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Capital expenditures averaged over $700M per quarter, consistently exceeding operating cash flow, leading to negative free cash flow in most periods and a reliance on external funding, with AFFO turning negative in 2025Q3 at -$122.6M.
Digital Realty Trust, Inc. (DLR) cash flow statement — 23-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | 2.97B | 2.41B | 2.26B | 1.63B | 1.66B | 1.7B | 1.71B | 1.51B | 1.39B | 1.02B | 912.26M | 799.23M | 655.89M | 656.39M | 542.95M | 400.96M | 359.03M | 283.81M | 217.81M | 105.66M | 103M | 82.85M | 44.64M | 28.99M |
| Operating CF Growth % | 107.83% | 6.66% | 38.34% | -1.48% | -2.52% | -0.25% | 12.73% | 9.28% | 35.38% | 12.17% | 14.14% | 21.86% | -0.08% | 20.89% | 35.41% | 11.68% | 26.5% | 30.3% | 106.15% | 2.58% | 24.33% | 85.6% | 54% | - |
| Operating CF / Revenue % | 43.32% | 39.46% | 40.71% | 29.85% | 35.37% | 38.44% | 43.72% | 47.17% | 45.47% | 41.63% | 42.59% | 45.32% | 40.55% | 44.28% | 42.6% | 37.73% | 41.49% | 44.54% | 41.29% | 27.45% | 37.5% | 39.68% | 41.67% | 45.95% |
| Net Income | 799.02M | 1.31B | 602.49M | 950.31M | 380.32M | 1.75B | 362.73M | 599.22M | 341.12M | 256.27M | 431.85M | 301.59M | 203.41M | 320.45M | 216.05M | 162.13M | 105.41M | 91.23M | 67.66M | 40.59M | 31.39M | 16.1M | 4.56M | 16.64M |
| Depreciation & Amortization | 2B | 1.89B | 1.77B | 1.69B | 1.58B | 1.49B | 1.37B | 809.47M | 770.27M | 595M | 518.72M | 464.69M | 456.2M | 397.59M | 316.06M | 302.49M | 255.59M | 190.01M | 162.59M | 81.28M | 52.8M | 33.75M | 18.25M | 9.48M |
| Stock-Based Compensation | 78.15M | 0 | 75.61M | 80.53M | 92.46M | 84.08M | 74.58M | 34.91M | 27.16M | 20.52M | 17.43M | 6.36M | 18.02M | 11.53M | 12.63M | 13.43M | 0 | 0 | 0 | 4.37M | 1.79M | 318K | 17.89M | 0 |
| Other Non-Cash Items | -146.56M | -828.35M | -213.09M | -711.17M | -160.99M | 52.11M | 31.89M | 387.02M | 458.23M | 262.86M | 155.58M | 48.38M | 75.04M | 70.33M | 66.35M | 30.93M | 28.7M | 24.85M | 19.03M | 41.26M | 29.83M | 35.53M | 22.83M | 2.25M |
| Working Capital Changes | 239.14M | 37.26M | 24.67M | -379.75M | -230.34M | -309.83M | -8.42M | -30.5M | -130.51M | -107.73M | -43.89M | -1.6M | -97.95M | -52.3M | -83.02M | -88.73M | -30.67M | -22.28M | -31.48M | -57.25M | -14.63M | -5.32M | -4.69M | 619K |
| Cash from Investing | -5.74B | -2.23B | -1.91B | -1.12B | -4.7B | -1.06B | -2.6B | -274.99M | -3.04B | -1.36B | -1.3B | -2.53B | -644.18M | -1.06B | -2.48B | -830.8M | -1.74B | -519.91M | -647.75M | -537.43M | -601.79M | -480.81M | -371.28M | -215.26M |
| Acquisitions (Net) | -2.49B | -686.93M | -508M | -146.77M | -2.23B | -189.35M | -23.24M | 1.3B | 115.33M | 63.04M | -873.28M | -1.86B | -20.63M | -24.45M | -54.83M | 0 | 0 | 0 | 0 | -3.68M | 0 | 0 | 0 | 0 |
| Purchase of Investments | -262.83M | 0 | 0 | 0 | -296.1M | 827.03M | -144.32M | -2.6M | -13.25M | -93.41M | 0 | -110.07M | 83.53M | -17.1M | 0 | -6.14M | -10.58M | 0 | -21.22M | 0 | -30.43M | 0 | -13.56M | 0 |
| Sale of Investments | 35.18M | 0 | 0 | 0 | 271.57M | 1.69B | 70.02M | 1.49B | 0 | 63.96M | 364.8M | 185.56M | 31.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24.41M | 0 | 0 | 0 |
| Other Investing | -2.1B | -1.54B | -1.4B | -968.34M | 194.5M | -872.37M | -323.13M | -1.56B | -3.14B | -1.48B | -426.15M | -665.16M | 4.63M | -1.02B | -2.42B | 18.96M | -14.04M | 13.44M | 18.12M | 92.25M | 13.11M | -7.92M | -371.28M | 0 |
| Cash from Financing | 955.67M | -486.74M | 2.06B | 963.47M | 2.97B | -590.63M | 935.69M | -1.27B | 1.76B | 321.2M | 351.93M | 1.75B | -27.2M | 404.75M | 1.95B | 458.76M | 1.32B | 235.09M | 471.93M | 440.86M | 510.12M | 404.34M | 326.02M | 187.87M |
| Dividends Paid | -1.77B | -1.73B | -1.63B | -1.52B | -1.45B | -1.38B | -1.24B | -996.77M | -930.78M | -715.21M | -605.39M | -548.06M | -509.16M | -443.86M | -373.1M | -286.68M | -208.55M | -150.19M | -130.04M | -97.08M | -78.38M | -58.44M | -68.59M | 0 |
| Common Dividends | -1.77B | -1.73B | -1.63B | -1.52B | -1.45B | -1.38B | -1.16B | -921.78M | -849.47M | -646.41M | -521.62M | -468.63M | -441.69M | -400.95M | -334.43M | -261.29M | -171.55M | -109.78M | -91.48M | -77.75M | -64.6M | -48.42M | -68.59M | 0 |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.86M | -182.5M | -287.5M | 0 | 0 | 0 | 0 | 0 | -166.75M | 0 | 0 | 0 | 0 | -13.71M | 0 | 0 |
| Other Financing | -815.45M | -54.88M | 8.61M | -57.49M | 96.39M | 90.34M | 84.87M | 47.69M | 25.4M | -19.55M | 759.36M | -26.97M | 337.37M | 195.2M | -52.52M | -82.81M | -11.52M | -16.46M | -5.73M | -17.14M | -158.66M | -5.32M | 29.73M | 45.69M |
| Net Change in Cash | -1.7B | -419.24M | 2.24B | 1.49B | -789K | 27.83M | 26.4M | -37.97M | 122.04M | -8.86M | -46.52M | 22.24M | -15.49M | 527K | 15.65M | 28.91M | -60.6M | -1.01M | 41.98M | 9.09M | 11.33M | 6.37M | -617K | 1.6M |
| Exchange Rate Effect | 117.4M | -113.34M | -178.52M | 2.63M | 70.08M | -22.04M | -16.48M | -4.77M | 15.44M | 3.79M | -11.29M | 2.32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 2.44B | 3.87B | 1.64B | 150.7M | 151.49M | 123.65M | 97.25M | 135.22M | 13.18M | 22.04M | 57.05M | 34.81M | 56.81M | 56.28M | 40.63M | 11.72M | 72.32M | 73.33M | 31.35M | 22.26M | 10.93M | 4.56M | 5.17M | 3.58M |
| Cash at End | 1.87B | 3.45B | 3.88B | 1.64B | 150.7M | 151.49M | 123.65M | 97.25M | 135.22M | 13.18M | 10.53M | 57.05M | 41.32M | 56.81M | 56.28M | 40.63M | 11.72M | 72.32M | 73.33M | 31.35M | 22.26M | 10.93M | 4.56M | 5.17M |
| Free Cash Flow | 1.37B | 2.41B | -570.26M | -1.89B | -983.71M | -818.54M | -472.14M | 10.84M | 11.66M | -178.17M | 137.94M | 21.5M | -87.45M | 656.39M | 542.95M | -442.67M | -1.35B | -249.54M | -426.84M | -520.34M | -505.88M | -390.05M | -313.08M | -186.28M |
| FCF Growth % | 315.97% | 522.99% | 69.84% | -92.21% | -20.18% | -73.37% | -4456.73% | -7.06% | 106.54% | -229.16% | 541.62% | 124.58% | -113.32% | 20.89% | 222.65% | 67.31% | -442.62% | 41.54% | 17.97% | -2.86% | -29.7% | -24.58% | -68.07% | - |
| FCF / Revenue % | 19.94% | 39.46% | -10.27% | -34.52% | -20.97% | -18.49% | -12.09% | 0.34% | 0.38% | -7.25% | 6.44% | 1.22% | -5.41% | 44.28% | 42.6% | -41.66% | -156.46% | -39.17% | -80.93% | -135.21% | -184.18% | -186.8% | -292.27% | -295.27% |
Quick answers to the most common questions about buying DLR stock.
Digital Realty Trust, Inc. (DLR) generated $2.41B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Digital Realty Trust, Inc. (DLR) generated $2.41B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Digital Realty Trust, Inc. (DLR) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Digital Realty Trust, Inc. (DLR) returned $1.73B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Earnings quality and leverage concerns
Metrics are mathematically derived from official filings.
AFFO Volatility Masks Dividend Coverage
AFFO swung from $789M in 2025Q2 to -$122.6M in 2025Q3, per reported figures, leaving dividend coverage inconsistent and warranting close monitoring of recurring cash generation.
The dividend payout ratio relative to AFFO has been erratic, with 2026Q1 showing a ratio of 1.28, indicating dividends exceeded AFFO, while 2025Q2 showed a ratio of 0.29, suggesting ample coverage. This volatility implies that AFFO is being distorted by non-recurring items or significant timing differences, making it difficult to assess the sustainability of the dividend. Investors should monitor whether the company can generate stable AFFO to cover its distribution, as the recent negative AFFO quarters raise concerns about the quality of earnings.
Heavy Development Capex Pressures FCF
Capital expenditures averaged over $700M per quarter, as reported in cash flow statements, consistently exceeding operating cash flow and driving negative free cash flow in most periods, indicating a capital-intensive growth phase.
The company's substantial investment in development and acquisitions is evident from the large capex outflows, which have led to negative FCF in seven of the last ten quarters. This suggests that DLR is prioritizing growth over near-term cash generation, relying on external financing to fund its pipeline. While this is typical for data center REITs, the magnitude of capex relative to OCF implies a high dependency on capital markets, and any disruption could strain liquidity.
External Capital Dependency Intensifies
With FCF negative in most quarters and dividends exceeding AFFO in some, DLR appears reliant on debt or equity issuance to fund its development pipeline, as per cash flow data, increasing balance sheet risk.
The persistent gap between operating cash flow and capital expenditures, combined with dividend payments, suggests that DLR is funding a significant portion of its growth through external sources. The debt-to-equity ratio of 0.97, near the upper bound for REITs, indicates that the company may be approaching leverage limits. This dependency on external capital could become a constraint if market conditions tighten, potentially leading to equity dilution or reduced development activity.
Depreciation Distorts Net Income
FFO-to-net-income ratios above 2.0 in most quarters, as per financial statements, highlight the significant non-cash depreciation charges that depress GAAP earnings but are added back in FFO, underscoring the importance of FFO-based analysis.
The wide gap between net income and FFO, with FFO often exceeding net income by a factor of two or more, reflects the heavy depreciation burden typical of data center assets. This distortion makes GAAP net income a poor indicator of cash-generating ability, reinforcing the need for investors to focus on FFO and AFFO. However, the volatility in FFO itself, such as the $1.5B spike in 2025Q2, suggests that non-recurring gains or losses can also distort this metric, requiring careful scrutiny.
What the Cash Flow Statement Hides
Capitalized maintenance costs and joint-venture obligations may be understated, as suggested by the low AFFO relative to FFO in several quarters, potentially masking true recurring cash flow.
The significant difference between FFO and AFFO in quarters like 2025Q3 (FFO of $564.8M vs AFFO of -$122.6M) indicates that substantial recurring capex, such as tenant improvements and leasing commissions, is being deducted. This suggests that the company's true distributable cash flow is lower than FFO implies. Additionally, the use of joint ventures, as noted in recent context, may offload some capital burden but could also obscure the full extent of cash commitments. Investors should examine the footnotes to understand the sustainability of AFFO and the potential for off-balance-sheet obligations.