Insider Monkey sees more upside in Digital Realty at current prices, citing faster leasing and 2026 multiples of about 22x core FFO/share versus Equinix’s nearly 24x AFFO/share. The case hinges on development spending earning rent without excessive dilution.
Digital Realty’s second-quarter revenue rose 29% to $1.9 billion, while core FFO per share excluding promote income climbed to $2.13 from $1.87. Its signed-but-not-commenced backlog reached $1.4 billion in annualized base rent at its share; two hyperscale leases signed in July added $205 million. Cash renewal rents rose 25.4%, and management raised its 2026 core FFO/share guidance excluding net promote to $8.15–$8.20.
Equinix’s network density and interconnection ecosystem are cited as its competitive advantage. Its monthly recurring revenue grew 11% year over year in Q2 and normalized constant-currency AFFO/share rose 18%; its 2026 outlook calls for revenue growth of 11%–12%, AFFO/share growth of 10%–12% and adjusted EBITDA margins around 51%. Net debt/EBITDA was about 4.9 times; Digital Realty’s quarter-end net debt/adjusted EBITDA was 4.7 times. Digital Realty guided to $4.25 billion–$4.75 billion in net development capex and raised about $2.5 billion by selling 13.5 million shares through its ATM program in the first half.
