On February 13, Digital Realty Trust projected lower annual revenue than expected by Wall Street analysts, attributing this to clients' cautious spending on data center services amidst economic uncertainties.
The global economic slowdown has prompted businesses to reduce expenditures on cloud-related services, impacting data center services providers like Digital Realty.
As a real estate investment trust (REIT), Digital Realty leases managed data centers to clients across various sectors, from cloud computing and IT to social networking, communications, and manufacturing.
Digital Realty anticipates its full-year 2025 revenue to fall between $5.8 billion and $5.9 billion, slightly below the $6.1 billion average estimate by analysts from LSEG's data.
In the fourth quarter ending on December 31, Digital Realty reported revenue of $1.44 billion, slightly lower than the projected $1.46 billion. Adjusted core earnings decreased to $1.73 per share from $1.63 the previous year.
Furthermore, adjusted funds from operations, a crucial cash flow metric for REITs, stood at $1.36 per share, up from $1.30 in the preceding year.