Digital Realty Trust Gains Analyst Support Amid Regional AI Demand Challenges

Digital Realty Trust, Inc. (NYSE:DLR) is one of the 12 Best REIT Stocks to Buy Right Now.

The company sees upward momentum among analysts amid growth and challenges reported in the Q2 earnings call.

Digital Realty Trust, Inc. (NYSE:DLR) is a REIT that owns and operates more than 300 carrier‑neutral data centers in over twenty‑five countries across six continents. The company’s PlatformDIGITAL ecosystem encompasses collocation, interconnection, and hybrid cloud services. It serves enterprise, network, and hyperscale clients through secure, scalable infrastructure at urban connectivity hubs.

On July 24, 2025, the company reported its Q2 earnings results. The company’s Core FFO per share was $1.87 during the quarter, marking a significant 13.3% increase year-over-year. Rental rates on renewal leases increased by 7.3% on a cash basis in Q2 2025, further contributing to revenue growth. The company also reported record performance in the 0 to 1 megawatt-plus interconnection product set, with $90 million in bookings.

However, in addition to raising operating expenses, the company also faces challenges such as the comparatively lower demand for AI deployments in Europe, the Middle East, Africa, and the Asia-Pacific regions.

Stifel, Citi, and Truist maintain their Buy rating on the stock and raised their price targets, while Barclays stuck to their Sell rating on Digital Realty Trust, Inc. (NYSE:DLR). With 44 hedge funds invested, the company continues to attract investors seeking valuable REIT stocks.

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