Revenue Growth and Promote Income Realization
Total operating revenues grew 28.9% YoY to $1.92B in 2026-Q2 from $1.49B in 2025-Q2. This was driven by an 8.2% increase in stabilized rental revenue to $1.27B, a 43.1% increase in non-stabilized rental revenue to $403M, and $201M of promote income earned from performance hurdles related to the June 2026 JV acquisition.
Major Joint Venture Buyout and Land Acquisitions
In June 2026, Digital Realty acquired the remaining 64% partnership interests in two joint ventures (Digital Carver Dulles 9 JV and Digital Carver Brickyard JV) for approximately $3.5B ($1.2B cash and 12.3M common shares). Additionally, the company acquired 1,440 acres of development land near Kansas City for $482M and data center assets in Malaysia, France, and Atlanta.
Property Operating Expenses and Utility Cost Trends
Total property level operating expenses rose 13.0% YoY to $747.8M in 2026-Q2. The increase was heavily impacted by a 16.8% increase in utility costs to $396.5M, driven by higher power pricing in EMEA/APAC and higher consumption across newly completed development sites.