Digital Realty's $2.5B Lease Backlog Is Not Revenue Yet

What does Digital Realty's $2.5 billion lease backlog represent?

It represents annualized GAAP base rent from signed-but-not-commenced leases across the portfolio at 100% share, compared with $1.8 billion attributable to Digital Realty.

Orbitrum Investor Impact

Why does the record backlog matter to investors?

It demonstrates strong customer demand and provides visibility into future rental income, supported by record third-quarter bookings expected to generate $855 million in annualized GAAP base rent at 100% share, or $627 million at Digital Realty's share.

When will the new leases start generating rent?

New leases signed during Q3 2026 had a weighted-average lag of 17 months between signing and contractual commencement, meaning the bookings represent future rather than immediate rental income.

Could the backlog strengthen Digital Realty stock?

The record backlog strengthens the demand and future revenue visibility aspects of the NYSE-listed company's investment case, although delayed lease commencements mean the full $1.8 billion attributable to Digital Realty should not be treated as current revenue or FFO.

What does the backlog mean for Digital Realty's 2026 earnings outlook?

Digital Realty raised its 2026 Core FFO guidance, excluding net promote, to $8.30–$8.35 per share, from its previous $8.15–$8.20 range, alongside its record leasing results.

What should investors watch next?

Investors should monitor how quickly signed leases reach contractual commencement, how much backlog converts into rental revenue, and whether Digital Realty delivers its raised Core FFO guidance.