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Data REITs: EQIX Soars, DLR Stumbles on Payouts
3 Sep
Summary
- Equinix targets 9-12% annual AFFO per share growth.
- Digital Realty's dividend has been frozen for four years.
- Equinix boasts an 11-year dividend growth streak.
Two prominent data center real estate investment trusts (REITs), Equinix (EQIX) and Digital Realty Trust (DLR), are displaying significantly different approaches to shareholder dividends as of September 3, 2026. Equinix has achieved an impressive 11-year streak of consecutive dividend growth, recently increasing its payout by 10%. The company projects AFFO per share to grow between 9% and 12% annually through 2029, maintaining a conservative payout ratio around 50%.
Digital Realty, however, presents a different picture. Its quarterly dividend of $1.22 per share has been static since March 2022, a freeze lasting over four years. Despite this stagnation in dividends, Digital Realty is experiencing accelerating Core FFO per share growth, with guidance for fiscal year 2026 indicating a payout ratio in the low 60s. This marks the second consecutive year of double-digit Core FFO per share growth for the company.
