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Will Digital Realty’s US$3 Billion ATM Program Shift DLR’s Balance Between Growth and Dilution?

Simply Wall St·02/18/2026 08:28:52
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  • In February 2026, Digital Realty Trust filed an omnibus shelf registration covering common and preferred stock, depositary shares, warrants and debt securities, and separately registered a US$3.00 billion at-the-market follow-on common equity program.
  • This move follows its recently reported 2025 results and 2026 guidance, signaling a plan to keep substantial funding options open while managing growth and balance sheet needs.
  • Next, we will examine how this US$3.00 billion at-the-market equity program could influence Digital Realty’s existing investment narrative.

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Digital Realty Trust Investment Narrative Recap

To own Digital Realty Trust, you need to believe in sustained demand for its global data center platform, especially from AI and cloud customers, and in its ability to fund that growth without unduly stressing the balance sheet. The new US$3,000,000,000 at the market equity program adds flexibility but also heightens the near term focus on capital markets risk, particularly how equity issuance could intersect with valuation and existing shareholders’ interests. If that trade off is well managed, the core thesis remains intact.

The most relevant recent announcement here is the 2026 outlook, with total revenue guided to US$6,600,000,000 to US$6,700,000,000 and net income per diluted share of US$2.55 to US$2.65. While this guidance sits alongside a record lease backlog and development pipeline as key growth drivers, the new funding capacity brings the risk of higher financing costs and potential dilution into sharper focus just as investors are watching execution on these growth catalysts.

Yet beneath the growth story, investors should also be aware that elevated capital markets uncertainty could...

Read the full narrative on Digital Realty Trust (it's free!)

Digital Realty Trust's narrative projects $7.9 billion revenue and $1.0 billion earnings by 2028.

Uncover how Digital Realty Trust's forecasts yield a $197.78 fair value, a 10% upside to its current price.

Exploring Other Perspectives

DLR 1-Year Stock Price Chart
DLR 1-Year Stock Price Chart

Three fair value estimates from the Simply Wall St Community range widely, from US$110.45 up to about US$246.48 per share. As you weigh these views against the new US$3,000,000,000 equity program and broader capital markets risks, it is worth comparing several perspectives on how funding choices could shape future performance.

Explore 3 other fair value estimates on Digital Realty Trust - why the stock might be worth 39% less than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.