Digital Realty Acquires Telepoint to Enter Bulgaria Market

Digital Realty DLR has expanded into Bulgaria through the acquisition of Telepoint, a highly connected interconnection hub in Sofia. The deal adds two data centers to its portfolio and strengthens its presence in Southeast Europe. By bringing Telepoint into its global platform, Digital Realty gains immediate scale in a growing digital market and enhances its ability to serve enterprises, cloud providers and network carriers across the region.

Telepoint’s flagship facility in Sofia is one of the most interconnected sites in the area, hosting a dense ecosystem of network service providers and offering multiple cloud connectivity options. Sofia’s location as a gateway between Europe, the Middle East and Asia further increases the site’s strategic importance. Integrating the facility into PlatformDIGITAL allows Digital Realty to deliver seamless data exchange and hybrid IT solutions to customers operating across borders.

The Bulgaria entry builds on Digital Realty’s broader expansion strategy. The company recently extended its Innovation Lab network to Singapore, Japan and London, giving customers more opportunities to test advanced solutions in key Asia-Pacific markets. These efforts reflect management’s focus on enabling digital transformation and supporting evolving enterprise workloads globally.

Digital Realty’s fourth-quarter 2025 results showed steady leasing activity and disciplined capital deployment. The company highlighted a strong balance sheet and continued demand for data center capacity, providing the flexibility to pursue strategic acquisitions such as Telepoint while maintaining financial stability.

Digital Realty’s move into Bulgaria adds a critical interconnection hub to its European platform. By combining Telepoint’s connectivity strength with its global footprint and innovation initiatives, the company is reinforcing its position in fast-growing digital corridors. Supported by solid operating results and a clear expansion strategy, Digital Realty appears well-positioned to benefit from rising demand for interconnected data infrastructure across regions.

DLR’s Zacks Rank and Price Performance

Over the past three months, shares of DLR have risen 8.1%, outperforming the industry’s growth of 7.2%. Currently, DLR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Cousins Properties Incorporated CUZ and W. P. Carey Inc. WPC, each carrying a Zacks Rank #2 (Buy) at present. 

The Zacks Consensus Estimate for Cousins Properties’ 2026 FFO per share is pinned at $2.93. This calls for year-over-year growth of 3.17%. Cousins Properties currently has a VGM Score of B.

The Zacks Consensus Estimate for W. P. Carey’s 2026 FFO per share is pegged at $5.16. This implies year-over-year growth of 3.82%. W. P. Carey has a VGM Score of F.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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