**Digital Realty Trust, a leading data center REIT, is poised for growth as demand for AI infrastructure surges.** Operating over 300 data centers in more than 50 locations, Digital Realty serves over half of the Fortune 500 companies, including IBM, Oracle, and Meta. The company projects a 9%-10% increase in its core funds from operations (FFO) per share, expecting it to rise from $6.22 in 2020 to between $7.32 and $7.38 in 2025, outpacing its forward dividend of $4.88 per share.
With an occupancy rate consistently in the mid-80s, Digital Realty anticipates an improvement of 100-200 basis points by 2025, reaching between 83.9%-84.9%. Currently valued at $165, the REIT trades at 22 times its trailing core FFO, making it an attractive alternative for income-oriented investors compared to higher-growth AI stocks still trading at premium valuations.
