Digital Realty Trust forecasts annual FFO above estimates on AI-driven demand
Feb 5 (Reuters) - Digital Realty Trust DLR.N forecast annual funds from operations above Wall Street estimates on Thursday, betting on strong demand for its data center services as businesses double down on artificial intelligence tech.
The company is experiencing increased demand as tech firms boost spending on AI infrastructure, including data centers, necessary for developing the booming technology.
Digital Realty leases out managed data centers to clients in sectors that range from cloud and information technology to social networking, communications and manufacturing.
The Texas-based real estate investment trust expects adjusted FFO, a key cash flow measure for REITs, of between $7.90 to $8 per share for the year, compared with analysts' average estimate of $7.45 per share, according to data compiled by LSEG.
For the fourth quarter ended December 31, Digital Realty posted revenue of $1.63 billion, compared with estimates of $1.58 billion.
Adjusted funds from operations in the quarter came in at $1.86 per share, compared with estimates of $1.58.
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