DLR (Digital Realty Trust) Interest Coverage: 2.43 (As of Mar. 2026) — 18% Above Median


DLR Digital Realty Trust Inc DLR
86 GF Score
Price $193.02
GF Value $166.67
Valuation Modestly Overvalued
! 11 Warning Signs
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What is Digital Realty Trust Interest Coverage?

Digital Realty Trust DLR -1.02% 86 Interest Coverage is 2.43 as of Mar. 2026, which is 18% above its 10-year median of 2.06. GuruFocus rates DLR with a GF Score™ of 86/100 and a GF Value™ of $166.67 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 701 REITs companies, Digital Realty Trust ranks worse than 67.48% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Digital Realty Trust's Operating Income for the three months ended in Mar. 2026 was $283 Mil. Digital Realty Trust's Interest Expense for the three months ended in Mar. 2026 was $-116 Mil. Digital Realty Trust's interest coverage for the quarter that ended in Mar. 2026 was 2.43. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Digital Realty Trust's Interest Coverage or its related term are showing as below:

DLR' s Interest Coverage Range Over the Past 10 Years
Min: 1.66   Med: 2.06   Max: 2.59
Current: 2.13


DLR's Interest Coverage is ranked worse than
67.48% of 701 companies
in the REITs industry
Industry Median: 3.12 vs DLR: 2.13

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Digital Realty Trust  (NYSE:DLR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Digital Realty Trust Interest Coverage Related Terms


Digital Realty Trust Interest Coverage Historical Data

* Premium members only.

The historical data trend for Digital Realty Trust's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Digital Realty Trust Interest Coverage Chart

Digital Realty Trust Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.59 2.21 1.66 1.67 2.11

Digital Realty Trust Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.39 2.14 1.98 1.95 2.43

DLR vs AMT, CCI, IRM: Interest Coverage Comparison

For the REIT - Specialty subindustry, Digital Realty Trust's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Digital Realty Trust Interest Coverage vs REITs Industry

For the REITs industry and Real Estate sector, Digital Realty Trust's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Digital Realty Trust's Interest Coverage falls into.


DLR
86GF Score
Digital Realty Trust Inc DLR
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Digital Realty Trust Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Digital Realty Trust's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Digital Realty Trust's Interest Expense was $-438 Mil. Its Operating Income was $922 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,756 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*922.135/-437.947
=2.11

Digital Realty Trust's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Digital Realty Trust's Interest Expense was $-116 Mil. Its Operating Income was $283 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,507 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*282.618/-116.384
=2.43

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.43 mean?
Digital Realty Trust (DLR) has a Interest Coverage of 2.43 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Digital Realty Trust and its competitors. This is 18% above median its historical median of 2.06. Over the past decade, Digital Realty Trust's Interest Coverage has ranged from 1.66 to 2.59. According to the industry distribution chart, Digital Realty Trust ranks #473 out of 701 companies in the REITs industry, placing it in the top 67.5%.
Is Digital Realty Trust's Interest Coverage too high?
Digital Realty Trust's current Interest Coverage of 2.43 is 18% above median its 10-year median of 2.06. Over the past 10 years, this metric has ranged from a low of 1.66 to a high of 2.59. The REITs industry median Interest Coverage is 3.12. Digital Realty Trust's value of 2.43 is 22.1% below this industry median. Based on the distribution chart, Digital Realty Trust ranks #473 out of 701 companies in the REITs industry, which is below the industry midpoint. Overall, Digital Realty Trust has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Realty Trust's Interest Coverage compare to AMT and CCI?
According to the REITs industry distribution chart, Digital Realty Trust ranks #473 out of 701 companies for Interest Coverage. This places Digital Realty Trust in the lower half of its industry. The industry median Interest Coverage is 3.12. Digital Realty Trust's value of 2.43 is 22.1% below this benchmark. Historically, Digital Realty Trust's own Interest Coverage has ranged from 1.66 to 2.59 over the past decade. While the company's 10-year median is 2.06 vs. the industry median of 3.12, Digital Realty Trust has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.12, based on 701 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digital Realty Trust's current Interest Coverage of 2.43 is 22.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Digital Realty Trust and its competitors. For the REITs industry, the median Interest Coverage is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Realty Trust's current Interest Coverage is 2.43, which is 18% above median its own 10-year median of 2.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Realty Trust stock overvalued right now?
Based on GuruFocus' analysis, Digital Realty Trust (DLR) is currently considered Modestly Overvalued. The stock's GF Value™ is $166.67, compared to a current price of $193.02 — trading 15.8% above its estimated fair value. The current Interest Coverage is 2.43, which is 18% above median its 10-year median of 2.06 and 22.1% below the REITs industry median of 3.12. Digital Realty Trust's overall GF Score™ is 86/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Digital Realty Trust (DLR), the current Interest Coverage is 2.43 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Digital Realty Trust (DLR) Overvalued in 2026?

Based on GuruFocus' analysis, Digital Realty Trust stock appears to be overvalued. The current stock price of $193.02 is trading 15.8% above its estimated GF Value™ of $166.67. GuruFocus considers Digital Realty Trust to be Modestly Overvalued.

Key valuation signals for DLR:

  • Interest Coverage: 2.43 (18% above median its 10-year median of 2.06)
  • GF Value™: $166.67 vs. price of $193.02 (15.8% above fair value)
  • GF Score™: 86/100 with 11 warning signs
  • Industry Position: 22.1% below the REITs median (#473 of 701)

No single metric tells the full story. See the DLR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Digital Realty Trust Business Description

Industry Real EstateREITs
Address 2323 Bryan Street, Suite 1800, Dallas, TX, USA, 75201
Digital Realty is one of the leading providers of cloud- and carrier-neutral data centers, offering colocation and interconnection services to hyperscalers and large businesses. Digital Realty operates 300 properties in 57 metropolitan areas across 31 countries, serving 5,000 customers. Renting physical space accounts for about 90% of Digital Realty's revenue. The firm enables hyperscalers and other clients to store servers, data, and networking equipment. The other 10% of revenue is generated primarily through interconnection services (8%) and other fee income (2%).
86GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$193.02
Price
$166.67
GF Value