Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2024, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, each as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”). This report contains forward-looking statements within the meaning of the federal securities laws. In particular, statements pertaining to our capital resources, expected use of borrowings under our credit facilities, expected use of proceeds from our ATM equity program, litigation matters or legal proceedings, portfolio performance, leverage policy, acquisition and capital expenditure plans, capital recycling program, returns on invested capital, supply and demand for data center space, capitalization rates, rents to be received in future periods and expected rental rates on new or renewed data center space contain forward-looking statements. Likewise, all of our statements regarding anticipated market conditions, and results of operations are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and that we may not be able to realize. We do not guarantee that the transactions and events described will happen as described or that they will happen at all. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: reduced demand for data centers or decreases in information technology spending; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services; breaches of our obligations or restrictions under our contracts with our customers; our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties; the impact of current global and local economic, credit and market conditions; increased tariffs, global supply chain or procurement disruptions, or increased supply chain costs; the impact from periods of heightened inflation on our costs, such as operating and general and administrative expenses, interest expense and real estate acquisition and construction costs; the impact on our customers’ and our suppliers’ operations during an epidemic, pandemic, or other global events; our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers; changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate; our inability to retain data center space that we lease or sublease from third parties; information security and data privacy breaches; difficulties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas; our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions; our failure to successfully integrate and operate acquired or developed properties or businesses; difficulties in identifying properties to acquire and completing acquisitions; risks related to joint venture investments, including as a result of our lack of control of such investments; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital; financial market fluctuations and changes in foreign currency exchange rates; adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges; our inability to manage our growth effectively; losses in excess of our insurance coverage; our inability to attract and retain talent; environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals; the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations; our inability to comply with rules and regulations applicable to our Company; Digital Realty

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Trust, Inc.’s failure to maintain its status as a REIT for U.S. federal income tax purposes; Digital Realty Trust, L.P.’s failure to qualify as a partnership for U.S. federal income tax purposes; restrictions on our ability to engage in certain business activities; changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates; the impact of any financial, accounting, legal or regulatory issues or litigation that may affect us; and those additional risks and factors discussed in reports filed with the SEC by us from time to time, including those discussed under the heading “Risk Factors” in our most recently filed Annual Report on Form 10-K and in other sections of this report, including under Part II, Item 1A, Risk Factors.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes.

The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance, including factors and risks included in our Annual Report on Form 10-K for the year ended December 31, 2024 and in other sections of this report, including under Part II, Item 1A, Risk Factors. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to identify all such risk factors, nor can we assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results.

Occupancy percentages included in the following discussion, for some of our properties, are calculated based on factors in addition to contractually leased square feet, including available power, required support space and common area.

As used in this report: “Ascenty entity” refers to the entity which owns and operates Ascenty, formed with Brookfield Infrastructure.

Business Overview and Strategy

Digital Realty Trust, Inc., through its controlling interest in Digital Realty Trust, L.P. and its subsidiaries, delivers comprehensive space, power, and interconnection solutions that enable its customers and partners to connect with each other and service their own customers on a global technology and real estate platform. We are a leading global provider of data center, colocation and interconnection solutions for customers across a variety of industry verticals. Digital Realty Trust, Inc. operates as a REIT for U.S. federal income tax purposes, and our Operating Partnership is the entity through which we conduct our business and own our assets.

Our primary business objectives are to maximize:

	(i)	sustainable long-term growth in earnings and funds from operations per share and unit;

	(ii)	cash flow and returns to our stockholders and Digital Realty Trust, L.P.’s unitholders through the payment of distributions; and

	(iii)	return on invested capital.

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We expect to accomplish our objectives by achieving superior risk-adjusted returns, prudently allocating capital, diversifying our product offerings, accelerating our global reach and scale, and driving revenue growth and operating efficiencies. A significant component of our current and future internal growth is anticipated through the development of our existing space held for development, acquisition of land for future development, and acquisition of new properties.

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We target high-quality, strategically located properties containing the physical and connectivity infrastructure that supports the applications and operations of data center and technology industry customers and properties that may be developed for such use. Most of our data center properties contain fully redundant electrical supply systems, multiple power feeds, above-standard cooling systems, raised floor areas, extensive in-building communications cabling and high-level security systems. Fundamentally, we bring together foundational real estate and innovative technology expertise around the world to deliver a comprehensive, dedicated product suite to meet customers’ data and connectivity needs. We represent an important part of the digital economy that we believe will benefit from powerful, long-term growth drivers.

We have developed detailed, standardized procedures for evaluating new real estate investments to ensure that they meet our financial, technical and other criteria. We expect to continue to acquire additional assets as part of our growth strategy. We intend to aggressively manage and lease our assets to increase their cash flow. We may continue to build out our development portfolio when justified by anticipated demand and returns.

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We may acquire properties subject to existing mortgage financing and other indebtedness or we may incur new indebtedness in connection with acquiring or refinancing these properties. Debt service on such indebtedness will have a priority over any cash dividends with respect to Digital Realty Trust, Inc.’s common stock and preferred stock. We are committed to maintaining a conservative capital structure. Our goal is to average through business cycles the following financial ratios: 1) a debt-to-Adjusted EBITDA ratio around 5.5x, 2) a fixed charge coverage of greater than three times, and 3) floating rate debt at less than 20% of total outstanding debt. In addition, we strive to maintain a well-laddered debt maturity schedule, and we seek to maximize the menu of our available sources of capital, while minimizing the cost.

Changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate, including escalations in political and trade tensions involving the U.S. and regulatory and legislative changes, could potentially result in adverse effects on our, and our customers’, operations.

On July 4, 2025, a budget reconciliation bill (the “Bill”) was signed into law in the United States. The Bill includes several significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and other changes to the Internal Revenue Code of 1986, as amended (the “Code”), that affect REITs and their investors. We are currently evaluating the full potential impact of the provisions in the Bill, however, we do not expect it to have a material impact on our business.

Summary of 2025 Significant Activities

We completed the following significant activities during the six months ended June 30, 2025:

	●	In January 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.

	●	In March 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.

	●	In April 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.

	●	During the first half of 2025, the Company launched the Fund, and in May 2025, we received approximately

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		$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.

	●	In June 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 2034 (the “Euro Notes”). Net proceeds from the offering of the Euro Notes 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.

	●	Since March 31, 2025, Digital Realty Trust, Inc. generated net proceeds of approximately $719 million from the issuance of approximately 4.15 million common shares under the 2024 Sales Agreement at an average price of $173.19 per share after payment of approximately $4.7 million of commissions to the agents. As of July 30, 2025, approximately $2.3 billion remains available for future sales under the 2024 Sales Agreement Amendment.

Revenue Base

Most of our revenue consists of rental income generated by the data centers in our portfolio. Our ability to generate and grow revenue depends on several factors, including our ability to maintain or improve occupancy rates. A summary of our data center portfolio and related occupied square feet (in thousands) (excluding space under development or held for development) is shown below. Unconsolidated portfolios shown below consist of assets owned by unconsolidated entities in which we have invested. We often provide management services for these entities under management agreements and receive management fees. These are shown as Managed Unconsolidated Portfolio. Entities for which we do not provide such services are shown as Non-Managed Unconsolidated Portfolio.

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	As of June 30, 2025						​	As of December 31, 2024
Region	​	Data Center Buildings	Net Rentable Square Feet (1)	Space Under Active Development (2)	Space Held for Development (3)	Occupancy		​	Data Center Buildings	Net Rentable Square Feet (1)	Space Under Active Development (2)	Space Held for Development (3)	Occupancy
North America	​	93	18,706	1,569	1,007	84.7	%	​	101	20,004	2,775	1,025	85.5	%
Europe	​	107	9,297	2,344	717	78.4	%	​	106	8,836	2,833	717	77.3	%
Asia Pacific	​	11	1,577	1,091	289	81.4	%	​	11	1,577	66	289	81.2	%
Africa	​	12	1,889	1,237	21	83.3	%	​	12	1,704	1,422	21	82.8	%
Consolidated Portfolio	​	223	31,469	6,240	2,034	82.6	%	​	230	32,120	7,096	2,052	82.9	%
Managed Unconsolidated Portfolio	​	38	6,958	2,483	409	94.5	%	​	31	5,552	1,022	400	91.8	%
Non-Managed Unconsolidated Portfolio	​	49	4,102	1,124	2,173	85.3	%	​	47	3,654	787	2,234	83.0	%
Total Portfolio	​	310	42,529	9,848	4,616	84.8	%	​	308	41,326	8,904	4,686	84.1	%

Note: Table excludes data centers held for sale. Individual items may not add up to total due to rounding.

(1)	Net rentable square feet represent the current square feet under lease as specified in the applicable lease agreement plus management’s estimate of space available for lease based on engineering drawings. The amount includes customers’ proportional share of common areas but excludes space held for the intent of or under active development.

(2)	Space under active development includes current base building and data center projects in progress, and excludes space held for development. For additional information on the current and future investment for space under active development, see “Liquidity and Capital Resources—Development Projects”.

(3)	Space held for development includes space held for future data center development and excludes space under active development. For additional information on the current investment for space held for development, see “Liquidity and Capital Resources—Development Projects”.

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Leasing Activities

Due to the capital-intensive and long-term nature of the operations we support, our lease terms with customers are generally longer than standard commercial leases. As of June 30, 2025, our average remaining lease term was approximately five years.

Our ability to re-lease expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations. The subsequent table summarizes our leasing activity in the six months ended June 30, 2025 (square feet in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​		​		​	​		​	​		​		​	TI’s/Lease			Weighted
​	​	​	​	​	​	​	​	​	​	​	​	​	Commissions		​	Average Lease
​	​	Rentable	​	Expiring		​	New		​	Rental Rate		​	Per Square		​	Terms
​	​	Square Feet (1)	​	Rates (2)		​	Rates (2)		​	Changes		​	Foot		​	(years)
Leasing Activity (3)(4)				​			​					​	​
Renewals Signed				​			​					​	​
0 — 1 MW		934	​	$	264	​	$	276		4.6	%	​	$	1		1.2
> 1 MW		291	​	$	133	​	$	159		19.4	%	​	$	1		4.2
Other (6)		342	​	$	44	​	$	64		47.3	%	​	$	2		4.5
New Leases Signed (5)		​	​		​	​		​		​	​	​		​		​
0 — 1 MW		426	​		—	​	$	297		—	​	​	$	7		4.5
> 1 MW		694	​		—	​	$	313		—	​	​	$	—		11.0
Other (6)		33	​		—	​	$	56		—	​	​	$	1		8.7
Leasing Activity Summary		​	​			​		​		​	​	​
0 — 1 MW		1,360	​		​	​	$	283		​	​	​		​
> 1 MW		985	​		​	​	$	267		​	​	​		​
Other (6)		375	​		​	​	$	64		​	​	​		​

(1)	For some of our properties, we calculate square footage based on factors in addition to contractually leased square feet, including power, required support space and common area.

(2)	Rental rates represent average annual estimated base cash rent per rentable square foot – calculated for each contract based on total cash base rent divided by the total number of years in the contract (including any tenant concessions). All rates were calculated in the local currency of each contract and then converted to USD based on average exchange rates for the period presented.

(3)	Excludes short-term leases.

(4)	Commencement dates for the leases signed range from 2025 to 2026.

(5)	Includes leases signed for new and re-leased space.

(6)	Other includes Powered Base Building shell capacity as well as storage and office space within fully improved data center facilities.

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We continue to see strong demand in most of our key metropolitan areas for data center space and, subject to the supply of available data center space in these metropolitan areas, we expect average aggregate rental rates on renewed data center leases for 2025 expirations to be positive as compared with the rates currently being paid for the same space on a GAAP basis and on a cash basis. Our past performance may not be indicative of future results, and we cannot assure you that leases will be renewed or that our data centers will be re-leased at all or at rental rates equal to or above the current average rental rates. Further, re-leased/renewed rental rates in a particular metropolitan area may not be consistent with rental rates across our portfolio as a whole and may fluctuate from one period to another due to a number of factors, including local economic conditions, local supply and demand for data center space, competition from other data center developers or operators, the condition of the property and whether the property, or space within the property, has been developed.

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Geographic Concentration

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We depend on the market for data centers in specific geographic regions and significant changes in these regional or metropolitan areas can impact our future results. The following table shows the geographic concentration based on annualized rent from our portfolio, including data centers held as investments in unconsolidated entities.

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​		Percentage of
​	​	June 30, 2025
Metropolitan Area	​	Total annualized rent (1)
Northern Virginia		20.3	%
Chicago		7.2	%
Frankfurt		6.1	%
London		5.0	%
Dallas		4.7	%
Singapore		4.5	%
New York	​	4.2	%
Amsterdam		4.1	%
Paris		3.8	%
Sao Paulo		3.8	%
Silicon Valley		3.7	%
Johannesburg		3.2	%
Portland		3.2	%
Tokyo		2.4	%
Marseille	​	1.7	%
Other		22.1	%
Total		100.0	%

(1)	Annualized rent is monthly contractual rent (defined as cash base rent before abatements) under existing leases as of the end of the period presented, multiplied by 12. Includes consolidated portfolio and unconsolidated entities at the entities’ 100% ownership level. The aggregate amount of abatements for the six months ended June 30, 2025 was approximately $12.0 million.

Operating Expenses

Operating expenses primarily consist of utilities, property and ad valorem taxes, property management fees, insurance and site maintenance costs, and rental expenses on our ground and building leases. Our buildings require significant power to support data center operations and the cost of electric power and other utilities is a significant component of operating expenses.

Many of our leases contain provisions under which tenants reimburse us for all or a portion of property operating expenses and real estate taxes incurred by us. However, in some cases we are not entitled to reimbursement of property operating expenses, other than utility expense, and real estate taxes under our leases for Turn-Key Flex® facilities. We expect to incur additional operating expenses as we continue to expand.

Costs pertaining to our asset management function, legal, accounting, corporate governance, reporting and compliance are categorized as general and administrative costs within operating expenses.

Other key components of operating expenses include: depreciation of our fixed assets, amortization of intangible assets, and transaction and integration costs.

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Other Income / (Expenses)

Equity in earnings of unconsolidated entities, gain on disposition of properties, interest expense, and income tax expense make up the majority of Other income/(expenses). Equity in earnings of unconsolidated entities represents our share of the income/(loss) of entities in which we invest, but do not consolidate under U.S. GAAP. Refer to additional discussion of Digital Core REIT and Ascenty in the Notes to the Condensed Consolidated Financial Statements.

Results of Operations

As a result of the consistent and significant growth in our business since the first property acquisition in 2002, we evaluate period-to-period results for revenue and property level operating expenses on a stabilized versus non-stabilized portfolio basis.

Stabilized: The stabilized portfolio includes properties owned as of the beginning of all periods presented with less than 5% of total rentable square feet under development.

Non-stabilized: The non-stabilized portfolio includes: (1) properties that were undergoing, or were expected to undergo, development activities during any of the periods presented; (2) any properties contributed to joint ventures, sold, or held for sale during the periods presented; and (3) any properties that were acquired or delivered at any point during the periods presented.

A roll forward showing changes in the stabilized and non-stabilized portfolios for the six months ended June 30, 2025 as compared to December 31, 2024 is shown below (in thousands):

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Net Rentable Square Feet		Stabilized		Non-Stabilized		Total
As of December 31, 2024	​	23,866	​	8,256	​	32,122
New development and space reconfigurations	​	17	​	798	​	815
Transfers to stabilized from non-stabilized	​	1,904	​	(1,904)	​	—
Transfers to non-stabilized from stabilized	​	(1,119)	​	996	​	(123)
Dispositions / Sales	​	(1,345)	​	—	​	(1,345)
Acquisitions	​	—	​	—	​	—
As of June 30, 2025	​	23,323	​	8,146	​	31,469

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Comparison of the Results of Operations for the Three and Six Months Ended June 30, 2025 to the Three and Six Months Ended June 30, 2024

Revenues

Total operating revenues as shown on our condensed consolidated income statements was as follows (in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended June 30,											​	Six Months Ended June 30,
​		2025			2024			$ Change		​	% Change			2025			2024			$ Change		​	% Change
Stabilized	​	$	1,080,712	​	$	1,030,017	​	$	50,695	​	4.9	%	​	​	2,127,799	​	$	2,045,854	​	$	81,945	​	4.0	%
Non-Stabilized	​	​	376,648	​	​	308,951	​	​	67,697	​	21.9	%	​	​	716,422	​	​	610,385	​	​	106,037	​	17.4	%
Rental and other services	​	​	1,457,360	​	​	1,338,968	​	​	118,392	​	8.8	%	​	​	2,844,221	​	​	2,656,239	​	​	187,982	​	7.1	%
Fee income and other	​	​	35,790	​	​	17,781	​	​	18,009	​	101.3	%	​		56,566	​		31,653	​	​	24,913	​	78.7	%
Total operating revenues	​	$	1,493,150	​	$	1,356,749	​	$	136,401	​	10.1	%	​	$	2,900,787	​	$	2,687,892	​	$	212,895	​	7.9	%

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Total operating revenues increased by approximately $136.4 million and $212.9 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

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Stabilized rental and other services revenue increased by approximately $50.7 million and $81.9 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in new leasing and renewals across all regions.

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Non-stabilized rental and other services revenue increased by approximately $67.7 million and $106.0 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to:

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	(i)	increases of $108.0 million and $180.6 million, respectively, due to the completion of our global development pipeline and related lease up operating activities (with the biggest contributions in Northern Virginia, Portland, London, Johannesburg and Paris); and

	(ii)	offset by decreases of $40.3 million and $74.5 million, respectively, related to properties sold or contributed after June 30, 2024.

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Operating Expenses — Property Level

Property level operating expenses as shown in our condensed consolidated income statements were as follows (in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended June 30,											​	Six Months Ended June 30,
​		2025			2024			$ Change		​	% Change		​	2025			2024			$ Change		​	% Change
Stabilized	​	$	258,096	​	$	250,651	​	$	7,445	​	3.0	%	​	$	508,102	​	$	511,234	​	$	(3,132)	​	(0.6)	%
Non-Stabilized	​		81,192	​		64,597	​	​	16,595	​	25.7	%	​		144,571	​		128,584	​	​	15,987	​	12.4	%
Total Utilities	​	​	339,288	​	​	315,248	​	​	24,040	​	7.6	%	​	​	652,673	​	​	639,818	​	​	12,855	​	2.0	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Stabilized	​	​	194,551	​	​	183,449	​	​	11,102	​	6.1	%	​	​	370,305	​	​	347,951	​	​	22,354	​	6.4	%
Non-Stabilized	​		73,173	​		54,204	​	​	18,969	​	35.0	%	​		136,019	​		114,071	​	​	21,948	​	19.2	%
Total Rental property operating and maintenance (excluding utilities)	​	​	267,724	​	​	237,653	​	​	30,071	​	12.7	%	​	​	506,324	​	​	462,022	​	​	44,302	​	9.6	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Rental property operating and maintenance	​	​	607,012	​	​	552,901	​	​	54,111	​	9.8	%	​	​	1,158,997	​	​	1,101,840	​	​	57,157	​	5.2	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Stabilized	​		43,019	​		44,437	​	​	(1,418)	​	(3.2)	%	​		83,548	​		80,732	​	​	2,816	​	3.5	%
Non-Stabilized	​		11,497	​		9,938	​	​	1,559	​	15.7	%	​		24,307	​		17,493	​	​	6,814	​	39.0	%
Total Property taxes and insurance	​		54,516	​		54,375	​	​	141	​	0.3	%	​		107,855	​		98,225	​	​	9,630	​	9.8	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total property level operating expenses	​	$	661,528	​	$	607,276	​	$	54,252	​	8.9	%	​	$	1,266,852	​	$	1,200,065	​	$	66,787	​	5.6	%

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Property level operating expenses include costs to operate and maintain the properties in our portfolio as well as taxes and insurance.

Total Utilities

Total stabilized utilities expenses increased by approximately $7.4 million and decreased by approximately $3.1 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The increase was primarily due to higher power pricing at certain properties in the stabilized portfolio, mainly in EMEA and APAC, whereas the decrease was primarily due to rebates received mainly in EMEA.

Total non-stabilized utilities expenses increased by approximately $16.6 million and $16.0 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to:

	(i)	an increase of approximately $32.2 million and $46.2 million, respectively, due to higher utility consumption in a growing portfolio of recently completed development sites (with the biggest contributions in Portland, Johannesburg and London); offset by

	(ii)	an increase in power agreement credits by $5.8 million and $8.4 million, respectively; and

	(iii)	a decrease of $9.8 million and $21.8 million, respectively, related to properties sold or contributed after June 30, 2024.

​

The cost of electric power comprises a significant component of our operating expenses. Any additional taxation or regulation of energy use, including as a result of (i) new legislation that the U.S. Congress may pass, (ii) the regulations that the U.S. EPA has proposed or finalized, (iii) regulations under legislation that states have passed or may pass, or (iv) any further legislation or regulations in EMEA, APAC or other regions where we operate could significantly increase our costs, and we may not be able to effectively pass all of these costs on to our customers. These matters could adversely impact our business, results of operations, or financial condition.

​

​

Total Rental Property Operating and Maintenance (Excluding Utilities)

Total stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $11.1 million and $22.4 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in building operations expense, common area maintenance expense and data center labor.

Total non-stabilized rental property operating and maintenance expenses (excluding utilities) increased by approximately $19.0 million and $21.9 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to increases in data center labor expense throughout the portfolio.

Total Property Taxes and Insurance

Total stabilized property taxes and insurance decreased by approximately $1.4 million and increased by approximately $2.8 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily due to timing of property tax assessments throughout our North American portfolio.

Total non-stabilized property taxes and insurance increased by approximately $1.6 million and $6.8 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, primarily related to property tax reassessments for certain properties located in Chicago, Northern Virginia and Portland in the non-stabilized portfolio.

​

Other Operating Expenses

​

Other operating expenses include costs which are either non-cash in nature (such as depreciation and amortization) or which do not directly pertain to operation of data center properties. A comparison of other operating expenses for the respective periods is shown below (in thousands).

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended June 30,											​	Six Months Ended June 30,
​		2025			2024		​	$ Change		​	% Change			2025			2024		​	$ Change		​	% Change
Depreciation and amortization		$	461,167	​	$	425,343	​	$	35,824	​	8.4	%		$	904,176	​	$	856,445	​	$	47,731	​	5.6	%
General and administrative	​	​	136,017	​	​	120,395	​	​	15,622	​	13.0	%	​	​	259,557	​	​	235,605	​	​	23,952	​	10.2	%
Transaction, integration and other expense	​		22,546	​		26,072	​	​	(3,526)	​	(13.5)	%	​		62,448	​	​	57,911	​	​	4,537	​	7.8	%
Provision for impairment	​	​	—	​	​	168,303	​	​	(168,303)	​	100.0	%	​	​	—	​	​	168,303	​	​	(168,303)	​	(100.0)	%
Other	​		195	​		(529)	​	​	724	​	n/m	%	​		307	​		10,307	​		(10,000)	​	n/m	%
Total other operating expenses	​	​	619,925	​	​	739,584	​	​	(119,659)	​	(16.2)	%	​	​	1,226,488	​	​	1,328,571	​	​	(102,083)	​	(7.7)	%
Total property level operating expenses	​	​	661,528	​	​	607,276	​	​	54,252	​	8.9	%	​	​	1,266,852	​	​	1,200,065	​	​	66,787	​	5.6	%
Total operating expenses	​	$	1,281,453	​	$	1,346,860	​	​	(65,407)	​	(4.9)	%	​	$	2,493,340	​	$	2,528,636	​	$	(35,296)	​	(1.4)	%

​

Equity in Earnings (Loss) of Unconsolidated Entities

​

The change in Equity in earnings (loss) of unconsolidated entities was approximately $29.4 million and $37.7 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The foreign exchange remeasurement of debt associated with our unconsolidated Ascenty entity creates volatility in our equity in earnings and drove this fluctuation.

Gain on Disposition of Properties, Net

​

Gain on disposition of properties increased $758.1 million and $481.4 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

​

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.

​

​

In April 2025, we contributed an additional three development projects at the Digital Dulles campus to the joint venture with Blackstone. We received approximately $77 million of gross proceeds from the contribution and as a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $58 million.

​

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. As a result of the sale, we recognized a total gain on disposition of approximately $194.2 million.

In March 2024, we recognized a total gain of $74.4 million from the sale of an easement to a local power provider in Northern Virginia.

Loss on Debt Extinguishment and Modifications

We incurred no losses on debt extinguishment and debt modifications in the three and six months ended June 30, 2025.

​

In January 2024, we paid down $240 million on the U.S. term loan facility, leaving $500 million outstanding. The paydown resulted in an early extinguishment charge of approximately $1.1 million.

Interest Expense

Interest expense decreased approximately $5.4 million and $16.4 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 driven primarily by lower average balances on our Global Revolving Credit Facilities and term loan facilities offset by issuances of unsecured senior notes (€850 million of 3.875% Guaranteed Notes due 2033 (issued in September 2024), $1.15 billion of 1.875% Exchangeable Senior Notes due 2029 (issued in November 2024), €850 million of 3.875% Guaranteed Notes due 2035 (issued in January 2025) and €850 million of 3.875% Guaranteed Notes due 2034 (issued in June 2025).

​

Income Tax Expense

Income tax expense decreased approximately $2.1 million and $7.4 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 due to jurisdictional rate mix in foreign jurisdictions and internal restructuring within the global group. We carried out an analysis for the purposes of the Model GloBE Rules for Pillar Two and no material top-up tax is expected.

As of June 30, 2025, we are under examination for various years in Australia, Germany, Kenya, Mauritius, Singapore, Switzerland, United Kingdom, and the United States.

Liquidity and Capital Resources

The sections “Analysis of Liquidity and Capital Resources — Parent” and “Analysis of Liquidity and Capital Resources — Operating Partnership” should be read in conjunction with one another to understand our liquidity and capital resources on a consolidated basis. The term “Parent” refers to Digital Realty Trust, Inc. on an unconsolidated basis, excluding our Operating Partnership. The term “Operating Partnership” or “OP” refers to Digital Realty Trust, L.P. on a consolidated basis.

​

Analysis of Liquidity and Capital Resources — Parent

Our Parent does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public equity from time to time, incurring certain expenses in operating as a public company (which are fully reimbursed by the Operating Partnership) and guaranteeing certain unsecured debt of the Operating Partnership and certain of its subsidiaries and affiliates. If our Operating Partnership or such subsidiaries fail to fulfill their debt requirements, which trigger Parent guarantee obligations, then our Parent will be required to fulfill its cash payment commitments under such guarantees. Our Parent’s only material asset is its investment in our Operating Partnership.

Our Parent’s principal funding requirement is the payment of dividends on its common and preferred stock. Our Parent’s principal source of funding is the distributions it receives from our Operating Partnership.

As the sole general partner of our Operating Partnership, our Parent has the full, exclusive and complete responsibility for our Operating Partnership’s day-to-day management and control. Our Parent causes our Operating Partnership to distribute such portion of its available cash as our Parent may in its discretion determine, in the manner provided in our Operating Partnership’s partnership agreement.

As circumstances warrant, our Parent may issue equity from time to time on an opportunistic basis, dependent upon market conditions and available pricing. Any proceeds from such equity issuances would generally be contributed to our Operating Partnership in exchange for additional equity interests in our Operating Partnership. Our Operating Partnership may use the proceeds to acquire additional properties, to fund development opportunities and for general working capital purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities.

Our Parent and our Operating Partnership 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.

​

The sales of common stock made under the 2024 Sales Agreement Amendment 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. Since March 31, 2025, Digital Realty Trust, Inc. generated net proceeds of approximately $719 million from the issuance of approximately 4.15 million common shares under the 2024 Sales Agreement at an average price of $173.19 per share after payment of approximately $4.7 million of commissions to the agents. As of July 30, 2025, approximately $2.3 billion remains available for future sales under the 2024 Sales Agreement Amendment.

We believe our Operating Partnership’s sources of working capital, specifically its cash flow from operations, and funds available under its Global Revolving Credit Facility are adequate for it to make its distribution payments to our Parent and, in turn, for our Parent to make its dividend payments to its stockholders. However, we cannot assure you that our Operating Partnership’s sources of capital will continue to be available at all or in amounts sufficient to meet its needs, including making distribution payments to our Parent. The lack of availability of capital could adversely affect our Operating Partnership’s ability to pay its distributions to our Parent, which would, in turn, adversely affect our Parent’s ability to pay cash dividends to its stockholders.

​

Future Uses of Cash — Parent

Our Parent may from time to time seek to retire, redeem or repurchase its equity or the debt securities of our Operating Partnership or its subsidiaries through cash purchases and/or exchanges for equity securities in open market purchases, privately negotiated transactions or otherwise. Such repurchases, redemptions or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions or other factors. The amounts involved may be material.

​

Dividends and Distributions — Parent

Our Parent is required to distribute 90% of its taxable income (excluding capital gains) on an annual basis to continue to qualify as a REIT for U.S. federal income tax purposes. Our Parent intends to make, but is not contractually bound to make, regular quarterly distributions to its common stockholders from cash flow from our Operating Partnership’s operating activities. While historically our Parent has satisfied this distribution requirement by making cash distributions to its stockholders, it may choose to satisfy this requirement by making distributions of cash or other property. All such distributions are at the discretion of our Parent’s Board of Directors. Our Parent considers market factors and our Operating Partnership’s performance in addition to REIT requirements in determining distribution levels. Our Parent has distributed at least 100% of its taxable income annually since inception to minimize corporate level federal and state income taxes. Amounts accumulated for distribution to stockholders are invested primarily in interest-bearing accounts and short-term interest-bearing securities, in a manner consistent with our intention to maintain our Parent’s status as a REIT.

As a result of this distribution requirement, our Operating Partnership cannot rely on retained earnings to fund its ongoing operations to the same extent that other companies whose parent companies are not REITs can. Our Parent may need to continue to raise capital in the debt and equity markets to fund our Operating Partnership’s working capital needs, as well as potential developments at new or existing properties, acquisitions or investments in existing or newly created joint ventures. In addition, our Parent may be required to use borrowings under the Operating Partnership’s Global Revolving Credit Facility (which is guaranteed by our Parent), if necessary, to meet REIT distribution requirements and maintain our Parent’s REIT status.

Distributions out of our Parent’s current or accumulated earnings and profits are generally classified as ordinary income whereas distributions in excess of our Parent’s current and accumulated earnings and profits, to the extent of a stockholder’s U.S. federal income tax basis in our Parent’s stock, are generally classified as a return of capital. Distributions in excess of a stockholder’s U.S. federal income tax basis in our Parent’s stock are generally characterized as capital gain. Cash provided by operating activities has been generally sufficient to fund distributions on an annual basis. However, we may also need to utilize borrowings under the Global Revolving Credit Facility to fund distributions.

For additional information regarding dividends declared and paid by our Parent on its common and preferred stock for the six months ended June 30, 2025, see Note 10. “Equity and Capital” to our condensed consolidated financial statements contained herein.

​

Analysis of Liquidity and Capital Resources — Operating Partnership

As of June 30, 2025, we had $3,554.1 million of cash and cash equivalents, excluding $7.6 million of restricted cash. Restricted cash primarily consists of contractual capital expenditures plus other deposits. As circumstances warrant, our Operating Partnership may dispose of assets or enter into joint venture arrangements with institutional investors or strategic partners, on an opportunistic basis dependent upon market conditions. Our Operating Partnership may use the proceeds from such dispositions to acquire additional properties, to fund development opportunities and for general working capital purposes, including the repayment of indebtedness. Our liquidity requirements primarily consist of:

​

	●	operating expenses;

	●	development costs and other expenditures associated with our properties;

	●	distributions to our Parent to enable it to make dividend payments;

	●	distributions to unitholders of common limited partnership interests in Digital Realty Trust, L.P.;

	●	debt service; and

	●	potentially, acquisitions.

​

On September 24, 2024, we refinanced our Global Revolving Credit Facility and Yen Revolving Credit Facility. The Global Revolving Credit Facilities provide for borrowings up to $4.5 billion (including approximately $0.3 billion available to be drawn on the Yen Revolving Credit Facility) based on currency commitments and foreign exchange rates as of June 30, 2025. The Global Revolving Credit Facility provides for borrowings in a variety of currencies and can be increased by an additional $1.8 billion, subject to receipt of lender commitments and other conditions precedent. Both facilities mature on January 24, 2029, with two six-month extension options available.

These facilities also feature a sustainability-linked pricing component, with pricing subject to adjustment based on annual performance targets, further demonstrating our continued leadership and commitment to sustainable business practices.

The Global Revolving Credit Facility provides for borrowings in a variety of currencies and includes the ability to add additional currencies in the future. We have used and intend to use available borrowings under the Global Revolving Credit Facilities to acquire additional properties, fund development opportunities and for general working capital and other corporate purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities. For additional information regarding our Global Revolving Credit Facility, see Note 8. “Debt of the Operating Partnership” in the Notes to our Condensed Consolidated Financial Statements.

​

Future Uses of Cash

Our properties require periodic investments of capital for customer-related capital expenditures and for general capital improvements. Depending upon customer demand, we expect to incur significant improvement costs to build out and develop additional capacity. At June 30, 2025, we had open commitments, related to construction contracts of approximately $2.2 billion, including amounts reimbursable of approximately $89.5 million.

For the remainder of 2025, we currently expect to incur approximately $1.7 billion to $2.2 billion of capital expenditures, which includes our share of joint venture contributions and is net of partner contributions for our development programs. This amount could go up or down, potentially materially, based on numerous factors, including changes in demand, leasing results and availability of debt or equity capital.

Development Projects

The costs we incur to develop our properties are a key component of our liquidity requirements. The following table summarizes our cumulative investments in current development projects as well as expected future investments in these projects as of the periods presented, excluding square feet held in and costs incurred or to be incurred by unconsolidated entities.

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Construction Projects in Progress	​	As of June 30, 2025								​	As of December 31, 2024
​	​	Current		​	Future		​	​		​	Current		​	Future		​	​	​
(in thousands)		Investment (1)			Investment (2)			Total Cost			Investment (3)			Investment (2)			Total Cost
Future Development Capacity (4)		$	2,420,814	​	$	1,337,662		$	3,758,476		$	2,129,342	​	$	1,550,645		$	3,679,987
Data Center Construction		​	2,230,694	​		2,511,666		​	4,742,360			2,610,305	​		2,857,313		​	5,467,618
Equipment Pool and Other Inventory (5)		​	282,595	​		—		​	282,595			192,429	​		—		​	192,429
Campus, Tenant Improvements and Other (6)		​	294,520	​		147,972		​	442,492			271,042	​		157,976		​	429,018
Consolidated Land Held and Development Construction in Progress		$	5,228,623	​	$	3,997,300	​	$	9,225,923		$	5,203,119	​	$	4,565,934	​	$	9,769,052

(1)	Represents cost incurred through June 30, 2025. Includes approximately $74 million that is categorized within assets held for sale and contribution on the condensed consolidated balance sheets.

(2)	Represents estimated cost to complete scope of work pursuant to approved development budget.

(3)	Represents costs incurred through December 31, 2024.

(4)	Includes land and space held or actively under construction in preparation for future data center fit-out.

(5)	Represents long-lead equipment and materials required for timely deployment and delivery of data center fit-out.

(6)	Represents improvements in progress, which benefit space recently converted to our operating portfolio and is composed primarily of shared infrastructure projects and first-generation tenant improvements.

​

Future development reflects cumulative cost spent pending future development and includes ongoing improvements to building infrastructure in preparation for future data center fit-out. We expect to deliver the space within 12 months; however, lease commencement dates may significantly impact final delivery schedules.

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Capital Expenditures (Cash Basis)

The table below summarizes our capital expenditure activity for the six months ended June 30, 2025 and 2024 (in thousands):

​

​	​	​	​	​	​	​
​	​	Six Months Ended June 30,
​		2025			2024
Development projects	​	$	1,251,790	​	$	1,081,425
Enhancement and improvements	​		15,822	​		14,789
Recurring capital expenditures	​		97,388	​		108,159
Total capital expenditures (excluding indirect costs)	​	$	1,365,000	​	$	1,204,373

​

Our development capital expenditures are generally funded by our available cash and equity and debt capital.

Indirect costs, including interest, capitalized in the six months ended June 30, 2025 and 2024 were $126.6 million and $110.4 million, respectively. Capitalized interest comprised approximately $59.5 million and $56.1 million of the total indirect costs capitalized for the six months ended June 30, 2025 and 2024, respectively. Capitalized interest in the six months ended June 30, 2025 increased, compared to the same period in 2024, due to an increase in qualifying activities and higher interest rates.

Excluding capitalized interest, indirect costs in the six months ended June 30, 2025 increased compared to the same period in 2024 due primarily to capitalized amounts relating to compensation expense of employees directly engaged in construction activities. See “Future Uses of Cash” for a discussion of the amount of capital expenditures we expect to incur during the year ending December 31, 2025.

Consistent with our growth strategy, we actively pursue potential acquisition opportunities, with due diligence and negotiations often at different stages at different times. The dollar value of acquisitions for the year ending December 31, 2025 will depend upon numerous factors, including customer demand, leasing results, availability of debt or equity capital and acquisition opportunities. Further, the growing acceptance by private institutional investors of the data center asset class has generally pushed capitalization rates lower, as such private investors may often have lower return expectations than us. As a result, we anticipate near-term single asset acquisitions activity to comprise a smaller percentage of our growth while this market dynamic persists.

We may from time to time seek to retire or repurchase our outstanding debt or the equity of our Parent through cash purchases and/or exchanges for equity securities of our Parent in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend upon prevailing market conditions, our liquidity requirements, contractual restrictions or other factors. The amounts involved may be material.

Sources of Cash

We expect to meet our short-term and long-term liquidity requirements, including payment of scheduled debt maturities and funding of acquisitions and non-recurring capital improvements, with net cash from operations, future long-term secured and unsecured indebtedness and the issuance of equity and debt securities and the proceeds of equity issuances by our Parent. We also may fund future short-term and long-term liquidity requirements, including acquisitions and non-recurring capital improvements, using our Global Revolving Credit Facilities pending permanent financing. As of July 30, 2025, we had approximately $3.3 billion of borrowings available under our Global Revolving Credit Facilities.

​

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. In 2024, 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 contributed such cash in exchange for a 65% interest in the joint venture. Each partner funded its pro rata share of the remaining $140 million estimated development cost for the first phase of the project, of which one project was completed in June 2024 and another was completed in October 2024. 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.

During the first half of 2025, the Company launched its first U.S. Hyperscale Data Center Fund (the “Fund”), successfully raising more than $3 billion of equity commitments to date. Fund commitments represent a 40% to 80% ownership interest in each individual asset, while the Company will maintain the remaining 20% to 60% stake in the assets and less than a 2% direct interest in the Fund. The initial portfolio includes 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 June 30, 2025, one additional development project was classified within Assets held for sale and contribution on our condensed consolidated balance sheet as it is probable it will be contributed to the fund within one year. The disposition of a portion of our interest in the remaining development project 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.

​

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.

​

Distributions

All distributions on our units are at the discretion of our Parent’s Board of Directors. For additional information regarding distributions paid on our common and preferred units for the three and six months ended June 30, 2025, see Note 10. “Equity and Capital” to our condensed consolidated financial statements contained herein.

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Outstanding Consolidated Indebtedness

​

The table below summarizes our outstanding debt as of June 30, 2025 (in millions):

​

​	​	​	​	​
Debt Summary:		​		​
Fixed rate	​	$	14,863	​
Variable rate debt subject to interest rate swaps	​		2,635	​
Total fixed rate debt (including interest rate swaps)	​		17,498	​
Variable rate—unhedged	​		1,105	​
Total	​	$	18,603	​
Percent of Total Debt:	​			​
Fixed rate (including swapped debt)	​		94.1	%
Variable rate	​		5.9	%
Total	​		100.0	%
​	​	​	​	​
Effective Interest Rate as of June 30, 2025	​			​
Fixed rate (including hedged variable rate debt)	​		2.70	%
Variable rate	​		2.10	%
Effective interest rate	​		2.66	%

​

Our ratio of debt to total enterprise value was approximately 23.2% (based on the closing price of Digital Realty Trust, Inc.’s common stock on June 30, 2025 of $174.33). For this purpose, our total enterprise value is defined as the sum of the market value of Digital Realty Trust, Inc.’s outstanding common stock (which may decrease, thereby increasing our debt to total enterprise value ratio), plus the liquidation value of Digital Realty Trust, Inc.’s preferred stock, plus the aggregate value of Digital Realty Trust, L.P. units not held by Digital Realty Trust, Inc. (with the per unit value equal to the market value of one share of Digital Realty Trust, Inc.’s common stock and excluding long-term incentive units, Class C units and Class D units), plus the book value of our total consolidated indebtedness.

The variable rate debt shown above bears interest based on various one-month SOFR, EURIBOR, HIBOR, TIBOR, JIBAR, SARON and Base CD Rate rates, depending on the respective agreement governing the debt, including our Global Revolving Credit Facilities and unsecured term loans. As of June 30, 2025, our debt had a weighted average term to initial maturity of approximately 4.5 years (or approximately 4.6 years assuming exercise of extension options).

As of June 30, 2025, our pro-rata share of secured debt of unconsolidated entities was approximately $2.0 billion.

Cash Flows

​

The following summary discussion of our cash flows is based on the condensed consolidated statements of cash flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

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Comparison of Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024

​

The following table shows cash flows and ending cash, cash equivalents and restricted cash balances for the respective periods (in thousands).

​

​	​	​	​	​	​	​	​	​
​	Six Months Ended June 30,
​	2025			2024			Change
Net cash provided by operating activities	$	1,040,322	​	$	925,487	​	$	114,835
Net cash used in investing activities		(741,840)	​		(275,220)	​		(466,620)
Net cash (used in) provided by financing activities		(462,166)	​		47,583	​		(509,749)
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(163,684)	​	$	697,850	​	$	(861,534)

​

​

Cash provided by operating activities in 2025 increased $114.8 million over 2024. The increase was driven by:

	(i)	an increase in revenues due to the completion of our global development pipeline and related lease up operating activities;

	(ii)	an increase in interest income as a result of carrying higher cash balances;

	(iii)	a decrease in interest expense due to lower average balances on our Global Revolving Credit Facilities and unsecured term loans;

	(iv)	offset by the net impact of properties sold and contributed in 2024 and 2025.

​

The changes in the activities that comprise the increase in net cash used in investing activities for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 consisted of the following amounts (in thousands).

​

​	​	​
​	Change
​	2025 vs 2024
Increase in net cash used in business combinations / asset acquisitions	$	(148,014)
Increase in cash used for improvements to investments in real estate	​	(176,826)
Increase in cash contributed to investments in unconsolidated entities, net	​	(1,257)
Decrease in net cash provided by proceeds from sale of real estate	​	(163,231)
Other changes		22,708
Increase in net cash used in investing activities	$	(466,620)

​

The increase in net cash used in investing activities was primarily due to:

​

	(i)	an increase in spend due to the acquisition of land parcels for $218 million in 2025 offset by the acquisition of land parcels in Paris for $80 million in 2024;

	(ii)	an increase in spend on development projects of approximately $177 million;

	(iii)	an increase in cash contributed to various investments in unconsolidated entities;

	(iv)	a decrease in cash provided by the sale or contributions of data centers due to:

	●	approximately $1.2 billion provided for the six months ended June 30, 2024:

i.		cash provided by the contribution of data centers to our joint ventures with Blackstone and Mitsubishi, for gross proceeds of approximately $231 million and $153 million, respectively;

ii.		the sale of four data centers to Brookfield for gross proceeds of approximately $271 million, the sale of a land parcel in Sydney for gross proceeds of approximately $68 million and the sale of an easement to a local power provider in Northern Virginia for gross proceeds of approximately $92 million;

iii.		the sale to GI Partners of a 75% interest in a third facility in Chicago. We received approximately $386 million of net proceeds and retained a 25% interest in the joint venture;

	●	offset by approximately $1.1 billion provided for the six months ended June 30, 2025:

iv.		a $62 million cash contribution made by Mitsubishi in January 2025, which increased their ownership in the joint venture from 65% to 80%;

v.		cash provided by the contribution of development projects at the Digital Dulles campus to the joint venture with Blackstone in April 2025, for gross proceeds of approximately $77 million; and

vi.		cash provided by the contribution of data centers and development projects to the Fund in May 2025, for gross proceeds of approximately $937 million.

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The changes in the activities that comprise the increase in net cash used in financing activities for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 consisted of the following amounts (in thousands).

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​	​	​
​	Change
​	2025 vs 2024
Decrease in cash provided by short-term borrowings	$	(1,236,698)
Increase in cash provided by proceeds from secured / unsecured debt	​	1,821,942
Decrease in cash used for repayment on secured / unsecured debt	​	381,640
Decrease in cash provided by proceeds from issuance of common stock, net of costs	​	(1,318,813)
Increase in cash used for dividend and distribution payments		(77,606)
Other changes, net	​	(80,214)
Increase in net cash used in financing activities	$	(509,749)

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The increase in net cash used in financing activities was primarily due to:

	(i)	an increase in cash payments on short-term borrowings;

	(ii)	an increase in cash provided by proceeds from secured / unsecured debt due to the issuance of the 3.875% Guaranteed Notes due 2035 in January 2025 and the issuance of the 3.875% Guaranteed Notes due 2034 in June 2025;

	(iii)	a decrease in cash used for repayment:

	●	$496 million on the GBP notes (4.250% notes due 2025) in January 2025; more than offset by

	●	repayment of $240 million on the U.S. term loan facility and $637 million on the Euro notes (2.625% notes due 2024) in 2024;

	(iv)	a decrease in cash provided by proceeds from the issuance of:

	●	approximately 3.5 million shares of common stock, net of costs, of approximately $605 million under our ATM program in 2025; more than offset by

	●	an increase in cash provided by proceeds from the issuance of approximately 1.8 million shares of common stock, net of costs, of approximately $276 million under our ATM program and the issuance of approximately 12.1 million shares of common stock, net of costs, of approximately $1.7 billion from our equity offering in May 2024; and

	(v)	an increase in dividend and distribution payments due to an increased number of common shares and common units outstanding.

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Noncontrolling Interests in Operating Partnership

Noncontrolling interests relate to the common units in Digital Realty Trust, L.P. that are not owned by Digital Realty Trust, Inc., which, as of June 30, 2025, amounted to 1.8% of Digital Realty Trust, L.P. common units. Historically, Digital Realty Trust, L.P. has issued common units to third party sellers in connection with our acquisition of real estate interests from such third parties.

Limited partners have the right to require Digital Realty Trust, L.P. to redeem part or all 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. As of June 30, 2025, common units and incentive units of Digital Realty Trust, L.P. are classified within equity, except for certain common units of approximately 0.2 million 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 condensed consolidated balance sheet.

Inflation

Many of our leases provide for separate real estate tax and operating expense escalations. In addition, many of the leases provide for fixed base rent increases. We believe that inflationary increases may be at least partially offset by the contractual rent increases and expense escalations described above. A period of inflation, however, could cause an increase in the cost of our variable-rate borrowings, including borrowings under our Global Revolving Credit Facilities, borrowings under our Euro Term Loan Facility and issuances of unsecured senior notes.

Funds from Operations

We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts (Nareit) in the Nareit Funds From Operations White Paper - 2018 Restatement. FFO is a non-GAAP financial measure and represents net income (loss) (computed in accordance with GAAP), excluding gain (loss) from the disposition of real estate assets, provision for impairment, real estate related depreciation and amortization (excluding amortization of deferred financing costs), our share of unconsolidated JV real estate related depreciation & amortization, net income attributable to noncontrolling interests in operating partnership and, reconciling items related to noncontrolling interests. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions and after adjustments for unconsolidated partnerships and joint ventures, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the Nareit definition and, accordingly, our FFO may not be comparable to other REITs’ FFO. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

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Reconciliation of Net Income Available to Common Stockholders to Funds From Operations (FFO)

(unaudited, in thousands, except per share and unit data)

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​	​	​	​	​	​	​	​	​	​	​	​	​
​		Three Months Ended June 30,						Six Months Ended June 30,
​		2025			2024			2025			2024
GAAP Net Income Available to Common Stockholders	​	$	1,021,975	​	$	70,039	​	$	1,121,768	​	$	341,366
Non-GAAP Adjustments:	​			​			​			​
Net income attributable to non-controlling interests in operating partnership	​		21,000	​		1,500	​		24,000	​		7,700
Real estate related depreciation and amortization (1)	​		451,050	​		414,920	​		883,702	​		835,511
Depreciation related to non-controlling interests	​	​	(21,038)	​	​	(17,317)	​	​	(40,518)	​	​	(25,335)
Unconsolidated JV real estate related depreciation and amortization	​	​	59,172	​	​	47,117	​	​	115,033	​	​	94,993
Gain from the disposition of real estate assets	​	​	(931,830)	​	​	(173,709)	​	​	(932,941)	​	​	(460,413)
Provision for impairment	​	​	—	​	​	168,303	​	​	—	​	​	168,303
FFO available to common stockholders and unitholders (2)	​	$	600,329	​	$	510,853	​	$	1,171,044	​	$	962,125
Basic FFO per share and unit	​	$	1.75	​	$	1.57	​	$	3.41	​	$	2.99
Diluted FFO per share and unit (2)(3)	​	$	1.75	​	$	1.57	​	$	3.42	​	$	2.98
Weighted average common stock and units outstanding	​			​			​			​
Basic	​		343,546	​		325,777	​		343,073	​		322,151
Diluted (2)(3)	​		351,691	​		334,186	​		351,239	​		330,687
​	​	​	​	​	​	​	​	​	​	​	​	​
(1) Real estate related depreciation and amortization was computed as follows:
​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization per income statements		$	461,167		$	425,343	​	$	904,175		$	856,445
Non-real estate depreciation		​	(10,117)	​	​	(10,423)	​	​	(20,473)	​	​	(20,935)
​	​	$	451,050	​	$	414,920	​	$	883,702	​	$	835,511

(2)

As part of the acquisition of Teraco in 2022, certain of Teraco's minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to the Company in exchange for cash or the equivalent value of shares of the Company common stock, or a combination thereof. U.S. GAAP requires the Company to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO per share. When calculating diluted FFO, Teraco related minority interest is added back to the FFO numerator as the denominator assumes all shares have been put back to the Company. The Teraco noncontrolling share of FFO was $15,022 and $12,453 for the three months ended June 30, 2025 and 2024, respectively, and $28,308 and $22,220 for the six months ended June 30, 2025 and 2024, respectively.

(3)	For all periods presented, we have excluded the effect of the series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, as they would be anti-dilutive.

​	​	​	​	​	​	​	​	​	​	​	​
​	Three Months Ended June 30,						Six Months Ended June 30,
​	2025			2024			2025			2024
Weighted average common stock and units outstanding		343,546			325,777			343,073		​	322,151
Add: Effect of dilutive securities		8,145			8,409			8,166		​	8,536
Weighted average common stock and units outstanding—diluted	​	351,691		​	334,186		​	351,239		​	330,687

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