DIGITAL REALTY TRUST, INC.

Digital Realty Trust, Inc. operates as a leading global provider of data center, colocation and interconnection solutions for customers across a variety of industry verticals. The digital economy continues to grow, driven by the Internet of Things, 5G, autonomous vehicles and artificial intelligence, which are driving digital transformation and contributing to explosive data growth, rapid cloud adoption, and greater demand for IT outsourcing. The company believes the data center industry is poised for sustainable growth, with hybrid cloud solutions and artificial intelligence technologies remaining significant demand drivers. Data center providers that can solve global coverage, capacity and connectivity needs are poised to benefit from these industry drivers.

The company competes with numerous data center providers globally, including Equinix, Inc. and NTT, various private operators in the U.S., as well as Global Switch Holdings Limited and various regional operators in Europe, Asia, Latin America, Africa and Australia. Digital Realty believes its global multi-product data center portfolio is a foundational element of its strategy, and its scale and global platform represent key competitive advantages difficult to replicate. The company has more than 5,000 customers, and no single customer represented more than approximately 11.7% of the aggregate annualized recurring revenue of its portfolio as of December 31, 2025. The largest customer accounted for approximately 11.7% of aggregate annualized recurring revenue, and no other single customer accounted for more than approximately 9.0%.

The company generates revenue primarily through rental income from its data center portfolio, providing space, power, and connectivity solutions. Revenue consists of rental and other services, as well as fee income and other. The company provides an extensible, global data center platform enabling customers to tailor infrastructure deployments, from a single cabinet up to multi-megawatt deployments, along with connectivity and connected data communities. The company's product offerings include colocation and Turn-Key Flex facilities, Powered Base Building solutions, and interconnection services such as Cross Connect, Metro Connect, ServiceFabric, Internet Services, Precabling, and Pathway.

The company's portfolio includes 310 data centers (including 89 data centers held as investments in unconsolidated entities), of which 118 are located in the United States, 113 are located in Europe, 36 are located in Latin America, 16 are located in Africa, 18 are located in Asia, six are located in Australia and three are located in Canada. As of December 31, 2025, the portfolio contained a total of approximately 57.6 million rentable square feet, including approximately 9.7 million square feet of space under active development and 4.7 million square feet of space held for development. The 89 data centers held as investments in unconsolidated entities had an aggregate of approximately 11.2 million rentable square feet. The portfolio, including unconsolidated entities, was approximately 84.7% leased. The company had 769 megawatts of projects underway across multiple metropolitan areas, and 64% of this data center activity was pre-leased.

The company's product offerings include PlatformDIGITAL, which offers coverage across 300+ data centers in 55+ metros on 6 continents, capacity of ~2.9 GW of total in-place IT capacity with ~770 MW under construction and >5 GW of future development capacity, and connectivity through ServiceFabric offering virtual network orchestration to 305+ cloud on-ramps and 700 data centers globally. Data center solution types include colocation and Turn-Key Flex (0 to 1 MW) with contract length generally 2-5 years, and Powered Base Building (>1 MW) with contract length generally 5-10+ years. Interconnection products include Cross Connect, Metro Connect, ServiceFabric, Internet Services, Precabling, and Pathway.

In January 2025, Digital Dutch Finco B.V. issued and sold €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2035, with net proceeds of approximately €838 million (approximately $864 million). In March 2025, the company formed a joint venture with Bersama Digital Infrastructure Asia, acquiring a 50% interest for approximately $94.7 million. In April 2025, the company received approximately $77 million of gross proceeds from the contribution of data centers to the joint venture with Blackstone, recognizing a gain on disposition of approximately $58 million. In May 2025, the company launched the Digital Realty DC Partners NA Fund, receiving approximately $937 million of gross proceeds, recognizing a gain on disposition of approximately $873 million, and recognizing an investment in the assets of $661 million. In June 2025, Digital Dutch Finco B.V. issued and sold €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2034, with net proceeds of approximately €836.6 million (approximately $975 million). In July 2025, the company repaid €650 million in aggregate principal amount of its 0.625% senior notes due 2025. In November 2025, Digital Euro Finco, LLC 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, with net proceeds of approximately €1.4 billion (approximately $1.6 billion). In December 2025, the company redeemed €1.075 billion in aggregate principal amount of its 2.500% notes due 2026 prior to maturity. During 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, resulting in a gain of approximately $30.2 million. For 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.

Total operating revenues increased by approximately $557.7 million for the year ended December 31, 2025 compared to the same period in 2024. Total operating revenues were $6,112,692 thousand for the year ended December 31, 2025, compared to $5,554,968 thousand for the year ended December 31, 2024. Rental and other services revenue was $5,968,918 thousand for 2025 compared to $5,482,472 thousand for 2024. Fee income and other revenue was $143,774 thousand for 2025 compared to $72,496 thousand for 2024. Stabilized rental and other services revenue increased by $244.7 million for the year ended December 31, 2025 compared to the same period in 2024 primarily due to increases in new leasing and renewals across all regions along with the strengthening of foreign exchange rates.

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A significant component of current and future internal growth is anticipated through the development of existing space held for development, acquisition of land for future development, and acquisition of new properties. The company expects to continue to acquire additional assets as part of its growth strategy. The company intends to aggressively manage and lease its assets to increase their cash flow and may continue to build out its development portfolio when justified by anticipated demand and returns. The company has expanded its footprint into Latin America, enhanced its data center offerings in strategic U.S. metropolitan areas, established its colocation and interconnection platform in the U.S., and expanded its colocation and interconnection platform in Europe and Africa. In March 2025, the company formed a joint venture with Bersama Digital Infrastructure Asia to develop and operate data centers across Indonesia, acquiring a 50% interest for approximately $94.7 million, which consists of two land parcels and two buildings in Jakarta, Indonesia that can support up to approximately 32 megawatts of IT load.

The company has expanded its product mix to appeal to a broader spectrum of data center customers, especially those seeking to support a greater portion of their data center requirements through a single provider. Through investments and strategic partnerships, the company has significantly expanded its capabilities as a leading provider of interconnection and cloud-enablement services globally. The company believes interconnection is an attractive line of business that enhances the overall value proposition of its data center product offerings. Through product offerings such as ServiceFabric and partnerships with cloud service providers, the company can support customers' hybrid cloud architecture requirements. The company's global data center campuses offer customers the ability to expand their global footprint as their businesses grow, while connectivity offerings on campuses enhance the capabilities and attractiveness of these facilities.

The company expects to incur additional operating expenses as it continues to expand. Many of the company's leases contain provisions under which tenants reimburse the company for all or a portion of property operating expenses and real estate taxes. However, in some cases the company is not entitled to reimbursement of property operating expenses, other than utility expense, and real estate taxes under leases for Turn-Key Flex facilities. The company's goal is to average through business cycles a fixed charge coverage of greater than three times. The company's general and administrative expenses consist primarily of compensation costs and professional service fees, and rising inflation rates may require the company to provide compensation increases beyond historical annual increases.

The company has 769 megawatts of projects underway across multiple metropolitan areas around the world, and 64% of this data center activity was pre-leased. The company estimates that its land and other space held for, or actively under, construction could accommodate over 3,500 megawatts of additional data center capacity, including more than 1,000 additional megawatts developable in Northern Virginia. The company has proactively managed its supply chain and believes the required equipment will continue to be delivered to complete its ongoing development activities. As of December 31, 2025, the company had 4,282 full-time employees, with 1,948 in North America, 2,040 in EMEA, and 294 in Asia Pacific.

Since Digital Realty Trust, Inc.'s initial public offering in 2004, the company has raised approximately $81 billion (including approximately $3.4 billion of private capital and $4.8 billion of equity capital raised from the beginning of 2024 through December 31, 2025) of capital through common, preferred and convertible preferred equity offerings, exchangeable debt offerings, non-exchangeable bond offerings, global revolving credit facilities, a Euro term facility, a senior notes shelf facility, secured mortgage financings and re-financings, joint venture partnerships and the sale of non-core assets. In connection with the Digital DC Partners NA Fund, the company raised over $3 billion of equity commitments that can support approximately $10 billion of total data center investment. As of February 9, 2026, approximately $1.9 billion remains available for future sales under the 2024 Sales Agreement Amendment. The company's goal is to average through business cycles a debt-to-Adjusted EBITDA ratio of 5.5x, a fixed charge coverage of greater than three times, and floating rate debt at less than 20% of total outstanding debt.

The company faces significant competition from numerous data center providers globally, including Equinix, Inc. and NTT, various private operators in the U.S., as well as Global Switch Holdings Limited and various regional operators in Europe, Asia, Latin America, Africa and Australia. Some competitors have significant advantages including greater name recognition, longer operating histories, pre-existing relationships, significantly greater financial, marketing and other resources and more ready access to capital. The company's international activities subject it to risks from fluctuations in exchange rates between foreign currencies and the U.S. dollar, and changes in the relation of these currencies to the U.S. dollar will affect revenues and operating margins. The company's portfolio is geographically concentrated, with Northern Virginia representing 21.4% of total annualized rent as of December 31, 2025, and the top five metropolitan areas (Northern Virginia, Chicago, Frankfurt, London, and Singapore) representing approximately 43.6% of total annualized rent.

The company's business depends upon the demand for data centers, and a reduction in demand for data center space, power or connectivity would have a greater adverse effect on the company's business and financial condition. The company depends upon third-party suppliers for power and is vulnerable to service failures and price increases by such suppliers and to volatility in the supply and price of power in the open market. The company may be unable to lease vacant or development space, renew leases, or re-lease space as leases expire. As of December 31, 2025, customer agreements representing 23.3% of the square footage of the properties in the portfolio, excluding month-to-month leases and space held for development, were scheduled to expire through 2027, and an additional 16.8% of the net rentable square footage, excluding space held for development, was available to be leased. The company's total consolidated indebtedness at December 31, 2025 was approximately $18.6 billion, and the company may incur significant additional debt to finance future activities.

The company's business depends upon the demand for data centers, and a reduction in demand for data center space, power or connectivity would have a greater adverse effect on the company's business and financial condition than if it owned a portfolio with a less specialized use. The company depends upon third-party suppliers for power and is vulnerable to service failures and price increases, and the company's total consolidated indebtedness at December 31, 2025 was approximately $18.6 billion ¹, which requires a significant portion of cash flow from operations to be dedicated to debt service payments. The company faces significant competition from numerous data center providers globally including Equinix, Inc. and NTT, and as of December 31, 2025, the 20 largest customers represented approximately 51% ² of total annualized recurring revenue, with the top three customers representing approximately 26% ³, creating concentration risk. The company's portfolio is geographically concentrated, with Northern Virginia representing 21.4% ⁴ of total annualized rent as of December 31, 2025, making it vulnerable to local economic downturns in that region.

Management's primary business objectives are to maximize sustainable long-term growth in earnings and funds from operations per share and unit, cash flow and returns to stockholders and unitholders through the payment of dividends and distributions, and return on invested capital. Management expects to accomplish these objectives by achieving superior risk-adjusted returns, prudently allocating capital, diversifying product offerings, accelerating global reach and scale, and driving revenue growth and operating efficiencies. Management is committed to maintaining a conservative capital structure with a goal to average through business cycles a debt-to-Adjusted EBITDA ratio of 5.5x, a fixed charge coverage of greater than three times, and floating rate debt at less than 20% of total outstanding debt. Management also strives to maintain a well-laddered debt maturity schedule and seeks to maximize the menu of available sources of capital while minimizing cost.