Digital Realty Trust (DLR): Strong Growth Outlook, Strategic Expansion, and Positive Analyst Sentiment Fuel REIT Potential

Digital Realty Trust, Inc. (NYSE:DLR) is one of Goldman Sachs’ top REIT stock picks. On January 29, analysts at KeyBanc reiterated a Sector Weight rating on Digital Realty Trust, Inc. (NYSE:DLR). According to the research firm, the company’s risk/reward balance appears neutral.

KeyBanc expects the company to deliver revenue growth of 10% plus in 2026, leading to high single- to low double-digit core funds from operations per share growth. The solid results will support the company’s near-term record backlog and development pipeline.

Earlier, on January 26, JPMorgan reiterated an Overweight rating on the data center REIT. According to the investment bank, the REIT is poised for impressive stock performance in 2026, driven by pricing strength and new lease signings. Consequently, it maintains a $210 price target on the stock, having raised its 2026 revenue and profitability estimates.

Meanwhile, Digital Realty has joined the race for data center space in Malaysia with the acquisition of CSF Advisers, the owner of the TelcoHub 1 data center in Cyberjaya. The acquisition is poised to extend the company’s footprint in Southeast Asia as it seeks to meet the region’s growing infrastructure needs.

Digital Realty Trust, Inc. (NYSE:DLR) is a major Real Estate Investment Trust (REIT) that owns, develops, and manages a global portfolio of over 300 data centers. It provides essential, secure, and powered physical infrastructure for cloud computing, AI, and IT storage.

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Disclosure: None. This article is originally published at Insider Monkey.