outstanding
Global Revolving Credit Facilities (1)		Level 2		$	918,540		$	918,540		$	1,637,922		$	1,637,922
Unsecured term loans (1)		Level 2			440,475			440,475			388,275			388,275
Unsecured senior notes (2)		Level 2			15,646,232			16,321,227			13,370,897			14,059,415
Secured and other debt (2)		Level 2			873,504			876,528			752,732			761,263
				$	17,878,751		$	18,556,770		$	16,149,826		$	16,846,875

(1)	The carrying value of our Global Revolving Credit Facilities and unsecured term loans approximates estimated fair value, due to the variability of interest rates and the stability of our credit ratings.

(2)	Valuations for our unsecured senior notes and secured and other debt are determined based on the expected future payments discounted at risk-adjusted rates and quoted market prices.

During the year ended December 31, 2025, we recorded an impairment charge of $78.6 million related to Investments in properties, net, on certain non-core properties in secondary U.S. markets. We identified indicators of impairment at four properties, due to declines in the current and forecasted cash flows. We performed a test of recoverability and determined that the carrying value for each property exceeded the estimated undiscounted future cash flows. The significant inputs and assumptions used in the estimate of fair value included a forecast of cash flows over the remaining useful life and market capitalization rates.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

During the year ended December 31, 2024, we recorded an impairment charge of $191.2 million related to Investments in properties, net, on certain non-core properties in secondary U.S. markets. Management estimated the fair values of these investments principally based on sales of similar properties and ongoing negotiations with third parties. The significant inputs and assumptions used in the estimate of fair value included comparable sales values ranging from $69 per square foot to $151 per square foot. These measurements were classified within Level 3 of the fair value hierarchy as they are not observable.

Commitments and Contingencies

Construction Commitments – Our properties require periodic investments of capital for tenant-related capital

expenditures and for general capital improvements and from time to time in the normal course of our business, we

enter into various construction contracts with third parties that may obligate us to make payments. At

December 31, 2025, we had open commitments, including amounts reimbursable of approximately $110.6

million, related to construction contracts of approximately $2.6 billion.

Legal Proceedings – Although the Company is involved in legal proceedings arising in the ordinary course of business, as of December 31, 2025, the Company is not currently a party to any legal proceedings nor, to its knowledge, is any legal proceeding threatened against it that it believes would have a material adverse effect on its financial position, results of operations or liquidity_._

As we most recently disclosed in our Quarterly Report on Form 10-Q filed on October 31, 2025, we cooperated with the Division of Enforcement of the U.S. Securities and Exchange Commission (SEC) in their investigation into the adequacy of our disclosures of cybersecurity risks and our related disclosure controls and procedures. By letter dated December 22, 2025, the SEC Division of Enforcement informed us that based on the information it had as of that date, it had concluded the investigation and did not intend to recommend an enforcement action by the SEC against the Company. We are not aware of any cybersecurity issue or event that caused the Staff to open this matter.

Insurance – As previously disclosed, in September 2024, an incident at one of our Singapore data centers resulted in damages to the facility. We believe this incident is substantially covered by our insurance policies, including coverage for the repair cost of the building, business interruption loss and potential third-party claims, subject to deductibles. Initial costs, including direct costs related to the incident and an estimated write-off of damage caused to existing fixed assets, totaling approximately $16 million were incurred during 2024. After factoring our expected insurance coverage and related deductible, we reported net expenses of approximately $5.0 million related to this incident for 2024.

As of December 31, 2025, we have received total insurance proceeds of $36.8 million which includes $15.2 million received for property damage and initial direct costs and $21.6 million received for business interruption losses.

We had insurance receivable balances of $14.6 million and $11.6 million, respectively, as of December 31, 2025 and 2024 for known losses for which insurance reimbursement is probable, which is included in Other assets in the consolidated balance sheets. Insurance proceeds for business interruption losses are recognized in Other income, net in the consolidated income statements as received. No gain contingencies have been recognized as our ability to realize those gains remain uncertain.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

19. Supplemental Cash Flow Information

Cash, cash equivalents, and restricted cash balances as of December 31, 2025, 2024, and 2023:


		Balance as of
(Amounts in thousands)		December 31, 2025			December 31, 2024		December 31, 2023
Cash and cash equivalents		$	3,451,647		$	3,870,891	$	1,625,495
Restricted cash (included in Other assets)			6,643			5,809		10,975
Total		$	3,458,290		$	3,876,700	$	1,636,470

We paid $380.5 million, $438.2 million and $393.4 million for interest, net of amounts capitalized, for the years ended December 31, 2025, 2024 and 2023, respectively. During the years ended December 31, 2025, 2024 and 2023, we capitalized interest of approximately $127.2 million, $118.9 million and $116.8 million, respectively.

During the years ended December 31, 2025, 2024 and 2023, we capitalized amounts relating to compensation and other overhead expense of employees direct and incremental to construction activities of approximately $140.6 million, $111.2 million and $99.2 million, respectively.

Accrued construction related costs totaled $554.6 million, $521.5 million and $560.5 million as of years ended December 31, 2025, 2024 and 2023, respectively.

20. Segment and Geographic Information

A majority of the Company’s largest customers are global entities that transact with the Company across multiple geographies worldwide. In order to better address the needs of these global customers, the Company manages critical decisions around development, operations, and leasing globally based on customer demand considerations. In this regard, the Company manages customer relationships globally in order to achieve consistent sales and delivery experience of our products for our customers throughout the global portfolio. The Company has reiterated its commitment to and implemented strategies to align itself as one global team to help power customers’ digital ambitions.

In order to best accommodate the needs of global customers (and customers that might one day become global), the Company manages its operations as a single global business – with one operating segment and therefore one reporting segment.

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who uses net income as a primary measure of operating results on a consolidated basis in making decisions. Net income is computed in accordance with U.S. GAAP. Significant expense categories, including Rental property operating and maintenance, Property taxes and insurance, General and administrative and Interest expense, are regularly provided to the Company’s CODM as components of net income, which are reflected on the consolidated income statements.

Index to Financial Statements

DIGITAL REALTY TRUST, INC. AND SUBSIDIARIES

DIGITAL REALTY TRUST, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS- (Continued)

December 31, 2025 and 2024

The financial information disclosed herein represents all of the financial information related to our one reportable segment, and the segmental presentation is consistent with the information provided to our CODM. These metrics are collectively used to evaluate the performance of the Company’s investments in real estate assets, its operating results and to allocate resources.


	Operating Revenues
	Year Ended December 31,
(Amounts in millions)	2025			2024			2023
Inside the United States	$	3,167.7		$	2,910.5		$	2,836.0
Outside the United States		2,945.0			2,644.5			2,641.1
Revenue Outside of U.S. %		48.2	%		47.6	%		48.2	%


	Investments in Properties, net				Operating lease right-of-use assets, net
	As of December 31,		As of December 31,		As of December 31,		As of December 31,
(Amounts in millions)	2025		2024		2025		2024
Inside the United States	$	10,221.1	$	10,592.3	$	489.2	$	552.3
Outside the United States		16,212.5		13,528.5		646.4		626.6

Net Assets in Foreign Operations	$	9,274.4	$	7,744.8

Index to Financial Statements

DIGITAL REALTY TRUST, INC.

DIGITAL REALTY TRUST, L.P.

SCHEDULE III

PROPERTIES AND ACCUMULATED DEPRECIATION

December 31, 2025

(Dollar amounts in thousands)


																	Costs capitalized
								Initial costs									subsequent to acquisition						Total costs
																																			Accumulated		Date of
											Acquired			Buildings												Acquired			Buildings						depreciation		acquisition
		Data Center									ground			and						Carrying						ground			and						and		or
		Buildings			Encumbrances			Land			lease			improvements			Improvements			costs			Land			lease			improvements			Total			amortization		construction
North American Markets
Northern Virginia		16		$	—		$	84,993		$	—		$	184,798		$	3,858,471		$	—		$	163,908		$	—		$	3,964,354		$	4,128,262		$	(1,268,529)		2005 - 2019
Dallas		16			—			40,820			—			225,938			1,022,550			—			46,532			—			1,242,776			1,289,308			(657,066)		2002 - 2015
Chicago		7			—			54,382			—			408,801			1,076,166			—			54,343			—			1,485,006			1,539,349			(716,447)		2005 - 2017
New York		10			—			8,743			—			354,361			900,223			—			8,754			—			1,254,573			1,263,327			(740,867)		2002 - 2015
Silicon Valley		11			—			120,030			—			775,868			498,574			—			120,421			—			1,274,051			1,394,472			(687,342)		2002 - 2018
Portland		3			—			1,689			—			3,131			1,218,712			—			16,699			—			1,206,833			1,223,532			(246,633)		2011 - 2015
Phoenix		2			—			11,859			—			399,122			407,052			—			11,859			—			806,174			818,033			(464,960)		2006 - 2015
San Francisco		5			—			41,165			—			358,066			346,737			(65,936)			41,478			—			638,554			680,032			(369,398)		2004 - 2015
Toronto		2			—			26,600			—			116,863			500,190			—			28,977			—			614,676			643,653			(129,265)		2013 - 2017
Atlanta		3			—			6,537			—			264,948			107,610			—			1,715			—			377,380			379,095			(154,601)		2011 - 2017
Boston		2			—			7,851			—			185,348			63,941			—			6,626			—			250,514			257,140			(164,483)		2006 - 2011
Los Angeles		2			—			29,531			—			105,910			242,083			—			30,018			—			347,506			377,524			(182,011)		2004 - 2015
Houston		6			—			6,965			—			23,492			163,853			—			6,965			—			187,345			194,310			(131,335)		2006
Austin		1			—			1,177			—			4,877			90,706			—			1,177			—			95,583			96,760			(34,225)		2005
Miami		1			—			1,942			—			26,026			54,300			—			1,943			—			80,325			82,268			(47,110)		2002 - 2015
Seattle		1			135,000			43,110			—			329,283			(302,298)			—			—			—			70,095			70,095			—		2020
North America - Other		3			—			4,117			—			13,068			391,285			—			4,118			—			404,352			408,470			(96,369)
Total North America		91			135,000			491,511			—			3,779,900			10,640,155			(65,936)			545,533			—			14,300,097			14,845,630			(6,090,641)

EMEA Markets
London		13			—			76,906			—			1,273,661			619,103			—			38,155			—			1,931,515			1,969,670			(666,351)		2007 - 2024
Frankfurt		24			—			25,717			—			876,342			1,600,121			(6,041)			143,736			—			2,352,403			2,496,139			(445,045)		2016 - 2020
Paris		12			—			82,789			—			355,386			1,699,030			—			143,486			—			1,993,719			2,137,205			(280,159)		2012 - 2024
Johannesburg		5			—			10,099			—			1,008,751			641,116			—			10,072			—			1,649,894			1,659,966			(343,023)		2022
Amsterdam		13			—			87,674			—			975,654			510,850			—			97,345			—			1,476,833			1,574,178			(416,863)		2005 - 2024
Marseille		4			—			1,121			—			220,737			526,163			—			1,150			—			746,872			748,022			(155,983)		2020
Zurich		3			—			20,605			—			48,325			794,925			—			58,872			—			804,983			863,855			(119,715)		2020
Cape Town		2			—			5,100			—			276,021			264,102			—			5,086			—			540,137			545,223			(76,527)		2022
Dublin		9			—			11,722			90			89,597			458,882			—			8,290			97			551,904			560,291			(194,104)		2006 - 2020
Vienna		3			—			14,159			—			364,949			64,077			—			14,331			—			428,854			443,185			(127,486)		2020
Brussels		3			—			3,874			—			118,034			210,338			—			12,235			—			320,011			332,246			(61,454)		2020
Madrid		4			—			8,456			—			134,817			166,985			—			20,758			—			289,500			310,258			(56,768)		2020
Copenhagen		3			—			11,665			—			107,529			86,288			—			4,868			—			200,614			205,482			(48,859)		2020
Stockholm		6			—			—			—			93,861			96,604			—			151			—			190,314			190,465			(55,521)		2020
Dusseldorf		3			—			—			—			30,093			145,351			—			—			—			175,444			175,444			(36,661)		2020
Durban		1			—			900			—			66,646			13,914			—			898			—			80,562			81,460			(13,697)		2022
Europe - Other		7			—			3,144			—			43,046			599,681			—			99,566			—			546,305			645,871			(230,122)
Africa - Other		4			—			—			—			—			42,285			—			3,694			—			38,591			42,285			(7,116)
Total EMEA		119			—			363,931			90			6,083,448			8,539,817			(6,041)			662,693			97			14,318,455			14,981,245			(3,335,454)

Index to Financial Statements

DIGITAL REALTY TRUST, INC.

DIGITAL REALTY TRUST, L.P.

SCHEDULE III

PROPERTIES AND ACCUMULATED DEPRECIATION**- (Continued)**

December 31, 2025

(Dollar amounts in thousands)


																	Costs capitalized
								Initial costs									subsequent to acquisition						Total costs
																																			Accumulated		Date of
											Acquired			Buildings												Acquired			Buildings						depreciation		acquisition
		Data Center									ground			and						Carrying						ground			and						and		or
		Buildings			Encumbrances			Land			lease			improvements			Improvements			costs			Land			lease			improvements			Total			amortization		construction
APAC Markets
Singapore		3			—			—			—			137,545			788,100			—			—			—			925,645			925,645			(401,591)		2010 - 2015
Sydney		4			—			18,285			—			3,868			191,047			—			20,728			—			192,472			213,200			(63,429)		2011 - 2012
Seoul		1			—			—			—			—			119,910			—			15,746			—			104,164			119,910			(16,976)		2022
Melbourne		2			—			4,467			—			—			104,425			—			2,924			—			105,968			108,892			(58,348)		2011
Hong Kong		1			—			—			—			—			158,394			—			—			—			158,394			158,394			(23,620)		2021
Asia Pacific - Other		—			—			—			—			—			6,382			—			—			—			6,382			6,382			(3,537)
Total APAC		11			—			22,752			—			141,413			1,368,258			—			39,398			—			1,493,025			1,532,423			(567,501)

Total Portfolio		221		$	135,000		$	878,194		$	90		$	10,004,761		$	20,548,230		$	(71,977)		$	1,247,624		$	97		$	30,111,577		$	31,359,298		$	(9,993,596)

Index to Financial Statements

DIGITAL REALTY TRUST, INC.

DIGITAL REALTY TRUST, L.P.

SCHEDULE III

PROPERTIES AND ACCUMULATED DEPRECIATION

December 31, 2025

(Dollar amounts in thousands)

(1) Tax Cost

The aggregate gross cost of the Company’s properties for U.S. federal income tax purposes approximated $47.5 billion (unaudited) as of December 31, 2025. That amount is less than the amount reported for gross assets in the accompanying consolidated balance sheets by approximately $7.7 billion as of December 31, 2025.

(2) Historical Cost and Accumulated Depreciation and Amortization

The following table reconciles the historical cost of the Company’s properties for financial reporting purposes for each of the years in the three-year period ended December 31, 2025.


		Year Ended December 31,
		2025			2024			2023
Balance, beginning of year		$	27,558,994		$	27,306,368		$	26,136,057
Additions during period (acquisitions and improvements)			4,981,128			2,051,279			3,494,450
Deductions during period (dispositions, impairments and assets held for sale)			(1,180,824)			(1,798,653)			(2,324,139)
Balance, end of year		$	31,359,298		$	27,558,994		$	27,306,368

The following table reconciles accumulated depreciation and amortization of the Company’s properties for financial reporting purposes for each of the years in the three-year period ended December 31, 2025.


		Year Ended December 31,
		2025			2024			2023
Balance, beginning of year		$	8,641,331		$	7,823,685		$	7,268,981
Additions during period (depreciation and amortization expense)			1,755,133			1,228,311			1,338,912
Deductions during period (dispositions and assets held for sale)			(402,868)			(410,665)			(784,208)
Balance, end of year		$	9,993,596		$	8,641,331		$	7,823,685

Schedules other than those listed above are omitted because they are not applicable or the information required is included in the Consolidated Financial Statements or the notes thereto.

Index to Financial Statements

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