Digital Realty Trust
), a niche real estate investment trust (REIT), recently announced
that it has priced 10 million shares at $72.25 a share. Digital
Realty also plans to offer an option to the underwriters for
purchasing an additional 1.5 million shares. The offering is
expected to close on July 2, 2012.
The company expects to generate net proceeds of approximately
$698.2 million from the offering after the underwriting discount
and estimated offering expenses.
The company expects to contribute the proceeds generated from
this transaction to its operating partnership, Digital Realty
Trust, L.P. The operating partnership intends to use the net
proceeds from the offering to fund the acquisition of a
three-property data center portfolio located in the London named
Sentrum Portfolio, to repay debt under its global revolving
credit facility, to acquire additional properties and for general
working capital purposes.
During the first quarter of 2012, the company generated
approximately $62.7 million in net proceeds from the issuance of
approximately 957,000 at an average price of $66.19 per share.
Total debt increased to $3.3 billion at March 31, 2012 from $2.9
billion at December 31, 2011.
Digital Realty provides flexible and cost effective data center
facilities to a wide range of customers, including domestic and
international companies across multiple industry verticals. Its
portfolio includes 105 properties across Europe and North America,
spanning approximately 20.0 million square feet of space (including
2.3 million square feet of redevelopment space).
Digital Realty currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We have a long-term
Neutral recommendation on the stock. One of its competitors,
MPG Office Trust Inc
) holds a Zacks #1 Rank, which translates into a short-term strong
DIGITAL RLTY TR (DLR): Free Stock Analysis
MPG OFFICE TRST (MPG): Free Stock Analysis
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