Digital Realty Trust DLR · USD

20. Segment and Geographic InformationA majority of the Company’s largest customers are global entities that transact with the Company across multiple geographies worldwide. In order to better address the needs of these global customers, the Company manages critical decisions around development, operations, and leasing globally based on customer demand considerations. In this regard, the Company manages customer relationships globally in order to achieve consistent sales and delivery experience of our products for our customers throughout the global portfolio. The Company has reiterated its commitment to and implemented strategies to align itself as one global team to help power customers’ digital ambitions.In order to best accommodate the needs of global customers (and customers that might one day become global), the Company manages its operations as a single global business – with one operating segment and therefore one reporting segment.The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who uses net income as a primary measure of operating results on a consolidated basis in making decisions. Net income is computed in accordance with U.S. GAAP. Significant expense categories, including Rental property operating and maintenance, Property taxes and insurance, General and administrative and Interest expense, are regularly provided to the Company’s CODM as components of net income, which are reflected on the consolidated income statements. ​The financial information disclosed herein represents all of the financial information related to our one reportable segment, and the segmental presentation is consistent with the information provided to our CODM. These metrics are collectively used to evaluate the performance of the Company’s investments in real estate assets, its operating results and to allocate resources. ​​​​​​​​​​​​​​Operating Revenues​Year Ended December 31,(Amounts in millions)2025​2024​2023Inside the United States$ 3,167.7​​$ 2,910.5​​$ 2,836.0​Outside the United States​ 2,945.0​​​ 2,644.5​​​ 2,641.1​Revenue Outside of U.S. %​48.2%​​47.6%​​48.2%​​​​​​​​​​​​​​​​​​​Investments in Properties, net​​Operating lease right-of-use assets, net​​As of December 31, ​As of December 31, ​As of December 31, ​As of December 31, (Amounts in millions)​2025​2024​2025​2024Inside the United States​$ 10,221.1​​$ 10,592.3​​$ 489.2​​$ 552.3Outside the United States​​ 16,212.5​​​ 13,528.5​​​ 646.4​​​ 626.

18. Commitments and ContingenciesConstruction Commitments – Our properties require periodic investments of capital for tenant-related capital expenditures and for general capital improvements and from time to time in the normal course of our business, we enter into various construction contracts with third parties that may obligate us to make payments. At December 31, 2025, we had open commitments, including amounts reimbursable of approximately $110.6 million, related to construction contracts of approximately $2.6 billion.​Legal Proceedings – Although the Company is involved in legal proceedings arising in the ordinary course of business, as of December 31, 2025, the Company is not currently a party to any legal proceedings nor, to its knowledge, is any legal proceeding threatened against it that it believes would have a material adverse effect on its financial position, results of operations or liquidity.As we most recently disclosed in our Quarterly Report on Form 10-Q filed on October 31, 2025, we cooperated with the Division of Enforcement of the U.S. Securities and Exchange Commission (SEC) in their investigation into the adequacy of our disclosures of cybersecurity risks and our related disclosure controls and procedures. By letter dated December 22, 2025, the SEC Division of Enforcement informed us that based on the information it had as of that date, it had concluded the investigation and did not intend to recommend an enforcement action by the SEC against the Company. We are not aware of any cybersecurity issue or event that caused the Staff to open this matter. Insurance – As previously disclosed, in September 2024, an incident at one of our Singapore data centers resulted in damages to the facility. We believe this incident is substantially covered by our insurance policies, including coverage for the repair cost of the building, business interruption loss and potential third-party claims, subject to deductibles. Initial costs, including direct costs related to the incident and an estimated write-off of damage caused to existing fixed assets, totaling approximately $16 million were incurred during 2024. After factoring our expected insurance coverage and related deductible, we reported net expenses of approximately $5.0 million related to this incident for 2024. ​As of December 31, 2025, we have received total insurance proceeds of $36.8 million which includes $15.2 million received for property damage and initial direct costs and $21.

10. Debt of the Operating PartnershipAll debt is currently owed by the OP or its consolidated subsidiaries, and the Parent is the guarantor or co-guarantor of the Global Revolving Credit Facility and the Yen Revolving Credit Facility, the unsecured term loans and the unsecured senior notes. A summary of outstanding indebtedness is as follows (in thousands):​​​​​​​​​​​​​​​ ​ ​ ​December 31, 2025 ​ ​ ​December 31, 2024​​Weighted-​​​​Weighted-​​​​​average​Amount​average​Amount​​interest rate​Outstanding​interest rate​OutstandingGlobal Revolving Credit Facilities​ 2.63%​$ 918,540​ 3.81%​$ 1,637,922Unsecured term loans​ 2.73%​​ 440,475​ 3.23%​​ 388,275Unsecured senior notes​ 2.60% ​​ 16,321,227​ 2.26% ​​ 14,059,415Secured and other debt​ 9.02% ​ 876,528​ 8.52% ​ 761,263Total​ 2.90% ​$ 18,556,770 ​ 2.72% ​$ 16,846,875​The weighted-average interest rates shown represent interest rates at the end of the periods for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rates on certain variable rate debt, along with cross-currency interest rate swaps, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt in order to hedge the currency exposure associated with our net investment in foreign subsidiaries.We primarily borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies (in thousands, U.S. dollars):​​​​​​​​​​​​​​​​December 31, 2025​December 31, 2024​​Amount​​​​Amount​​​Denomination of Draw ​ ​ ​Outstanding ​ ​ ​% of Total​Outstanding ​ ​ ​% of TotalU.S. dollar ($)​$ 2,922,170 ​ 15.8%​$ 2,852,102 ​ 16.9%British pound sterling (£) ​ 1,212,750 ​ 6.5%​​ 1,627,080​ 9.7%Euro (€)​​ 12,199,575​ 65.7%​​ 10,327,404​ 61.3%Other​​ 2,222,275​ 12.0%​​ 2,040,289​ 12.

12. Income TaxesDigital Realty Trust, Inc. has elected to be treated and believes that it has been organized and has operated in a manner that has enabled it to qualify as a REIT for U.S. federal income tax purposes. As a REIT, Digital Realty Trust, Inc. is generally not subject to corporate level U.S. federal income taxes on taxable income distributed currently to its stockholders. Since inception, Digital Realty Trust, Inc. has distributed at least 100% of its taxable income annually. As such, no provision for U.S. federal income taxes has been included in the Company’s accompanying Consolidated Financial Statements for the years ended December 31, 2025, 2024 and 2023.The Operating Partnership is a partnership and is generally not required to pay U.S. federal income tax. Instead, taxable income is allocated to its partners, who include such amounts on their U.S. federal income tax returns. As such, no provision for U.S. federal income taxes has been included in the Operating Partnership’s accompanying Consolidated Financial Statements.We have elected taxable REIT subsidiary (“TRS”) status for some of our consolidated subsidiaries. In general, a TRS may provide services that would otherwise be considered impermissible for REITs to provide and may hold assets that REITs cannot hold directly. Income taxes for TRS entities were accrued, as necessary, for the years ended December 31, 2025, 2024 and 2023.For our TRS entities and foreign subsidiaries that are subject to U.S. federal, state, local and foreign income taxes, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe it is more likely than not that the deferred tax asset may not be realized, based on available evidence at the time the determination is made. An increase or decrease in the valuation allowance that results from the change in circumstances that causes a change in our judgment about the realizability of the related deferred tax asset is included in the income statement. Deferred tax assets (net of valuation allowance) and liabilities for our TRS entities and foreign subsidiaries were accrued, as necessary, for the years ended December 31, 2025, 2024 and 2023.

3. LeasesLessor AccountingWe generate the majority of our revenue by leasing operating properties to customers under operating lease agreements. The manner in which we recognize these transactions in our financial statements is described in Note 2. “Summary of Significant Accounting Policies—Revenue Recognition” to these Consolidated Financial Statements. Our largest customer’s total revenue is approximately 12% of our total revenue base. No other individual customer makes up more than approximately 10% of our total revenue.​A summary of minimum lease payments due from our customers under operating leases of land, prestabilized development properties, and operating properties with lease periods of greater than one year at December 31, 2025 is shown below. These amounts do not reflect future rental revenues from renewal or replacement of existing leases unless we are reasonably certain we will exercise the option or the lessee has the sole ability to exercise the option. Reimbursements of operating expenses and variable rent increases are excluded from the table below.​​​​​(Amounts in thousands) ​ ​ ​Operating leases2026​$ 3,503,9242027​ 2,747,9642028​ 2,349,9262029​ 1,960,4182030​ 1,549,211Thereafter​ 6,439,048Total​$ 18,550,491​Lessee Accounting​We lease space and equipment at certain of our data centers from third parties under noncancelable lease agreements. Leases for our data centers expire on various dates through 2069. Certain of our data centers, primarily in Europe and Singapore, are subject to ground leases. As of December 31, 2025, the termination dates of these ground leases ranged from 2038 to 2073. In addition, our corporate headquarters along with several regional office locations are subject to leases with termination dates ranging from 2026 to 2037.​The leases generally require us to make fixed rental payments that increase at defined intervals during the term of the lease, plus pay our share of common area, real estate and utility expenses as incurred. The leases neither contain residual value guarantees nor impose material restrictions or covenants on us. Further, the leases have been classified and accounted for as either operating or finance leases. Rent expense related to operating leases included in Rental property operating and maintenance expense in the consolidated income statements amounted to approximately $158.7 million, $153.5 million and $153.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

6. Acquisitions and Dispositions of Properties​Acquisitions of Properties​For the years ended December 31, 2025, 2024 and 2023, acquisitions of properties that did not qualify as business combinations were immaterial to our financial statements – both individually and in the aggregate.​During the year ended December 31, 2025, we closed on acquisitions of land parcels for approximately $309 million.​In January 2024, we acquired a 16-acre site in Paris for $80 million. Prior to the acquisition, we leased the land, which consisted of two completed data centers and two data centers under construction. As a result of the land acquisition, we derecognized the right-of-use assets and lease liabilities of $145 million and $150 million, respectively.​In July 2024, the Company acquired two data centers located in the Slough Trading Estate for $200 million. The newly acquired campus features two individual data centers with a combined capacity of 15 megawatts (MW).​Disposition of Other PropertiesThe Company sold or contributed the following other real estate properties during the years ended December 31, 2025, 2024 and 2023:​​​​​​​​​​​​​​​Date Sold / ​Gross Proceeds / Fair Value​Gain on Sale / contributionProperty Type​Metro Area​contributed​(in millions)​(in millions)Digital Realty DC Partners NA Fund​Various​2025​$ 1,364.3​$ 903.5Joint venture contributions​Northern Virginia​2025​​ 139.4​​ 58.8Non-core assets​Various​2025​​ 123.7​​ 33.2Joint venture contributions​Various​2024​​ 1,246.4(1)​ 304.1Brookfield transaction​Various​2024​​ 271.0​​ 191.6Non-core assets​Various​2024​​ 158.7​​ (1.0)Sale of noncontrolling interest in property​Frankfurt​2024​​ 497.5(2)​ 101.1Joint venture contributions​Various​2023​​ 2,278.5(3)​ 814.0Non-core assets​Various​2023​​ 341.3​​ 86.6(1)Includes Blackstone Inc., GI Partners, and Mitsubishi Corporation.(2)Includes sale of noncontrolling interest in DCREIT (see Note 7. “Investments in Unconsolidated Entities”).(3)Includes GI Partners, Realty Income, and TPG Real Estate.​2025 Dispositions and Contributions​Digital Realty DC Partners NA Fund – During the first half of 2025, the Company launched its Digital Realty DC Partners NA Fund (the “Fund”), successfully raising more than $3 billion of equity commitments to date. At inception, Fund commitments represented a 40% to 80% ownership interest in each individual asset, while the Company maintained the remaining 20% to 60% stake in the assets and less than a 2% direct interest in the Fund.

Cybersecurity Risk Management and Strategy​We have developed and implemented cybersecurity risk management processes intended to protect the confidentiality, integrity, and availability of our information systems. ​We utilize the United States National Institute of Standards and Technology, Cybersecurity Framework (NIST CSF) in considering the design and in assessing our processes. This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST CSF as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.​We have integrated aspects of our cybersecurity risk management processes into our overall risk management program through, for example, common methodologies, reporting channels and governance processes that apply across the overall risk management program to other risk areas.​Our cybersecurity risk management processes include, but are not limited to:​●independent maturity assessments designed to help identify significant cybersecurity risks to our IT environment and systems; ​●a cyber resilience team jointly responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents; ​●the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls and responses to cybersecurity incidents;​●cybersecurity awareness training of our employees, incident response personnel, and senior management; ​●a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and​●a risk management process for third party service providers that aligns to our compliance standards and calibrated to our assessment of each provider’s operational criticality and risk profile.​To date, we have not identified risks from known cybersecurity threats resulting from prior cybersecurity incidents. Such incidents have not materially affected our operations, business strategy, results of operations, or financial condition. On an ongoing basis, we face complex risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.

1. GeneralOrganization and Description of Business. Digital Realty Trust, Inc. (the Parent), through its controlling interest in Digital Realty Trust, L.P. (the Operating Partnership or the OP) and the subsidiaries of the OP (collectively, we, our, us or the Company), is a leading global provider of data center (including colocation and interconnection) solutions for customers across a variety of industry verticals ranging from cloud and information technology services, social networking and communications to financial services, manufacturing, energy, healthcare, and consumer products. The OP, a Maryland limited partnership, is the entity through which the Parent, a Maryland corporation, conducts its business of owning, acquiring, developing and operating data centers. The Parent operates as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.The Parent’s only material asset is its ownership of partnership interests of the OP. The Parent generally does not conduct business itself, other than acting as the sole general partner of the OP, issuing public securities from time to time and guaranteeing certain unsecured debt of the OP and certain of its subsidiaries and affiliates. The Parent has not issued any debt but guarantees the unsecured debt of the OP and certain of its subsidiaries and affiliates.The OP holds substantially all the assets of the Company. The OP conducts the operations of the business and has no publicly traded equity. Except for net proceeds from public equity issuances by the Parent, which are generally contributed to the OP in exchange for partnership units, the OP generally generates the capital required by the Company’s business primarily through the OP’s operations, by the OP’s or its affiliates’ direct or indirect incurrence of indebtedness or through the issuance of partnership units.Accounting Principles and Basis of Presentation. The accompanying consolidated financial statements and accompanying notes (the “Consolidated Financial Statements”) are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and are presented in our reporting currency, the U.S. dollar. All of the accounts of the Parent, the OP, and the subsidiaries of the OP are included in the Consolidated Financial Statements. All material intercompany transactions with consolidated entities have been eliminated. Management Estimates and Assumptions. U.S.