Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.

Digital Realty Trust looks like a high-quality REIT, but one that is no longer cheap, with strong revenue and a solid asset base. On the valuation multiples, the picture is stretched: P/E, P/S, and P/B are noticeably above the industry median, indicating a valuation premium and limiting further upside potential. P/FCF is around the industry median, so free cash flow does not appear to be a source of clear undervaluation. At the same time, leverage is moderate: debt/equity is below the median, and the current ratio is above the industry level, which supports financial stability. The weak point is a quick ratio of zero, which is typical for real estate, but still highlights dependence on working capital financing and the stability of cash flows. Profitability is generally decent, but ROE, ROA, and ROI are below the industry median, and operating margin is noticeably weaker than one would like for a company with this valuation. On the other hand, gross margin remains stable and has barely deteriorated over the years, while return on tangible equity is above the industry level, suggesting acceptable capital quality. Revenue, gross profit, and EBITDA are growing, which is an important positive and confirms operational expansion of the business. Net income and operating income are also positive, but profit momentum does not look strong enough to justify the high multiples without a risk discount. Dividend yield is absent in the current data, and it was positive previously, so the dividend factor is not currently supporting a re-rating. Overall, the fundamentals are rather neutral to positive in terms of business quality, but with a clear valuation constraint due to expensive multiples. For an investor, this means the company looks resilient, but the current price already reflects many of its strengths, so only a moderate conservative adjustment to the forecast is warranted.

Digital Realty Trust, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Слабый индекс, незначительно упал

Strong revenue and EBITDA growth with moderate debt, but high P/E, P/S, and P/B ratios and a weak operating margin limit revaluation potential.

Digital Realty Trust, Inc. DLR is benefiting from faster expected Core funds from operations (FFO) growth, rising revenue visibility and sustained demand from AI, cloud and enterprise customers. The growth case strengthened after management raised its 2026 Core FFO per share outlook, excluding net promote.
The trade-off is valuation. DLR commands premiums to its Zacks sub-industry and the S&P 500, while a larger development program increases the importance of timely project delivery and attractive returns.
DLR’s Growth Outlook Has Strengthened
Management raised 2026 Core FFO per share guidance, excluding net promote, to $8.15-$8.20 from $8.00-$8.10. The Zacks Consensus Estimate calls for 2026 sales growth of 16.3% and FFO per share growth of 13.7%, while the estimate for current-year earnings has risen 4.3% over the past four weeks.
Leasing supports that outlook. Digital Realty ended the second quarter with a record $1.9 billion backlog of annualized GAAP base rent at 100% share, while renewal rents rose 25.4% on a cash basis. Equinix, Inc. EQIX also reported 23% year-over-year growth in annualized gross bookings in the second quarter, underscoring broad demand for digital infrastructure. Iron Mountain Incorporated IRM said its data center, digital and asset lifecycle management growth businesses collectively grew more than 50% year over year in the same quarter, with data center leasing reaching 110 megawatts year to date.
Digital Realty Trades at a Premium Valuation
DLR trades at 21.84X forward 12-month earnings, above the 16.12X multiple for its Zacks sub-industry and the S&P 500’s 20.8X. That premium leaves less room for execution shortfalls if expected earnings growth or leasing conversion moderates.
Image Source: Zacks Investment Research
The stock’s 9.43X price-to-sales multiple also stands well above the sub-industry’s 5.31X. Investors are therefore paying for sustained growth, making backlog conversion, renewal pricing and development returns central to the valuation case.
Image Source: Zacks Investment Research
DLR’s Capital Program Raises Execution Stakes
Development capital expenditures, net of partner contributions, are projected at $4.25-$4.75 billion in 2026, up from the prior $3.50-$4.00 billion range. The company had about 1.4 gigawatts under construction at June 30, 2026, with an 11.5% average expected stabilized yield and 54% pre-leasing.
Digital Realty is also adding future capacity through large land purchases and acquisitions. Its roughly $475 million Kansas City land acquisition can support up to two gigawatts of utility power. The expanded pipeline lengthens the growth runway, but it also raises the stakes around project timing, pre-leasing and stabilized returns.
Digital Realty’s Balance Sheet Offers Flexibility
Net debt to Adjusted EBITDA remained at 4.7X at June 30, 2026, while fixed-charge coverage improved to 5.2X. As of July 29, 2026, Digital Realty also had roughly $3.6 billion of borrowings available under its revolving credit facilty.
Management estimated more than $12 billion of remaining private-capital capacity for hyperscale development. That funding flexibility can help support the larger capital program, although total debt of about $18.6 billion keeps financing discipline important.
DLR’s Mixed Scores Support a Cautious Stance
The improving earnings outlook and leasing visibility support the growth case, but the premium valuation and heavier development program argue against chasing the shares. The setup currently looks more balanced than decisively bullish.
DLR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Growth Score of B points to favorable growth characteristics, while the Value Score of D signals a weaker valuation profile. The VGM Score of C is also mixed. Together, those readings support a hold-or-wait posture rather than a strong buy case at the current valuation.
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Is DLR Worth Buying as Growth Accelerates but Valuation Stays Rich?

Digital Realty Trust, Inc. DLR shares have gained 9.9% in the past four weeks, reflecting stronger operating momentum across leasing, renewals and development. The Zacks Consensus Estimate for current-year funds from operations (FFO) has also moved 4.3% higher over the past four weeks.
The advance has fundamental support, but the stock is not without constraints. A large capital program and sizable debt load keep financing conditions important, while mixed Style Scores make the near-term setup less decisive.
Image Source: Zacks Investment Research
DLR’s Record Backlog Supports Revenue Visibility
Second-quarter bookings reached $307 million of annualized GAAP base rent at 100% share, while the signed-but-not-commenced backlog climbed to a record $1.9 billion. At Digital Realty’s share, bookings were $208 million and backlog totaled $1.4 billion.
The weighted-average lag between new lease signings and contractual commencement was nine months. Two hyperscale leases signed in July added another $410 million of annualized GAAP base rent at 100% share, extending the runway for future revenue commencements.
Digital Realty’s Renewal Pricing Remains Strong
Cash rental rates on renewal leases increased 25.4% in the second quarter, while GAAP renewal rates rose 32%. Portfolio occupancy reached 90.2%, up from 89.7% a year earlier, adding another positive signal on utilization.
Management raised its 2026 Core FFO per share outlook, excluding net promote, to $8.15-$8.20. It also increased the expected 2026 cash renewal-rate range to 9%-11%, up another 250 basis points from last quarter, indicating that current pricing strength is influencing the full-year outlook.
DLR’s Development Pipeline Adds Growth Capacity
Digital Realty had about 1.4 gigawatts under construction at quarter-end, with an 11.5% average expected stabilized yield. The pipeline was 54% pre-leased at June 30 and 63% pre-leased after including the July hyperscale signings.
The company also had about 8.5 gigawatts of buildable IT capacity. Equinix, Inc. EQIX reported second-quarter annualized gross bookings growth of 23% year over year and a record backlog, underscoring broad demand for digital infrastructure. GDS Holdings Limited GDS reported an 11.7% year-over-year increase in committed and pre-committed area in the first quarter, providing another industry demand reference point.
Digital Realty’s Funding Needs Could Limit Upside
The growth program is capital intensive. Digital Realty expects 2026 development spending of $4.25-$4.75 billion, net of partner contributions, up from its prior $3.5-$4.0 billion range.
Total debt stood at about $18.6 billion at June 30. The company raised roughly $2.5 billion through its at-the-market equity program in the first half and expects $1-$1.5 billion of dispositions or joint venture capital in 2026, leaving execution sensitive to financing conditions.
DLR’s Mixed Scores Temper the Momentum Case
DLR’s 9.9% four-week gain is backed by record backlog, double-digit renewal pricing and a larger pre-leased development pipeline. Those operating trends improve visibility, but heavy spending and funding needs leave less room for execution or capital-market setbacks.
The stock currently carries a Zacks Rank #3 (Hold), pointing to a balanced near-term revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Growth Score of B is favorable, but the Value Score of D, Momentum Score of C and VGM Score of C show a less uniform setup. That mix supports a measured view after the recent rally.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Equinix, Inc. (EQIX) : Free Stock Analysis Report
GDS Holdings (GDS) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DLR Jumps 9.9% in the Past Month as Leasing Momentum Accelerates

Applied Digital’s APLD shares have soared 100.6% over the past year, significantly outperforming the broader Zacks Finance sector’s 13.7% return and the Financial - Miscellaneous Services industry’s 26.5% decline.
APLD’s strong upward momentum might look enticing, yet rapid momentum often masks underlying risks. Let us examine whether this powerful rally presents a suitable opportunity to lock in profits while mitigating risk.
APLD’s One-Year Price Performance
Image Source: Zacks Investment Research
APLD's Heavy Capital Needs Add Financial Risk
Applied Digital’s AI/HPC data-center strategy is highly capital-intensive. It requires substantial upfront expenditure on land, power infrastructure, buildings, cooling systems, electrical equipment and other facility developments — investments that must be made well before the facilities generate full revenues. The company spent approximately $3.04 billion on capital expenditures in fiscal 2026, of which nearly $2.99 billion was attributable to the HPC Hosting Business, compared with $976.5 million in the prior year. Management expects significant investments in property and equipment to continue through fiscal 2027 as construction progresses across its HPC campuses.
The scale of these investments means APLD must rely on external financing to support its expansion, including debt, equity and project-level funding. The company has stated that it has historically relied on equity and debt-based financing. As of May 31, 2026, APLD had $4.96 billion of net long-term debt, including $2.35 billion of 9.25% senior secured notes, $2.15 billion of 6.75% senior secured notes and $300 million of bridge financing. Its contractual obligations also included approximately $5.31 billion of debt principal and $1.78 billion of estimated interest payments. Although APLD has raised substantial project financing, management noted that quarterly CapEx was expected to reach roughly $600 million and increase as new campuses enter more advanced construction stages, highlighting the continuing need for financing.
From an investor perspective, the key concern is that future growth remains closely tied to APLD's ability to access capital continuously at reasonable costs. The company has already used multiple funding channels, including senior secured debt, preferred equity and its partnership with Macquarie, which had provided $1.8 billion under the HPC investment agreement by May 31, 2026. While these arrangements ease near-term funding pressure, a prolonged deterioration in debt or equity markets, higher interest rates, weaker cash generation or delays in project completion could make future financing more expensive or harder to obtain.
APLD's Expansion Faces Growing Competitive Pressure
Applied Digital faces intensifying competition in the AI and HPC data-center market as operators compete for power, interconnections, sites, hyperscale customers and capital. Established players such as Digital Realty Trust DLR and Equinix EQIX have significant infrastructure, customer relationships and financial resources, while IREN Limited IREN and other power-advantaged developers are expanding into HPC. Digital Realty Trust and Equinix could leverage their established footprints to compete aggressively for customers and strategic locations, while IREN and similar developers may intensify competition for power and sites.
The growing competitive landscape could raise development costs, pressure lease pricing and constrain returns on capital. The risk becomes more significant as APLD scales to 1.41 GW of contracted capacity across five campuses and markets another 1.7 GW. Although APLD views low-cost power and timely execution as competitive advantages, maintaining these strengths could become increasingly difficult as Digital Realty Trust, Equinix and IREN Limited pursue the same AI infrastructure opportunity. Ultimately, stronger competition could challenge APLD’s ability to sustain attractive economics while rapidly expanding its capital-intensive platform.
Applied Digital's trading below both the 50- and 200-day moving averages signals a bearish trend, potentially limiting near-term momentum for the stock.
APLD Trades Below 50 & 200 Day SMA
Image Source: Zacks Investment Research
APLD’s Earnings Estimates Trend Lower
The Zacks Consensus Estimate for Applied Digital’s first-quarter fiscal 2026 loss is currently pegged at 22 cents per share, compared with a loss of 11 cents reported in the year-ago quarter.
For fiscal 2027, the Zacks Consensus Estimate currently calls for a loss of $1.09 per share, with the estimate widening by 9 cents over the past 30 days. This compares with a loss of 91 cents reported for fiscal 2026, highlighting continued pressure on APLD’s earnings outlook.
Earnings Estimates Chart
Image Source: Zacks Investment Research
APLD Shares Are Overvalued
Applied Digital shares are currently overvalued, as suggested by its Value Score of F.
The stock currently trades at a 12-month price-to-sales (P/S) multiple of 9.01X, significantly above the industry average of 2.58X. Among peers, Digital Realty Trust and Equinix also trade at elevated P/S multiples of 9.43X and 9.30X, respectively. However, IREN Limited appears relatively more attractively valued, with a P/S multiple of 4.12X. APLD's elevated valuation could increase downside risk if growth slows or execution falters.
APLD’s P/S F12M Ratio
Image Source: Zacks Investment Research
Here’s Why You Should Stay Away From APLD Stock
APLD’s strong one-year rally does not outweigh its mounting risks. Heavy capital needs, high debt, competitive pressure, declining earnings estimates, bearish technical trends and an expensive valuation make the stock less attractive at current levels. Therefore, this Zacks Rank #4 (Sell) company is not a preferred investment right now, supporting the case for investors to stay away from the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

APLD Surges 101% in a Year: Should You Buy, Sell or Hold the Stock?

Key Points
Digital Realty is one of the world’s largest data center REITs.
It will profit from the AI boom and return most of that cash to its investors.
Artificial intelligence (AI) stocks are often associated with aggressive growth rather than stable dividends. But today, we'll take a look at an underappreciated stock that quietly powers the AI revolution while paying steady dividends: Digital Realty (NYSE: DLR).
What does Digital Realty do?
Digital Realty is one of the largest data center real estate investment trusts (REITs). It buys up data centers, leases out that space, and is required to distribute at least 90% of its taxable income as dividends to maintain a lower tax rate. It operates more than 300 data centers worldwide, and its customers include over half of the Fortune 500 companies.
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From 2020 to 2025, its core funds from operations (FFO) per share -- a key profitability metric for REITs -- rose from $6.22 to $7.29. It expects that figure to rise to $8.15-$8.20 per share in 2026 and easily cover its forward dividend rate of $4.88. That equals a forward yield of 2.6%.
Digital Realty has kept its occupancy rate in the mid-80s over the past five years, even as it gradually divested its older "non-core" data centers -- which have less growth potential than its hyperscale data centers. Therefore, if you're looking for a dividend stock that will benefit from the rapid growth of the cloud and AI markets, Digital Reality checks all the right boxes.
Should you buy stock in Digital Realty Trust right now?
Before you buy stock in Digital Realty Trust, consider this:
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Digital Realty Trust. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Unloved Dividend Stock Is Secretly Powering the AI Revolution

Ellington Financial Inc. EFC reported second-quarter 2026 adjusted earnings of 60 cents per share, up 27.7% from 47 cents a year ago. The figure surpassed the Zacks Consensus Estimate of 46 cents by 30.4%. Revenues of $72.3 million jumped 66.8% year over year and topped the consensus estimate of $66.8 million by 8.2%. However, the stock has seen limited movement since the earnings release on Aug. 7.
Results benefited from stronger net interest income, solid credit performance and contributions from Longbridge. Longbridge loan originations rose 38% year over year to $589.7 million, while its HMBS market share reached a record 29% during the quarter.
EFC's Interest Income Growth Supports Results
Interest income was $170.8 million in the second quarter, up from $115.5 million in the year-ago period. Interest expenses increased to $98.6 million from $72.1 million, reflecting higher financing costs. Total expenses rose to $76.0 million from $57.1 million.
The investment portfolio's net interest margin edged down to 3.36% from 3.37% in the prior quarter. Slightly higher asset yields were more than offset by a modest increase in funding costs. Positive carry from interest-rate swaps continued to support results, although the benefit moderated sequentially.
Ellington Financial's Investment Portfolio Expands
The investment portfolio segment generated $119.9 million of interest and other income during the quarter. Net income attributable to common stockholders from the segment totaled $74.2 million, while Adjusted Distributable Earnings amounted to $75.7 million.
The adjusted long investment portfolio increased roughly 1% sequentially to $4.50 billion. Growth was driven by residential transition loans, commercial mortgage bridge loans and retained RMBS. EFC securitized $1.87 billion of unpaid principal balance across non-QM, Agency-eligible and closed-end second-lien loans through seven transactions.
EFC's Longbridge Business Maintains Momentum
Longbridge recorded $53.4 million of interest and other income and generated net income attributable to common stockholders of $30.2 million. Adjusted Distributable Earnings from the segment totaled $28.9 million.
Originations included $316.2 million of proprietary reverse mortgage loans and $273.5 million of HECM loans. The company completed two proprietary reverse mortgage securitizations. These securitizations more than offset new portfolio growth, reducing the net Longbridge portfolio 7% sequentially to $649.3 million.
Ellington Financial Faces Higher Costs and Corporate Drag
Compensation and benefits increased to $28.4 million from $21.3 million a year earlier. Investment and transaction-related costs also remained meaningful, including servicing expenses of $7.9 million and other investment-related expenses of $14.5 million.
Corporate/Other results were pressured by a substantial unrealized loss on unsecured debt, which more than offset a significantly lower incentive-fee accrual. Credit-spread tightening drove much of the debt valuation loss, while higher interest rates produced losses on fixed-receiver swaps used to hedge unsecured notes and preferred equity.
EFC's Liquidity Remains Solid
The recourse debt-to-equity ratio remained 1.9:1, while the overall debt-to-equity ratio increased to 9.2:1 from 9.0:1 sequentially amid higher non-recourse securitization-related borrowings. Unencumbered assets totaled $1.86 billion, including $247.5 million of cash and cash equivalents.
Ellington Financial's Funding Profile Adds Flexibility
Of total recourse borrowings, 29% were long-term and non-mark-to-market, while 17% were unsecured. The weighted average remaining term of repo borrowings was 9.3 months, providing a relatively diversified funding structure for the portfolio.
Management noted that the first-half 2026 performance produced a 20% annualized economic return. Adjusted Distributable Earnings totaled $1.15 per share during the first six months, compared with dividends of 78 cents per share, while book value per share increased 45 cents over the period.
EFC’s Zacks Rank
Ellinton Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ellington Financial Inc. Price, Consensus and EPS Surprise
Performance of Other REITs
Digital Realty Trust DLR reported second-quarter 2026 core FFO per share, excluding net promote of $2.13, up 13.9% from the year-ago level. The figure surpassed the Zacks Consensus Estimate by 7.6%. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter.
Prologis PLD reported second-quarter 2026 core FFO per share of $1.63, outpacing the Zacks Consensus Estimate of $1.53. Results reflected strengthening demand, disciplined execution and expanding capabilities across logistics, data centers and energy.
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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EFC Second-Quarter Earnings Beat Estimates on Longbridge Strength

Key Points
Realty Income recently formed a $6 billion joint venture to invest in data centers.
It sees a $1 trillion investment opportunity in the space.
Data center investments should support its continued dividend growth.
AI data centers are the hot investment theme today. From data center developers to chipmakers to power producers, it seems like everyone is chasing the AI data center investment trend. That's pushing up valuations, pulling future upside forward.
However, while everyone is bidding up almost anything related to AI data centers, they're overlooking a boring way to cash in on the megatrend. Realty Income (NYSE: O) already owns a piece of the data center boom. That positions the real estate investment trust (REIT) to continue to steadily grow its more than 5%-yielding monthly dividend.
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Cashing in on an over $1 trillion opportunity
Realty Income started investing in data centers in late 2023 by forming a build-to-suit joint venture (JV) with Digital Realty. It bought an 80% stake in a JV building up to 48 megawatts of data center capacity, secured by a long-term net lease with a large, high-quality company. The total build-out cost is up to $800 million.
The REIT recently inked an even bigger JV with Cloud Capital to invest in hyperscale data centers. The programmatic joint venture will initially hold over $6 billion in assets, with Realty Income expecting to invest up to $1.4 billion for a 45% stake in a three-asset Northern Virginia portfolio. The JV will provide it with the opportunity to invest in future qualifying data center developments and acquisitions in the U.S. and Europe.
These JV's position Realty Income to capitalize on the more than $1 trillion opportunity it sees for investing in global data centers. That's a massive opportunity for the $89 billion REIT (by enterprise value).
Accelerating growth
Realty Income's $6 billion hyperscale data center joint venture is already driving faster growth this year. The REIT is raising its outlook for adjusted funds from operations (AFFO) to a range of $4.44-$4.45 per share, up from its prior guidance of $4.41-$4.44 per share, a 4% increase from last year at the midpoint. It also raised its investment outlook to $10 billion, up from $9.5 billion.
That AFFO is plenty to cover the dividend. Realty Income expects to generate over $965 million in adjusted free cash flow this year after paying dividends. That gives it ample room to continue raising its dividend. It recently extended its growth streak to 115 consecutive quarters.
A lower-risk way to capitalize on the AI data center boom
Investors are bidding up everything related to data centers these days, including the stocks of companies that might not deliver enduring growth. Realty Income, on the other hand, isn't a speculative play on data centers. It's investing in facilities secured by long-term leases with top-flight tenants. That makes the REIT, which pays a more than 5%-yielding and steadily growing monthly dividend, a lower-risk way to cash in on the data center boom.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,724!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!*
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Matt DiLallo has positions in Digital Realty Trust and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Digital Realty Trust. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Everyone's Chasing AI Data Center Stocks. This 5%-Yielding Dividend Stock Already Owns a Piece of the Boom.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares US Real Estate ETF (Symbol: IYR) where we have detected an approximate $210.3 million dollar outflow -- that's a 4.4% decrease week over week (from 45,250,000 to 43,250,000). Among the largest underlying components of IYR, in trading today Prologis Inc (Symbol: PLD) is off about 0.6%, Digital Realty Trust Inc (Symbol: DLR) is down about 1.1%, and Realty Income Corp (Symbol: O) is higher by about 0.1%. For a complete list of holdings, visit the IYR Holdings page » The chart below shows the one year price performance of IYR, versus its 200 day moving average:
Looking at the chart above, IYR's low point in its 52 week range is $92.45 per share, with $108.17 as the 52 week high point — that compares with a last trade of $104.50. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IYR Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IYR, PLD, DLR, O: Large Outflows Detected at ETF

Iron Mountain Incorporated IRM reported second-quarter 2026 adjusted funds from operations (AFFO) of $1.44 per share, up 16.1% year over year. The figure surpassed the Zacks Consensus Estimate by 2.9%.
Revenues of $2.03 billion increased 18.5% and beat the consensus mark of $1.97 billion. The upside reflected broad-based strength, with data center revenues advancing 38.8% and asset lifecycle management benefiting from robust enterprise and decommissioning activity.
In response to the above results, IRM shares were trading close to 3% higher in today’s pre-market session.
IRM's Revenue Mix Supports Broad Growth
Storage rental revenues rose 12.3% year over year to $1.13 billion. Service revenues increased 27.4% to $894.5 million, underscoring the growing contribution from faster-expanding offerings outside the traditional records storage business.
Organic revenues jumped 16.8% on a constant-currency basis, excluding acquisitions and divestitures. Organic storage rental growth was 11.3%, while organic service growth reached 24.8%, showing that internal execution rather than deal activity drove most of the quarter’s expansion.
Iron Mountain's RIM Business Stays Resilient
Global Records and Information Management revenues increased 8.3% to $1.43 billion. Storage rental revenues in the segment rose 6.6%, while service revenues advanced 10.9%, supported by revenue management, digital solutions and continued customer activity.
The segment generated adjusted EBITDA of $620.8 million compared with $586.3 million a year earlier. Its adjusted EBITDA margin contracted 100 basis points to 43.3%, as faster service growth carried a different margin profile than the highly recurring storage business.
Global storage volume reached a record 747.9 million cubic feet, up from 735.8 million a year ago. Storage facility utilization improved to 81.6% from 80.6%, while the records management retention rate increased 40 basis points to 93.4%.
IRM's Data Center Momentum Strengthens
Global Data Center revenues climbed to $262.9 million from $189.4 million. Storage rental revenues grew 37.5%, and the segment’s adjusted EBITDA increased to $137.3 million, with margin expanding 140 basis points to 52.2%.
Iron Mountain signed 13 megawatts of new and expansion leases during the quarter. Leasing reached 110 megawatts through July after an additional 75 megawatts were signed following quarter-end. The company also cited a backlog supporting $370 million of revenue growth beyond 2026 before including the July leasing.
The operating portfolio had 528.5 leasable megawatts and was 97.1% leased. Management expects roughly 325 megawatts of available-to-lease capacity to become energized over the next 24 months as it works toward total developable capacity of approximately 1.4 gigawatts.
Iron Mountain's ALM and Digital Engines Expand
Corporate and Other revenues surged 67.4% to $332.6 million. Service revenues rose 73.7%, reflecting strong asset lifecycle management performance across enterprise solutions and data center decommissioning.
ALM revenues increased 88% on a reported basis and 82% organically. Management also highlighted record digital revenues and growing traction for Insight DXP, its artificial intelligence-powered platform, including a multi-year managed-services agreement spanning 45 countries.
IRM's Costs and Balance Sheet Remain Manageable
Total operating expenses increased 14% to $1.66 billion, slower than revenue growth. Operating income advanced 43.7% to $373.5 million, though adjusted EBITDA margin declined 90 basis points to 35.8%, partly reflecting the mix shift toward rapidly growing service businesses.
Net lease-adjusted leverage remained at 4.8 times, within management’s target range of 4.5-5.5 times. Cash and cash equivalents were $204.8 million at quarter-end, while net debt totaled about $17.28 billion.
Iron Mountain Raises 2026 Outlook
Iron Mountain raised its full-year AFFO per share forecast to $5.87-$5.93 from the earlier guided range of $5.79-$5.86. The midpoint implies approximately 14% growth, supported by continued momentum across records management, data centers, digital solutions and ALM. The Zacks Consensus Estimate is pinned at $5.85, which lies below the projected range.
The board also declared a quarterly dividend of 86.4 cents per share, payable on Oct. 2 to shareholders of record as of Sept. 15.
IRM’s Zacks Rank
IRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Iron Mountain Incorporated Price, Consensus and EPS Surprise
Performance of Other REITs
Digital Realty Trust DLR reported second-quarter 2026 core FFO per share, excluding net promote, of $2.13, up 13.9% from a year ago. The figure surpassed the Zacks Consensus Estimate by 7.6%. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter.
Prologis PLD reported second-quarter 2026 core FFO per share of $1.63, outpacing the Zacks Consensus Estimate of $1.53. Results reflected strengthening demand, disciplined execution and expanding capabilities across logistics, data centers and energy.
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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IRM Q2 AFFO Beats Estimates on Data Center and ALM Growth, '26 View Up

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Digital Realty Trust Inc (Symbol: DLR) has taken over the #183 spot from Honeywell Aerospace Inc (Symbol: HONA), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Digital Realty Trust Inc (Symbol: DLR), the market cap is now $66.13 billion, versus Honeywell Aerospace Inc (Symbol: HONA) at $65.01 billion.
Below is a chart of Digital Realty Trust Inc versus Honeywell Aerospace Inc plotting their respective size rank within the S&P 500 over time (DLR plotted in blue; HONA plotted in green):
Below is a three month price history chart comparing the stock performance of DLR vs. HONA:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full DLR market cap history vs. the full HONA market cap history.
At the closing bell, DLR is up about 2.6%, while HONA is down about 0.4% on the day Thursday.
Further DLR Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Digital Realty Trust Moves Up In Market Cap Rank, Passing Honeywell Aerospace

Public Storage PSA reported second-quarter 2026 core funds from operations (FFO) per share of $4.17, missing the Zacks Consensus Estimate by 1.9%. Core FFO declined 2.6% from the year-ago quarter.
Results reflected a decrease in same-store net operating income (NOI) by 2.2%. Growth from non-same-store properties and ancillary operations offset weaker same-store revenues. Average occupancy improved 20 basis points to 92.5%.
Quarterly revenues rose 2.6% year over year to $1.23 billion and surpassed the consensus estimate of $1.21 billion.
PSA's Same-Store Portfolio Faces Pressure
Same-store revenues decreased 0.6% year over year to $1.01 billion. Realized annual rental income per occupied square foot declined 0.8% to $21.89, while rental income per available square foot fell 0.6% to $20.24.
Direct operating costs increased 4.3% to $227.7 million, and indirect operating costs rose 5.7% to $32.5 million. Same-store NOI fell to $746.4 million from $763.3 million. The NOI margin contracted 120 basis points to 74.2%.
Public Storage's Lease-Up Assets Fuel Growth
The non-same-store pool remained PSA's main operating growth engine. The portfolio included 441 acquisition, development and expansion properties totaling 39.3 million rentable square feet, representing 17% of its U.S. consolidated portfolio.
Revenues from these properties increased 25.6% during the quarter, while NOI advanced 21.5%. The gains helped counter pressure within the mature same-store portfolio and supported overall self-storage revenue growth.
PSA's Ancillary Operations Add Support
Ancillary revenues increased 12.7% year over year to $92.9 million from $82.4 million. Ancillary operating costs rose 9% to $36.3 million, allowing the business to generate a wider contribution to consolidated operating results.
Total self-storage facility revenues improved 1.9% to $1.14 billion. However, self-storage operating costs climbed 8.1% to $307.8 million, reflecting the combination of higher same-store expenses and the expansion of the non-same-store portfolio.
Public Storage Expands Its Investment Pipeline
During the quarter, Public Storage acquired 20 self-storage facilities with 1.5 million rentable square feet for $222.5 million. Including activity after quarter-end, the company had acquired or agreed to acquire 44 facilities totaling 3.2 million square feet for $454.9 million.
PSA also opened three newly developed facilities and one expansion project during the first six months of 2026. These projects added 0.4 million rentable square feet at a cost of $57.3 million. Its development and expansion pipeline is expected to deliver 4 million square feet at an aggregate cost of $691.7 million.
Public Storage Strengthens Its Balance Sheet
PSA ended June with $10.3 billion of total indebtedness and approximately $3.8 billion of liquidity. Net debt to EBITDA improved to 2.9X from 3.1X a year earlier, while the weighted average interest rate increased 30 basis points to 3.3%.
During the quarter, the company issued $500 million of 5% senior notes due in 2035. It also established a $3 billion revolving credit facility, a $500 million delayed-draw term loan and a $1 billion commercial paper program. Subsequent to quarter-end, PSA issued an additional $900 million of senior notes at an effective rate of 4.855%.
PSA Raises Its 2026 Core FFO Outlook
Public Storage raised its 2026 core FFO per share guidance to $16.75-$17.05 from $16.35-$17.00. The revised outlook includes 2 cents per share of expected accretion from financing the National Storage Affiliates Trust and Public Storage Canada transactions.
The company also improved its same-store assumptions. It now expects revenue growth between negative 0.7% and positive 0.3% compared with the prior range of negative 2.2% to flat. Same-store NOI is projected to decline 0.3%-2%, narrower than the earlier expected decrease of 0.5%-3.9%.
PSA’s Zacks Rank
Public Storage currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Public Storage Price, Consensus and EPS Surprise
Performance of Other REITs
Digital Realty Trust DLR reported second-quarter 2026 core FFO per share, excluding net promote, of $2.13, up 13.9% from a year ago. The figure surpassed the Zacks Consensus Estimate by 7.6%. Strong bookings, a record backlog and sharp renewal rent increases supported the quarter.
Prologis PLD reported second-quarter 2026 core FFO per share of $1.63, outpacing the Zacks Consensus Estimate of $1.53. Results reflected strengthening demand, disciplined execution and expanding capabilities across logistics, data centers and energy.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	47.48 28.27
Price/Sales	11.13 3.35
P/B	2.76 1.32
P/FCF	16.01 15.40

Indicator	TTM Median
ROE	5.69 7.08
ROA	2.73 3.38
ROI	3.20 4.11
Net Worth	66.60 1.79
Quick Ratio	0.00 1.38
Current Ratio	1.59 1.43

Indicator	TTM Median
Net Profit Margin	21.09 20.83
Operating Margin	11.51 23.05
Gross Margin	55.54 65.01
Return on tangible equity	9.66 7.37

Indicator	TTM Median
EPS	2.13 0.51
EPS Forecast	1.98 0.45
Revenue	1.64B 115.00M
Gross Profit	937.00M —
EBITDA	782.00M —

Digital Realty Trust, Inc.

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