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Digital Realty projects downbeat annual revenue as customers tighten spending
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Digital Realty projects downbeat annual revenue as customers tighten spending
Feb 13, 2025 2:14 PM

Feb 13 (Reuters) - Digital Realty Trust ( DLR ) forecast

annual revenue below Wall Street estimates on Thursday,

expecting cautious spending by clients on data center services

amid economic uncertainty.

Concerns over a slowing global economy have led businesses

to cut spending on cloud-related services, including expensive

digital infrastructure, hurting data center services such as

Digital Realty ( DLR ).

The real estate investment trust (REIT) leases out managed

data centers to clients in sectors that range from cloud and

information technology to social networking, communications and

manufacturing.

Digital Realty ( DLR ) expects full-year 2025 revenue to be between

$5.8 billion and $5.9 billion, compared with analysts' average

estimate of $6.1 billion, according to data compiled by LSEG.

For the fourth quarter ended December 31, Digital Realty ( DLR )

posted revenue of $1.44 billion, compared with estimates of

$1.46 billion. Adjusted core earnings fell to $1.73 per share

from $1.63 a year ago.

Adjusted funds from operations - a key cash flow measure for

REITs - came in at $1.36 per share, from $1.30 in the previous

year.

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