Blackstone Launches $2.35B Secondary Offering of Digital Realty Stock Tied to Major Acquisition
DLR sits 27% above its 52-week low of $146.23.
Summary
Blackstone affiliates are conducting a $2.35 billion secondary offering of Digital Realty common stock, which is part of the payment for Digital Realty's acquisition of Blackstone's interests in two hyperscale data center joint ventures.
Key Events · Financing and Capital Events · DLR
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$2.35 Billion Secondary Offering
Affiliates of Blackstone Inc. are selling approximately $2.35 billion of Digital Realty common stock in a secondary offering.
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Part of Strategic Acquisition
The shares are being issued to Blackstone as partial consideration for Digital Realty's acquisition of Blackstone's 64% interests in the Digital Carver Dulles 9 and Digital Carver Brickyard joint ventures.
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Acquisition Details and Benefits
The acquisition involves three hyperscale data centers in Northern Virginia, valued at $7.8 billion gross, and is expected to be leverage neutral and accretive to Core FFO per share in 2027 and 2028.
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No Proceeds to Company
Digital Realty will not receive any cash proceeds from this secondary offering.
Analysis · DLR · Real Estate & Construction
This filing details a significant $2.35 billion secondary offering of Digital Realty common stock by affiliates of Blackstone. The shares are being issued to Blackstone as part of the consideration for Digital Realty's acquisition of Blackstone's 64% interests in two hyperscale data center joint ventures. While the secondary offering itself represents a substantial sale by a major institutional investor, the underlying acquisition is a strategic move for Digital Realty, valued at $7.8 billion gross, and is expected to be leverage neutral and accretive to Core FFO per share in 2027 and 2028. Digital Realty will not receive any proceeds from this secondary offering, but the issuance of shares to Blackstone for the acquisition will be dilutive to existing shareholders.
At the time of this filing, DLR was trading at $186.00 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $67B. The 52-week trading range was $146.23 to $208.14. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.