Digital Realty Trust Inc (NYSE:DLR) shares are trading higher after the company reported better-than-expected second-quarter revenue results yesterday.

Additionally, the company announced it established a joint venture deal. 

Core FFO per share of $1.68 was lower than $1.72 a year ago.

Adjusted EBITDA rose 14% Y/Y to $697 million in the quarter.

In the second quarter, Digital Reality Trust won bookings, which is expected to generate $114 million of annualized GAAP rental revenue, including a $37 million contribution from the 0–1 megawatt category and a $13 million contribution from interconnection.

As of June 30, 2023, the company had approximately $17.7 billion in total debt. 

Outlook: Digital Reality Trust lowered guidance for core FFO per share to $6.55-$6.65 (vs. consensus of $6.60) from $6.65-$6.75 and reiterated revenue outlook at $5.500 billion-$5.600 billion vs. consensus of $5.54 billion. 

In response to the second-quarter 2023 results, BNP Paribas analyst upgraded the stock to Outperform from Neutral at a $138 price target.  

DLR Price Action: Digital Reality Trust shares are trading up by 6.90% at $123.09 on the last check Friday. 

Read Next: Intel's Q2 Results Get Mixed Reactions From 4 Analysts: 'AI Contribution Remains Modest'

Photo: Shutterstock