(Reuters) – Digital Realty Trust 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.
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 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 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.
(Reporting by Juby Babu in Mexico City; Editing by Mohammed Safi Shamsi)
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